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- 2022 Franchise 500 Rank
#108 Ranked #79 last year
- Initial investment
$15K - $214K
- Units as of 2021
500 66.1% over 3 years
Here’s what you need to know if you’re interested in opening a NextHome franchise.
NextHome has taken the time to transform the real estate industry. NextHome has changed how real estate franchises interact with brokers by offering streamlined processes and empowering brokers with top-notch marketing. The franchise tries to keep the consumer as the focal point. This is why they focus on new ideas that are tested and introduced to the industry.
Millennials make up a large amount of the workforce in the United States. This means that millennials also are a large part of the homebuying population. With this comes the need to buy and sell homes in a new or more innovative way. With NextHome, you get to be a part of that real estate revolution.
Why You May Want to Start a NextHome Franchise
NextHome tries to maintain the consumer as its main focus. One of the main reasons NextHome focuses on the consumer is because of the constant change in the country. The way people purchase things is changing, and that goes for buying homes, as well. NextHome has attempted to stay relevant and strives to have a strong understanding of reaching out to the up-and-coming homebuyers.
NextHome goes to great lengths to train franchisees. All franchisees have access to on-demand training that can be viewed live or online. This means you will likely never miss out on opportunities to grow yourself and your team.
Additionally, franchisees have a myriad of resources at their disposal. As a franchisee, you have access to an online library of materials, manuals, and other resources to help you set up your franchise and make a plan for operation and potential growth.
What Might Make a NextHome Franchise a Good Choice?
Advertising is essential for any franchise to succeed. NextHome works smart by having a creative marketing strategy. Franchisees can place advertisements in the places and spaces where consumers are more likely to see them, as better placement may help turn clicks into clients.
To be part of the NextHome team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. You should also prepare yourself for ongoing fees that will include advertising, royalty, and renewal fees.
NextHome has streamlined almost every step of the house buying process. This makes it easier for the consumer, you, and your staff. This straightforward approach makes it so that you and your team may be able to increase productivity and have efficient days. Higher efficiency can make for greater profits since you can help more clients instead of getting bogged down in paperwork.
How to Open a NextHome Franchise
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Speak to existing franchisees and ask questions directed to the NextHome team. It may also be a good idea to reach out to an attorney or financial advisor in order to ensure that you are financially stable enough to open a NextHome franchise.
If you want to open a NextHome franchise, submit an inquiry form. Lead the way in the future of real estate and submit an inquiry form for NextHome!
- Franchising Since
- 2014 (8 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 500 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a NextHome 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
- $4,250 - $8,500
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.
- Initial Investment
- $15,250 - $214,095
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.
- 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.
- 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.
- Term of Agreement
- 1 year or 5 years
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.
- Is franchise term renewable?
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- 29 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportField OperationsProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- 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.
- 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.
- # of employees required to run
- 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.
Franchise 500 Ranking History
Compare where NextHome landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where NextHome ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to NextHome.
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