HomeVestors Franchise Prices, Charges, Revenues, Earnings (2023 Evaluate)

On this unique Franchise Chatter FDD Discuss publish, you’ll study the next:

Part I – Estimated preliminary funding (franchise prices) for a HomeVestors franchise, based mostly on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise price, royalty price, and advertising and marketing price for a HomeVestors franchise, based mostly on Gadgets 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned HomeVestors retailers at the beginning of the yr and the top of the yr for 2019, 2020, and 2021, based mostly on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the HomeVestors franchise alternative

Part V – Presentation and evaluation of HomeVestors’ monetary efficiency representations (common revenues and/or earnings), based mostly on Merchandise 19 of the corporate’s 2022 FDD, together with info on the:

• 2021 common, median, low, and excessive gross margin, and common and median promoting spend for the 958 franchised HomeVestors companies in the US working for the complete 12 months in 2021

• 2021 common, median, low, and excessive gross margin, and common and median promoting spend, by quartile, for the 958 franchised HomeVestors companies in the US working for the complete 12 months in 2021

• share of HomeVestors franchises in a geographic area (Midwest, South, Northeast, and West) that fell inside the 1st, 2nd, third, or 4th quartiles based mostly on gross margin for the yr 2021

Part VI – Key ratios, comparables, computations, and analyses for the HomeVestors franchise alternative (unique content material for Platinum subscribers)

Part I – HomeVestors Franchise Prices

• HomeVestors franchise prices (full franchise), based mostly on Merchandise 7 of the corporate’s 2022 FDD:

• Preliminary Franchise Charge:  $80,000
• Leasehold Enhancements:  $0 to $5,000
• Furnishings, Fixtures, and Tools:  $0 to $10,200
• Signage:  $0 to $4,200
• First Month’s Hire:  $0 to $2,000
• Safety Deposit:  $0 to $2,000
• Opening Provides:  $200 to $1,950
• Promoting:  $21,000 to $140,000
• Coaching Expense:  $1,800 to $6,000
• iPad and Pc Tools:  $2,000 to $10,000
• Insurance coverage:  $2,000 to $8,000
• Miscellaneous Opening Prices:  $1,000 to $7,900
• Buy and Restore of Properties:  $13,000 to $129,000
• Further Funds for six Months:  $0 to $50,000
• Whole Estimated HomeVestors Franchise Prices:  $121,000 to $456,250

Part II – HomeVestors’ Preliminary Franchise Charge, Royalty Charge, and Advertising and marketing Charge

• HomeVestors’ preliminary franchise price, royalty price, and advertising and marketing price, based mostly on Gadgets 5 and 6 of the corporate’s 2022 FDD:

• Preliminary Franchise Charge:  $80,000

• Transaction Charges:  Degree 1: 3.0% of the gross sales worth; Degree 2: 2.0% of the gross sales worth; Degree 3: 1.5% of the gross sales worth; Degree 4: 1.25% of the gross sales worth; Degree 5: 1.0% of the gross sales worth; Degree 6: 0.80% of the gross sales worth

• Month-to-month Charge:  $379 monthly. That is waived within the month you report a Buy Transaction or Project Transaction and pay the relevant Transaction Charge.

• Native or Regional Advertising and marketing/Promoting Council:  Degree 4, 5, and 6 franchisees should spend no less than $3,000 monthly for native promoting; Degree 3 franchisees should spend no less than $1,000 monthly for native promoting; Degree 2 franchisees should spend no less than $1,000 monthly for native promoting. Degree 1 franchisees aren’t required to promote, until their Promoting Council paperwork or the NAF require them to contribute to the Promoting Council or NAF, restricted to a most contribution requirement of $1,000 monthly. However the foregoing, you should spend no less than $1,000 in any given 6-month interval.

• Advertising and marketing Fund Contributions:  at present $300 for every Sale Transaction, Project Transaction, and Maintain Transaction, most of $1,000 for every Sale Transaction, Project Transaction, and Maintain Transaction. As well as, a Degree 2 franchise should contribute $200 to the Advertising and marketing Fund or NAF, as HomeVestors directs, for every month that it didn’t spend no less than $1,000 for native promoting.

• Nationwide Promoting Fund (“NAF”) Contribution:  the quantity HomeVestors designates now and again; supplied that you’ll not be required to contribute to the NAF and Promoting Council (or expend for native promoting if there is no such thing as a Promoting Council within the Territory) greater than the minimal month-to-month native promoting requirement specified to your Degree

Part III – Variety of Franchised and Firm-Owned HomeVestors Retailers

Franchised

2019

• Retailers on the Begin of the 12 months:  1,055
• Retailers on the Finish of the 12 months:  1,132
• Web Change:  +77

2020

• Retailers on the Begin of the 12 months:  1,132
• Retailers on the Finish of the 12 months:  1,146
• Web Change:  +14

2021

• Retailers on the Begin of the 12 months:  1,146
• Retailers on the Finish of the 12 months:  1,153
• Web Change:  +7

Firm-Owned

2019

• Retailers on the Begin of the 12 months:  0
• Retailers on the Finish of the 12 months:  0
• Web Change:  0

2020

• Retailers on the Begin of the 12 months:  0
• Retailers on the Finish of the 12 months:  0
• Web Change:  0

2021

• Retailers on the Begin of the 12 months:  o
• Retailers on the Finish of the 12 months:  0
• Web Change:  0

Part IV – Information Updates on the HomeVestors Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the HomeVestors Franchise (Merchandise 19, 2022 FDD)

• The next tables are based mostly on Gross Margin and the annual promoting spend for the interval from January 1, 2021 via December 31, 2021 (the “12 months 2021”) of all franchised HomeVestors Companies in the US working for the complete 12 months in 2021. It doesn’t embody any franchised HomeVestors Companies that have been bought, bought, or transferred in the course of the 12 months 2021. Throughout the 12 months 2021, there have been 958 franchised HomeVestors Companies working for the complete 12 months.

