HommatiFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hommati franchise requires a total initial investment of $40K – $74K, including a $20K franchise fee and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $155K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $40K – $74K
- 21st pct Real Estate
- Avg gross sales
- $155K
- 5th pct Real Estate
- Royalty
- 8.0%
- 43rd pct Real Estate
- Units
- 117
- 46th pct Real Estate
- SBA default
- 0.0%
- system-wide median varies by category
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
The system contracted 13% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $40K – $74K including a $20K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $155K/year (median $98K). Estimated payback in 0.4 years (based on P&L Bottom Line).
- Verdict B (Above Average) with a risk score of 55/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hommati Franchise Network, Inc.
- Incorporated in
- OH
- HQ
- 6264 South Sunbury Road, Suite 100, Westerville, OH 43081
- Auditor
- Brady Ware & Schoenfeld
- Audited financials
- Franchisor revenue
- $1.5M
- vs $1.7M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Hommati franchisees operate as virtual real estate tour service providers, creating 3D virtual tours and digital marketing content for residential properties. Day-to-day work involves client acquisition, conducting property photography/videography, processing digital assets, and managing client relationships in their protected territory.
- CEO
- Jerry L. Clum, Jr.
- Headquarters
- OH
- Founded
- 2017
- FDD year
- 2026
- States available
- 33
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $3K | $5K |
| Equipment, build-out, other | $17K | $49K |
| Total initial investment | $40K | $74K |
Source: Hommati 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$17K
11.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $40K – $74K
- Better than avg vs category
- Liquid capital req'd
- $3K – $5K
- Better than avg vs category
- Franchise fee
- $20K – $45K
- Better than avg vs category
- Royalty
- 8.0%
- Descending scale based on monthly Gross Revenues · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
- Payback period
- 0.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $495 |
| Transfer fee | $5K |
| Renewal fee | $2K |
| Total fee load | 12.0% of rev |
Financial Performance
- Avg gross sales
- $155K
- Per unit, per year
- Median gross sales
- $98K
- Avg p&l bottom line
- $130K
- Reported as P&L Bottom Line in FDD Item 19
- Item 19 type
- Historical
- Sample size
- 60 units
- vs category median 41
- Range (low → high)
- $34K→$778K
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 0 / 5 · above
Compared against 121 Real Estate brands
vs Real Estate averages
How Hommati Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 117
- Opened
- 4
- Last reporting year
- Closed
- 20
- Turnover rate
- 17.1%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (yr3)
- -12.9%
- Net unit change last year
- 3-yr CAGR
- -15.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 31 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $351K
- Median loan
- $51K
- 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
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hommati's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hommati presents a cautionary profile due to contracting franchisee base, tiered royalty structure penalizing low-volume operators, and potential financial reporting concerns given the gap between low initial investment and reported profitability.
Audited financials (Item 21)
Yes · Brady Ware & Schoenfeld⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 55 / 100 rating
- 01MEDUnit count declined 12.9% YoY (117 units), indicating system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORTiered royalty structure (8%-6%) suggests thin margins at lower revenue levels; franchisees earning <$12,500 pay highest rate with lowest profitability
- 03MINORInitial investment range ($39,872-$74,223) is low relative to reported avg net income ($129,723), raising questions about FDD Item 19 methodology and survivorship bias
- 04HIGHNo litigation disclosed but significant unit attrition warrants investigation into dispute resolution and franchisee disputes outside formal litigation
- 05HIGHGoing Concern status is positive but paired with shrinking unit base suggests underlying business model stress
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 | 2 |
| Territory type | County-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 39 hrs
- On-the-job training
- 0 hrs
- POS system
- Franchise Dashboard
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Franchise Dashboard
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hommati · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hommati franchise?
The total investment to open a Hommati franchise ranges from $40K – $74K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hommati franchise owners earn?
According to Item 19 of the Hommati FDD, the average gross sales per unit is $155K. The median is $98K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hommati's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hommati (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 Hommati franchise locations are there?
As of their most recent FDD filing, Hommati has 117 total units in the United States, including 128 franchised units and 9 company-owned units. 4 new units were opened in the latest reporting year.
Is Hommati a good franchise to buy?
FranchiseVerdict rates Hommati as a B-grade franchise with a risk score of 55 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.