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HOMEVESTORS
HomeVestors of America, Inc. franchises enable operators to buy, sell, and rehabilitate residential and commercial properties generally in need of repair, while providing services to buyers and sellers. The business operates under a system with distinctive formats, methods, and trademarks, offering Full Franchises (higher initial fee, lower ongoing fees) or Associate Franchises, which can be run full-time or part-time. The target market includes property investors, buyers, and sellers of distressed properties, competing with local companies and private investors in the real estate sector.
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Franchise Costs
Tiered transaction fees (3.0% to 0.80% of sales price based on level) + $399/mo monthly fee (up to $500) + up to $425/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 898 franchised HomeVestors Businesses in the United States that were operating through all 12 months of the Year 2024.
* The document provides 'Gross Price Differential' defined as 'total sales prices less total purchase prices'. This is a form of gross profit from property transactions. Given that this is the primary top-line financial metric presented for individual franchise performance and no explicit 'gross revenue' is provided, the 'Gross Price Differential' values have been mapped to the 'average_gross_revenue', 'median_gross_revenue', 'revenue_top_quartile', and 'revenue_bottom_quartile' fields. 'Average Gross Price Differential' for 'All Covered Franchises' ($616,948) is used for 'average_gross_revenue'. A weighted average calculation using the quartile data (225 units at $1,737,830; 224 units at $539,984; 225 units at $185,009; 224 units at $1,894) yields $616,948.16, confirming the aggregate figure. 'Median Gross Price Differential' for 'All Covered Franchises' ($344,550) is used for 'median_gross_revenue'. 'Average Gross Price Differential' for 'Top Quartile' ($1,737,830) is used for 'revenue_top_quartile'. 'Average Gross Price Differential' for 'Bottom Quartile' ($1,894) is used for 'revenue_bottom_quartile'. A footnote clarifies that for the 25 out of 224 businesses in this quartile that did sell properties, their average Gross Price Differential was $18,311. However, the $1,894 represents the average across the entire bottom quartile of 224 businesses, including those with zero or negative differential. Fields for net income, net profit, and EBITDA are null as the 'Gross Price Differential' explicitly excludes many significant operating expenses (e.g., repair costs, advertising, commissions, taxes, labor, royalties, etc.), and no other figures or percentages are provided to calculate these metrics. Consequently, 'best_guess_profit_low' and 'best_guess_profit_high' are also set to null due to insufficient expense data beyond advertising spend.
Extracted Item 19 Section
Avg. Revenue: $616,948
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Unlock financial performance dataHOMEVESTORS Franchise Analysis
HomeVestors has carved a niche in the distressed property market since franchising began in 1996, offering flexible Full and Associate models for buying, rehabbing, and flipping. Item 19 finally pulls back the curtain on revenue performance across its network, revealing a spread that underscores both opportunity and volatility. With locations contracting recently, does this system still deliver for investors chasing real estate upside?
The system's trajectory shows maturity turning to mild contraction: from 1,082 units in 2023 to 981 in 2024—a 9% drop—amid 101 terminations, 39 non-renewals, and 44 transfers, though 92 new units are projected. Entry demands a steep $85,000 franchise fee within a $150,000-$477,250 total investment (Item 7), lower for Associates but scaling with ambition. Ongoing fees blend a tiered royalty (3.0% down to 0.80% of sales price by volume), $399-$500 monthly minimum, and up to $425 tech fee—potentially squeezing margins on slower deals.
Item 19 earnings paint a high-variance picture: average gross revenue hits $616,948, but median lags at $344,550, signaling many units underperform while top operators thrive on distressed flips. Franchisor-favorable litigation (mostly collecting unpaid fees) flags payment discipline issues, and parent Bayview's backing adds stability but ties to fund dynamics. For real estate hustlers, the model's part-time potential shines, yet contraction and terminations warn of execution risks in a competitive investor landscape—strong for deal-makers, shaky for novices.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How HOMEVESTORS Compares
Key Insights
- Higher investment than 83% of Real Estate Services franchises
- #2 largest franchise system in Real Estate Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
HOMEVESTORS Current | $150K – $477K | $85K | 3.0% | 981 |
| CENTURY 21 REAL ESTATE | $33K – $279K | $25K | 6.0% | 1,807 |
| KELLER WILLIAMS REALTY - REGIONAL REPRESENTATIVE | $131K – $424K | N/A | N/A | 794 |
| REAL PROPERTY MANAGEMENT | $92K – $234K | $60K | 7.0% | 447 |
| PILLAR TO POST INC | $103K – $134K | $59K | 7.0% | 350 |
| WIN HOME INSPECTION BUSINESS | $41K – $50K | $21K | 7.0% | 247 |
Real Estate Services Average 24 franchises | $154K – $300K | $46K | 7.2% | – |
* 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 (2024)
Outlets by state across the United States
+36 more states
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Unlock location growth dataFranchisee Contacts
1,066 franchisee contacts on file from official FDD filings.
1,066 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Primarily suits by the franchisor to collect past due payments and fees from franchisees or former franchisees.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a HOMEVESTORS franchise ranges from $150,000 to $477,250. This includes a franchise fee of $85,000. Ongoing royalty fees are 3.0% of gross sales.
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