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Description
Investment Icon

Overview of HomeVestors Franchise Costs

The HomeVestors franchise requires an initial investment ranging from $109,000 to $461,250, including a franchise fee of $85,000. Franchisees should be prepared for ongoing costs, including a 2% royalty fee and a 6% marketing fee. To qualify, you need a net worth between $150,000 and $400,000, along with sufficient cash reserves to cover startup expenses.

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Potential Revenue and Profitability

HomeVestors franchisees can anticipate average annual revenue of approximately $1,276,046 per unit, with the potential for earnings ranging from $123,000 to $4,500,000. The average EBITDA stands at about 33.6% of revenue, indicating a healthy profit margin. With a breakeven time of around 12 months and an investment payback period of 24 months, this franchise offers a promising return on investment for dedicated operators.

Revenue Icon

Franchise Growth and Stability

HomeVestors has shown a stable presence in the franchise market, with 1,148 franchised units in 2021, slightly decreasing to 1,082 in 2023. The company has also started to expand its corporate units, increasing from 0 in 2021 to 10 in 2023. This growth trajectory suggests a commitment to strengthening the brand while providing franchisees with additional support and resources.

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Support and Training for Franchisees

Franchisees benefit from comprehensive training and ongoing support from HomeVestors. The training program equips new owners with the skills needed to navigate the real estate investment landscape successfully. Franchisees receive guidance on marketing strategies, operational efficiencies, and leveraging the HomeVestors brand to maximize their business potential. This support helps franchisees build confidence and competence in managing their operations effectively.

HomeVestors Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$150,000 - $400,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$85,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

2%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

6%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$109,000 - $461,250
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$109,000 - $461,250
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$50,000
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,276,046
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$4,500,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$123,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Real Estate Franchises
Category icon A more specific division within the broader industry.

i Category:

Residential Brokerage
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

David Hicks
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

6500 Greenville Avenue, Suite 400 Dallas, Texas 75206
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1996
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

HomeVestors of America Inc.

HomeVestors Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

1092
The number of locations owned by independent franchisees.

Franchised Units i

1082
The number of locations owned and run by the franchisor.

Corporate Units i

10
Units 2021 2022 2023
Total Units 1148 1144 1092
Net Change YoY -4 -52
Franchised Units 1148 1144 1082
Net Change YoY -4 -62
Corporate Units 0 3 10
Net Change YoY 3 7
Investment About

Investment Overview

HomeVestors offers a range of investment options for aspiring franchisees, with an initial investment between $109,000 and $461,250. The franchise fee is set at $85,000, with ongoing royalty fees of 2% and a marketing fee of 6%. This structure allows franchisees to leverage a well-established brand while managing their financial commitments effectively.

Potential About

Revenue Potential

Franchisees can expect an average annual revenue of approximately $1,276,046 per unit, with some units generating as much as $4,500,000. The financial performance of HomeVestors franchises indicates a strong potential for profitability, making it an attractive opportunity for entrepreneurs looking to enter the real estate investment market.

Metrics About

Financial Requirements

To become a HomeVestors franchisee, candidates must demonstrate a net worth between $150,000 and $400,000. Additionally, a cash requirement of at least $109,000 is necessary to ensure that franchisees have the financial resources to support their operations and marketing efforts from the outset.

Fees About

Breakeven and Payback

Franchisees can anticipate a breakeven period of approximately 12 months, with an investment payback time of around 24 months. This relatively quick return on investment is appealing for those seeking a viable business model with a clear path to profitability.

Breakeven About

Franchise Growth

HomeVestors has shown consistent growth in franchised units, with 1,148 units in 2021, slightly declining to 1,082 in 2023. Despite the decrease in total units, the addition of corporate-owned units suggests a strategic focus on enhancing brand presence and operational support for franchisees.

Units About

Operational Insights

The average operating expenses for HomeVestors franchises total approximately $16,209,409, which includes salaries, depreciation, and other related costs. With a gross profit margin of 66.8%, franchisees can effectively manage their expenses while maximizing profitability, making informed financial decisions crucial for long-term success.

Frequently Asked Questions

The initial investment for a HomeVestors franchise ranges from $109,000 to $461,250. This includes the franchise fee of $85,000, along with other startup costs.