The Inspection Boys® (Area Representative)Franchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A The Inspection Boys® (Area Representative) franchise requires a total initial investment of $155K – $313K, including a $150K franchise fee and an ongoing 0.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $155K – $313K
- 69th pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- 0.5%
- 0th pct Real Estate
- Units
- 1
- 2nd pct Real Estate
- SBA default
- N/A
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
Bottom line
- Total investment $155K – $313K including a $150K franchise fee, 0.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 85/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Inspection Boys Franchise USA LLC
- Parent company
- Loyalty Franchising LLC
- Incorporated in
- VA
- HQ
- 780 Lynnhaven Parkway, Suite 240, Virginia Beach, VA 23452
- Auditor
- DASH Business Solutions, LLC
- Audited financials
- Franchisor revenue
- $15K
- vs $38K prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
The Inspection Boys provides residential property inspection services (home inspections, radon testing, etc.). As an Area Representative, the franchisee recruits and manages individual Unit Franchisees within a territory, collecting 50% of royalty fees paid by those sub-franchisees while the parent company retains operational/brand control and 50% of royalties. Day-to-day involves recruitment, training oversight, territory marketing, and franchisee support.
- CEO
- Matthew Rivera
- Headquarters
- VA
- Founded
- 2020
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $150K | $150K |
| Working capital (3–6 mo) | $3K | $3K |
| Equipment, build-out, other | $2K | $160K |
| Total initial investment | $155K | $313K |
Source: The Inspection Boys® (Area Representative) 2025 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
- $155K – $313K
- Below avg, review vs category
- Liquid capital req'd
- $3K – $3K
- Better than avg vs category
- Franchise fee
- $150K – $300K
- Below avg, review vs category
- Royalty
- 0.5%
- percentage · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 0.5% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $15K |
| Renewal fee | $0 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Real Estate averages
How The Inspection Boys® (Area Representative) Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
Available to sell in · Item 12
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
AVOID: Financially distressed franchisor with going concern doubt, CEO litigation, zero financial transparency, single unit system, and unprotected territory presents extreme investment risk.
Litigation (Item 3)
1 case reference(s): 0 pending, 1 settled.
Largest disclosed settlement: $300,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DASH Business Solutions, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
Score breakdown · what drove the 85 / 100 rating
- 01HIGHGoing Concern status is FALSE — parent company cannot demonstrate ability to continue operations
- 02HIGHExtreme litigation exposure: CEO John T. Hewitt personally named in pending investor litigation, trademark disputes with Liberty Tax, stockholder claims, and government consent orders indicate systemic legal/compliance problems
- 03MEDRevenue and profitability completely undisclosed — no Item 19 financial performance representation; impossible to validate ROI on $155k-$313k investment
- 04MINOROnly 1 known franchise unit with unknown growth trajectory — indicates either new concept or severe system contraction; no evidence of scalability or demand
- 05MINORArea Representative model with 50% royalty on sub-franchisee fees creates multi-tiered revenue dependency and recruitment-driven economics
- 06MINORNo territory protection despite $150k franchise fee — direct competition risk and inability to build defensible market position
- 07HIGH$150k upfront fee with 10-year commitment to company facing going concern issues creates recovery risk if franchisor fails
- 08MINORLiberty Tax trademark/competition disputes suggest brand confusion, IP vulnerabilities, or market positioning problems in inspection/tax services space
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 |
| Territory type | Geographic (zip codes, political boundaries) |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 9 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 0 hrs
- Training location
- Franchisor location and on-site
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Inspection Boys® (Area Representative) · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Inspection Boys® (Area Representative) franchise?
The total investment to open a The Inspection Boys® (Area Representative) franchise ranges from $155K – $313K, with an initial franchise fee of $150K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Inspection Boys® (Area Representative) franchise owners earn?
The Inspection Boys® (Area Representative) 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 The Inspection Boys® (Area Representative)'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Inspection Boys® (Area Representative) (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 The Inspection Boys® (Area Representative) franchise locations are there?
As of their most recent FDD filing, The Inspection Boys® (Area Representative) has 1 total units in the United States, including 1 franchised units and 0 company-owned units.
Is The Inspection Boys® (Area Representative) a good franchise to buy?
FranchiseVerdict rates The Inspection Boys® (Area Representative) as a F-grade franchise with a risk score of 85 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.
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.