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HouseMaster Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a HouseMaster Franchise?
To start a HouseMaster franchise, you’ll need to prepare for an initial investment ranging from $58,825 to $92,675. This includes a franchise fee of $42,500. Additionally, you must have a net worth between $100,000 and $300,000. It’s important to ensure that you have sufficient cash on hand to cover these costs, as well as to support your business in its early stages.
What Are the Ongoing Fees for a HouseMaster Franchise?
HouseMaster franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand presence and supporting marketing initiatives. Understanding these costs upfront can help you budget effectively and assess the overall profitability of your franchise investment.
What Is the Average Revenue Potential for a HouseMaster Franchise?
The average annual revenue per HouseMaster unit is approximately $451,879, with a median of $115,745. However, revenues can vary significantly, with the lowest reported annual revenue at $13,860 and the highest reaching $1,765,341. This range highlights the potential for profitability, but it also emphasizes the importance of effective management and local market conditions.
What Is the Expected Timeframe for Breaking Even with a HouseMaster Franchise?
HouseMaster franchisees can expect to break even within approximately 12 months of operation. The investment payback period is estimated at around 23 months. This relatively quick breakeven timeframe can be appealing for aspiring franchisees, as it indicates the potential for a faster return on investment when compared to other franchise opportunities.
HouseMaster 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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
HouseMaster Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 277 | 247 | 242 |
| Net Change YoY | -30 | -5 | |
| Franchised Units | 271 | 247 | 242 |
| Net Change YoY | -24 | -5 | |
| Corporate Units | 6 | 0 | 0 |
| Net Change YoY | -6 | 0 |
Investment Overview
The HouseMaster franchise offers a low initial investment ranging from $58,825 to $92,675, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $42,500, while ongoing royalty and marketing fees are 6% and 2% of gross sales, respectively. Prospective franchisees should have a net worth between $100,000 and $300,000 to qualify for ownership.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $146,553, with a median revenue of $115,745. The revenue range is quite broad, with the lowest reported annual revenue at $13,860 and the highest reaching $1,765,341. This variability highlights the potential for significant earnings depending on location and management.
Breakeven and Payback
The HouseMaster franchise has a breakeven time of about 12 months, allowing franchisees to recover their initial investment relatively quickly. The investment payback period is estimated at 23 months, providing a clear timeline for financial planning and expectations.
Franchise Growth
HouseMaster has seen a slight decline in franchised units, with 271 in 2021, 247 in 2022, and 242 in 2023. Despite this decrease, the brand continues to maintain a strong presence in the market, indicating stability and potential for future growth as franchisees adapt to changing market conditions.
Financial Performance
The average annual revenue for HouseMaster units stands at $451,879, with a gross profit margin of 84.8%. Operating expenses account for 64% of revenue, leading to an EBITDA of approximately $166,470, which represents 36.8% of total revenue. This financial performance underscores the profitability potential for franchisees who effectively manage their operations.
Corporate Structure
HouseMaster operates primarily through franchised units, with no corporate-owned locations reported since 2022. This structure allows franchisees to benefit from a well-established brand while maintaining their independence in operations. The focus on franchising supports local ownership and community engagement, fostering a personalized customer experience.
Frequently Asked Questions
The initial investment for a HouseMaster franchise ranges from $58,825 to $92,675, which includes the franchise fee of $42,500.