Complete investment analysis based on official FDD data
Total Investment
$65,500 – $205,000
Franchise Fee
$20,000
Royalty Rate
N/A
The total initial investment to open a HomeSmart franchise ranges from $65,500 to $205,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $20,000.
Midpoint estimate: $135,250
$20,000
One-time initial fee
The HomeSmart franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the HomeSmart brand and is included in the total initial investment range above.
Royalty Fee
N/A
Ad/Marketing Fund
N/A
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty Fees and Franchise Marketing Accrual Fund Contributions | N/A | VARIABLE | Franchise Marketing Accrual Fund Contributions are equal to 4% of the per transaction flat fee but are already incorporated into the Flat Fee Model and therefore no additional Franchise Marketing Accrual Fund Contributions are collected. Payable on or before the 10th of each month. |
| Annual Membership Fee | N/A | VARIABLE | Fee to be paid by each agent. Amount not yet determined - franchisor will notify prior to first due date. Due on or before the 10th day after each agent commences association and on the 10th day of that month each year. Franchisor reserves the right to increase annually. If agent fails to pay, franchisee must pay on demand. |
| Branch Office Fee | 10000.0 | FIXED | Payable for each Branch Office opened in Territory. Due prior to the Opening Date of each Branch Office. |
| Local Advertising | N/A | VARIABLE | Amount will vary under circumstances. Franchisee must spend money for local advertising and promotions in the Territory. Does not include costs of advertising property for sale, recruiting agents, or advertising expenses related directly to sale of property. |
| Additional Assistance | N/A | VARIABLE | $500-$1000 per person per day plus travel expenses, lodging and meals. Payable 10 days after billing. Franchisor reserves the right to provide opening assistance on site at no additional charge. |
| Initial Training for Additional Person(s) | 500.0 | FIXED | Training for two people included in Initial Franchise Fee. $500 per person for full week of training or $250 per person for 3 days or less. For subsequent trainings during Initial Term and/or Successor Terms: $500 per person for 4 days or more, $250 per person for 3 days or less. Payable before beginning of Initial Training Program. |
| Transfer Fee | 20.0 | PCT | Payable before acceptance of transfer. |
| Successor Franchise Fee | 50.0 | PCT | Based upon Franchise Fee for new franchises offered at the time Successor Franchise Agreement is signed plus the then-current Branch Office Fee. Due upon signing the Successor Franchise Agreement. |
| Audit | N/A | VARIABLE | Payable only if audit shows an under-statement of at least 1% of total fees due to Franchisor for any month. Due 30 days after billing. |
| Indemnification | N/A | VARIABLE | Franchisee must reimburse franchisor if held liable for claims arising from franchisee's HomeSmart Real Estate Brokerage Business. Amount will vary under circumstances. Due as incurred. |
| Cost of Enforcement or Defense | N/A | VARIABLE | Franchisee must reimburse franchisor if required to incur expenses in enforcing rights against franchisee under the Franchise Agreement. Due upon settlement or conclusion of claim or action. |
| Late Fee | 5.0 | PCT | Applies after any payments are due and unpaid. Due as incurred. |
| Interest | 1.5 | PCT | Begins to accrue after any payments are due and unpaid. Interest rate will not exceed maximum rate permitted by applicable state law. In California, maximum interest rate is 10% per year. Due as incurred. |
| Late Report Fee | N/A | VARIABLE | Payable only if a required report or financial statement is not delivered when due. Due as incurred. |
| Technology Fee | 250.0 | FIXED | Currently $250 per month but franchisor reserves the right to increase this amount at any time. Fee may be increased when new technology or services are added. Franchisor may charge separately for individual features or components. Payable monthly on or before the 10th of each month. |
| Optional System License and Support Fee | N/A | VARIABLE | $0-$3,000 per month per System Instance. Fee will vary based on volume and the services requested by franchisee. Due as incurred. |
| MLS/RETS Fee | 250.0 | FIXED | Payable for each month from and after the Opening Date. Payable monthly on or before the 10th of each month. |
| Domain Name Fee | N/A | VARIABLE | Franchisor will only charge what it pays to secure and maintain domain name. Payable annually or per domain registration terms. |
| Additional Computer Training | N/A | VARIABLE | Required if franchisor determines franchisee does not have sufficient skills to operate computer, understand software, and access e-mail and Internet. Must take training at local computer school (which may be an Affiliate). Due prior to training. |
| Seminars, Conventions or Programs | N/A | VARIABLE | Estimated range of costs is $1,000-$2,000 plus materials estimated at $100. Does not include travel and living expenses. Franchisor reserves the right to conduct periodic meetings of all franchisees. Due as incurred. |
| Lead Services | N/A | VARIABLE | Lead Services will provide leads from various sources. Franchisee will retain a portion of the split depending on the program, and the remainder will go to Franchisor. Lead Services will identify and engage with strategic partners and lead programs providing referrals. Due immediately upon the closing of each applicable transaction. |
Category
Real Estate
Franchise Score
out of 100
HomeSmart is a real estate brokerage franchise providing residential sales, commercial services, and technology-enabled tools for agents and brokers. The company focuses on delivering innovative real estate solutions and supporting agent productivity.
Avg. Annual Closure Rate
4.7%
Moderate risk — near industry average
Net Unit Growth
+205 units
From Next Fiscal Year to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| Next Fiscal Year | — | +24 | — | — | — |
| 2022 | 158 | +24 | -12 | — | 170 |
| 2023 | 170 | +20 | -11 | — | 179 |
| 2024 | 179 | +27 | -1 | — | 205 |
Based on the FDD data, here is a data-driven snapshot of the HomeSmart franchise opportunity:
Overall Score
46/100
Moderate opportunity
Est. Payback Period
N/A
Insufficient data
Risk Level
Medium
4.7% annual closure rate
HomeSmart shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full HomeSmart franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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