Hommati Franchise in 2024: Costs, Fee & FDD

Hommati is a unique and innovative real estate franchise founded by Mike Gauthier in 2016. It stands out in the industry for its forward-thinking approach to real estate marketing, offering cutting-edge services that help agents sell homes faster and more effectively. The franchise aims to simplify property marketing, making it more dynamic and visually appealing for potential buyers. Gauthier’s vision was to leverage technology to revolutionize the way homes are presented, giving real estate agents an edge in a highly competitive market.

Hommati’s core services include professional photography, 3D virtual tours, aerial drone photography, and video production. These services enhance property listings, attracting more buyers with engaging visuals. The company also offers ancillary services like virtual staging and floor plans, ensuring that agents have a complete marketing toolkit. Hommati’s primary customers are real estate agents and brokers looking to differentiate themselves with high-quality marketing materials, targeting buyers who appreciate a detailed and immersive property viewing experience.

With a presence across the U.S., Hommati has over 40 franchise locations and continues to expand rapidly. While it operates mainly within the U.S., its innovative approach has allowed it to build a solid reputation within the real estate industry. Hommati helps agents boost their listings’ visibility, drawing in thousands of daily online visitors through enhanced property showcases.

The franchise provides strong support to its franchisees, offering extensive training programs that cover everything from marketing strategies to utilizing cutting-edge photography equipment. Hommati also equips its franchisees with ongoing operational support and access to a proprietary software platform for managing clients and projects. This system, combined with the initial training and regular updates, ensures franchisees can efficiently grow their business. Hommati’s blend of technology-driven services and robust support makes it a compelling choice for entrepreneurs looking to tap into the real estate market.

Hommati Franchise Insights

1. Hommati’s focus on high-quality visuals, such as drone photography and 3D virtual tours, allows franchisees to offer a standout service that’s in high demand in today’s competitive real estate market. These offerings make properties more appealing and increase buyer engagement.
2. The franchise gives entrepreneurs the chance to be part of a business that capitalizes on real estate agents’ increasing need for modern, tech-driven marketing solutions. With a focus on innovation, franchisees can attract a broad client base while offering something beyond traditional real estate marketing.
3. Hommati’s franchisees benefit from a flexible business model that can be run as a home-based business, offering a more adaptable and lower-cost operation compared to brick-and-mortar franchises. This flexibility allows franchisees to scale their business at their own pace, without the need for a physical storefront.

Hommati Franchise Key indicators

How much does it cost to open a Hommati franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Hommati franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Hommati franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Hommati below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Hommati franchise, the required capital involves both the initial investment costs and a net worth requirement set by the franchise. Let’s take a closer look below:

• Initial Investment The estimated initial investment for a Hommati franchise typically ranges from $70,000 to $84,000. This amount includes the franchise fee, equipment costs, initial marketing materials, and other setup expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets Requirement Hommati generally requires franchisees to have around $50,000 in liquid assets. This ensures the franchisee has enough cash reserves to cover initial operating costs and unexpected expenses without relying on borrowed funds.
• Net Worth Requirement Although specific figures may vary, a common industry standard for similar franchises suggests that prospective franchisees should have a net worth of at least $60,000 to $100,000. This accounts for the value of personal assets such as real estate, investments, and savings, minus liabilities, providing a strong financial foundation for the business.

How much does a Hommati franchise owner make?

Calculating the salary of a Hommati franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Hommati franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Hommati Revenue & Gross Sales

Based on the most recent analysis, Hommati franchises have a median gross sales of $78,026, showcasing the steady demand for high-quality real estate marketing services. This figure highlights the franchise’s potential for consistent revenue generation in a growing market where technology-driven solutions are becoming increasingly essential for real estate professionals.

Which key factors impact the average revenue performance of Hommati franchisees?

The performance of Hommati franchisees’ median gross sales can likely be attributed to several key factors. First, the increasing demand for enhanced real estate marketing, such as 3D tours and drone photography, has become more prominent as buyers seek immersive experiences online. The ongoing digital transformation in the real estate industry has also driven more agents and brokers to seek out advanced marketing solutions, like those offered by Hommati, to differentiate their listings. Additionally, the recovery of the housing market post-pandemic has likely fueled higher transaction volumes, allowing franchisees to capitalize on a more active real estate environment. Lastly, Hommati’s commitment to providing continuous support and training for its franchisees has likely helped improve operational efficiency, contributing to stronger sales performance.

