Risk Score
Pending analysis
Investment Range
$131,200 - $444,500
Franchise Fee
$35,000
Min Cash Required
$5,000
Total US Locations
64
Business Summary
Joe Homebuyer is a franchise that empowers individuals and entities to operate businesses offering real estate solutions. These businesses focus on buying, rehabilitating, and selling residential and commercial properties, alongside other investment strategy services, all under the Joe Homebuyer brand and system.
Corporate History
Joe Homebuyer Franchising, LLC was officially organized in Utah on April 2, 2019, operating under the 'Joe Homebuyer' name and logos. The company began offering Joe Homebuyer franchises in September 2019. Joe Homebuyer Franchising, LLC does not have any other business activities and has never offered franchises in any other line of business. Joe Homebuyer Franchising, LLC does not operate any company-owned businesses of the type being franchised, but it does produce and sell advertising and sales promotion materials.
Financial Overview
Investment Range
$131,200 - $444,500
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$5,000
Equipment Costs (Low)
$30,000
Equipment Costs (High)
$103,000
Working Capital
$77,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's 'Special Risks' section explicitly states that Joe Homebuyer Franchising, LLC's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. In 2024, Joe Homebuyer Franchising, LLC reported a net income of $140,658, which is an improvement from a net loss of $(81,056) in 2023. While the cash balance at the end of 2024 was $228,166, an increase from $157,657 in 2023, the company still has a negative members' deficit of $(773,815) in 2024, though this is an improvement from $(1,703,072) in 2023. These figures, combined with the franchisor's own statement on financial ability, suggest potential concerns about Joe Homebuyer Franchising, LLC's long-term financial stability.
Financing Details
Joe Homebuyer Franchising, LLC does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
64
Franchised Units
62
Corporate Units
2
Avg Square Footage
225
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
3
Litigation Summary
Joe Homebuyer Franchising, LLC has had three significant legal matters. In March 2024, a third party filed a complaint against Joe Homebuyer Franchising, LLC alleging violations of the Telephone Consumer Protection Act, which Joe Homebuyer Franchising, LLC intends to vigorously defend. Additionally, the Illinois Addendum to the Franchise Disclosure Document indicates that Joe Homebuyer Franchising, LLC or its officers and affiliates are involved in pending litigation with a minority shareholder concerning the acquisition of a majority interest in the company. Finally, there was a trademark infringement and unfair competition lawsuit filed in August 2022 against Joe Homebuyer Franchising, LLC and one of its franchisees, which was settled in 2024.
Bankruptcy History
While Item 4 of the main Franchise Disclosure Document states that no bankruptcy is required to be disclosed, the Illinois Addendum indicates that Joe Homebuyer Franchising, LLC and/or its officers and affiliates have been subject to bankruptcy proceedings.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their Joe Homebuyer franchise, franchisees must notify Joe Homebuyer Franchising, LLC in writing between three and six months before the current agreement expires. They must be in good standing, having faithfully performed all obligations under the initial agreement with no defaults in the preceding six months. Franchisees will need to refurbish their franchise and replace any outdated equipment to meet current brand standards. They must also sign a general release, submit a new application, and execute a new franchise agreement, which may have materially different terms and conditions. A renewal fee of up to $2,500, plus applicable taxes, is also required, and franchisees or their designated managers must complete any prescribed retraining programs at their own expense for travel, lodging, and meals.
Training & Support Program
Franchisor Assistance
Joe Homebuyer Franchising, LLC provides various types of support to its franchisees. Before opening, Joe Homebuyer Franchising, LLC designates the franchise territory, provides initial orientation and training, helps with compliance with local laws and regulations, and gives franchisees access to the Joe Homebuyer Operating Manual and a list of approved suppliers. It may also require franchisees to use a designated recruiting service to hire an acquisition manager. After the franchise opens, Joe Homebuyer Franchising, LLC offers ongoing advice and guidance on aspects such as employee hiring and training, advertising and promotional programs, administrative and operating procedures, system improvements, financial advice, and how products and services are offered. Franchisees can request additional training, for which they cover all expenses, including a reasonable training fee. Joe Homebuyer Franchising, LLC may also require franchisees or their managers to attend annual refresher training programs or seminars, for which the training itself is free, but franchisees are responsible for travel and living expenses. Joe Homebuyer Franchising, LLC administers advertising programs, inspects franchises for compliance, and may inspect supplier facilities.
Initial Training Hours
110
Training Location
Online/virtual or South Jordan, Utah, or another designated location
Ongoing Support
After opening, Joe Homebuyer Franchising, LLC provides ongoing support through continuing advice and guidance on various operational aspects, including employee hiring and training, advertising and promotional programs, administrative and general operating procedures, system improvements, financial consultation, and product/service offerings. Franchisees can request additional training at Joe Homebuyer Franchising, LLC's training center or other locations, with all related expenses borne by the franchisee. Joe Homebuyer Franchising, LLC may also provide refresher training programs or seminars, typically up to 20 hours annually, which are free of charge for the training itself, but franchisees cover their own travel and living expenses. Joe Homebuyer Franchising, LLC inspects franchises and supplier facilities to ensure compliance with system standards. Additionally, Joe Homebuyer Franchising, LLC may offer other assistance such as advertising materials, literature, and bulletins on new products or techniques.
Franchise Requirements
Ideal Candidate Profile
Joe Homebuyer seeks qualified individuals and entities interested in operating a real estate solutions business. The ideal Joe Homebuyer franchisee or their designated manager (which could include an acquisitions manager and a general manager) must successfully complete mandatory training programs. While not a strict requirement, Joe Homebuyer strongly recommends that individual franchisees, or the majority owner of an entity franchisee, be actively and fully involved in the day-to-day operations. This role demands significant time, effort, and an understanding that the business involves hard work and long hours, similar to other owner-operated small businesses. Candidates should be in good health and possess the necessary business management skills to either manage the business directly or to effectively hire and oversee a general manager. All franchisees must commit to operating their Joe Homebuyer business in strict adherence to the company's established system and maintain high standards of quality and service, aligning with the ethical principles outlined in "The JOE Way."
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Joe Homebuyer Franchising, LLC defines its franchise territories using geographical or political boundaries, which are specified in the Franchise Agreement before it is signed. The exact location and size of a Joe Homebuyer franchise territory are determined based on Joe Homebuyer Franchising, LLC's market analysis, market penetration strategies, and franchise placement plans, taking into account factors like population demographics and other businesses in the area, using information from sources such as census data and chambers of commerce. Exhibit B of the FDD lists anticipated franchise territories by state, often including specific counties in their market definitions.
Staffing Notes
Joe Homebuyer Franchising, LLC requires franchisees to hire and maintain sufficient staff to manage customer volume at all times. If the owner does not personally manage the franchise day-to-day, a designated general manager, including acquisition managers, is required to complete Joe Homebuyer Franchising, LLC's mandatory training program within one month of being hired. Joe Homebuyer Franchising, LLC may also require franchisees to use a designated recruiting service for hiring acquisition managers. All employees are expected to maintain a neat and clean appearance and provide friendly, efficient, sober, and courteous service, adhering to Joe Homebuyer Franchising, LLC's grooming and training standards, which may include background checks and drug testing. Joe Homebuyer Franchising, LLC prohibits hiring employees found guilty of fiduciary misconduct, unlawful sexual conduct, felonies, or similar charges that negatively reflect on their character. Employees and associates are not permitted to receive payments directly from customers; all revenues generated must go to the franchisee.