Houzpital Franchise
Cost, fees, owner earnings, closure rate and litigation for a Houzpital franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Houzpital discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Single affiliate-owned CT location (operating since 2011) shows 2023-2025 gross profit $3.2M-$5.1M; owner draw $510K-$1.2M annually. Unaudited; no franchisee data available.
What a Houzpital franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $59,500 | Item 5 — paid up front, before you open |
| Royalty | 7% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 10% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $214,675 – $345,900 | Item 7 — franchisor's own low/high estimate |
7% royalty + 3% marketing (up to 5%) + 2% brand fund (up to 3%) + 0.25% warranty fund. Military discount: 6% royalty first 12 months.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Houzpital system size and owner turnover
| Total outlets | 1 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
Pre-revenue franchise system; one company-owned outlet only; no franchisee track record.
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 Houzpital worth it? — how it compares to 29 similar franchises
| Ongoing fees | 10% of sales | about average |
| Startup cost | from $214,675 | pricier than 87% of peers |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 0.0% of outlets | better than most (median 2.7%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every restoration & remediation franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Houzpital
The franchisor's framing: Single affiliate-owned CT location (operating since 2011) shows 2023-2025 gross profit $3.… 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
Houzpital franchise — frequently asked
- How much does a Houzpital franchise cost?
- The FDD lists a total initial investment of about $214,675–$345,900, including a $59,500 initial franchise fee.
- How much do Houzpital franchise owners make?
- Single affiliate-owned CT location (operating since 2011) shows 2023-2025 gross profit $3.2M-$5.1M; owner draw $510K-$1.2M annually. Unaudited; no franchisee data available. We grade this disclosure D for honesty.
- What are the Houzpital franchise fees?
- Houzpital's FDD discloses a $59,500 initial franchise fee, a 7% royalty on gross sales, a 3% advertising-fund contribution, for roughly 10% of gross sales in recurring fees before rent, labor, or debt service. 7% royalty + 3% marketing (up to 5%) + 2% brand fund (up to 3%) + 0.25% warranty fund. Military discount: 6% royalty first 12 months.
- What is the Houzpital franchise profit margin?
- Houzpital does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Single affiliate-owned CT location (operating since 2011) shows 2023-2025 gross profit $3.2M-$5.1M; owner draw $510K-$1.2M annually. Unaudited; no franchisee data available. Recurring fees alone take about 10% 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 Houzpital franchise failure rate?
- Pre-revenue franchise system; one company-owned outlet only; no franchisee track record.
- How many Houzpital locations are there?
- Houzpital's FDD reports 1 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Houzpital have complaints or lawsuits?
- Houzpital discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Houzpital franchise worth it?
- It depends on the numbers, not the pitch. Houzpital scores D on disclosure honesty, carries about 10% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Houzpital to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Houzpital or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.