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Hommati Franchise ProfileReal Estate Franchises > Residential Brokerage |
What Are the Initial Costs to Open a Hommati Franchise?
To open a Hommati franchise, you will need to consider a range of initial costs. The franchise fee is set at $44,900, with a total initial investment ranging from $69,440 to $83,998. It's crucial to have cash readily available within this range to cover startup expenses. Additionally, potential franchisees should be aware of ongoing fees, including an 8% royalty fee and a 4% marketing fee, which are essential for maintaining your franchise's operational success and brand visibility.
What Are the Financial Performance Metrics for a Hommati Franchise?
Hommati franchises have reported an average annual revenue of $111,815.73, with a median annual revenue of $78,026. However, revenue can vary significantly, with the lowest annual revenue recorded at $2,427.64 and the highest at $340,964.86. Understanding these metrics is vital for evaluating the potential return on investment and setting realistic financial expectations. Franchisees can expect to reach breakeven within approximately 12 months and achieve a return on their investment in about 15 months.
What Are the Required Financial Qualifications for a Hommati Franchise?
Aspiring franchisees must meet specific financial qualifications to be considered for a Hommati franchise. A net worth of $200,000 to $400,000 is required, ensuring that franchisees have the financial stability to support their business. Additionally, having liquid cash in the range of the initial investment will help cover startup costs and operating expenses. This financial preparedness is crucial for navigating the early stages of franchise ownership successfully.
How Has Hommati Franchising Grown Over Recent Years?
Hommati has experienced steady growth in its franchised units over the past few years. In 2021, there were 97 franchised units, which increased to 125 in 2022. By 2023, the number of franchised units reached 128, indicating a positive trend in expansion. Additionally, the introduction of corporate-owned units in 2023, totaling 8, suggests that the brand is investing in its growth strategy, which may offer franchisees increased support and resources as they operate their businesses.
Hommati 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.
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Hommati Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 97 | 125 | 136 |
| Net Change YoY | 28 | 11 | |
| Franchised Units | 97 | 125 | 128 |
| Net Change YoY | 28 | 3 | |
| Corporate Units | 0 | 0 | 8 |
| Net Change YoY | 0 | 8 |
Investment Overview
The Hommati franchise offers a low initial investment range of $69,440 to $83,998, making it an accessible opportunity for aspiring entrepreneurs. The initial franchise fee is set at $44,900, with ongoing royalty fees of 8% and a marketing fee of 4%. Potential franchisees should have a net worth between $200,000 and $400,000, ensuring they are well-positioned to support their business venture.
Revenue Potential
Hommati franchise units have shown promising financial performance, with an average annual revenue of $111,815.73 and a median annual revenue of $78,026. The franchise also reports a wide revenue range, with the lowest annual revenue at $2,427.64 and the highest at $340,964.86. This variability highlights the potential for growth and profitability within the franchise model.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 15 months, allowing franchisees to recoup their initial investment relatively quickly. This timeline is crucial for new franchise owners as it helps in assessing the financial viability of their investment.
Franchise Growth
Hommati has demonstrated steady growth in its franchised units, increasing from 97 units in 2021 to 128 units in 2023. This upward trend indicates a growing interest in the brand and its business model. Additionally, the introduction of corporate-owned units in 2023 marks a strategic move that may enhance brand consistency and operational support for franchisees.
Operational Insights
The average annual operating expenses for Hommati franchises total $2,847,523. Key expenses include salaries and wages, which account for a significant portion of operating costs at $1,065,330. Understanding these financial metrics is essential for franchisees to effectively manage their operations and ensure profitability.
Support and Training
Hommati provides comprehensive support and training for its franchisees, equipping them with the necessary tools and knowledge to succeed. This includes guidance on operational procedures, marketing strategies, and ongoing business development. The franchise's commitment to franchisee success is a vital component of its overall business model, fostering a collaborative environment for growth.
Frequently Asked Questions
The initial investment for a Hommati franchise ranges from $69,440 to $83,998, which includes the franchise fee of $44,900.