HOMETEAM INSPECTION SERVICE

HomeTeam's economics appeal to service-minded investors: initial investment ranges from $60,100 to $86,800 per Item 7, with a $55,000 franchise fee. Ongoing fees include 6% royalty, 3% brand/ad fund, plus fixed $229/month digital marketing and $100/month technology ($10 per additional phone). Item 19 reports average gross revenue of $212,298 across units, offering solid topline potential in a $60K-$87K startup. However, no median or expense breakdowns limit profit visibility—assume 20-30% margins typical for inspections could yield $42K-$64K EBITDA, but verify with FDD Item 19 details. SBA data shows 26 loans averaging $116,038, yet an 11.5% default rate flags higher risk than the 5-10% industry norm.

System health shows modest contraction: 201 locations in 2022 to 197 in 2023 (-2%), now at 198 total. Last year saw 10 terminations, 3 non-renewals, 15 transfers, and 15 projected new units—balanced but not explosive growth. High transfers suggest owner churn, possibly from operational demands of team staffing or market saturation in real estate services. For investors, this trajectory means steady but not scaling aggressively; low entry and revenue make it viable for hands-on operators, but monitor litigation or support in Items 20/21 before committing.