FranchiseVerdict
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FV-01221·MODERATEExcellent95

Hommati

Real EstateFranchising since 2018Website
Investment
$40K – $74K
32nd pct Real Estate
Avg revenue
$155K
6th pct Real Estate
Royalty
8.0%
57th pct Real Estate
Units
117
60th pct Real Estate
SBA default
0.0%
vs <3% typical

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.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
  • Auditor disclosed a going-concern note — 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
Ohio
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.

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 Hommati unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $154,732
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $40K–$74K
Working capital
$
FDD reports $3K–$5K

Unlevered ROIC · per unit

28%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$17K
EBITDA margin
11.0%
Total invested
$61K
Payback
43 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Hommati units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$124K

on $619K purchase

Total debt

$495K

SBA $0.3M + senior + seller note

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.
Founded
2017
FDD year
2026
States available
33

Item 7 · what it costs

The Vitals

Total investment
$40K – $74K
All-in to open one unit
Liquid capital
$3K – $5K
Cash you must have on hand
Franchise fee
$20K
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 v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$155K
Per unit, per year
Median gross sales
$98K
Item 19 type
Historical
Sample size
60 units
vs category median 41
Range (low → high)
$34K$778K
Cohort dispersion
Transparency
7 / 5
vs category median 0 / 5 · above
Revenue rank6th
vs Real Estate peers
Investment cost rank32th
Lower investment ranks lower (better)
Royalty rate rank57th
Lower royalty = lower percentile (better)
Unit count rank60th
vs Real Estate peers
Risk score rank38th
Lower risk = lower percentile (better)

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
2024
108-16
Franchised units
2025
124
Franchised units
2026
128
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 31 states
Not registered

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.

Total loans
7
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

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.

Score breakdown · what drove the 62 / 100 rating

  1. 01MEDUnit count declined 12.9% YoY (117 units), indicating system contraction and potential market saturation or franchisee dissatisfaction
  2. 02MINORTiered royalty structure (8%-6%) suggests thin margins at lower revenue levels; franchisees earning <$12,500 pay highest rate with lowest profitability
  3. 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
  4. 04HIGHNo litigation disclosed but significant unit attrition warrants investigation into dispute resolution and franchisee disputes outside formal litigation
  5. 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

Territory
County-based
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Ohio

Item 11

Training & Operations

Classroom training
39 hrs
On-the-job training
0 hrs
POS system
Franchise Dashboard
Operating tech stack

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

99 numbers

Locked
(314) 782-••••
MO
(806) 319-••••
TX
(602) 935-••••
AZ

One-time purchase · CSV download · Validation questions included

FDD download

Hommati · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above