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Showhomes Franchise Costs $40K – $180K (2024 Fees & Profits)

Showhomes was founded in 1986 and quickly became a top name in home staging across America. The company was created to make empty homes appear more inviting to speed up sales. Today, Showhomes has staged over 35,000 homes, helping sell properties worth a total of more than $11 billion.

Based in Coral Gables, Florida, the company started franchising to meet the growing need for expert home staging, which helps increase a home’s appeal and market value. Showhomes can also help renovate occupied homes and even offer custom services for real estate developers.

Joining the Showhomes franchise offers significant advantages. Franchisees will benefit from an established brand and a proven business model in a profitable industry. They will also receive extensive training and support, enabling them to launch and operate successfully.

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Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$12,995
Travel, Lodging and Meals for Initial Training$0
Rent – Office$0 – $1,500
Rent – Storage and/or Warehouse$0 – $1,500
Opening Advertising, Marketing and Promotion$2,000 – $5,000
Staging and Design Inventory$0 – $70,000
Office Equipment, Supplies and Optional Equipment$1,000 – $2,500
Insurance$150 – $600
Required Licenses and Permits$250 – $2,000
Professional Fees and Deposits$500 – $3,500
Additional Funds for the first 90 days$20,000 – $50,000
Total Estimated Initial Investment$40,000 – $180,000

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

When you sign the franchise agreement for each location, you must pay an Initial Franchise Fee of $12,995. This fee is non-refundable and uniformly imposed.

Royalty Fee

If your monthly Service Sales are less than $75,000, you must pay the greater of $750 minimum, total monthly Per Transaction Fees, or 10% of Service Sales if they are $37,500 or less, and 8.5% if they are more than $37,500 but less than $75,000. For monthly Service Sales of $75,000 or more, you pay 7% of Service Sales.

Grand Opening Marketing Fee

When you sign the franchise agreement, you must pay $2,000 for grand opening marketing, which is non-refundable.

Minimum Individual Marketing and Advertising Expenditure

You must spend at least $15,000 on marketing and advertising in your first year, $20,000 in your second year, and $25,000 in your third year and each subsequent year. If you fail to meet this minimum, you must pay the difference to the National Ad Fund.

National Ad Fund

You must contribute the greater of 2% of Gross Sales or a minimum contribution of $140 per month to the National Ad Fund; this can increase to up to 4% of Gross Sales and a minimum of $280.

Supplementary Training Fee

If additional training is required, it is charged at standard rates ranging from $200 to $300 per trainee per day.

Transfer Fee

When you transfer your franchised business, you must pay a $7,500 Transfer Fee. If the transfer is within the same ownership structure, the fee is reduced to $750 or the cost incurred by the franchisor.

Renewal Fee

The Renewal Fee is $5,000, payable upon signing the renewal Franchise Agreement. This fee is waived if you accept the current franchise agreement without changes.

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

  • Investigate the Showhomes franchise to understand its business model, market niche, and reputation.
  • Speak with existing franchisees to get insights into their experiences and the support provided by the franchisor.

2. Review the Franchise Disclosure Document (FDD)

  • Carefully read the FDD provided by Showhomes, which contains crucial details about the franchise, including fees, obligations, and performance statistics.
  • Consider consulting with a franchise attorney to better understand legal obligations and your rights as a franchisee.

3. Assess Your Financial Requirements

  • Analyze the financial requirements outlined in the FDD, including initial franchise fees, ongoing royalties, and other operational costs.
  • Evaluate your financial resources to ensure you can meet the initial investment and sustain the business until it becomes profitable.

4. Secure Financing

  • Explore financing options such as loans, investor funding, or personal savings to meet the initial franchise costs.
  • Prepare a solid business plan to present to potential lenders or investors that outlines projected earnings and business strategies.

5. Select a Suitable Location

  • Identify a strategic location that aligns with Showhomes’ market demographics and territory availability.
  • Perform market research to ensure there is sufficient demand and minimal competition in the chosen area.

6. Complete the Franchise Application

  • Submit a formal application to Showhomes, providing all required documentation and information.
  • Participate in interviews or discussions with the franchisor to clarify any questions and confirm mutual expectations.

7. Receive Training and Setup Support

  • Participate in the training programs offered by Showhomes to understand their operational procedures, marketing strategies, and service standards.
  • Utilize the support provided by Showhomes in setting up the business, including interior design guidelines, marketing materials, and operational systems.

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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