We have offered franchises since March 2017. The HouseMaster™ franchise system, through us and our various predecessors-in-interest, first began offering franchises for the operation of a building inspection and related services business using the HouseMaster trademark in 1979.
Our immediate predecessor is HouseMaster, LLC. HouseMaster, LLC is a Delaware limited liability company that is no longer doing business but is still in existence. HouseMaster, LLC was originally formed as DBR Franchising, LLC (“DBR”) on July 14, 2008 and changed its name to HouseMaster, LLC on July 23, 2015. HouseMaster, LLC/DBR offered HOUSEMASTER franchises for the operation of a building inspection and related services business from September 2008 to March 2017. We obtained certain of HouseMaster, LLC's assets in March 2017 through a liquidation and distribution accomplished through our Parent and its owners and affiliates, including the HouseMaster™ names and marks and existing HouseMaster™ franchise agreements
We grant franchisees the right to operate a building inspection and related services business (the “Franchised Business”) using our proprietary HouseMaster trademark and other registered and non-registered trademarks (“Marks”), the HouseMaster Method of conducting a building inspection business (“HouseMaster Method”), and the HouseMaster strategy for marketing and promoting a building inspection business (“HouseMaster Marketing Strategy”). We also provide various supporting products and services to you and other franchisees. In October 2015, we purchased the existing franchise agreements of our former Canadian Master Franchisee. We now operate the franchise system in Canada and offers and sells franchises in Canada. Employees of HM Services, LLC also perform day-to-day operations for other affiliated business Contact Point, HI Training and PM Franchising, LLC and other affiliated businesses unrelated to this franchise offering.
You will pay an initial fee of $42,500 for the right to operate your franchise. You will be granted certain marketing rights to an area known as a “Designated Geographic Marketing Area” or “DGMA.” The Designated Geographic Marketing Area is made up of a contiguous zip codes consisting of up to approximately 75,000 owner-occupied homes. The number of owner-occupied homes is determined by the most recent census figures available and as may be updated from time to time from certain third-party demographic providers. The initial fee must be paid in a lump sum when you sign the Franchise Agreement. All buyers under this offering pay a uniform initial franchise fee, except for the qualified discount described below.
We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. We have registered this franchise with the Small Business Administration. We can provide certain minimal assistance if you apply for SBA guaranteed financing.
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at particular location or under particular circumstances.