HomeTeam Inspection Service Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$60,000

-

$87,000

OPERATING PROFIT

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Adam

Updated

February 27, 2024

Is

HomeTeam Inspection Service

a franchise?

Yes,
HomeTeam Inspection Service
is a franchise and
currently
accepts
franchise
applications

HomeTeam Inspection Service, founded in 1992, has established itself as a leading provider of home inspection services across the United States. The company is headquartered in Milford, Ohio, and has been providing trusted and accurate home inspection services for decades. It began franchising the same year it was founded to expand their unique team-based inspection model, which allows for more efficient and comprehensive inspections​​​​.

Their innovative approach involves bringing a team of inspectors to each site, which not only speeds up the inspection process but also enhances the thoroughness of the inspection. This method sets HomeTeam apart in the home inspection industry, offering a distinct advantage over traditional single-inspector models. For those interested in joining the franchise, HomeTeam Inspection Service presents a promising opportunity backed by years of proven success and a commitment to quality and customer satisfaction​​.

The company prides itself on being an industry leader and the top choice for home inspection franchises, known for assisting buyers, sellers, and real estate professionals with a variety of home and business inspection needs. These range from pre-listing inspections and mold tests to indoor air quality evaluations and standard home inspections. HomeTeam Inspection Service's commitment to excellence and customer satisfaction has been a cornerstone of its success, fostering trust and reliability among its clientele.

How many

HomeTeam Inspection Service

franchises

are there?

In 2022, there were
205
outlets in the United States, of which
205
are franchises, and
0
are corporate-owned.

What are the

HomeTeam Inspection Service

franchise

fees?

Initial franchise fee

$45,000 to $65,000

Royalty fee

4% to 6%

Advertising fee

3.0%

Initial Franchise Fee

The Initial Franchise Fee depends on the demographics of your franchise territory. It can vary, with a franchise fee of $45,000 for a Limited territory of up to 50,000 owner-occupied households and $55,000 for a Standard territory of 50,001 to 150,000 owner-occupied households.

Start-up Package Fee

The Start-up Package Fee is $9,800, which includes your technology package, marketing materials, a vehicle branding allowance, business cards, uniforms, tool package, Digital Marketing Package for 6 months, and other necessary supplies.

Weekly Royalty Fee

The Weekly Royalty Fee is 6% of Gross Sales, with adjustments for sales above certain thresholds. It is due weekly by electronic funds transfer.

Training Expenses

While there is no fee for initial training, you must cover the expenses for travel, lodging, food, wages, and workers’ compensation, which can range from $1,000 to $2,000.

Technology Fee

The monthly Technology Fee is currently $100, with an additional $10 monthly for any additional phone numbers required.

Transfer Fee

The Transfer Fee is $10,000, payable before the consummation of the transfer.

Renewal Franchise Fee

The Renewal Franchise Fee is $2,500, payable at least 6 months before your franchise agreement expires.

Convention Fee

The Convention Fee varies annually, with recent fees being $1,099 for a single package and $1,399 for a couple package.

Digital Marketing Fee

The Digital Marketing Fee is $229 per month, with the first 6 months included in the start-up package.

How much does

it cost

to start a

HomeTeam Inspection Service

franchise?

It costs between
$60,000
and
$87,000
to start a
HomeTeam Inspection Service
franchise.
Type of Expenditure Amount
Initial Franchise Fee $45,000 to $65,000
Start-up Package Fee $9,800
Administrative Costs $500 to $1,000
Travel & Living Expenses While Training $1,000 to $2,000
Insurance $1,800 to $4,000
Permits, Licenses & Professional Memberships $0 to $1,000
Additional Funds - 3 months $2,000 to $4,000
Total $60,100 to $86,800

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

HomeTeam Inspection Service

provide

training

to its

franchisees?

Yes,
HomeTeam Inspection Service
provides training to its franchisees.

The franchisor provides an initial training program that a franchisee, a principal, or a designated representative responsible for the general oversight and management of the franchised business must attend.

Training Program Composition

  • Online Orientation and Training: Provides a foundational understanding of the franchisor's systems and procedures through web-based modules.
  • Classroom Training: Offers in-depth knowledge on various aspects of the business, conducted in a formal educational setting.
  • On-the-Job Training: Facilitates hands-on experience, allowing franchisees and their employees to apply classroom knowledge in real-world scenarios.

Attendance and Participants

  • Mandatory for franchisees, principals, or designated representatives.
  • Designed to ensure the responsible party is well-versed in managing the franchised business.

Schedule and Frequency

  • Typically conducted on a monthly basis.
  • Scheduled based on demand and availability of participants.

Financial Responsibilities

  • No fee for the initial training program itself.
  • Franchisees bear the costs for travel, lodging, meals, and employee compensation during the training.

Additional Training Programs

  • Held periodically as deemed necessary by the franchisor.
  • May incur additional fees charged by the franchisor.
  • Cover advanced topics or updates to the franchise system.

Does

HomeTeam Inspection Service

provides

territory

protection?

The franchisor grants territory protection to franchisees. Each franchisee's territory is designated primarily by Postal Codes and must be a single, undivided geographic area containing between 50,000 and 150,000 owner-occupied households, although the franchisor has the right to specify a larger or smaller territory based on market size or other relevant factors.

The franchise territory is protected from other franchisees marketing within that territory and performing inspections for clients who have a real estate agent within the territory. The franchisor will not operate, establish, or authorize another to operate or establish a HomeTeam Franchise within a franchisee's territory.

Furthermore, franchisees are not allowed to solicit clients or Referral Sources in another franchisee's territory, and other HomeTeam Franchisees (including the franchisor) are not permitted to solicit clients or Referral Sources in your territory. This protection aims to prevent internal competition and ensure each franchisee has a fair opportunity to grow their business within their designated area.

Can a

HomeTeam Inspection Service

franchise

be run as

a passive

investment?

The franchisor requires that either the franchisee or a designated representative must devote their full time, energy, and best efforts to the management and operation of the Franchised Business.

The business must always be under the direct supervision of the franchisee or an approved designated representative who has successfully completed the franchisor's training program.

This implies that the franchisor does not support a purely passive investment approach, where the investor would not be actively involved in the day-to-day operations of the franchise. Instead, active participation and direct supervision by the franchisee or their designated representative are mandatory requirements.

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