National Property Inspections Franchise Costs, Fees & FDD

Year Business Began: 1987

Franchising Since: 1987

Headquarters: Omaha, Nebraska

Estimated Number of Units: 215

Franchise Description: National Property Inspections, Inc. is the franchisor. National Property Inspections franchisees provide residential and commercial inspection services to prospective real estate buyers, lenders, insurance companies and other interested parties. The franchisor provides franchisees with technical training in a building’s electrical, mechanical, plumbing and structural systems, training in sales and marketing, as well as the inspection tools, computer and equipment needed to start the business.
Training Overview: The training program will cover all aspects of the operation of a National Property Inspections franchise. The training program is mandatory for franchisees (or the managing owner), or designated manager if the franchisee will not be acting as their own manager. The training program will be conducted (i) at the franchisor’s place of business in Omaha, Nebraska, (ii) virtually using the franchisor’s online training program(s), and/or (iii) at another location designated by the franchisor. The duration of the in-person training program will be no more than two weeks. The franchisor will also provide up to one week of in-the-field training with another NPI franchised business inspector it designates. Depending on the state in which the franchised business is located, franchisees may also be required to attend additional state mandated training courses before obtaining their home inspector’s license. The franchisor may require franchisees (or the managing owner) and/or other previously trained and experienced employees to attend and satisfactorily complete various training courses that it periodically chooses to provide either online or in-person at the times and locations that the franchisor designates. Besides attending these courses, franchisees will attend an annual meeting of all NPI franchised business franchise owners at a location the franchisor designates, if the franchisor organizes and plans (at its option) such a meeting.

Territory Granted: The franchisor will determine the size and boundaries of the franchisee’s designated area in its sole judgment. A typical designated area may be delineated by boundary streets, highways, city limit markers, zip codes or county lines, and will be based on a combination of demographic factors which include housing units and real estate transactions, real estate agents, commercial bankers and population. Except as limited by the franchisor, as long as franchisees are in full compliance with the Franchise Agreement, then the franchisor and its affiliates will not operate or grant a franchise for the operation of a NPI franchised business at a location in the designated area during the term of the Franchise Agreement.

Obligations and Restrictions: If franchisees are a legal entity, they must appoint a shareholder, member, or partner (as applicable) to be the “managing owner,” responsible for overseeing and supervising the franchised business’s operation. Franchisees (or the managing owner) or their designated manager, if they will not be acting as their own manager, must at all times direct and manage the franchised business and devote his or her full-time energy to the operation of the franchised business. The Franchise Agreement provides that franchisees must sell, or offer for sale to the public in connection with their franchised business, only such products or other services as meet the specifications and standards designated by the franchisor, and that franchisees must offer all products and services the franchisor reasonably prescribes as part of the franchise and the system. Further, franchisees may not be associated in any way with a business competitive with the franchisor’s.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in full compliance, they may acquire one successor franchise term of 10 years.

Financial Assistance: The franchisor and its affiliates do not offer direct or indirect financing. Neither the franchisor nor its affiliate will guarantee a franchisee’s note, lease, or obligation. The franchisor offers an incentive program for eligible veterans of the United States military forces and first responders (i.e. police, fire, EMT etc.) under which qualified participants will pay an initial franchise fee reduced by 20%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$34,900	$34,900
Travel/Living Expenses for Training	$750	$1,650
Association/Organization Membership	$1,000	$2,000
Vehicle Signage	$500	$1,500
Advertising/Promotions	$600	$1,500
Insurance Premium	$600	$1,500
Legal	$500	$1,000
Accounting	$250	$500
Licenses (depending on state)	$200	$4,900
Apparel	$200	$500
Tools and Equipment	$500	$2,000
Additional Funds	$1,000	$3,000
ESTIMATED TOTAL	$41,000	$54,950

 
Other Fees

Type of Fee	Amount
Royalty	8% of gross sales or a minimum of $300 to $500 per month, whichever is greater.
Fund Contribution	2% of weekly gross sales.
Software Fee	The then current software fee (which the franchisor estimates to be $600 per year).
Local Advertising	Up to 2% of gross sales.
Ongoing Training/Annual Meeting	The then-current charge to attend any ongoing training course or annual meeting the franchisor schedules (currently $475, but not to exceed $750 per offering).
Interest on Overdue Payments	4% above the prime rate of interest on the first day of each month or the maximum rate allowable by applicable law.
Audit	The cost of inspection or audit (including the franchisor’s travel expenses and reasonable legal fees and accounting fees). The franchisor estimates this will cost between $7,500 and $15,000.
Transfer	$5,000, plus the franchisor’s administrative costs and expenses. If the purchase price for the franchised business exceeds $200,000, the amount of the transfer fee will increase above $5,000 by an additional amount equal to 10% of the amount the purchase price exceeds $200,000.
Insurance	Franchisees must reimburse the franchisor’s costs.
Costs and Attorneys’ Fees	Will vary under circumstances and depend on nature of the franchisee’s non-compliance.
Management Fee	The franchisor’s expenses to manage the franchised business, including reasonable compensation and expenses for the franchisor’s representative managing the business.
Indemnification	Will vary under circumstances and depend on nature of third-party claim.
Brand Damages	Will vary under circumstances.
Administrative Fee	$500 per day that the franchisor has the right to terminate the Franchise Agreement.

The above information has been compiled from the FDD of National Property Inspections. Year of FDD: 2025.
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