HomeSmart International operates a real estate brokerage franchise system with 205 franchised units and 57 company-owned locations. The franchise requires a $20,000 initial fee and total investment of $65,500-$205,000, which is relatively modest for the real estate industry. The royalty structure is complex, based on agent count and transaction fees with a $500 monthly minimum. The franchise provides exclusive territory rights but reserves significant rights for the franchisor, particularly around internet marketing. Training is limited to 3-5 days in Arizona. A notable concern is the high turnover, with 37 outlets ceasing operations over the past 3 years. The franchise agreement contains standard real estate industry terms but lacks post-term non-compete restrictions, which is unusual. No financial performance data is provided, making it difficult to assess earning potential.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
Similar to HomeSmart International, LLC in category and investment range