HOMETEAM INSPECTION SERVICE

HOMETEAM INSPECTION SERVICE

HomeTeam Inspection Service franchises provide professional building inspection services, primarily whole-house inspections for single-family homes and certain multi-family residential buildings, to report on the general condition and identify major defects. Franchisees target home buyers, sellers, and owners, securing business directly and through referrals from real estate agents, relocation companies, banks, attorneys, appraisers, and mortgage lenders. The business model emphasizes team-based inspections with at least two inspectors per job, proprietary management software, branded vehicles and uniforms, and building local brand recognition to differentiate from competitors.

198
Locations
$60K–$87K
Investment
ServicesMilford, OHwww.HomeTeam.comDisclaimer

Franchise Costs


Franchise Fee
$55,000
Item 5 of FDD
Initial Investment Range
$60,100 $86,800
Low: $60,100High: $86,800
Item 7 of FDD
Royalty Rate
6.00%
of gross sales
Brand Fund
3.00%
Item 6 of FDD
Fixed Monthly Fees
$329 – $339
Item 6 of FDD

6% royalty + 3% branding fund + $229/mo digital marketing + $100/mo technology (+$10/additional phone)

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$0
Top Quartile Revenue
$0
Bottom Quartile Revenue
$0

Data Based On: Data from franchisees who reported Gross Revenue for all 12 months of the Measurement Period ending December 31, 2023. Includes franchisees with gross revenue over $100,000 (segmented by quartile) and franchisees with gross revenue less than $100,000 (some in default, not following system standards, or not operating full-time).

* Calculated weighted average gross revenue for 2023 from five segments: First Quartile (22 units @ $531,223.39), Second Quartile (22 units @ $255,870.42), Third Quartile (21 units @ $195,007.58), Fourth Quartile (21 units @ $132,542.91), and Less than $100k Gross Revenue group (40 units @ $63,872.57). Total units: 126. Formula: (sum of (average_revenue * count)) / total_count. Revenue top quartile is the average for the First Quartile. Revenue bottom quartile is the average for the Less than $100k Gross Revenue group, representing the lowest overall performing segment.

Extracted Item 19 Section

How HOMETEAM INSPECTION SERVICE Compares


Key Insights

  • Top 10 largest franchise system in Real Estate Services
  • Lower than average SBA loan default rate in Real Estate Services
FranchiseInvestmentFeeRoyaltyLocations
HOMETEAM INSPECTION SERVICE
Current
$60K – $87K$55K6.0%198
CENTURY 21 REAL ESTATE$33K – $279K$25K6.0%1,807
HOMEVESTORS$150K – $477K$85K3.0%981
KELLER WILLIAMS REALTY - REGIONAL REPRESENTATIVE$131K – $424KN/AN/A794
REAL PROPERTY MANAGEMENT$92K – $234K$60K7.0%447
PILLAR TO POST INC$103K – $134K$59K7.0%412
Real Estate Services Average
24 franchises
$153K – $305K$46K7.2%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 24 Real Estate Services franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2023)

Outlets by state across the United States

Top States
1FL
32
2TX
19
3CA
11
4NC
10
5OH
10
6GA
9
7IL
8
8MI
7
9CO
6
10TN
6
11WA
5
12MD
5
13NJ
5
14SC
5
15KS
4

+25 more states

SBA Loan History


Historical SBA 7(a) loan data for HOMETEAM INSPECTION SERVICE franchisees (20182024)

Total Loans
26
Average Loan
$116,038
Total Volume
$3.0M
Default Rate
11.5%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts


80 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

80 Contacts Available

Unlock all HOMETEAM INSPECTION SERVICE franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
10
Non-Renewals
3
Reacquired
0
Ceased Ops
0
Transfers
15
Sold to Franchisees
0
Projected New
15

Frequently Asked Questions


The total initial investment to open a HOMETEAM INSPECTION SERVICE franchise ranges from $60,100 to $86,800. This includes a franchise fee of $55,000. Ongoing royalty fees are 6.0% of gross sales.

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