HouseMaster Franchise Cost, Revenue & Review 2026
- Investment
- $74K – $131K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 23.5%
- on 35 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
HouseMaster is a home-inspection franchise providing residential and commercial building inspections for buyers, sellers, and agents. Franchisees run an inspection business scheduling jobs, performing evaluations, and delivering reports.
FranchiseVerdict summary · 2026
A HouseMaster franchise requires a total initial investment of $74K – $131K, including a $43K franchise fee and an ongoing 7.5% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 23.5% charge-off rate across 35 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $74K – $131K
- 57th pct Real Estate
- Avg gross sales
- N/A
- Per franchisee, not per outlet
- Royalty
- 7.5%
- 56th pct Real Estate
- Units
- 190
- 64th pct Real Estate
- SBA charge-off
- 23.5%
- % 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 median · 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 $74K – $131K including a $43K franchise fee, 7.5% ongoing royalty.
- RETURNSItem 19 Table B separately discloses an Average Inspection Fee (a per-inspection/per-job metric) for the 2025 Reporting Period: Single-Unit Group $537 (median $528, range $128-$996); 2-Unit Group $663 (median $631, range $459-$855); 3-Unit Group $606 (median $560, range $440-$855); 4-9 Unit Group $889 (median $683, range $516-$1,724).
- RISKVerdict D (Below average), verdict score 31/100 (higher is better). SBA loan charge-off rate of 23.5% across 35 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -45 franchised outlets in the latest year (5 opened, 50 closed); 3 signed but not yet open (Item 20).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HouseMaster SPV LLC
- Parent company
- Neighborly Assetco LLC
- FDD Item 1, page 11 of the 2026 FDD
- Ultimate parent
- Nest Holdings LP (controlled by KKR-affiliated investment funds)
- FDD Item 1, page 11 of the 2026 FDD
- Predecessor
- HM Services, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Michael Anthony Davis
- Incorporated in
- Delaware
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $480.8M
- vs $461.7M prior year
Same owner · FDD Item 1, page 11
17 other brands on this site name Nest Holdings LP (controlled by KKR-affiliated investment funds) as parent or ultimate parent in their own FDD.
- AIRE SERVC
- Dryer Vent WizardB
- Five Star PaintingC
- Glass DoctorC
- Molly MaidC
- Mosquito JoeB
- Mr. ApplianceD
- Mr. ElectricB
- Mr. HandymanC
- Mr. RooterA
- Precision Garage Door ServiceA
- Rainbow InternationalD
- Rainbow RestorationA
- Real Property ManagementB
- ShelfGenieB
- THE GROUNDS GUYSD
- Window GenieD
Portfolio: KKR (Kohlberg Kravis Roberts) (private-equity sponsor) · Neighborly
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Michael Anthony Davis
- Headquarters
- Texas
- Founded
- 1979
- FDD year
- 2026
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost runs 23% below the typical real estate franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $43K | $43K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $16K | $58K |
| Total initial investment | $74K | $131K |
Source: HouseMaster 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $74K – $131K
- Middle of category vs category
- Liquid capital req'd
- $15K – $30K
- Middle of category vs category
- Franchise fee
- $43K – $43K
- Middle of category vs category
- Royalty
- 7.5%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 2½% of first $200,000 in Gross Sales per year, 2¼% on Gro…
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Technology fee | $156 |
| Transfer fee | $8K |
| Renewal fee | $3K |
| Total fee load | 10.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for HouseMaster is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one HouseMaster 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 annual revenue, ad fund rate, 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.
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
Item 19 Table B separately discloses an Average Inspection Fee (a per-inspection/per-job metric) for the 2025 Reporting Period: Single-Unit Group $537 (median $528, range $128-$996); 2-Unit Group $663 (median $631, range $459-$855); 3-Unit Group $606 (median $560, range $440-$855); 4-9 Unit Group $889 (median $683, range $516-$1,724).
