Hommati logo

Hommati Franchise

Audited Financials
Real EstateEst. 2017Westerville, OH
www.hommati.com

Risk Score

Pending analysis

Investment Range

$69,364 - $79,973

Franchise Fee

$41,900

Total US Locations

133

Business Summary

Hommati provides digital media and marketing services specifically for the real estate industry. Its services cater to real estate agents, brokers, business owners, contractors, engineering firms, property managers, and owners of various properties like commercial real estate, apartment complexes, land, resorts, and vacation rentals. These services include creating 3D interactive tours, live virtual showings, drone aerial videos, interior videos, virtual reality tours, agent green screen and biography videos, HD and HDR photography, 2D images, augmented reality services, video slideshows, guided tours, 3D walkthroughs, and virtual enhancements. Hommati also offers SMS Sign Riders (Curb Leads), a Lender Network Advertising Program, agent headshots, and a real estate website and mobile app for agents to promote their listings.

Corporate History

Hommati Franchise Network, Inc. was incorporated in Ohio on August 14, 2017. The company operated a prototype business from October to November 2017 to develop its services and business strategies. Hommati began offering franchises in January 2018 and also operates one company-owned location.

Financial Overview

Investment Range

$69,364 - $79,973

Franchise Fee (Low)

$41,900

Franchise Fee (High)

$44,900

Royalty %

8%

Marketing %

4%

Equipment Costs (Low)

$12,748

Equipment Costs (High)

$14,449

Working Capital

$4,021

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Hommati Franchise Network, Inc. has experienced substantial net losses for the past three fiscal years, totaling over $2.7 million. The company's cash reserves have also significantly decreased from over $2.3 million in 2022 to just over $213,000 in 2024. Despite these ongoing losses and a growing accumulated deficit, the independent auditors have issued an an unqualified opinion, meaning they found the financial statements to be presented fairly.

Financing Details

Hommati Franchise Network, Inc. does not offer any direct or indirect financing options to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations for its franchisees.

Performance Metrics

Total US Locations

133

Franchised Units

124

Corporate Units

9

Franchising Since

2018

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their Hommati franchise, franchisees must be in "Good Standing," meaning they are current with all payments and in compliance with the franchise agreement and Operations Manuals. They need to provide written notice of their intent to renew at least 180 days before the current agreement expires. Franchisees must also sign a new franchise agreement, which may have different terms and fees, and any required supplemental agreements. Additionally, they must sign a special release of claims and must not have been on an Inactive Hold for 90 days or more within 60 days of the renewal period.

Training & Support Program

Franchisor Assistance

Hommati Franchise Network, Inc. provides comprehensive support to its franchisees. Before opening, Hommati offers an initial training program, access to digital Operations Manuals, a list of designated vendors for various goods and services, and specifications for products and services. They also provide advertising and promotional templates and suggested pricing for services. While franchisees are the sole employers, Hommati offers assistance with hiring, managing, and training employees through sample documents and guidelines. After opening, Hommati offers additional training, primarily web-based, and consultation via phone, email, or online. The franchisor continuously works on business development, evolving new services and marketing methods. Hommati also reviews and approves franchisee-originated advertising and promotional materials and manages a National Advisory Committee. A National Advertising Fund may be implemented in the future.

Initial Training Hours

39

Training Location

Westerville, OH

Ongoing Support

After opening, Hommati Franchise Network, Inc. provides ongoing support through additional training programs, which are anticipated to be primarily web-based and mandatory if advised, though franchisees cover their own expenses. Franchisees also have access to timely telephone, email, or online consultation with Hommati personnel for all aspects of their Program at no additional charge. The franchisor actively engages in business development, creating new services and evolving marketing methods to increase franchisee revenue. Hommati also reviews and approves franchisee-originated advertising and promotional materials and has a National Advisory Committee for advice on advertising policies and franchisee issues.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

Yes

Operational Details

Location Type

Home-Based

Owner Participation

Full-Time

Territory Type

Non-Exclusive

Territory Size Requirements

Hommati Franchise Network, Inc. defines its territories based on counties and states, with a minimum population of 200,000 people. The franchisor uses U.S. Census Bureau data or other reliable sources to determine population figures. The territory is protected by limiting the maximum number of franchisees to one per 200,000 population within a county or combination of counties.

Staffing Notes

Hommati Franchise Network, Inc. emphasizes that franchisees are solely responsible for all employment decisions, including hiring, managing, compensation, and discipline. If a franchisee chooses to operate on a part-time, executive-managed basis, they are required to hire either a General Manager or both a 3D/Drone Pilot and an Agent Development Manager. The General Manager must be trained in all aspects of the program and be competitively compensated. Any 3D/Drone Pilot hired must complete specific virtual training for drones and 3D cameras, and any Agent Development Manager must attend virtual sales and marketing training. All employees must undergo a criminal background check and motor vehicle report according to Operations Manuals standards and sign a Nondisclosure and Noncompetition Agreement.