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Alair Homes Franchise Costs $111K – $187K (2024 Fees & Profits)

Alair Homes is a premier custom home building and large-scale renovation franchise headquartered in Nanaimo, BC, Canada. Founded in 2007 by Blair McDaniel, it began franchising in 2012, pioneering a unique model where existing industry leaders join the network to share best practices and innovations.

The core mission of Alair Homes is to unite North America’s leading custom builders and remodelers under a singular vision and team, enabling them to build highly rewarding, low-risk, and valuable construction companies.

Alair Homes’s selling point is its franchise model and commitment to transparency, client control, and innovative solutions. These ensure unparalleled results for every project, giving the company’s partners the freedom to balance work and life while achieving sustainable growth.

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Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$81,550
Initial Brand Fund Fee$10,000
Bond requirements$5,000 – $30,000
Premises rent and security deposit$0 – $6,200
Truck$0 – $6,200
Computer System and telephone$1,500 – $3,000
Vehicle Wrap/Site Signage$1,500 – $3,000
Print Material$50 – $500
Branded Clothing$250 – $750
Licenses and Permits$250 – $3,000
Insurance$2,850 – $9,000
Professional Fees$1,500 – $5,000
Miscellaneous Expenses$1,000 – $5,000
Additional Funds – three months$6,000 – $30,000
Total Estimated Initial Investment$111,000 – $187,000

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.

Franchise fees & Royalties

Initial Franchise Fee

This fee is $81,550, payable upon signing the franchise agreement. If you are an honorably discharged veteran from the U.S. armed forces, this fee is reduced to $79,050. For developing more than one Alair Homes franchise, the initial franchise fee for subsequent franchises is $20,000 per additional franchise.

Initial Brand Fund Fee

Upon signing the franchise agreement, you must also pay a Brand Fund Payment of $10,000. This payment is used for webpage development for the Alair Homes franchises in your marketing area and for additional marketing efforts if necessary.

Royalty Fees

Royalty fees are tiered based on your gross revenue, starting at 4% of gross revenue up to and including $5 million per calendar year and scaling down to 2% for gross revenue over $10 million per calendar year. These fees are payable semi-monthly.

Brand Fund Payment

Up to 1.5% of your Gross Revenue is payable semi-monthly into the Brand Fund for ongoing brand development and marketing efforts.

Other Fees

Include various operational and service fees, such as an accounting systems and services fee (which varies based on volume, complexity, and time expended, with monthly fees anticipated to range from $1,800 to $2,500 for franchisees during their second year of operations), a sales tax preparation fee, an interest on deferred initial franchise fee (10% per annum), and additional fees for training, meetings, marketing, software, and more.

Find the most profitable franchises

Access the (only) database of franchise profit stats. For franchisees, franchise brokers and investors.

✅ Download Franchise Disclosure Documents

✅ Compare turnover, investment, profits and more

Need more information about this franchise?

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How to apply

1. Research the Franchise

  • Understand the Brand: Research Alair Homes, its business model, core values, and unique selling propositions.
  • Market Research: Evaluate the demand for home building and renovation services in your target area.

2. Initial Inquiry

  • Contact Alair Homes: Reach out through their official franchise inquiry channel, typically found on their website.
  • Provide Information: Fill out any initial contact forms with your personal and professional background information.

3. Review Franchise Disclosure Document (FDD)

  • Obtain FDD: Request and receive the Franchise Disclosure Document, which outlines all the essential details about the franchise.
  • Key Areas to Review: Pay close attention to fees, initial investment costs, obligations of the franchisor and franchisee, and any litigation or bankruptcy history.

4. Secure Financing

  • Investment Cost: Assess the total investment required, including franchise fees, equipment, inventory, and working capital.
  • Financing Options: Explore financing options, which could include loans, personal savings, or investment partners.

5. Choose a Location

  • Market Analysis: Conduct a comprehensive analysis of potential locations, considering market demand, competition, and real estate costs.
  • Approval Required: The chosen location typically needs to be approved by Alair Homes corporate.

6. Sign Franchise Agreement

  • Review Agreement: Go over the franchise agreement carefully, ideally with the assistance of a lawyer experienced in franchise contracts.
  • Sign the Contract: Upon agreement, sign the franchise contract and pay the initial franchise fee.

7. Set Up Your Business and Begin Training

  • Legal and Administrative Setup: Establish your business legally, including obtaining the necessary licenses and insurance.
  • Operational Setup: Secure an office, purchase equipment, and hire staff as required by your business plan.
  • Undergo Training: Participate in any training programs offered by Alair Homes to understand their construction methods, software, and business practices.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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