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
- Item 19 type
- Average and Median Gross Sales for the 2025 Reporting Period (January 1 to December 31, 2025), reported BY FRANCHISEE and grouped by how many HouseMaster businesses each franchisee owns - Single-Unit Franchisees Group, 71 reporting franchisees, average $138,881 and median $100,766 (25 / 35% at or above the average, highest $906,597, lowest $3,165); 2-Unit Franchisees Group, 13 franchisees, average $244,470 and median $273,875 (8 / 62%, highest $474,315, lowest $39,947); 3-Unit Franchisees Group, 13 franchisees, average $614,073 and median $463,815 (5 / 38%, highest $1,814,077, lowest $81,775); 4-to-9-Unit Franchisees Group, 7 franchisees operating 41 businesses, average $696,024 and median $723,515 (4 / 57%, highest $1,672,258, lowest $68,909). A companion Table B gives average and median Inspection Fee for the same groups ($537 / $663 / $606 / $889). The 104 franchisees cover 177 of 190 franchised businesses; 50 businesses that closed during 2025 are excluded; franchisees are not required to report on a GAAP basis; and Gross Sales is stated net of authorized refunds, rebates and discounts. No all-system row is printed.
- Sample size
- 104 franchisees
- vs category median 53
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 0 / 10 · above
Compared against 101 Real Estate brands
Item 19 · by group
What the filing does disclose
Item 19 of this FDD reports performance in more than one group. We publish no single average for this brand; the groups the filing does disclose are listed below, quoted from its own Item 19 table.
Each row below is quoted from the FDD's own Item 19 table. Gross sales are not profit.
Per franchisee, not per outletItem 19 detail
Item 19 Table B separately discloses an Average Inspection Fee (a per-inspection/per-job metric) for the 2025 Reporting Period: Single-Unit Group $537 (median $528, range $128-$996); 2-Unit Group $663 (median $631, range $459-$855); 3-Unit Group $606 (median $560, range $440-$855); 4-9 Unit Group $889 (median $683, range $516-$1,724).
unit count group
| Segment | Sample (franchisees) | Avg |
|---|---|---|
| Single-Unit Franchisees Group | 71 franchisees | $139K |
| 2-Unit Franchisees Group | 13 franchisees | $244K |
| 3-Unit Franchisees Group | 13 franchisees | $614K |
| 4 to 9 Unit Franchisees Group | 7 franchisees | $696K |
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.0% — above the Real Estate median of 7.5%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System contracting at -23.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
32% of franchisees own multiple units, a moderate multi-unit rate.
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 medians
How HouseMaster Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Real Estate brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 190
- Opened
- 5
- Last reporting year
- Closed
- 50
- Terminated
- 19
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 28
- Term expired, not renewed (per Item 20)
- Turnover rate
- 26.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 32.0%
- Net growth (3-yr)
- -23.1%
- Net unit change over 3 years
- 3-yr CAGR
- -23.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 19
- Not renewed
- 28
- Transferred
- 6
- Signed, not yet open
- 3
- 0.02 per open outlet · Item 20 Table 5
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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.
Where the owners are · Item 20 owner list
89 current owners across 29 states.
- FL 11
- CA 8
- NJ 6
- OH 6
- CO 4
- IL 4
- MD 4
- NC 4
- NY 4
- AZ 3
- GA 3
- IN 3
- +17 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 35
- Loan volume
- $4.9M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 23.5%
- on 35 loans · 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)
- 76.5%
- 5-yr charge-off
- 66.7%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 4
- Typical loan rate
- 8.7%
- avg rate to borrowers
- Franchised industry avg
- 23.9%
- brand beats franchise avg ↓
- Jobs supported
- 109
- 2.2 per loan
- Lender concentration
- 49%
- top lender's share
Borrower mix: 79% went to startups / new businesses, 21% to established operators
Franchise vs independent — in building inspection services, franchised businesses charge off at 23.9% vs 19.1% for independents — franchising is associated with 25% higher SBA default risk in this category.
Top lenders financing HouseMaster franchisees
Showing 3 of 14 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for HouseMaster from SBA 7(a) FOIA data.
