HomeTeam Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
HomeTeam Pest Defense is a home-services franchise providing residential and commercial pest control and termite inspections. Franchisees run a route-based operation with technicians on recurring service plans in a territory.
FranchiseVerdict summary · 2026
A HomeTeam franchise requires a total initial investment of $65K – $92K, including a $45K – $65K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average revenue per franchisee was $313K — this franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. SBA 7(a) loans show a 25.0% charge-off rate across 26 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $65K – $92K
- 48th pct Real Estate
- Avg gross sales
- $313K
- Per franchisee, not per outlet
- Royalty
- 6.0%
- 24th pct Real Estate
- Units
- 191
- 66th pct Real Estate
- SBA charge-off
- 25.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate 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 $65K – $92K including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage revenue per franchisee of $313K/year. Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 25.0% across 26 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG10 units terminated last reporting year (5.2% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The HomeTeam Inspection Service, Inc.
- Incorporated in
- OH
- HQ
- 575 Chamber Drive, Milford, Ohio 45150
- Auditor
- Monnier & Co.
- Audited financials
- Franchisor revenue
- $4.7M
- vs $4.8M prior year
Overview
About
- CEO
- Paul D. Spires, Jr.
- Headquarters
- OH
- Founded
- 1992
- FDD year
- 2026
- States available
- 36
Can you afford it, and what does the money buy?
Entry cost runs 64% below the typical real estate franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown7 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $65K – $92K
- Middle of category vs category
- Liquid capital req'd
- $2K – $4K
- Top 40% of category vs category
- Franchise fee
- $45K – $65K
- Middle of category vs category
- Royalty
- 6.0%
- Tiered by sales volume · 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 |
What do units actually make?
Average unit sales run 82% below the real estate norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for HomeTeam until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$81K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one HomeTeam unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
- Avg gross sales
- $313K
- Per franchisee, per year — not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue by quartile
- Sample size
- 95 franchisees
- vs category median 43 · large
- Range (low → high)
- $102K→$1.3M
- Cohort dispersion (min → max)
- Quartile band
- $133K→$606K
- Bottom 25% → top 25%, per franchisee
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 3 / 10
- vs category median 0 / 10 · above
Compared against 101 Real Estate brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $313K/year in gross sales.
Fee burden
Total ongoing fee load of 9.0% (near the Real Estate average).
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System contracting at -3.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Real Estate averages
How HomeTeam Compares
Per franchisee, not per outlet - the category average is per-outlet only, so no comparison is shown
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 191
- Opened
- 6
- Last reporting year
- Closed
- 3
- Terminated
- 10
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.5%
- Net unit change over 3 years
- 3-yr CAGR
- -3.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 9
- Closed (3yr)
- 0
- Terminated (3yr)
- 10
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 15
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- 26
- Loan volume
- $3.0M
- Median loan
- $116K
- average
- Charge-off rate
- 25.0%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 3
Vintage analysis
HomeTeam charge-off rate by loan vintage
Top lenders financing HomeTeam franchisees
Showing 3 of 16 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 HomeTeam's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 9 lenders with concentration factor
- Per-state charge-off rates across 13 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
A 25.0% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 25.0% — 56% above the 16.0% national norm, i.e. higher 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
Declining franchisee base, undisclosed profitability metrics, recent regulatory action, and high fee structure relative to revenue create material investment risk.
Litigation (Item 3)
One Consent Order with California Commissioner of Financial Protection and Innovation (May 2022) regarding franchisor's CPA not being registered as a public accounting firm in Ohio; administrative penalty of $10,000 paid.
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: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · 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 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 | 6 |
| Mandatory arbitration | No |
| Arbitration location | Milford, Ohio |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 1 |
View Item 3 litigation summary
One Consent Order with California Commissioner of Financial Protection and Innovation (May 2022) regarding franchisor's CPA not being registered as a public accounting firm in Ohio; administrative penalty of $10,000 paid.
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 27 hrs
- Training location
- Milford, Ohio and franchisee's territory
- Ongoing training
- Optional
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Inspection Support Network (ISN) by Porch.com, Inc.
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Inspection Support Network (ISN) by Porch.com, Inc.
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 $45K. 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 $313K. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the HomeTeam 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 HomeTeam FDD and qualifies whose outlets they describe.
What is HomeTeam's franchise failure rate?
Based on SBA 7(a) loan data, HomeTeam has a charge-off rate of 25.0% across 26 loans, meaning 25.0% 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 HomeTeam franchise locations are there?
As of their most recent FDD filing, HomeTeam has 191 total units in the United States, including 191 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 C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.