About TheHomeMag Franchise
TheHomeMag is a home improvement advertising magazine franchise where owners sell advertising space to local businesses that serve residential homeowners.
Franchising since 2006, the brand publishes locally distributed print magazines delivered via the United States Postal Service, connecting home service providers like electricians, plumbers, contractors, and home decorators with the homeowners in their area.
The franchise fee ranges from $30,000 to $100,000.
TheHomeMag Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 to $100,000 | One-time payment upon signing |
| Royalty Fee | 6.5% of Net Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None (no current Brand Marketing Fund requirement) | National brand fund |
| Total Investment Range | $199,000 – $349,000 | Includes build-out, inventory, working capital |
The investment range of $199K–$349K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.5% of Net Revenues) and marketing fee (None (no current Brand Marketing Fund requirement)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Standard Market) | $60,000 | $60,000 |
| Initial Franchise Fee (Hometown Market) | $30,000 | $30,000 |
| Initial Franchise Fee (Double Market) | $100,000 | $100,000 |
| Computer Equipment | $3,000 | $3,000 |
| Office Equipment & Supplies | $2,000 | $2,000 |
| Furniture | $2,000 | $2,000 |
| Real Property | $2,000 | $2,000 |
| Leasehold Improvements; Construction Costs | $1,000 | $1,000 |
| Vehicle - 3 months | $1,500 | $1,500 |
| Opening Inventory | $1,000 | $1,000 |
| Initial supply of magazines & collateral | $1,000 | $1,000 |
| Travel and Initial Training | $3,000 | $6,000 |
| Insurance | $2,200 | $2,200 |
| Business Licenses and Permits | $500 | $500 |
| Security Deposits | $2,000 | $2,000 |
| Professional Fees | $2,000 | $2,000 |
| Mailing list rental - 1 month | $840 | $1,200 |
| Contact Relationship Management program - 3 months | $1,095 | $1,095 |
| Digital Media Fee - 3 months | $585 | $585 |
| Additional Funds - 3 months | $143,280 | $219,920 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Digital Media Fee: $195 per month; CRM (Contact Relationship Management) program: currently $73/User license per month |
| Audit Fee | Amount of the deficiency; if audit is due to non-reporting or understatement, cost of inspection is also franchisee's responsibility |
| Additional Training | $1,500 per person trained (or then-current tuition) |
| Services Purchases - mailing list (Standard Markets) | $600 to $1,200 per Issue |
| Services Purchases - mailing list (Hometown Markets) | $300 to $600 per Issue |
| Services Purchases - mailing list (Double Markets) | $1,200 to $1,500 per Issue |
| Graphic Design Services | $4,000 per Issue (if franchisor designs for a limited time) |
| Annual Conference | Up to $1,000 per person (excluding transportation and lodging) |
| Late Fee | $50 per month/week for late reporting |
| Corporate Page Fee | $5 per thousand magazines mailed each Issue |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Minimum 2 days of classroom training plus 76-84 hours of on-the-job training |
| Classroom Training | 16 hours |
| On-the-Job Training | 76 to 84 hours |
| Training Location | THM Corporate Office (Cape Coral, Florida), franchisee's office, and online |
| Additional Training | Additional elective training programs, refresher courses, and on-the-job training available at a mutually convenient time, including online/video sales training. Additional training sessions may be charged at $1,500 per person. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive Protected Market |
| Exclusive Territory | No |
| Territory Size | Hometown Market: less than 100,000 qualified households; Standard Market: 100,000 to 170,000 qualified households; Double Market: minimum 200,000 qualified households |
| Description | Franchisees receive a Protected Market within a Metropolitan Statistical Area (MSA). The territory is non-exclusive and the franchisor retains the right to compete within the territory through other channels. Franchisees must meet minimum performance requirements including publishing within 16 weeks of opening, with minimum 20 pages of advertising for first 6 issues and 32 pages for issues 8-12. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten years |
| Renewal Term | One or more renewal terms of five years each |
| Renewal Fee | $10,000 |
| Renewal Conditions | Must provide notice, be in compliance with the Franchise Agreement, execute a new Franchise Agreement, sign a release, and pay the renewal fee. Franchisee may be asked to sign an agreement with materially different terms, but territory boundaries remain the same and fees will not be greater than those imposed on similarly situated renewing franchisees. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisor approval required. Conditions include payment of money owed, non-default status, signed release, transferee qualifications, signed new agreement, and payment of transfer fee. No fee imposed for transfers to corporations formed by franchisee for convenience of ownership. |
| Termination for Cause | Breach of Franchise Agreement and other grounds per Article XVII, including failure to pay fees when due, misuse of Proprietary Marks, sale of unapproved service, or reporting 3 cancellations in any 12-month period. Non-curable defaults include filing for bankruptcy or assignment for benefit of creditors. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | During the term: prohibition on owning or operating a business which sells similar services. After termination or expiration: prohibition on owning or operating a similar business for two years located within 100 miles of any unit in the System, and prohibition on use of client lists obtained during the Franchise Agreement. Subject to state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must devote full time and best efforts to the management and operation of the Franchised Business. The business must have constant supervision by the franchisee or a designated approved manager who has completed the training program. Franchisor strongly recommends the franchisee be the operating manager for at least the first 18 months and preferably through the first 24 months. |
| Required Suppliers | Franchisees must purchase mailing list rental from the franchisor's approved supplier and printing services from approved printers. Digital marketing services and Local Website services must be purchased from the franchisor. |
| Supply Restrictions | Franchisees must purchase mailing list rental and printing services from designated approved suppliers. Local Website and digital marketing services (including SEO and SEM) must be purchased from THM Management. Other products and miscellaneous supplies must meet franchisor specifications but may be purchased from any approved supplier. |
| Franchisor Revenue from Suppliers | In the calendar year ended December 31, 2021, the franchisor derived $491,612 in revenues from franchisee purchases, or 8.3% of total revenues of $5,927,871. The franchisor does not ordinarily receive payment from outside source suppliers based on franchisee transactions, but reserves the right to do so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee any note, lease, or other obligation. |
TheHomeMag Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
TheHomeMag 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.
TheHomeMag System Growth
TheHomeMag currently operates 42 franchised locations and 21 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 0 | 39 |
| 2020 | 1 | 1 | 39 |
| 2021 | 4 | 1 | 42 |
Transfers: 1 | Closures: 1
State Registrations
Registered in 16 states: California, Connecticut, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
TheHomeMag Franchise — FAQ
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