- Principal loss rate
- 6.6%
- Avg SBA guarantee
- 79%
- Avg interest rate
- 8.71%
- Avg chargeoff amount
- $81K
- Lender concentration
- 48.6%
- Job velocity
- 2.2 per $100K
- NAICS benchmark
- 19.2%
- NAICS 541350
- Jobs supported
- 109
Top SBA lendersTop lender holds 49% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 17 | $2.4M | 66.7% |
| 2 | Truist Bank | 3 | $410K | 0.0% |
| 3 | Associated Bank, National Association | 2 | $90K | 0.0% |
| 4 | JPMorgan Chase Bank, National Association | 2 | $172K | 0.0% |
| 5 | The Huntington National Bank | 2 | $714K | 50.0% |
| 6 | Readycap Lending, LLC | 1 | $60K | 0.0% |
| 7 | Seacoast National Bank | 1 | $30K | 0.0% |
| 8 | KeyBank National Association | 1 | $30K | 0.0% |
| 9 | Arizona Capital Source | 1 | $235K | 0.0% |
| 10 | First Resource Bank | 1 | $237K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 7 | 0 | 0.0% |
| PAPennsylvania | 5 | 0 | 0.0% |
| ILIllinois | 2 | 1 | 100.0% |
| MNMinnesota | 2 | 0 | 0.0% |
| NCNorth Carolina | 2 | 0 | 0.0% |
| OROregon | 2 | 0 | 0.0% |
| VAVirginia | 2 | 0 | 0.0% |
| AZArizona | 1 | 0 | 0.0% |
| COColorado | 1 | 0 | -- |
| KSKansas | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 23.5% 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 23.5% — 47% 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
Home inspection franchise with declining unit growth, opaque profitability metrics, and recent franchisor litigation suggests caution; royalty structure heavily burdens franchisees near average revenue thresholds.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
One administrative Consent Order (Nov. 14, 2017) between the California Commissioner of Business Oversight and For Franchising LLC (predecessor to affiliate Window Genie) and its then-president, for failing to submit two advertisements to the Commissioner before use, resulting in a $5,000 penalty and remedial training; this action did not involve the Franchisor (HouseMaster SPV LLC). No litigation involving the Franchisor itself is disclosed.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
Disclosed bankruptcies involve KKR portfolio companies (not the Franchisor or its immediate affiliates): Marelli Holdings Co. Ltd. (Ch. 11, June 2025); The Collected Group LLC (Ch. 11, 2021, emerged); Envision Healthcare Corporation (Ch. 11, 2023, emerged); Genesis Care Pty Limited (Ch. 11, 2023, emerged); IPI Legacy Liquidation Co. f/k/a Impel Pharmaceuticals (Ch. 11, 2023, emerged); Cafe Coffee Day (India insolvency, ultimately set aside on appeal).
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 31 / 100 verdict
- 01MINORDeclining unit count (-2.0% YoY) suggests market saturation or franchisee struggles in a mature 242-unit system
- 02HIGHActive litigation by franchisor against former franchisees for noncompetition enforcement (2023) indicates potential competitive or operational disputes
- 03HIGHAffiliate litigation (Window Genie, Molly Maid) within parent company portfolio raises systemic compliance or operational management concerns
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% 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 territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 75,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 |
| Mandatory arbitration | No |
| Arbitration location | McLennan County, Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 1 |
View Item 3 litigation summary
One administrative Consent Order (Nov. 14, 2017) between the California Commissioner of Business Oversight and For Franchising LLC (predecessor to affiliate Window Genie) and its then-president, for failing to submit two advertisements to the Commissioner before use, resulting in a $5,000 penalty and remedial training; this action did not involve the Franchisor (HouseMaster SPV LLC). No litigation involving the Franchisor itself is disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 70 hrs
- On-the-job training
- 16 hrs
- Training location
- Somerville, New Jersey (NIBI Technical Training) and/or virtual/webinar; HouseMaster Business Training conducted virtually
- Ongoing training
- Required
- Field support
- 16 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- ISN by Porch / Customer Engagement Platform / Neighborly Franchise Portal / FranConnect
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ISN by Porch / Customer Engagement Platform / Neighborly Franchise Portal / FranConnect
Item 20 · call current owners
Franchisee Contacts
91 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HouseMaster franchise?
The total investment to open a HouseMaster franchise ranges from $74K – $131K, with an initial franchise fee of $43K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HouseMaster franchise owners earn?
Item 19 of the HouseMaster FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns HouseMaster?
HouseMaster is franchised by HouseMaster SPV LLC. Its parent company is Neighborly Assetco LLC. The ultimate parent named in the FDD is Nest Holdings LP (controlled by KKR-affiliated investment funds). Source: FDD Item 1, 2026 filing.
What is Item 19 in the HouseMaster 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 HouseMaster FDD and qualifies whose outlets they describe.
What is HouseMaster's franchise failure rate?
Based on SBA 7(a) loan data, HouseMaster has a charge-off rate of 23.5% across 35 loans, meaning 23.5% 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 HouseMaster franchise locations are there?
As of their most recent FDD filing, HouseMaster has 190 total units in the United States, including 190 franchised units and 0 company-owned units. 5 new units were opened in the latest reporting year.
Is HouseMaster a good franchise to buy?
FranchiseVerdict rates HouseMaster as a D-grade franchise with a verdict score of 31 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.