HomeTeam Inspection Service Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$65,100 - $91,800
Franchise Fee
$45,000
Total US Locations
200
Business Summary
The HomeTeam Inspection Service is a franchise that sells building inspection services for single-family homes and certain multi-family residential buildings. The primary service is whole-house inspections, typically performed for home buyers to report on the general condition of the property and identify major defects. HomeTeam Franchisees offer these services to buyers, sellers, and owners of homes, leveraging referrals from real estate agents, relocation companies, banks, and other related sources. HomeTeam differentiates itself by providing a professional service, building local brand recognition, and requires the use of proprietary management software. Franchisees are also required to manage other inspectors, ensuring at least two inspectors are present during each whole-house inspection, and must use branded vehicles and uniforms.
Corporate History
The HomeTeam Inspection Service was incorporated in Ohio on December 14, 1992. The company was formed specifically to sell and support building inspection franchises. HomeTeam has offered franchises of this type since December 21, 1992, and has never operated any company-owned franchises. The business operates under the name HOMETEAM INSPECTION SERVICE.
Financial Overview
Investment Range
$65,100 - $91,800
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$65,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$14,800
Equipment Costs (High)
$14,800
Working Capital
$3,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The HomeTeam Inspection Service's financial statements show an unqualified opinion from its auditors. However, the company has reported a retained earnings deficit for the past three years, with a deficit of $944,951 in 2024, $1,155,130 in 2023, and $822,638 in 2022, and total liabilities exceeding total assets. This indicates a history of accumulated losses and a negative stockholder's equity. Additionally, the company has a concentration risk in its receivables, as one franchisee represented 16% of total receivables in 2024, and two franchisees represented 61% in 2023.
Financing Details
The HomeTeam Inspection Service offers limited direct financing, specifically up to 50% of the initial franchise fee. The amount financed depends on the territory size a franchisee purchases. These loans carry a 12% annual interest rate, with a maximum repayment term of 48 months. Payments begin on the first day of the month following the signing of the Franchise Agreement. For example, a Premium territory would have a maximum note of $32,500 with monthly payments of $855.85. Payments are made via automatic electronic fund transfer, and a personal guarantee from the franchisee and their spouse (or all owners of a business entity franchisee) is required. There are no prepayment penalties. If a franchisee defaults on the loan or breaches the franchise agreement, HomeTeam has the right to demand immediate full payment. The company also states it will enter into the Small Business Administration's (SBA) universal addendum to streamline SBA financing for franchisees and may assist in applying for funding from other sources it has relationships with. HomeTeam does not arrange financing from other sources or guarantee a franchisee's obligations to third parties.
Performance Metrics
Total US Locations
200
Franchised Units
200
Corporate Units
0
Franchising Since
1992
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
The HomeTeam Inspection Service has one disclosed legal matter. In May 2022, the company entered into a Consent Order with the California Commissioner of Financial Protection and Innovation. This acknowledged that the certified public accountant who audited HomeTeam's financial statements was not registered as a public accounting firm in Ohio, as required by state accounting regulations. HomeTeam stated they were unaware of the CPA's oversight but agreed to pay an administrative penalty of $10,000 and to comply with the Corporations Code.
Bankruptcy History
The HomeTeam Inspection Service has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their HomeTeam Inspection Service franchise, franchisees must have fully complied with all terms of the franchise agreement, including mandatory specifications, operating procedures, and marketing programs throughout their initial term. Franchisees are required to provide written notice of their intent to renew between 6 and 12 months before their current franchise agreement expires. Upon renewal, they must execute HomeTeam's then-current form of franchise agreement, which may have terms and conditions materially different from their original agreement. Franchisees also need to complete any refresher training that HomeTeam requires, sign a general release of claims, and pay a renewal franchise fee of $2,500.
Training & Support Program
Franchisor Assistance
The HomeTeam Inspection Service provides substantial assistance both before and during the operation of a franchise. Before opening, HomeTeam approves the franchise territory, provides a Start-up Package that includes a technology package (two tablets, hardware, software), marketing materials, a vehicle branding allowance, business cards, HomeTeam apparel, a tool package, 6 months of Digital Marketing Package, and 9 months of FrontOffice service. HomeTeam also provides written specifications and a list of approved suppliers for equipment and supplies, access to an online portal for the operations manual, and forms for sales reporting and communication. Franchisees or their designated representatives must complete a mandatory initial training program. During operation, HomeTeam provides periodic assistance as needed, including email communications and newsletters. It offers pre-approved digital advertisements and personalized web pages on the HomeTeam website. HomeTeam manages a Digital Marketing Package that includes ongoing SEO services, professional management of Facebook, Google Business Profile, and Instagram pages, local directory listings syndication, review solicitation, and reputation management. Franchisees are required to use HomeTeam's phone system technology, for which a monthly Technology Fee is charged. HomeTeam has a Franchisee Advisory Council to foster communication and planning within the system.
Initial Training Hours
71
Training Location
Milford, Ohio
Ongoing Support
The HomeTeam Inspection Service provides ongoing support through periodic communications like emails and newsletters, and offers additional assistance as deemed necessary. Franchisees receive continuous digital marketing support through a Digital Marketing Package, which includes ongoing SEO services and reporting, professionally managed Facebook, Google Business Profile, and Instagram pages, local directory listings, and a reputation management program that solicits and responds to client reviews. Franchisees are required to use HomeTeam's phone system technology, which is covered by a monthly Technology Fee. The franchisor has also established a Franchisee Advisory Council to facilitate communication and planning within the franchise system. Although not mandatory, HomeTeam holds an annual convention for franchisees, typically in January or February, to discuss sales techniques, operation procedures, marketing methods, and introduce new software or promotional items, requiring a fee from franchisees regardless of attendance. HomeTeam may also offer additional training programs for inspectors and management employees, for which franchisees are responsible for travel and living expenses.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
HomeTeam Inspection Service territories are primarily defined by Postal Codes. A 'Limited' franchise territory can encompass up to 50,000 owner-occupied households, a 'Standard' territory includes between 50,001 and 100,000 owner-occupied households, and a 'Premium' territory contains between 100,001 and 150,000 owner-occupied households. HomeTeam reserves the right to designate territories with more than 150,000 owner-occupied households and may charge a higher Initial Franchise Fee for them. For honorably discharged U.S. military veterans, HomeTeam offers the benefit of adding an additional 15% owner-occupied households to their territory. Franchisees receive a protected territory, meaning HomeTeam will not operate or authorize another HomeTeam Franchise to operate within that specific area.
Staffing Notes
HomeTeam Inspection Service requires that franchisees, in addition to performing inspections themselves, must be capable of managing other inspectors and ensuring that at least two inspectors are present during each whole-house inspection. Franchisees are also responsible for hiring a Designated Representative who will oversee and manage the business on their behalf, and this representative must successfully complete HomeTeam's training program. The company also suggests that franchisees conduct background reviews of prospective and current employees, including criminal, motor vehicle, and credit history, every two years, especially for positions involving entry into customer homes. Employees and agents are required to sign confidentiality agreements, and management employees must sign 'Engagement Agreements' that include non-solicitation and non-competition clauses.