Risk Score
Pending analysis
Investment Range
$48,895 - $158,095
Franchise Fee
$17,495
Total US Locations
19
Business Summary
Showhomes offers franchised businesses that provide services for residential real estate properties. These services include home management, staging, makeovers, decorating, interior updating, and the sale and rental of furniture, artwork, and accessories. Showhomes provides Home Management Services where Home Managers live in properties for sale, furnishing and maintaining them as model homes. Staging Services involve consultation, decoration, and furnishing of properties for sale. Updating Services focus on decorating, cosmetic home updating, remodeling, and makeovers for occupied properties. Showhomes earns revenue from homeowner fees, furniture sales and leases, and fees paid by Home Managers.
Corporate History
Showhomes Franchise Company, LLC was originally formed as a Georgia corporation in April 2002, initially known as Showhomes Franchise Corporation. In September 2023, it converted to a Georgia limited liability company, Showhomes Franchise Company, LLC. While Showhomes' predecessor began offering franchises in September 1994, Showhomes itself has offered franchises since 2002. In 2023, Realzar Holdings LLC acquired a controlling interest in Showhomes from Showhomes Holding, Inc., and Showhomes became the current owner of its trademarks.
Financial Overview
Investment Range
$48,895 - $158,095
Franchise Fee (Low)
$17,495
Franchise Fee (High)
$19,995
Royalty %
10%
Marketing %
2%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$72,500
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Showhomes management has evaluated its ability to continue as a going concern and concluded that there is no significant doubt, citing positive earnings and cash flows from operations. This indicates Showhomes is in a stable financial position.
Financing Details
Showhomes does not offer any direct or indirect financing options to its franchisees. Franchisees are responsible for securing their own funding, and Showhomes does not guarantee any notes, leases, or other obligations on their behalf.
Performance Metrics
Total US Locations
19
Franchised Units
19
Corporate Units
0
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Showhomes has no litigation history to report as of the FDD issuance date. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Showhomes has no bankruptcy history to report for itself or its key personnel, as Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Showhomes franchisees must provide written notice between 7 and 12 months before the term ends. They are required to repair or replace all equipment, fixtures, and furnishings to meet current standards, and must not be in material default of any agreements with Showhomes or its affiliates. Franchisees must also pay all money owed, demonstrate the right to occupy their location, sign Showhomes' then-current franchise agreement (which may have different terms), pay a renewal fee (which may be waived if the new agreement is signed without changes), sign a general release, and comply with all current qualification and training requirements.
Training & Support Program
Franchisor Assistance
Before opening, Showhomes provides initial New Owner Orientation Training for the Managing Principal and up to two employees at no charge, Home Staging Certification, access to online manuals, customized proprietary computer software, advertising and promotional materials, business management advice, a list of approved suppliers, and location approval. After opening, Showhomes provides periodic business visits and evaluations, optional field training at no charge, ongoing advertising and promotional materials, advice and manual updates, additional field assistance, various training programs and seminars (with fees for additional training), administration of the Brand Fund, software upgrades, and pricing guidelines.
Initial Training Hours
35
Training Location
Corporate office in Coral Gables, Florida or virtually
Ongoing Support
After opening, Showhomes franchisees receive ongoing support through periodic visits and evaluations of their business. Showhomes may provide field training at no additional charge and offers ongoing advice and written materials, including updates to the operations manuals. Showhomes also conducts training programs and seminars, which franchisees may be required to attend, with fees potentially applied for additional or remedial training. Showhomes administers the Brand Fund, provides upgrades and enhancements to its proprietary software, and offers pricing guidelines and suggestions. Franchisees are required to attend an annual conference.
Franchise Requirements
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staffing Notes
Showhomes requires franchisees to designate a Managing Principal who either serves as the General Manager or ensures the General Manager's performance, dedicating best efforts to supervision and operation. The General Manager is responsible for the day-to-day operation of the Showhomes business and supervises all other personnel. Franchisees must employ sufficient Key Personnel to perform all essential functions as outlined in the Manuals. All Key Personnel must meet Showhomes' requirements and satisfactorily complete applicable training programs. Franchisees are solely responsible for hiring, employment terms, compensation, and all personnel decisions.