HouseMaster Home Inspections
Date Incorporation: 1979
Franchising Since: 1979
Headquarters: New Jersey
Description: The franchisor is HMA Franchise Systems, Inc. Housemaster operates a building inspection and related services business. Related services may include wood destroying insect testing and/or treatment, water testing, radon gas testing and/or mitigation, mold testing, septic tank evaluations/cleaning, lead paint testing, buried tank testing, preventative maintenance inspections and safety inspections.
Franchise Offer: The HouseMaster franchisee will perform building inspection and related services for customers.
Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation. HMA has registered this franchise with the Small Business Administration. HMA can assist you in applying for SBA guaranteed financing.
Training and Assistance: The franchisee must attend the initial training program. The franchisees associates may also attend the training program at no additional fee. The franchisee must complete the initial training course to HMA's satisfaction before they open the franchise business. If the franchisee does not satisfactorily complete the training, HMA can terminate the franchise. The NIBI Technical Training program is not technically exhaustive and may need to be supplemented by educational programs and self-learning to obtain additional information on construction materials and methods and locally accepted and customary home inspection practices. The HMA Technical Staff will provide direction and/or assistance with this additional training through various HouseMaster programs.
Territory: HMA primarily offers a Reciprocal Opportunity Franchise, which grants the franchisee rights to conduct inspections and limited marketing activities to an extensive area known as a Reciprocal Opportunity Franchise Territory along with other Housemaster franchisees within the same Reciprocal Opportunity Franchise Territory.
Term of Agreement and Renewal: The term of the franchise agreement is for 5 years. If the franchisee meets certain requirements, they may be eligible for a successor franchise agreement for a successive term.
Obligations and Restrictions: The franchisee must devote full time and effort to the active management and operation of the franchised business. The franchisee may hire a full-time manager for the franchised business only if they obtain prior written consent from HMA. However, the franchisee must continue to actively oversee the operations of the franchised business supervised by the manager. Any manager must complete the initial training program to HMA's satisfaction. The franchisee must follow the Housemaster Method in operating the franchise business and offer the services and products authorized under the HouseMaster method.
Total Number of franchises Units: The total number of franchised units for year ended 2007: 355
Investment Tables:
Initial Investment:
| Name of fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $24,500 | $24,500 |
| Training Expenses | $500 | $2,000 |
| Marketing Materials and Supplies | $2,000 | $5,000 |
| Office Equipment, Furniture | $0 | $2,000 |
| Computer System | $0 | $4,700 |
| Rent | $0 | $750 |
| Prepaid Expenses | $250 | $2,500 |
| General Liability Insurance | $500 | $750 |
| Errors & Omissions Insurance | $2,500 | $3,500 |
| Legal Services | $1,000 | $2,500 |
| Additional Funds - 3 months | $5,000 | $10,000 |
| HouseMaster Manual Deposit | $250 | $250 |
| Conference Travel Expenses | $1,000 | $3,000 |
| Total | $37,500 | $61,450 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty-Service Fee |
7½% of first $125,000 in Gross Sales per year 7% on $125,001- $250,000, |
| Advertising Promotion Contribution |
2½% of first $125,000 in Gross Sales per year, 2¼% on $125,001 - $250,000, and 2% over $250,000. |
| Late Payment Fee | $10 per day or interest of 8% from the due date, at HMA's option. |
| Transfer Fee | $4,000 |
| Annual Conference/Regional Meeting Registration Fee |
Up to $1,000. Fee may be adjusted annually to reflect increases in the national consumer price index. |
| Audit | Cost of Audit |
| Reimbursement for Insurance | Cost of Insurance plus HMA's expenses. |
| Attorneys' Fees and Costs | Undetermined |
| Indemnification | Loss, liability, damages and costs incurred by HMA. |
| Internet Training Fee (Distance Learning Program) | Currently $50 per module (approximately 11 modules for initial training), or $500 for all modules. |
| PC Ex press License/Support Fee | Annual license renewal fee for support and upgrades; currently $3 00/year |
| Cross Territory Fine | $1,000 per occurrence |
| NIBI Training Materials Fee | Cost of training materials, up to $350 |
| Liquidated Damages | The greater of 30% of your annual Gross Sales for the preceding year or the cost of NIBI technical training (for all employees attending) plus $52,500 |
| Deferred Training Fee | The greater of 30% of the annual Gross Sales for the preceding year or the cost of NIBI technical training (for all employees attending) plus $52,500 |
The above information has been taken from the UFOC/FDD of HouseMaster
Franchise Direct's Disclaimer
You may be interested in the following franchises...
Soil to Sun
Become a Soil to Sun certified energy auditor. We provide you with every opportunity to succeed from day 1!
Minimum Cash Required: $15,000.
National Property Inspections
Start your own profitable home inspection business with National Property Inspections' complete start-up...
Minimum Cash Required: $32,900.
Your Request List