About HomeVestors Franchise
HomeVestors is a real estate investment franchise widely recognized through its national "We Buy Ugly Houses" advertising campaign.
The brand provides franchise owners with a proven system for purchasing distressed residential properties, renovating them, and reselling or renting them for profit.
HomeVestors is one of the largest and most established home buying franchise networks in the country.
HomeVestors Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $31,200 to $80,000 | One-time payment upon signing |
| Royalty Fee | 2.0% of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $3,000 | National brand fund |
| Total Investment Range | $121,000 – $456,250 | Includes build-out, inventory, working capital |
The investment range of $121K–$456K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (2.0%) and marketing fee ($3,000) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee(2) | $80,000 | $80,000 |
| Leasehold Improvements(3) | $0 | $5,000 |
| Furniture, Fixtures and Equipment(4) | $0 | $10,200 |
| Signage(5) | $0 | $4,200 |
| First Month’s Rent(6) | $0 | $2,000 |
| Security Deposit(7) | $0 | $2,000 |
| Opening Supplies(8) | $200 | $1,950 |
| Advertising(9) | $21,000 | $140,000 |
| Training Expense(10) | $1,800 | $6,000 |
| iPad and Computer Equipment(11) | $2,000 | $10,000 |
| Insurance(12) | $2,000 | $8,000 |
| Miscellaneous Opening Costs(13) | $1,000 | $7,900 |
| Purchase and Repair of Properties(14) | $13,000 | $129,000 |
| Additional Funds for 6 Months(15) | $0 | $50,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT(16) | $121,000 | $456,250 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $379 |
| Renewal Fee | $2,000 |
| Technology Fee | $5,000 |
| Audit Fee | $1,000 |
| Transaction Fees(2) | $1,000,000 |
| Transaction Fee – Purchase Transaction | $500 |
| Transaction Fee - Assignment Transaction | $500 |
| Transaction Fee – Hold Transactions | A “Hold Transaction” means any of the following, without duplication: (a) you ha |
| Monthly Fee | $379 |
| Franchise Upgrade Fee | $0.00 |
| Office visits | $1,000 |
| Interim Loan Placement Fee | $300 |
| Referral Fee | $17,500 |
| Late Fee | $100 |
| Interest on Late Payments | Highest contract rate permitted by law or 1.5% per month, whichever is less |
| Training Charges and Late Registration Fees | $200 |
| Advanced and Other Training | $200 |
| Loan Arrangement Fee | Currently up to 3% of loan amount as follows: 6 month loan term 1% if loan is pa |
| Loan Extension Fee | Currently up to 3% of loan amount as follows: Initial 6 month loan term – 6 mont |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | You may renew your Franchise Agreement if we continue to maintain a franchise program and if you meet certain requirements and conditions of your Franchise Agreement. |
| Termination for Cause | We have the right to terminate if you commit any of several violations (see g. and h. below). The provision of termination upon bankruptcy may not be enforceable under federal bankruptcy law. |
HomeVestors Franchise Earnings — Item 19
HomeVestors does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
HomeVestors Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
HomeVestors System Growth
HomeVestors currently operates 81 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
HomeVestors Franchise — FAQ
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