HouseMaster Franchise Cost, Revenue & Review 2026
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 does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 11.4% charge-off rate across 35 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $74K – $131K
- 55th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 7.5%
- 47th pct Real Estate
- Units
- 190
- 64th pct Real Estate
- SBA charge-off
- 11.4%
- % 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 $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 B (Above average), verdict score 48/100 (higher is better). SBA loan charge-off rate of 11.4% across 35 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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
- Ultimate parent
- Nest Holdings LP (controlled by KKR-affiliated investment funds)
- 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
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 52% 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 · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Marketing / ad fund | 2.5% 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
HouseMaster did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one HouseMaster unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
78%
Above the 30–60% band. Verify revenue is per-unit average
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).
- Item 19 type
- historical average median by unit count tier
- Sample size
- 177
- vs category median 64 · large
- Range (low → high)
- $3K→$1.8M
- Cohort dispersion (min → max)
- 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
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% (near the Real Estate average).
Disclosure
Item 19 reports historical average median by unit count tier rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How HouseMaster Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 190
- Opened
- 15
- Last reporting year
- Closed
- 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
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 3
- Terminated (3yr)
- 19
- Non-renewed (3yr)
- 28
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 0
- Franchisor bought back
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.
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
- 11.4%
- 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)
- 88.6%
- 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.
Premium insight
SBA Lending Report
Deep-dive into HouseMaster's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 16-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 11.4% — 29% below the 16.0% national norm, i.e. lower 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)
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.
Largest disclosed settlement: $5,000
Bankruptcy (Item 4)
Disclosed in last 7 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 48 / 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 |
| 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
FDD download
HouseMaster · FDD (2026) PDF
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?
HouseMaster does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 11.4% across 35 loans, meaning 11.4% 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. 15 new units were opened in the latest reporting year.
Is HouseMaster a good franchise to buy?
FranchiseVerdict rates HouseMaster as a B-grade franchise with a verdict score of 48 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent HouseMaster, you can request corrections or provide updated information.
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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.