HouseMaster Franchise Owner Salary, Profit, & Failure Rate 2024

HouseMaster Franchise

HouseMaster is famous for its work in home inspection and for making customers happy. If you’re thinking about growing your business, the HouseMaster franchise could be a great chance for you.

It is one of the 10 Best Handyman Franchises of 2024 that you must own.

In this article, we’ll talk about everything you need to know about the HouseMaster franchise, like how much money you could make, the fees you have to pay, and what it costs to get started. Let’s get started!

About HouseMaster

Ken Austin started HouseMaster as a home inspection company in 1971. Now, HouseMaster is one of the oldest and most trusted names in home inspection in North America.

In 1979, they started selling franchises, and they opened the first franchise store in the USA that same year. Now, they have more than 272 stores across North America.

HouseMaster has a good franchise for people who want to invest in the home inspection business. They also help their franchise owners in many ways. They offer training, help with money, and discounts to some people.

HouseMaster Franchise Model

Cost Or FeesAmount
Initial Investment$61,100 – $107,650
Franchise Fee$42,500
Area RequirementNot Applicable
Total Outlets272 Units

Training & Support of HouseMaster Franchise

HouseMaster gives a training program to all new franchise owners.

The training has two parts: the first part is about marketing and running the business and lasts for two days. The second part is about technical training and learning about building inspection, and it lasts for eight days.

This is just a general look at the industry, but sometimes they give more detailed training on how to be a licensed and certified home inspector.

All franchise owners must finish this training and pass a big test to make the company happy.

Term Of Agreement & Renewal

HomeMaster Term Of Agreement & Renewal

The first agreement with HouseMaster to have a franchise lasts for 10 years. After that, you can make a new agreement for another 10 years if you want.

But you have to meet some conditions that the company sets to get this new agreement.

HouseMaster Franchise Revenue & Profit

The profit and revenue for a HouseMaster franchise could vary depending on the location, size of the store, operating expenses, and more.

As per the last known data, the HouseMaster franchise owner made $295,978 in average gross sales in the year 2017. So, if we take this data and assume a profit margin of 15%, then we can find out that a HouseMaster franchise owner makes estimated annual net profits of $44,396 on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%295978.00
Franchise Royalty Fees5.31%(15723.83)
Cost of Goods Sold (COGS)26.56%(78619.16)
Labor (Variable)13.81%(40881.96)
Total (Expenses)85.00%(251581.30)
Net Profit15.00%44396.70

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

What is the failure rate of Housemaster franchises?

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2019, the growth rate was (7)/259×100≈2.70%
  • In 2020, the growth rate was (5)/266×100≈1.87%
  • In 2021, the growth rate was (1)/271×100≈0.36%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Company-Owned outlets:

  • In 2019, the failure rate was (0)/6×100≈0.00%
  • In 2020, the failure rate was (0)/6×100≈0.00%
  • In 2021, the failure rate was (0)/6×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For Total outlets:

  • In 2019, the growth rate was (7)/265×100≈2.64%
  • In 2020, the growth rate was (5)/272×100≈1.83%
  • In 2021, the failure rate was (5)/277×100≈1.80%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Housemaster grew from 2019 to 2021, showing a growth rate between 2.70% and 0.36%.

On the other hand, for company-owned outlets, the failure rate of Housemaster was 0.00% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Housemaster franchise has expanded in the years 2019-2021 showing a total growth rate between 2.64% and 1.83%. The number outlets started to decrease in 2021, showing a failure rate of 1.80%

How Much Does HouseMaster Franchise Make?

The money you make with a HouseMaster franchise depends on many things.

It can be different based on where your store is, how many people want your services, how many workers you have, and other things like that.

But according to our caculation, a HouseMaster franchise owner makes estimated $44,396 for each store they have.

Payback Period: HouseMaster Franchise

The investment of $107,650, and the yearly profit of a HouseMaster franchise owner is $44,396. So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $107,650/ $44,396= 2.4 years

Based on these figures, it will take approximately 2-3 years to pay back the initial investment for HouseMaster. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

HouseMaster Comparison

Founded In19871993
Initial Investment$61,100 – $107,650$30,125-$41,900
Total Outlets272240
Annual Revenue$30 Million$21.4Million 

Frequently Asked Questions

How many HouseMaster franchises are there?

There are more than 272 HouseMaster franchise locations in North America. 

Does the HouseMaster franchise offer a venture discount?

Yes, HouseMaster offers a discount of $6,000 as a venture discount. This can make it more attractive to those looking to start a franchise with the company.

Does HouseMaster support third-party finance?

Yes, HouseMaster supports third-party financing. This means that they can help you work with other banks or financial groups to get the money you need to start your franchise.

Is HouseMaster a franchise?

Yes, HouseMaster is a premier home inspection franchise organization in North America.

How much does a HouseMaster franchise cost?

To buy the HouseMaster franchise, you’ll require an investment of $61,100 – $107,650 and $42,500 as an initial franchise fee.

Who owns HouseMaster?

House Master is the first home inspection business to franchise and it includes more than 170 franchise owners. Kathleen Kuhn is the CEO and President of the company.

Where is HouseMaster headquartered?

HouseMaster is the oldest and largest home inspection company in North America. Its headquarters is located in Somerville, N.J.

Who founded HouseMaster?

Ken Austin was the founder of HouseMaster Home Inspection. He passed away in 2016.

Leave a Comment