HomeVestors Franchise
Cost, fees, owner earnings, closure rate and litigation for a HomeVestors franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
HomeVestors discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Gross Price Differential by quartile (2025): Top $1.65M avg, Bottom $3,086 avg. Excludes all operating costs. 32% exceeded average GPD.
What a HomeVestors franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $42,500 | Item 5 — paid up front, before you open |
| Royalty | 2% of gross sales | Item 6 — charged on revenue, not profit |
| Total recurring fees | 2% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $107,500 – $477,250 | Item 7 — franchisor's own low/high estimate |
Transaction fees 0.8%-3% of sales price; Associate Royalty 2% min $500; Monthly $399; Marketing Fund $300/transaction max $1,000; NAF variable.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
HomeVestors system size and owner turnover
| Total outlets | 862 |
| Ceased operations | 151 |
| Terminated by franchisor | 107 |
| Transferred to new owners | 34 |
| Closure rate | 17.5% of outlets |
151 ceased operations + 107 terminations in 2025 from 981 starting franchises.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is HomeVestors worth it? — how it compares to 436 similar franchises
| Ongoing fees | 2% of sales | lower than most (median 8%) |
| Startup cost | from $107,500 | about average (median $138,750) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 17.5% of outlets | worse than 94% of peers |
| Disclosed lawsuits | 8 | more litigious than 90% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a HomeVestors
The franchisor's framing: Gross Price Differential by quartile (2025): Top $1.65M avg, Bottom $3,086 avg. Excludes a… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
HomeVestors franchise — frequently asked
- How much does a HomeVestors franchise cost?
- The FDD lists a total initial investment of about $107,500–$477,250, including a $42,500 initial franchise fee.
- How much do HomeVestors franchise owners make?
- Gross Price Differential by quartile (2025): Top $1.65M avg, Bottom $3,086 avg. Excludes all operating costs. 32% exceeded average GPD. We grade this disclosure C for honesty.
- What are the HomeVestors franchise fees?
- HomeVestors' FDD discloses a $42,500 initial franchise fee, a 2% royalty on gross sales, for roughly 2% of gross sales in recurring fees before rent, labor, or debt service. Transaction fees 0.8%-3% of sales price; Associate Royalty 2% min $500; Monthly $399; Marketing Fund $300/transaction max $1,000; NAF variable.
- What is the HomeVestors franchise profit margin?
- HomeVestors does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross Price Differential by quartile (2025): Top $1.65M avg, Bottom $3,086 avg. Excludes all operating costs. 32% exceeded average GPD. Recurring fees alone take about 2% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the HomeVestors franchise failure rate?
- 151 ceased operations + 107 terminations in 2025 from 981 starting franchises.
- How many HomeVestors locations are there?
- HomeVestors' FDD reports 862 total outlets, with 151 that ceased operations in the most recent reporting year and 34 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does HomeVestors have complaints or lawsuits?
- HomeVestors discloses 8 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a HomeVestors franchise worth it?
- It depends on the numbers, not the pitch. HomeVestors scores C on disclosure honesty, carries about 2% of sales in ongoing fees, and discloses 8 legal matters. Get the real owner take-home before you sign.
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Compare HomeVestors to similar franchises
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Source: MN CARDS 36480-202605-08 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with HomeVestors or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.