HomeSmiles Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
HomeSmiles is a home maintenance franchise providing bundled preventive services like gutter cleaning, dryer-vent clearing, and safety checks in one visit. Franchisees run route-based crews, managing scheduling and recurring accounts.
FranchiseVerdict summary · 2026
A HomeSmiles franchise requires a total initial investment of $148K – $202K, including a $60K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 26 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $148K – $202K
- 58th pct Home Services
- Avg gross sales
- N/A
- Outlet subsetn=2
- Royalty
- N/A
- Units
- 43
- 41st pct Home Services
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $148K – $202K including a $60K franchise fee.
- RETURNSThe provided page images (p201-p208) are all Franchise Agreement exhibits (Exhibit 3 General Release, Exhibit 4 ACH Authorization Form, Exhibit 5 Assignment of Telephone Numbers and Digital Media Accounts) from the HomeSmiles Multi-State FDD dated April 17, 2025. No Item 21 audited financial statements, Independent Auditor's Report, balance sheet, or income statement are present in this folder, so no financial figures or auditor could be extracted. Franchisor entity: Home Smiles Franchising, LLC.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better). SBA loan charge-off rate of 0.0% across 26 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG3 units terminated last reporting year (7.0% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Home Smiles Franchising, LLC
- Predecessor
- Home Smiles, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Director
- Jesshill E. Love
- Incorporated in
- CA
- HQ
- 1526 Stafford Street, Redwood City, California 94063
- Auditor
- Alfred J. Lutfy, CPA
- Audited financials
- Franchisor revenue
- $386K
- vs $1.3M prior year
Affiliated brands
- and predecessor
- and predecessor Home Smiles
- uses the Licensed Marks and System in the operation of a HomeSmiles Business
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Jesshill E. Love
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2025
- States available
- 23
Can you afford it, and what does the money buy?
Entry cost runs 22% below the typical home services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $42K | $65K |
| Equipment, build-out, other | $46K | $78K |
| Total initial investment | $148K | $202K |
Source: HomeSmiles 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $148K – $202K
- Middle of category vs category
- Liquid capital req'd
- $42K – $65K
- Bottom third — review vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- Greater of 6% of Gross Sales or Minimum Monthly Royalty F…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $297 |
| Transfer fee | $15K |
| Renewal fee | $8K |
| Inventory (initial) | $5K – $8K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
HomeSmiles did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one HomeSmiles unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
36%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
The provided page images (p201-p208) are all Franchise Agreement exhibits (Exhibit 3 General Release, Exhibit 4 ACH Authorization Form, Exhibit 5 Assignment of Telephone Numbers and Digital Media Accounts) from the HomeSmiles Multi-State FDD dated April 17, 2025. No Item 21 audited financial statements, Independent Auditor's Report, balance sheet, or income statement are present in this folder, so no financial figures or auditor could be extracted. Franchisor entity: Home Smiles Franchising, LLC.
Reported for a subset of outlets rather than the whole system
Based on a sample of only 2
- Item 19 type
- gross sales and expenses
- Sample size
- 2
- vs category median 32 · small
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Home Services average).
Disclosure
Item 19 reports gross sales and expenses rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 366.7% CAGR over 3 years across 43 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How HomeSmiles Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 43
- Opened
- 40
- Last reporting year
- Closed
- 4
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 16.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 40
- Closed (3yr)
- 4
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 26
- Loan volume
- $4.8M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
- Typical loan rate
- 10.5%
- avg rate to borrowers
- Franchised industry avg
- 12.9%
- brand beats franchise avg ↓
- Jobs supported
- 117
- 2.4 per loan
- Lender concentration
- 85%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in other personal and household goods repair and ma, franchised businesses charge off at 12.9% vs 19.0% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing HomeSmiles franchisees
Showing 3 of 4 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into HomeSmiles's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 14 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 26 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Hypergrowth franchise with opaque franchisor financials, aggressive royalty structure, and no earnings claim substantiation presents meaningful execution and profitability risk despite strong unit economics on paper.
Litigation (Item 3)
No litigation required to be disclosed.
Largest disclosed settlement: $294,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Alfred J. Lutfy, CPA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 73 / 100 verdict
- 01MINORExtreme unit growth (366.7% YoY) suggests either aggressive recruitment or system instability—unsustainable expansion raises retention/profitability concerns
- 02MINORMinimum monthly royalty fee structure (greater of 6% or minimum) may be onerous for franchisees in slower markets and creates cash flow risk
- 03HIGHGoing Concern = False is absent/unclear; lack of transparency on franchisor financial health is a major red flag
- 04MINORHigh franchise fee ($59,500) combined with wide investment range ($148k-$202k) and aggressive royalty structure creates elevated break-even pressure
- 05MEDNo Item 19 (Earnings Claim Document) disclosed—cannot independently verify if $205k average net income is achievable or realistic
- 06MEDRapid expansion without disclosed litigation may indicate emerging disputes or franchisee dissatisfaction not yet surfaced in legal filings
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 250,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | San Mateo County, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 24 hrs
- Training location
- Redwood City, California
- Ongoing training
- Required
- Time to open
- 1 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- Serviceminder
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Serviceminder
Item 20 · call current owners
Franchisee Contacts
42 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
HomeSmiles · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HomeSmiles franchise?
The total investment to open a HomeSmiles franchise ranges from $148K – $202K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HomeSmiles franchise owners earn?
HomeSmiles does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the HomeSmiles FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the HomeSmiles FDD and qualifies whose outlets they describe.
What is HomeSmiles's franchise failure rate?
Based on SBA 7(a) loan data, HomeSmiles has a charge-off rate of 0.0% across 26 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many HomeSmiles franchise locations are there?
As of their most recent FDD filing, HomeSmiles has 43 total units in the United States, including 42 franchised units and 1 company-owned units. 40 new units were opened in the latest reporting year.
Is HomeSmiles a good franchise to buy?
FranchiseVerdict rates HomeSmiles as a A-grade franchise with a verdict score of 73 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent HomeSmiles, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.