Hommati Franchise Costs, Fees & FDD

Year Business Began: 2017

Franchising Since: 2018

Headquarters: Westerville, Ohio

Estimated Number of Units: 130

Franchise Description: The franchisor is Hommati Franchise Network, Inc. The franchised business is providing real estate and marketing services to real estate agents, brokers, business owners, contractors, engineering firms, property managers or authorized representatives of commercial real estate, apartment complexes, land, resorts, vacation properties and rentals, among other clients. 
Training Overview: Franchisees must attend and successfully complete all phases of the initial training program and complete it to the franchisor’s satisfaction – meaning attaining at least a score of 70% or higher on the final exam at the end of training – at least 15 days before franchisees begin operating under their Franchise Agreement. Currently, initial training consists of 39 hours of classroom training in Westerville, Ohio. Additional training programs will be offered from time to time. After 90 days of operating the program, franchisees are required to participate in additional sales training and coaching via a designated third-party vendor.

Territory Granted: The franchise is for a specific location of one or more counties, as explained below and identified in the Franchise Agreement. The minimum territory that the franchisor grants normally includes 200,000 or more people in it. Franchisees can provide services to any real estate agent or client whose principal office is inside their territory and who is not already exclusive to another franchisee.

Obligations and Restrictions: Franchisees can operate the business on either a full-time or part-time, executive managed basis. If franchisees elect to operate on a part-time, executive managed basis, it is required that they hire either a general manager or both a 3D/drone pilot and agent development manager before beginning operations. Franchisees must use and sell all the goods and services and only the goods and services that the franchisor has authorized franchisees to provide.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. At the franchisee’s request, the franchisor may renew the agreement for two more 10-year terms if the franchisee meets the conditions.

Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$44,900	$44,900
Insurance (Quarterly Installment)	$900	$1,100
Computer and Wireless Internet Installation	$0	$2,300
Software	$250	$650
Drone & RC Remote	$2,999	$3,300
10’ Display, 3” Banner, Printing, Literature	$1,974	$2,174
Technology Equipment: iPad Pro 11 - 2023 or newer, 256GB W/Lidar Enabled, Minimum of Three Broker Video Boxes	$1,450	$1,450
Mirrorless Camera & Two Lenses	$3,900	$5,100
Other Equipment	$3,600	$3,700
3D Camera (plus applicable sales tax & shipping)	$799	$899
Vehicle Deposit, Vehicle Wrap & Three Months Expense	$2,950	$5,200
Business Licenses and Sales Tax Deposits	$100	$250
Legal and Accounting Fees	$1,500	$2,250
Training Expenses	$1,000	$1,700
Additional Funds (90 days)	$3,042	$5,000
ESTIMATED TOTAL	$69,364	$79,973

 
Other Fees

Type of Fee	Amount
Royalty	Franchisees will pay an 8% royalty on the first $12,500 in monthly gross revenues earned, a 7% royalty on all monthly gross revenues between $12,501 and $16,667, and a 6% royalty on all monthly gross revenues above $16,667.
Featured Agent Monthly Membership Fee	40% of the featured agent monthly membership fee paid by clients.
3D Upload/ Floor Plan Fee	Currently $28 per 3D interactive tour when it is first uploaded to Hommati.com or at the time it is billed to the client, whichever happens first. Or $6 per floor plan if franchisees sell a floor plan without a 3D tour.
Broker/ Team Leader Featured Agent Sponsored	40% of the broker/team leader monthly membership fee paid by clients.
Hommati Curb Leads	40% of the monthly fee paid by clients.
Inactive Penalty Fee	$10 per month per 3D interactive tour after the listing is inactive for 30 days or more and franchisees have not archived it.
Lender Network Advertising Program Monthly Fee	40% of the lender network advertising program monthly fee paid by clients.
Technology/ Syndication Monthly Fee	$195 per month.
Virtual Enhancements	Currently $21 per image staged or $44 per image for those requiring items to be removed before staging, $6 per image for twilight enhancement and $7 per image for blue skies, green grass enhancement. The price could be higher for more complex staging.
Cost of Audit	The franchisor’s actual cost of performing the audit if the audit discloses an underpayment of 3% or more of the total royalties or any other ongoing payments franchisees are obligated to make to the franchisor for the period audited.
Payment for Proprietary Products or Services	The full purchase price of the service and/or product plus shipping costs and tax.
National Advertising Fund Fee	Up to 4% of gross revenues.
Renewal Fee	$1,500
Buy Out of Non-Compete Fee	An amount equal to two times all royalties and other fees during the last year of the term of the Franchise Agreement.
Transfer Fee	$5,000
Brokerage Fee	33% of the then current franchise fee if franchisees sell their franchise to a candidate the franchisor produces.
Annual Meeting Registration Fee	The franchisor will charge a registration fee of $595 for up to 2 attendees at the Hommati annual meeting. Additional attendees may attend for an additional registration fee of $300 each.
Declined Payment Charge	$50 or the franchisor’s actual expense, whichever is more.
Interest and Late Fees on Late Payments, Reports or Under Reporting	Not to exceed 18% per annum on all amounts owed. Also, $50 per occurrence per late report or fee.
Email Service Fee	$360 per email address.
Local Advertising	4% of gross revenues or $500 per month whichever is greater. This total amount includes direct mail, social media, and email drip marketing, etc.
Direct Mail Marketing	Currently, a minimum of $175 per month needs to be invested in direct mail marketing.
Social Media and Email Drip Marketing	Currently, a minimum of $175 per month needs to be invested in social media and email drip marketing.
Attorney Fees and Costs	Varies depending on the amount incurred.

The above information has been compiled from the FDD of Hommati. Year of FDD: 2025.

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