HomeVestors Franchise FDD, Profits & Costs (2025)
HomeVestors of America, commonly known for its “We Buy Ugly Houses®” slogan, is a well-established player in the real estate investment franchise industry. Founded in 1996 and headquartered in Dallas, Texas, HomeVestors has carved a niche in the market by specializing in buying, rehabilitating, and selling distressed properties.
HomeVestors of America began franchising the same year it was founded. The franchise is unique in its provision of extensive support systems to its franchisees, including comprehensive training in real estate investment, access to proprietary software tools, and robust marketing initiatives that help generate leads.
HomeVestors offers two types of franchise models: a full franchise option for those looking to operate on a full scale and an associate franchise model, which is more suitable for those looking to start on a smaller scale or part-time basis.
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Initial Investment
How much does it cost to start a HomeVestors franchise? It costs on average between $109,000 – $461,000 to start a HomeVestors franchised center.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the location, and whether the franchisee chooses to lease or purchase the property. HomeVestors offers 2 types of franchises:
| Type of HomeVestors Franchise | Initial Investment Range |
|---|---|
| Full Franchise HomeVestors Business | $155,000 to $461,250 |
| Associate Franchise HomeVestors Business | $109,000 to $415,250 |
We are summarizing below the main costs associated with opening a Full Franchise HomeVestors Business. For more information on the costs required to start a HomeVestors franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (for a Full Franchise) |
|---|---|
| Initial Franchise Fee | $85,000 |
| Leasehold Improvements | $0 – $5,000 |
| Furniture, Fixtures and Equipment | $0 – $10,200 |
| Signage | $0 – $4,200 |
| First Month’s Rent | $0 – $2,000 |
| Security Deposit | $0 – $2,000 |
| Opening Supplies | $200 – $1,950 |
| Advertising | $50,000 – $140,000 |
| Training Expense | $1,800 – $6,000 |
| iPad and Computer Equipment | $2,000 – $10,000 |
| Insurance | $2,000 – $8,000 |
| Miscellaneous Opening Costs | $1,000 – $7,900 |
| Purchase and Repair of Properties | $13,000 – $129,000 |
| Additional Funds for 6 Months | $0 – $50,000 |
| Total Estimated Initial Investment | $155,000 – $461,000 |
Average Revenue (AUV)
How much revenue can you make with a HomeVestors franchise? A HomeVestors franchised business makes on average $343,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $331,000 yearly revenue for similar broker/realtor franchises.
Below are 10 HomeVestors competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
HomeVestors Franchise Disclosure Document
Frequently Asked Questions
How many HomeVestors locations are there?
As of the latest available data, HomeVestors of America operates over 1,100 independently owned and operated franchises across 45 states in the United States. The company does not own any locations directly; all are franchise-owned.
What is the total investment required to open a HomeVestors franchise?
The total investment required to open a HomeVestors franchise ranges from $109,000 to $461,000.
What are the ongoing fees for a HomeVestors franchise?
HomeVestors franchisees pay a monthly fee of $399, along with a transaction fee based on the sales price, ranging from 0.8% to 3.0% depending on franchise level.
They contribute $300 per transaction to the National Advertising Fund, capped at $1,000 per transaction. Franchisees must also meet a monthly minimum for local advertising, with levels set at $5,000 for higher tiers and $1,000 for lower tiers.
What are the financial requirements to become a HomeVestors franchisee?
To become a HomeVestors franchisee, applicants are typically required to have a minimum net worth of $120,000 and liquid capital of at least $100,000. These financial prerequisites ensure that franchisees possess the necessary resources to manage initial investments and sustain ongoing operational expenses effectively.
How much can a HomeVestors franchise owner expect to earn?
The average gross sales for a HomeVestors franchise are approximately $0.34 million per location. Assuming a 15% operating profit margin, $0.34 million yearly revenue can result in $51,000 EBITDA annually.
Who owns HomeVestors?
HomeVestors of America, Inc. is a privately held company. In January 2022, Levine Leichtman Capital Partners sold HomeVestors to funds managed by Bayview Asset Management, LLC, a global investment management firm specializing in finance, mortgage, and consumer credit sectors. Therefore, Bayview Asset Management, LLC currently owns HomeVestors.
Disclaimer
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