Hommati Franchise Operational Costs

Operational costs for a franchise like Hommati are the ongoing expenses required to manage the day-to-day operations of the business. These costs ensure the franchise functions smoothly and delivers its services effectively. For a Hommati franchise, operational costs include:

• Equipment Maintenance and Upgrades Expenses related to maintaining and upgrading drones, 3D cameras, and photography equipment. Regular upkeep ensures you continue providing top-quality marketing materials.
• Software Subscriptions Costs for using editing software, virtual staging platforms, and project management tools. These tools are essential for delivering professional real estate marketing services.
• Vehicle-Related Expenses Costs associated with traveling to property sites, including fuel, vehicle maintenance, and insurance. Since franchisees travel frequently for property shoots, these expenses can add up.
• Marketing and Advertising Expenses Ongoing costs for promoting your services locally and digitally, including social media ads, email campaigns, and local listings.
• Licensing and Insurance Fees Required fees for licenses related to drone use and professional real estate photography, as well as insurance coverage for equipment, liability, and business operations.
• Freelance or Staffing Costs If you outsource tasks such as photography or video editing, you’ll need to budget for paying freelancers or additional staff to meet demand.

Careful management of these operational costs is vital for the successful and efficient running of your Hommati franchise.

Hommati Franchise Fees

Operational costs for a Hommati franchise include various ongoing fees required to sustain the business and ensure efficient operations. These expenses are necessary for maintaining the franchise’s marketing efforts, compliance, and lead generation. Key fees include:

• Local Advertising A minimum of $1,500 per month is required for local advertising to generate franchise leads in your territory. This expense ensures that you’re effectively marketing your services in line with Hommati’s guidelines.
• Fee for Franchisee Prospects A charge of $35 per franchisee prospect is applied. This cost helps cover the process of managing and handling potential franchise leads.

There might be additional fees associated with the operation of the franchise, such as equipment maintenance or technology upgrades, depending on the specific needs of your business. It’s important to review the franchise agreement carefully to understand the full range of financial obligations.

Hommati Franchise Earnings

Based on the median gross sales of $78,026, a Hommati franchise offers steady income potential, particularly for owner-operators who are hands-on with daily operations. After accounting for necessary expenses, an owner-operator can expect to earn around $17,166 annually based on best estimates. This figure represents what a franchisee might earn after covering core operational costs like equipment, marketing, and other essential business expenses.

For owner-operators, this level of earnings suggests that while the business may take time to scale, there is an opportunity for growth as the franchise gains traction in its territory. By investing time into local marketing efforts and building strong relationships with real estate professionals, owner-operators can increase their gross sales and potentially boost their earnings over time. As with any franchise, success largely depends on effort, market demand, and strategic growth.

How to Open a Hommati Franchise

The process of becoming a Hommati franchisee involves several key steps, starting with initial inquiry and leading to the official launch of your franchise. Here’s an overview of the process:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Franchise Application After the initial discussion, you’ll be invited to fill out a formal franchise application. This step involves sharing details about your background, financial status, and business experience.
3. Review of Franchise Disclosure Document (FDD) Once your application is approved, you’ll receive the Franchise Disclosure Document, which outlines all the legal, financial, and operational aspects of the franchise. You’ll have time to review it carefully before proceeding.
4. Franchise Agreement If both parties agree to move forward, you’ll sign the Franchise Agreement, which officially makes you a franchisee. You’ll also pay the initial franchise fee at this point.
5. Training Program Once you’re on board, Hommati provides comprehensive training covering equipment use, marketing strategies, and day-to-day operations. This ensures you’re fully prepared to manage your business.
6. Territory Setup and Pre-Opening Marketing Hommati will work with you to set up your territory and guide you through local marketing efforts to generate leads and awareness in your area.
7. Start of Operations After completing the setup and training, you’re ready to launch your Hommati franchise. You’ll begin offering services like 3D tours, drone photography, and other marketing tools to real estate professionals in your territory.

Pros & Cons

Pros

Innovative Services: Hommati offers cutting-edge real estate marketing tools like 3D tours, drone photography, and virtual staging, which are in high demand in today’s competitive market.

Low Overhead: With the ability to operate from home and minimal staffing requirements, the franchise has relatively low overhead compared to traditional brick-and-mortar businesses.

Flexible Business Model: The franchise allows you to set your own schedule, making it a good fit for entrepreneurs seeking work-life balance.

Cons

Heavy Reliance on Real Estate Market: The success of your business is closely tied to the health of the real estate market in your territory. During slower real estate periods, your services may be in lower demand, impacting revenue.

Technology Upkeep: As a technology-driven franchise, ongoing investment in maintaining and upgrading equipment like drones, cameras, and software is necessary. This can add to operational costs over time.

Client Acquisition Challenge: Building a client base in competitive territories may take time and require significant effort in networking with real estate professionals, which can delay profitability.

Inconsistent Income: Given the project-based nature of the business, your income may fluctuate depending on the number of listings and projects you secure, leading to financial unpredictability.