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FranchiseVerdict

How Much Does a Berkshire Hathaway HomeServices Franchise Cost?

Data from the 2023 Franchise Disclosure Document

Investment Summary

Total Investment

$45K – $90K

Franchise Fee

$25K

Royalty

Declining percentage of Gross Revenue (6.00% to 2.00%) or $15,000 annual minimum

Ad Fund

Declining percentage of Gross Revenue (1.00% to 0.15%) with a monthly minimum of $500

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Berkshire Hathaway HomeServices is $25K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Berkshire Hathaway HomeServices franchise requires a total investment of $45K – $90K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $30 to $525.

Ongoing Costs

Beyond the initial investment, Berkshire Hathaway HomeServices franchisees pay ongoing fees. The royalty structure is: Declining percentage of Gross Revenue (6.00% to 2.00%) or $15,000 annual minimum. The ad fund contribution is: Declining percentage of Gross Revenue (1.00% to 0.15%) with a monthly minimum of $500.

Net Worth & Liquid Capital Requirements

Berkshire Hathaway HomeServices requires working capital of $30 – $525 to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Berkshire Hathaway HomeServices does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Berkshire Hathaway HomeServices?

SBA Loans Issued

12

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Berkshire Hathaway HomeServices has 12 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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