Start a HomeSmart Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $66K - $205K

Units as of 2024: 241 26.8% over 3 years

HomeSmart, founded in 2000, is a real estate and brokerage company in the US. They offer services to buy, sell, and rent. HomeSmart International also provides consulting services. With decades of experience, they are committed to providing a quality, affordable and advanced real estate experience to sellers, buyers, and agents alike.

The perfect candidate for a HomeSmart franchise is someone with a passion for business, real estate, and the local community.

Why You Should Start a HomeSmart Franchise

Owning a HomeSmart franchise means that you are part of a trend-setting real estate company. They use technological advances to ensure they always provide the best experience for the buyer, seller, and the agents they work with at each franchise location.

A HomeSmart franchise is a fantastic opportunity to offer your community a chance to live the life of their dreams. Their six-step marketing process focuses on making sure that every house sells for its highest value. This means that both the seller and the buyer gain access to the best. They also provide generous commissions to their real estate agents.

As a franchisee, you will be helping people to transfer one of the most valuable assets they can own: the home. With a HomeSmart franchise, you can make sure that one of the most stressful experiences in anyone's life is faster and more comfortable. For both the seller and the buyer, HomeSmart International is an integral part of the home buying and selling process.

What Might Make HomeSmart a Good Choice?

HomeSmart pioneered the integration of advanced technology in the real estate business. Their franchise program helps franchisees to reduce overhead and increase profits, giving them a competitive advantage over other real estate brokers in the area.

Over the last few decades of operation, HomeSmart has achieved notable market dominance. With over 3,000 agents, it is one of the largest, most successful full-service real estate brokerage firms in the US. Their proprietary systems and tools ensure agents save time and money. The HomeSmart Broker System enables each franchise to provide agents with the highest service, the highest value, and the city's lowest cost. This means that clients, both buyers, and sellers, will also receive innovative and affordable services.

How to Open Your Own HomeSmart Franchise

To start a HomeSmart franchise, you will need to have adequate liquid assets and net worth. You may be able to have a confidential consultation with HomeSmart, where you can ask questions about your specific experience and what equipment you’ll need.

HomeSmart keeps its franchise process close to its vest but expect to undergo several interviews with the company. This will give them an insight into your views and you into theirs. You will also have to find a territory that is ready for a franchise.

Once you have signed on board, you will attend training to equip you with the knowledge and skill to run your franchise successfully. This company wants to help your franchise succeed and will work with you to make sure you feel at home with HomeSmart.

Company Overview

About HomeSmart

Industry	Services (Other)
Related Categories	Real Estate
Founded	2000
Parent Company	HomeSmart
Leadership	Matt Widdows, CEO & Founder
Corporate Address	8388 E. Hartford Dr., #100 Scottsdale, AZ 85255
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube, TikTok

Business Overview

Franchising Since	2005 (19 years)
# of employees at HQ	173
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises in the following international regions: Canada, Mexico
# of Units	241 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a HomeSmart franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$20,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$65,500 - $205,000
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$150,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$20,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	25% off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	Varies
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	Included
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

Classroom Training	40 hours
Ongoing Support	Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	Yes
# of employees required to run	2-5
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes