Housemaster Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$58,825 - $92,675
Franchise Fee
$36,500
Total US Locations
235
Business Summary
HouseMaster operates a business that offers building inspection and related services to residential and commercial customers. HouseMaster franchisees use the brand name and a developed system of operating and marketing techniques to provide these services within a specific geographic area. The system also includes sales, leadership, and management training for its businesses.
Corporate History
HouseMaster SPV LLC was organized on November 13, 2020. Its direct predecessor, HM Services, LLC, offered building inspection franchises from 2016 until June 30, 2020, when it was acquired by Dwyer Franchising LLC d/b/a Neighborly. Before that, HouseMaster LLC (originally DBR Franchising, LLC, formed in 2008) offered franchises from 2008 to 2017, having acquired assets from HMA Franchise Systems, Inc. HMA Franchise Systems, Inc., originally incorporated as HouseMaster of America, Inc. in 1979, offered franchises from September 1979 to August 2008. HouseMaster SPV LLC became the franchisor for all HouseMaster businesses in March 2021 following a securitization transaction, taking ownership of the U.S. trademarks and intellectual property. The brand and its predecessors have offered building inspection and related services franchises since 1979. HouseMaster SPV LLC does not currently own or operate any of its own franchises.
Financial Overview
Investment Range
$58,825 - $92,675
Franchise Fee (Low)
$36,500
Franchise Fee (High)
$85,198
Royalty %
7.5%
Marketing %
2.5%
Equipment Costs (Low)
$3,575
Equipment Costs (High)
$10,175
Working Capital
$8,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Neighborly Assetco LLC, the direct parent and guarantor of HouseMaster SPV LLC, shows positive and stable financial health with increasing working capital and cash, and consistent net income for the years ended December 31, 2024, and 2023. Neighborly Company, which provides support and services to HouseMaster franchisees, reported significant net losses in 2023, which improved in 2024, but still resulted in a net loss. The Manager's working capital and cash have decreased. The auditor's reports for both entities confirm an unqualified opinion and do not express any going concern qualifications.
Financing Details
HouseMaster SPV LLC may offer direct financing for a portion of the initial franchise fee to qualified prospective franchisees. This financing is typically up to 70% of the initial franchise fee, with an option for up to 80% for certain candidates, but cannot exceed 50% of the total financial support for the business. Interest rates vary based on the franchisee's credit score, ranging from 9% for those with a credit score of 700 or more, to 12% for those under 600. Repayment terms for the promissory note can extend from up to 5 years for loans under $45,000, up to 9 years for loans over $150,000, with monthly installments via automatic bank draft. Franchisees must grant HouseMaster SPV LLC a security interest in all business assets. Prepayment is allowed without penalty. HouseMaster SPV LLC may also finance a portion of renewal fees at a 12% interest rate for qualified franchisees. However, HouseMaster SPV LLC does not guarantee obligations to third parties, but may refer franchisees to third-party lenders.
Performance Metrics
Total US Locations
235
Franchised Units
235
Corporate Units
0
Avg Square Footage
600
Franchising Since
1979
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
2
Litigation Summary
HouseMaster SPV LLC itself has no litigation to report. However, two of its affiliates or their predecessors have been involved in administrative actions. In 2017, For Franchising LLC, a predecessor to the affiliate Window Genie, and its then-president, entered into a Consent Order with California regarding a failure to submit advertisements. They paid a $5,000 penalty and completed remedial franchise law training. In 2010, Molly Maid, Inc., a predecessor to the affiliate Molly Maid, entered into a Consent Judgment with Kansas. This action stemmed from a franchisee's inability to document employee background checks and issues with selling gift certificates after a franchise termination. Molly Maid denied wrongdoing but paid a $25,000 civil penalty and reimbursed $25,175 for investigation costs. Both of these actions have been resolved.
Bankruptcy History
HouseMaster SPV LLC itself has no bankruptcy history. However, several portfolio companies controlled by its indirect parent, Kohlberg Kravis Roberts & Co. L.P. (KKR), have undergone bankruptcy proceedings. The Collected Group LLC, a fashion brand owner, filed a Chapter 11 reorganization in Delaware on April 5, 2021, and emerged on May 25, 2021. Envision Healthcare Corporation, a healthcare provider, filed Chapter 11 reorganization in Texas on May 15, 2023, and emerged on November 3, 2023. Genesis Care Pty Limited, another healthcare provider, filed Chapter 11 reorganization in Texas on June 1, 2023, and emerged on February 16, 2024. IPI Legacy Liquidation Co., a pharmaceutical company, filed Chapter 11 reorganization in Texas on December 19, 2023, and emerged on April 5, 2024. Additionally, Café Coffee Day, a retail chain operator in India, filed an insolvency resolution on August 8, 2024, though that order was set aside as of February 27, 2025.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
HouseMaster franchisees can renew their license for one additional 10-year term if they: give written notice of their request to renew between 180 and 240 days before the current term ends; are not in default of their Franchise Agreement or any related agreement; have satisfied all monetary and other material obligations on a timely basis; are in good standing and have received no more than 2 written notices of default during the term; have not failed to meet the Minimum Performance Standards for any two calendar years (or two measurement periods); complete HouseMaster's then-current training requirements; and they and their guarantors sign a general release of claims. Franchisees must also sign the most current version of HouseMaster's franchise agreement, which may have materially different terms, conditions, and fees.
Training & Support Program
Franchisor Assistance
Before opening, HouseMaster provides site selection guidelines, lists of approved supplies, and access to its Manuals which detail operational specifications and procedures. HouseMaster also provides an initial training program and opening support. Ongoing assistance includes maintaining the Marketing, Advertising and Promotion Fund (MAP Fund), providing updates to approved supplies and suppliers, and conducting research for new products and services. HouseMaster offers refresher training courses and holds regional meetings and conventions, which franchisees are required to attend (often for a fee). Continuous communication, support, and Manual updates are also provided. HouseMaster may also offer suggestions regarding pricing policies and has the right to negotiate Key Account arrangements, including pricing for services provided to such accounts.
Initial Training Hours
102
Training Location
Somerville, NJ or other designated field office, and virtually
Ongoing Support
After opening, HouseMaster provides ongoing support to franchisees during business operations. This includes maintaining the Marketing, Advertising and Promotion Fund (MAP Fund), updating lists of approved supplies and suppliers, and conducting research for new products and services. HouseMaster offers refresher training courses and holds regional meetings and conventions, which franchisees must attend (potentially for a fee). The franchisor also provides continuous communication and updates to the Manuals.
Franchise Requirements
Ideal Candidate Profile
HouseMaster seeks financially qualified individuals or entities who can directly perform or supervise the operation of their franchise business, or appoint a manager who has successfully completed the franchisor's training program and is a bona fide manager. Candidates must be diligent in complying with all applicable state and local laws and regulations concerning building inspections, including obtaining necessary certifications, licenses, and registrations. This includes being able to meet basic education levels, complete training, pass recognized exams, and engage in continuing education programs, which may require supplementing the franchisor's provided technical training.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
HouseMaster defines territories primarily based on the number of owner-occupied homes (OOHs), typically aiming for approximately 75,000 OOHs. The maximum territory size generally allowed is 100,000 OOHs, though larger territories may require purchasing additional franchise agreements. Franchisees also have the option to add unoccupied zip codes immediately adjacent to their territory at a cost of $0.57 per OOH.
Staffing Notes
HouseMaster franchisees are required to employ a sufficient number of competent and trained employees to ensure efficient customer service. Franchisees are solely responsible for all employment decisions, including hiring, discharging, wages, and benefits, and must ensure that all their workers receive adequate training. It is also the franchisee's responsibility to verify that any employee or subcontractor entering a customer's home has passed all required background checks. HouseMaster emphasizes that its relationship with franchisees is one of independent contractors, and none of the franchisee's employees will be considered employees of HouseMaster.