Pillar To Post Franchise Cost, Profit & Failure Rate 2024

Pillar To Post Home Inspectors Franchise

Buy a Pillar to Post Home Inspectors franchise to start a lucrative business.

Pillar To Post Home Inspector offers a home inspection franchise to an individual who wants to add something new to their business portfolio. It’s among the 10 Best Home Inspection Franchises of 2024 that you should think about owning.

If you’re considering running a home inspection franchise, it’s essential to find out if the franchise is profitable or not.

So here we’ll discuss everything you need to know about the Pillar to Post Franchise. Let’s begin.


About Pillar To Post

Pillar To Post is the largest and fastest-growing home inspection company known for its home inspection services.

They have more than 25 years of experience in home inspection. During that time, they have started hundreds of successful businesses.

Pillar To Post has the greatest number of locations in North America, with over 550 franchises nationwide. They are known as the #1 Brand Recognition in North America.

They have marketing programs that have been proven to work at both the national and local levels to get business and schedule inspections.

The best part is that they don’t require any prior experience to sell their franchise. So, anyone can buy a Pillar To Post franchise.


History Of Pillar To Post

Pillar to Post was created by Mike Brewer in 1994. That same year, they began offering franchises. Now, Pillar To Post has more than 550 franchises in North America.

The Pillar To Post franchise business is growing quickly, and its services always bring customers in.

Also, they have been ranking #1st for the past three years in the home inspection franchises.


Pillar To Post Franchise Business Model

ItemDetails
Initial Investment$44,285 – $54,435
Franchise Fee$28,500
Royalty Fee7%
Area RequirementN/A
Total Outlets550

Training And Support

Pillar To Post gives training to all new franchisees. This includes how to run the business, how to be a leader, and how to become an expert in your field.

They provide training to build your confidence and help you manage activities. You will get this training for the first 9-12 months of your business.

On top of that, they offer help with money matters, planning for the future, and working out your schedule. All this support is given by the company to the franchisee.


Payback Period Of Pillar To Post 

The estimated total profit of the Pillar To Post franchise owner is $41,576 per year, and at an estimated 15% profit margin.

So, on the basis of investment and the estimated profit, we can calculate the payback period of Pillar To Post.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $54,435 / $41,576 = 1.3 years

Based on these figures, it will take approximately 1.3 years to pay back the initial investment for Pillar To Post. This time period could be longer or sorter depending on your sales, revenue, and profit figures.


Pillar To Post Franchise Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019490494+4
2020494481-12
2021481483+2

For the Franchised outlets:

  • In 2019, the growth rate was (4)/490×100≈0.81%
  • In 2020, the failure rate was (12)/494×100≈2.63%
  • In 2021, the growth rate was (2)/481×100≈0.41%

According to the above-mentioned data, we can see that the franchised outlets for Pillar To Post grew in 2019 and 2021, showing a growth rate of 0.81% and 0.41%, respectively. And in the year 2020, the number of outlets franchised at the end of the year is less, thus showing a failure rate of 2.63%.

These percentages show that there is a certain level of risk in running a franchise. While new franchises are opened every year, some also close. Understanding these percentages can help potential investors make wise decisions.


Franchisor Revenue & Net Income

YearFranchisor RevenueY/Y % ChangeFranchisor Royalty FeesY/Y % ChangeFranchisor EBITDAY/Y % ChangeFranchisor Net Income (Loss)Y/Y % Change
2022$630,645,87525%$96,138,5199%$67,920,58937%$49,991,48636%
2021$504,450,59620%$87,815,73125%$49,754,09721%$36,865,39142%
2020$418,941,459-10%$70,476,363-1%$41,074,872-35%$25,972,358-21%
2019$467,295,0954%$70,908,7658%$63,310,809-6%$32,796,261-13%
2018$448,575,224N/A$65,538,712N/A$67,027,607N/A$37,755,866N/A

The financial metrics of the Pillar To Post franchisor show a varied trend over the years. In 2022, the revenue reached $630,645,875, a growth of 25% from the previous year, with royalty fees at $96,138,519 and an increase of 9%.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 37% to $67,920,589, and the net income saw a 36% rise to $49,991,486.


Pillar To Post Franchise Revenue & Profit

The money you make with a Pillar To Post franchise can be different depending on where you are, how many people work for you, and what people want.

According to the company’s website, a Pillar To Post franchise owner makes $277,178 in gross revenue on average.

This number is based on what the 365 U.S. franchises made on average in the year 2020.

So if we assume a profit margin of 15% as per the industry standards then we can calculate that a Pillar To Post franchise owner make $41,576 in net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%277178.00
Rent10.63%(29450.16)
Insurance5.31%(14725.08)
Salaries21.25%(58900.32)
Franchise Royalty Fees5.31%(14725.08)
Utilities2.13%(5890.03)
Cost of Goods Sold (COGS)26.56%(73625.41)
Labor (Variable)13.81%(38285.21)
Total (Expenses)85.00%(235601.30)
Net Profit15.00%41576.70

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.

Aspiring entrepreneurs in the home inspection franchise realm have choices like The Inspection Boys, Inspect-It 1st, American Leak Detection, BrickKicker Franchise, and TrueBlue House Care to consider.


Pillar To Post Comparison

CompanyPillar To PostNational Property Inspection
Founded In19941987
Initial Investment$44,285 – $54,435$43,200 to $47,000
Franchise-Fee$28,500$34,900
Total Outlets550228
Annual Revenue$2.7 Million $27.4 Million

Frequently Asked Questions

Does Pillar to Post franchise offer a venture discount?

Yes, Pillar to Post offers 20% off on franchise fees as a venture discount.

Is Pillar To Post a Franchise?

Yes, Pillar to Post is a franchise organization.

How much does a Pillar to Post franchise cost?

Opening a Pillar to post franchise requires an initial investment ranging from $44,285 – $54,435, with a franchise fee of $28,500.

Who owns Pillar To Post?

Pillar To Post is North America’s leading home inspection company. The CEO of the company is Charles Furlough.

Who founded Pillar To Post?

Pillar To Post is a home inspection company founded by Mike Brewer in 1993. By 1994, Pillar To Post was open for business with a formal technical training program.

How many locations does Pillar To Post have?

Pillar To Post is the top North American home inspection franchise with more than 550+ locations in North America.

Where is Pillar To Post headquartered?

Pillar To Post is headquartered in Tampa, Florida. The complete corporate address of the company is 14502 N. Dale Mabry Hwy., #200 Tampa, FL 33618.

Leave a Comment