Renovation Sells Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$79,005 - $171,484
Franchise Fee
$45,000
Total US Locations
43
Business Summary
Renovation Sells operates a residential real estate renovation and remodeling business. This business helps individuals sell their homes by providing custom design, materials, and construction services designed to enhance a home's appeal. Renovation Sells also serves home buyers and individuals who choose to remain in their homes, offering services to improve living spaces.
Corporate History
Renovation Sells Franchising, LLC was formed in Illinois on June 19, 2020, and began offering its franchises on July 15, 2020. The franchisor is owned by its parent company, Renovation Sells Holdings, LLC, which was also formed on June 19, 2020. An affiliated company, Renovation Sells, LLC, which operates a similar business, was formed earlier on January 22, 2018.
Financial Overview
Investment Range
$79,005 - $171,484
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$120,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$755
Equipment Costs (High)
$5,884
Working Capital
$9,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Renovation Sells Franchising, LLC received an unqualified audit opinion for its financial statements. However, the company reported a significant net loss of $1,081,614 in 2023 and has an accumulated members' deficit of $2,736,027. The franchisor also has substantial convertible notes payable totaling $2,710,991 in 2023, with interest rates ranging from 10% to 22.6% per annum. While the audit opinion is clean, these factors indicate a history of operating losses and high debt levels.
Financing Details
Renovation Sells does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other obligations on behalf of franchisees.
Performance Metrics
Total US Locations
43
Franchised Units
42
Corporate Units
1
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Renovation Sells has no litigation to report. The FDD states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
Renovation Sells has no bankruptcy history to report. The FDD states that no bankruptcies are required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Renovation Sells franchise, franchisees must be in full compliance with their agreement, not have more than three defaults during the current term, and provide written notice between nine and twelve months before the term ends. They will need to sign a new franchise agreement, pay a $5,000 successor agreement fee per territory, upgrade their business assets to meet current specifications, sign a general release, and complete any required training.
Training & Support Program
Franchisor Assistance
Renovation Sells provides several forms of assistance to its franchisees. Before opening, the franchisor helps designate territory boundaries, provides an Operations Manual and other training aids, and offers a list of required equipment and supplies. Franchisees receive initial training in the Greater Chicagoland Area, Illinois, and assistance in setting prices. After opening, Renovation Sells offers optional and mandatory additional training programs, including annual business meetings. Upon request, franchisees can receive remedial in-territory training (for a fee) and individualized assistance via phone, video conference, or email. The franchisor also maintains a website that lists franchisee contact information and completed work, provides specifications and lists of approved suppliers, recommends pricing parameters, and approves all franchisee advertising materials.
Initial Training Hours
63
Training Location
Greater Chicagoland Area, Illinois (in-person and virtual)
Ongoing Support
After opening, Renovation Sells franchisees may be required to attend mandatory additional training programs and/or an annual business meeting or conference for up to five days per year. The franchisor also provides individualized assistance upon request via telephone, video conference, electronic mail, or postage service. Additionally, Renovation Sells maintains its website with a link to each franchisee's business contact information and completed work. The franchisor provides written specifications for required equipment, products, and services, along with updated lists of approved suppliers. Renovation Sells recommends minimum and maximum prices for services and products and approves or disapproves all advertising materials and campaigns proposed by franchisees.
Franchise Requirements
Ideal Candidate Profile
Renovation Sells seeks individuals with the ability to manage projects and knowledge of small-scale home renovation. Ideal candidates might include general contractors, real estate agents, designers, or home staging experts. Franchisees are expected to be actively involved in the day-to-day management of their business. Experience as a contractor, realtor, broker, designer, or real estate investor is considered beneficial for a quicker opening time.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
Renovation Sells territories, referred to as 'Protected Areas,' are defined individually by contiguous zip codes within a listed town, city, or county. These areas are determined based on demographics, minimum household numbers, geographic terrain, and market potential. Each Protected Area will have a minimum population of 300,000 people and up to 85,000 owner-occupied dwellings, using recent census data and a third-party mapping service.
Staffing Notes
Renovation Sells requires franchisees to be actively involved in the day-to-day management of their business and to designate an Operating Principal. If the franchisee is an entity, the Operating Principal must have at least a 10% equity interest. Franchisees purchasing four or more territories must have an additional manager for each territory beyond three if multiple principals are not involved. Franchisees are responsible for ensuring that all subcontractors are properly licensed in their working municipality and for making commercially reasonable efforts to recruit employees as prescribed by the franchisor to operate the business at maximum capacity and efficiency.