• Gross Margin means the entire gross sales costs of all properties bought by a HomeVestors Enterprise in the course of the interval much less the entire buy costs of such properties. Gross Margin doesn’t take note of any prices incurred by a HomeVestors Enterprise in buying, rehabbing, or promoting such properties, together with restore prices, promoting prices, commissions, and many others.

• The quantities within the desk are based mostly on info reported to HomeVestors by franchisees. HomeVestors has not audited this info.

• The next desk lists for the 12 months 2021 the common, median, low, and excessive annual Gross Margin, the common and median annual promoting spend, the variety of HomeVestors Companies working for the complete 12 months in 12 months 2021, and the quantity and % of HomeVestors Companies exceeding the common Gross Margin and the common annual promoting spend.

Half 1 – Gross Margin and Promoting Spend – System

• Common Gross Margin:  $617,609
• Median Gross Margin:  $328,000
• Low Gross Margin:  -$25,000
• Excessive Gross Margin:  $10,399,271
• Common Advert Spend:  $86,408
• Median Advert Spend:  $55,000
• Variety of Models:  958
• Quantity and % Exceeding Common Gross Margin:  302/32%
• Quantity and % Exceeding Common Advert Spend:  320/33%

Half 2 – Gross Margin and Promoting Spend – Per Quartile

• The next desk lists by quartile for the 12 months 2021 the common, median, low, and excessive annual Gross Margin, the common and median annual promoting spend, the variety of HomeVestors Companies within the quartile, and the quantity and % of HomeVestors Companies in every quartile exceeding the common Gross Margin and the common annual promoting spend.

1st Quartile

• Common Gross Margin:  $1,732,456
• Median Gross Margin:  $1,303,088
• Low Gross Margin:  $786,000
• Excessive Gross Margin:  $10,399,271
• Common Advert Spend:  $187,116
• Median Advert Spend:  $144,000
• Variety of Models:  239
• Quantity and % Exceeding Common Gross Margin:  72/30%
• Quantity and % Exceeding Common Advert Spend:  83/35%

2nd Quartile

• Common Gross Margin:  $519,109
• Median Gross Margin:  $496,742
• Low Gross Margin:  $328,250
• Excessive Gross Margin:  $779,376
• Common Advert Spend:  $79,850
• Median Advert Spend:  $71,750
• Variety of Models:  240
• Quantity and % Exceeding Common Gross Margin:  110/46%
• Quantity and % Exceeding Common Advert Spend:  103/43%

third Quartile

• Common Gross Margin:  $202,081
• Median Gross Margin:  $207,900
• Low Gross Margin:  $92,876
• Excessive Gross Margin:  $327,750
• Common Advert Spend:  $52,153
• Median Advert Spend:  $41,250
• Variety of Models:  239
• Quantity and % Exceeding Common Gross Margin:  121/51%
• Quantity and % Exceeding Common Advert Spend:  92/38%

4th Quartile

• Common Gross Margin:  $19,704
• Median Gross Margin:  $0
• Low Gross Margin:  -$25,000
• Excessive Gross Margin:  $91,000
• Common Advert Spend:  $25,773
• Median Advert Spend:  $14,500
• Variety of Models:  240
• Quantity and % Exceeding Common Gross Margin:  78/33%
• Quantity and % Exceeding Common Advert Spend:  79/33%

Half 3 – Regional Knowledge

• The next desk lists by geographic area the share of franchises in that area that fell inside the 1st, 2nd, third, or 4th quartiles based mostly on Gross Margin for the 12 months 2021.

1st Quartile

• Midwest:  23.90%
• South:  25.28%
• Northeast:  19.08%
• West:  30.60%

2nd Quartile

• Midwest:  26.42%
• South:  26.86%
• Northeast:  26.01%
• West:  18.58%

third Quartile

• Midwest:  30.19%
• South:  23.25%
• Northeast:  25.43%
• West:  24.04%

4th Quartile

• Midwest:  19.50%
• South:  24.60%
• Northeast:  29.48%
• West:  26.78%

• The Midwest is comprised of the next states: IL, IN, IA, KS, MI, MN, MS, NE, ND, OH, SD, and WI.

• The South is comprised of the next states: AL, AR, DC, FL, GA, KY, LA, MS, NC, OK, SC, TN, TX, VA, and WV.

• The Northeast is comprised of the next states: CT, DE, ME, MD MA, NH, NJ, NY, PA, RI, and VT.

• The West is comprised of the next states: AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, and WO.

• Some HomeVestors Companies have earned this quantity. Your particular person outcomes could differ. There is no such thing as a assurance that you simply’ll earn as a lot.

• The vary of Gross Margin introduced above signify Gross Margin earlier than deductions for transaction royalty and advertising and marketing charges payable to HomeVestors and all different working bills. The vary of Gross Margin introduced above are historic information of particular franchisees.

Part VI – HomeVestors Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️