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HomeVestors

HomeVestors of America Inc.

Company Information

6500 Greenville Avenue, Suite 400

HomeVestors of America, Inc. is a Delaware corporation incorporated on March 14, 1996 and operate under their corporate name and logos. Their principal business address is 6500 Greenville Avenue, Suite 400, Dallas, Texas 75206. They began offering franchises on September 19, 1996.

We grant franchises for HomeVestors Businesses (the “HomeVestors Business”). We offer both a full franchise (“Full Franchise”) and an associate franchise;(“Associate Franchise”). The Full Franchise has a higher initial franchise fee but generally lovver ongoing fees than an Associate Franchise,, each of which may be operated gn a full-time or part-time basis. The primary activity of a HomeVestors Business is; to buy and sell and rehabilitate, residential and commercial properties and furnish certain services, to residential and commercial property buyers (the “Products and Services”); Rehabilitation includes all remodelingand repairs,necessary to make the property-marketable. The.Products and Services-are provided by the HomeNestors Business, which operates under distinctive' business formats, methods, procedures, standards and Specifications^ all of which we may improve, further develop or otherwise rnodify (the “System”). We use; promote and license certain trademarks in the operation of HomeVestors Businesses, including the service' marks “HomeVestors” and associated logos, which have acquired and continue to acquire goodwill, and we may create, use and license additional trademarks and service marks in the operation of HomeVestors Businesses (collectively, the “Licensed Marks”), We grant to certain persons who meet ouf qualifications, (“franchisees”) and are willing to undertake the investment and effort, a franchise to own and operate a HomeVestors Business offering the Products and Services and utilizing the System and the Licensed Marks under the tennS of our standard HomeVestors Franchise Agreement attached as Exhibit A-1 (the “Franchise Agreement”). Franchisees who purchase a franchise in certain franchise registration stateS; Puerto Rico or the U.S. Virgin Islands will also execute the applicable Amendment to Franchise Agreemenit attached as Exhibit A2. You will' use the System to purchase or acquire rights to, purchase real estate propertiesigeneralfy in need of repair, assign or resell the properties “as-iS'', or rehabilitate properties that you purchase to increase the appraised market value and resell or lease the properties.

5 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

5/10

Earning Transparency

7/10

Investment Accessibility

3/10

Summary of potential earnings

Average Revenue Per Unit

$603,353 / unit

Average Revenue During 2022
Franchise Type:

Home Improvement & Remodeling

$307,721

Industry Low

$4,124,478

Industry High

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of HomeVestors Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $85,000 Maximum: $85,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $135,000 Maximum: $461,250

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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