Bottom line
- Total investment $65K – $92K including a $55K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $253K/year.
- Rated STRONG with a risk score of 48/100. SBA loan default rate of 0.0% across 52 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one HomeTeam unit return on the cash you put in?
Unlevered ROIC · per unit
43%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 HomeTeam units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$354K
on $1.8M purchase
Total debt
$1.4M
SBA $0.9M + senior + seller note
Overview
About
HomeTeam franchisees operate pest control and inspections services, performing residential and commercial property treatments, preventative maintenance, and termite/WDO inspections. Day-to-day operations involve customer acquisition/retention, technician scheduling/oversight, service delivery, and managing recurring revenue contracts typical of service-based franchise models.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining franchisee base, undisclosed profitability metrics, recent regulatory action, and high fee structure relative to revenue create material investment risk.
Score breakdown · what drove the 48 / 100 rating
- 01MINORUnit count declining 4.5% YoY (191 units) indicates system contraction and potential franchisee struggles
- 02MEDNo disclosed net income data prevents ROI validation; with $252K avg revenue and 6% royalty, actual profitability is opaque
- 03MINORRegulatory compliance issue in May 2022 (California Consent Order, $10K penalty) suggests operational/governance gaps
- 04MEDHigh initial investment ($65-91K) relative to disclosed average revenue creates breakeven pressure
- 05MINOR10-year term with 6% royalty on declining unit base raises sustainability concerns
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
HomeTeam · FDD (2026) PDF