HomeVestors of America Franchise Cost (2025)
Complete cost breakdown for HomeVestors of America franchise: $108K–$477K investment, 3% royalty, franchise fee, and ongoing costs. From the official 2025 FDD.
Source: 2025 FDD filed in MN
Total Investment
$108K–$477K
Franchise Fee
$43K–$85K
Non-refundable
Royalty
3%
Transaction-based fee (% of property sale price, tiered by annual volume): 3% (1–4 properties/yr), 2% (5–9), 1.5% (10–14), 1.25% (15–19), 1% (20–24), 0.8% (25+ properties/yr). Paid per transaction. NOT a percentage of gross sales revenue.
Ad Fund
300%
National Advertising Fund (NAF): $300 per property transaction; paid per transaction
Ongoing Fees
Monthly and annual costs after opening.
| Fee | Amount | Notes |
|---|---|---|
| Royalty | 3% of gross sales | Non-standard transaction model — 'We Buy Ugly Houses' brand; franchisee purchases distressed properties and resells them; royalty is a % of each property's sale price |
| Ad Fund | 300% of gross sales | |
| Technology Fee | $425/monthly | Up to $425/month |
Revenue Context
Average Revenue
$617K
From Item 19 (2025 FDD)
Investment-to-Revenue Ratio
0.2x
Lower is better (min inv ÷ avg rev)
Annual Fee Burden
303.0%
Royalty + ad fund as % of gross sales
At average revenue of $617K, you'd pay approximately $19K/year in royalties alone, plus $1.9M/year in ad fund contributions.
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