HomeTowne Studios
Formerly known as Home Therapy Solutions
Bottom line
- Total investment $420K – $14.8M including a $30K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 20 loans (below the industry average).
- System growing at 150.0% CAGR over 3 years with 84 total units — strong expansion trajectory.
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 HomeTowne Studios unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
HomeTowne Studios franchisees operate extended-stay hotels targeting budget-conscious travelers, managing day-to-day operations including housekeeping, front desk, maintenance, and guest services across studio-style rooms. Franchisees handle occupancy management, pricing, local marketing, and staffing while paying 5.5% royalties on all room revenue regardless of profitability.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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 franchise system with active litigation, regulatory violations, franchisee collection actions, missing financial disclosures, and alarming unit contraction suggest fundamental business model stress and franchisor-franchisee relationship breakdown.
Score breakdown · what drove the 61 / 100 rating
- 01MED20% unit decline YoY (84 units, down from ~105) signals system contraction and potential franchisee distress
- 02MINORNo Item 19 financial disclosure (avg revenue/net income) prevents ROI validation on $420k-$14.8M investment range
- 03HIGHMultiple litigation issues: pending breach of franchise agreement, Maryland regulatory consent order, and two 2024 collection actions against franchisees suggest franchisor-franchisee relationship deterioration
- 04MINORExtremely wide investment range ($420k to $14.8M) with no average unit volume data creates transparency risk and suggests inconsistent unit economics
- 05MINORCollection actions filed by affiliate against franchisees in 2024 indicates cash flow problems among current franchisees
- 06MINOR5.5% royalty on gross revenue (not net) provides no relief during downturns and compounds pressure on struggling units
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
27 numbers
One-time purchase · CSV download · Validation questions included
FDD download
HomeTowne Studios · FDD (2025) PDF