Verified — real FDD extraction
Not found in the SBA Franchise Directory — SBA financing may be unavailable; verify with your lender
HOMEVESTORS
Other · independent · est. —
HomeVestors, known for its We Buy Ugly Houses marketing, is a real estate investment franchise whose operators buy houses directly from sellers, typically distressed or dated properties, for renovation and resale or rental. A franchisee runs a house-buying business, generating seller leads, making cash offers, and managing rehab and disposition of acquired homes.
HOMEVESTORS net unit count grew +1.9% from 2019–2021 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse.
Exit rate · latest year
8.9%
fiscal 2021, per Item 20
Cost to open
$80K–$456K
Item 7 total investment range
SBA loan defaults
No loan record
no SBA 7(a)/504 loans found for this brand
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2019–2021
Survival record
FDD Item 20 · outlet status by year
In fiscal 2021, 102 of 1,146 franchised outlets left the system — a 8.9% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2019 | 2020 | 2021 |
|---|---|---|---|
| Outlets at start | 1,055 | 1,132 | 1,146 |
| Opened | 138 | 142 | 108 |
| Transfers | 81 | 87 | 79 |
| Terminations | 55 | 95 | 78 |
| Non-renewals | 6 | 32 | 24 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 1 | 0 |
| Outlets at end | 1,132 | 1,146 | 1,153 |
| Net change | +77 | +14 | +7 |
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $80K franchise fee (Item 5) and a total investment of $80K–$456K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$80K–$456K
all-in investment range
Franchise fee (Item 5)
$80K
upfront, one-time
Royalty (Item 6)
—
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$0
0% of sales, before profit
Over a 10-yr term
$0
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for HOMEVESTORS with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for HOMEVESTORS. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing HOMEVESTORS's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →HOMEVESTORS franchise questions, answered from the filings
What percentage of HOMEVESTORS franchises closed last year?
In HOMEVESTORS's latest FDD Item 20 (fiscal 2021), 102 of 1,146 franchised outlets left the system — an annualized exit rate of 8.9%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a HOMEVESTORS franchise cost?
Per HOMEVESTORS's 2026 FDD, buying in requires an initial franchise fee of $80K (Item 5) and a total initial investment of $80K–$456K (Item 7).
Does HOMEVESTORS disclose earnings (Item 19)?
Yes — HOMEVESTORS makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $328K. Read it closely: franchisors choose which units and which metrics to include.