HomeTeamFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A HomeTeam franchise requires a total initial investment of $65K – $92K, including a $55K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $253K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $65K – $92K
- 41st pct Real Estate
- Avg gross sales
- $253K
- 9th pct Real Estate
- Royalty
- 6.0%
- 21st pct Real Estate
- Units
- 191
- 55th pct Real Estate
- SBA default
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.2x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1992. Systems this mature have refined operations and brand recognition.
Franchised units fell from 198 to 191 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $65K – $92K including a $55K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $253K/year.
- Verdict A (Top Quintile) with a risk score of 5/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- THE HOMETEAM INSPECTION SERVICE, INC.
- Incorporated in
- OH
- HQ
- 575 Chamber Drive, Milford, Ohio 45150
- Auditor
- Monnier & Co.
- Audited financials
- Franchisor revenue
- $4.8M
- vs $4.7M prior year
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.
- CEO
- Paul D. Spires, Jr.
- Headquarters
- OH
- Founded
- 1992
- FDD year
- 2026
- States available
- 36
FDD Item 7 · 2026 filing · 7 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $45K | $65K | |
| Start-up Package Feenot refundable | $15K | $15K | |
| Administrative Costs | $500 | $1K | |
| Travel & Living Expenses While Training | $1K | $2K | |
| Insurance | $2K | $4K | |
| Permits, Licenses & Professional Memberships | $0 | $1K | |
| Additional Funds - 3 months | $2K | $4K | |
| Total initial investment | $65K | $92K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$35K
14.0% margin
Unlevered ROIC
43%
EBITDA / total invested capital
Payback
28 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $65K – $92K
- Near category avg vs category
- Liquid capital req'd
- $2K – $4K
- Better than avg vs category
- Franchise fee
- $45K – $65K
- Near category avg vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $253K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 126 units
- vs category median 41 · large
- Range (low → high)
- $20K→$1.3M
- Cohort dispersion (min → max)
- Quartile band
- $133K→$531K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 3 / 5
- vs category median 0 / 5 · above
Compared against 121 Real Estate brands
vs Real Estate averages
How HomeTeam Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 191
- Opened
- 6
- Last reporting year
- Closed
- 17
- Turnover rate
- 8.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -4.5%
- Net unit change last year
- 3-yr CAGR
- -3.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 36 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 52
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
1 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $10,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Monnier & Co.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 5 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Household count |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 1 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 27 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Inspection Support Network (ISN)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Inspection Support Network (ISN)
Item 20 · call current owners
Franchisee Contacts
159 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
HomeTeam · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HomeTeam franchise?
The total investment to open a HomeTeam franchise ranges from $65K – $92K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HomeTeam franchise owners earn?
According to Item 19 of the HomeTeam FDD, the average gross sales per unit is $253K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is HomeTeam's franchise failure rate?
SBA 7(a) loan charge-off data is not available for HomeTeam (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many HomeTeam franchise locations are there?
As of their most recent FDD filing, HomeTeam has 191 total units in the United States, including 198 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is HomeTeam a good franchise to buy?
FranchiseVerdict rates HomeTeam as a A-grade franchise with a risk score of 5 out of 100, 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.
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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.