Complete investment analysis based on official FDD data
Total Investment
$150,000 – $477,250
Franchise Fee
$85,000
Royalty Rate
3.0%
The total initial investment to open a HomeVestors franchise ranges from $150,000 to $477,250, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $85,000.
Midpoint estimate: $313,625
$85,000
One-time initial fee
The HomeVestors 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 HomeVestors brand and is included in the total initial investment range above.
Royalty Fee
3.0%
of gross revenue
Ad/Marketing Fund
N/A
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Transaction Fees - Level 1 | 3.0 | PCT | Level 1: Does not meet requirements for Level 2. No Transaction Fees due on up to 2 personal residences during 5-year term. Paid by title closer/escrow officer via wire or EFT. |
| Transaction Fees - Level 2 | 2.0 | PCT | Level 2: >10 Qualifying Transactions OR >$1M Aggregate Sales during franchise term |
| Transaction Fees - Level 3 | 1.5 | PCT | Level 3: >20 Qualifying Transactions OR >$2M Aggregate Sales during franchise term |
| Transaction Fees - Level 4 | 1.25 | PCT | Level 4: >30 Qualifying Transactions OR >$3M Aggregate Sales during anniversary year |
| Transaction Fees - Level 5 | 1.0 | PCT | Level 5: >40 Qualifying Transactions OR >$4M Aggregate Sales during anniversary year |
| Transaction Fees - Level 6 | 0.8 | PCT | Level 6: >$5.5M Aggregate Sales during anniversary year |
| Transaction Fee - Purchase Transaction | 500.0 | FIXED | Applies to acquisition of real property by franchisee or covered person. Paid upon closing. |
| Transaction Fee - Assignment Transaction | N/A | VARIABLE | Assignment Transaction involves assigning contract rights, referring acquisition, or acting as broker. Paid upon closing. |
| Associate Royalty Fee | 2.0 | PCT | Associate Franchises only, in addition to Transaction Fee. For Assignment Transactions, capped at 10% of assignment/referral/broker fee. One-half credited toward Full Franchise upgrade. Additional 1% of after repaired value of inventory due at upgrade. |
| Monthly Fee | 399.0 | FIXED | Payable via EFT or credit card beginning first full month after initial training. May be increased up to $500 with 10 days' notice. |
| Local or Regional Marketing / Advertising Council - Level 6 | 5000.0 | FIXED | Level 4, 5, and 6 franchisees must spend at least $5,000/month for local advertising. Payment required one month in advance. If minimum not met, amount paid to Marketing Fund. Leads may be turned off if not meeting requirement. |
| Local or Regional Marketing / Advertising Council - Level 3 | 1000.0 | FIXED | Level 3 franchisees must spend at least $1,000/month for local advertising. If not met, amount paid to Marketing Fund. |
| Local or Regional Marketing / Advertising Council - Level 2 | 1000.0 | FIXED | Level 2 franchisees must spend at least $1,000/month OR may elect to contribute $200 to Marketing Fund/NAF instead. Must spend at least $1,000 in any 6-month period. Max contribution requirement $1,000/month. |
| Local or Regional Marketing / Advertising Council - Level 1 | N/A | VARIABLE | Level 1 franchisees not required to advertise unless Advertising Council/NAF documents require it (max $1,000/month). Must spend at least $1,000 in any 6-month period. |
| Marketing Fund Contributions | 300.0 | FIXED | Currently $300 per transaction, maximum $1,000 per transaction. May be raised to max $1,000. Level 2 franchises contribute additional $200/month if they don't meet $1,000 local advertising minimum. Paid at same time as Transaction Fee. In addition to and does not count toward local advertising requirement. |
| Review of Advertising and Marketing Materials | N/A | VARIABLE | Up to $1,000 per review for materials not prepared or previously approved by franchisor. Due on receipt of invoice. |
| National Advertising Fund (NAF) contribution | N/A | VARIABLE | Franchisee will not be required to contribute to NAF and Advertising Council more than minimum monthly local advertising requirement for their Level or 25% of monthly advertising spend, whichever is greater. Level 2 franchises contribute additional $200/month if not meeting local advertising minimum. Payable via EFT beginning first full month after training. May be allocated from Advertising Council contributions or local advertising expenditures. Leads may be cut off for non-payment. |
| Franchise Upgrade Fee | N/A | VARIABLE | Payable at time of upgrade from Associate to Full Franchise. Requires substantial compliance, agreement to modify business, and being current on all amounts owed. |
| Office visits | N/A | VARIABLE | Up to $1,000 per visit at franchisee request. Franchisee also reimburses all reasonable expenses (travel, lodging, meals, wages). Due on receipt of invoice. |
| Technology | 425.0 | FIXED | Up to $425/month for software programs and platforms. Error corrections at no charge, but may charge for updates and enhancements. Due on receipt of invoice. |
| UGVille proprietary software program | N/A | VARIABLE | Currently included in Monthly Fee. May begin charging separately or raise fee up to $5,000/year with 10 days' notice. May charge for upgrades or maintenance. Provided through third-party (currently Salesforce). May change vendors or providers. |
| Microsoft Office 365 and email addresses | N/A | VARIABLE | Base Microsoft Office 365 license and up to 4 email addresses included in Monthly Fee. Additional email addresses $150/year. Upgrades at Microsoft rate plus 10% admin fee. May begin charging separately or raise fees with 10 days' notice. |
| DealVestors Website | N/A | VARIABLE | Currently no cost. Optional use. May begin charging monthly fee with 10 days' notice. Due on receipt of invoice. |
| Transfer Fee - Associate Franchise | 7500.0 | FIXED | Payable by franchisee or transferee before transfer completed. Reduced administrative transfer fee for transfers among original owners, of <10% interest, or to entity wholly owned by original owners. |
| Transfer Fee - Full Franchise | 17500.0 | FIXED | Payable by franchisee or transferee before transfer completed. Reduced administrative transfer fee for transfers among original owners, of <10% interest, or to entity wholly owned by original owners. |
Category
Real Estate
System Size
1,003 units
Franchise Score
out of 100
HomeVestors is a real estate franchise specializing in buying distressed properties, renovating them, and reselling or renting them for profit. The brand provides a business model for entrepreneurs to enter the real estate investment market.
Median Revenue
$496,742
per year, per location
Estimated Owner Profit
$84,446
per year
Profit Margin
17.0%
of revenue
Estimation method: benchmark
Estimated ROI (Simple Payback): 3.7 years
Based on midpoint investment of $313,625 and estimated annual owner profit of $84,446.
Avg. Annual Closure Rate
7.4%
Elevated risk — above industry average
Net Unit Growth
-1154 units
From 2022 to 2025
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 1154 | +76 | -62 | — | 1144 |
| 2023 | 1144 | +66 | -104 | — | 1082 |
| 2024 | 1082 | +41 | -101 | — | 981 |
| 2025 | — | +92 | — | — | — |
Based on the FDD data, here is a data-driven snapshot of the HomeVestors franchise opportunity:
Overall Score
66/100
Moderate opportunity
Est. Payback Period
3.7 yrs
Average payback
Risk Level
High
7.4% annual closure rate
HomeVestors shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $496,742 , prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full HomeVestors franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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