Home inspection franchises, they are inexpensive
to buy, they are inexpensive to operate, but
does it make sense to buy a franchise in this
space, and can you make money? We’ll look
today at Franchise City
There are a few industries that we get pushback
from people because in their mind if you arent
getting a big brand name like McD’s there
is no value in the franchise model. We get
that with painting, we get it with cleaning,
we get it with property management and with
home inspections.
But in these businesses you arent necessarily
buying the branding, you are buying access
to systems and processes that if they are
good, will make you more effective and efficient
which equals more money. Things like as client
acquisition, business operations, quality
standards, efficiencies and dozens of other
little things that can help you actually make
more money in the long run even after paying
royalties. That’s the point of a franchise
but unfortunately not all provide the same
value. With a good franchise there is also
a support structure in place if you have questions,
or get stuck you can call someone and ask.
And while you may know how to paint and clean,or
inspect a house do you know how to scale a
business? Grow a business? Most people do
not and thats why we see many independent
inspectors actually converting to a franchise
model.
So how does home inspection work. You, or
your employee receives training on how to
inspect a house, get certified by one of the
governing bodies, then you help people, usually
home buyers, look for potential issues when
they are buying a house. Typically will look
at the roof, electrical, plumbing, basement
and foundation, walls and windows, and you
can add extra services like mold and radon
testing for a fee.
Now the average home inspection not including
extras is currently about $315. Many will
charge more for value added services and being
the cheapest isn’t always the best strategic
market positioning, thats mistake many novice
business owners make. But even $315 is not
bad for a couple of hours of work. You might
ask how many inspections could you actually
do in a day? I headed over to the Int’l Association
of Certified Home Inspectors forum, and the
consensus was you could theoretically do up
to 5 inspections a day if you worked ridiculously
hard, no one recommended it because you would
have no life, and is virtually impossible
to keep that up, and your quality is certain
to suffer, but 5 inspections a day X $315
X 260 working days a year would be $409,500
dollars with one person, not even considering
hiring other inspectors and scaling your business.
Because this is a work from home gig your
expenses and operational costs are very low
so a decent amount of that gross revenue goes
into your pocket. Now even if you took it
easy and did only 2 inspections a day you
are still grossing over $150k a year (163,800)
Before we look more closely at the franchise
model let’s look at that forum comment again
“I did 5 inspections once this year. It is
too many. I regularly do 4 and that is hard
as well. Performing the inspection isn’t the
issue, it is **producing the reports as you
quickly fall behind volume.
So here is a key distinction, if you have
technology that can speed up the reports,
you can do more inspections in a day. And
that is the reason people buy a home inspection
franchise, because among other things they
have systems and processes and technologies
that help you be more efficient.
When people come to us to help them find the
best home inspection franchise, or any franchise,
this service is free by the way we have consultants
here that walk you through the process looking
at many factors to find the best for your
specific situation. We’ll cover a few of those
today. So the first as we just mentioned is
the technology. There are companies that have
the ability to complete much of the report
right onsite, while you are doing the inspection,
enabling the inspector to do more inspections
per day. There are a few other technology
considerations we won’t go into here but you
want to drill down on the inspection technology
they have, and how much benefit it brings.
Does it justify the royalties you will pay.
Next up is customer acquisition. Some franchise
buyers gravitate to home inspection because
they like that solo operation, lone wolf in
the field, and they might be a bit introverted
and not be very socially outgoing. Which is
fine —if the company is doing lead generation
for you. Some franchises rely very heavily
on local networking, so you will need to be
hanging out at Realtor offices, buying donuts,
regularly shmoozing to get business. If you
are a people person that’s fine, but always
make sure the client acquisition model matches
your personality and operational preferences.
Speaking of operational preferences, does
the franchise allow for part time operation.
We have many people looking to do a few inspections
a week while they still keep their job, do
a couple after work or on weekends, great
way to make some extra income. Some franchises
wont allow part time, some will. This allows
you to start a business while you are still
working, then once you build up a client base,
you can quit that 9-5 job.
Next is training and support. what does that
look like. Do they have mentors and trainers
that will help in that critical first 90 day
period. What is the experience of the trainers?
Do they include jump start marketing? Really
look at what is included. Many people just
buy the first home inspection franchise they
look at and might regret it later. Some are
better than others, but that will depend on
your specific situation.
Next is territory. So a big decision in any
franchise is whether to buy a highly established
or emerging brand. And most people think that
is the way to go. There is no right answer.
But while highly established brands might
have more established systems and processes
in place, but not always, but with highly
established franchises you will often not get your
choice of prime territory, or there may not
even be territory availability in your area.
With newer franchise brands you can often
negotiate larger territory sizes, and even
potentially operate outside of your territory
until they place a franchisee. First thing
we do here is conduct a territory check to
see what brands are available in your area
and which are sold out so you arent wasting
your time.
Next is strategic market benefits. yes, real
estate is booming, yes the home inspection
market is booming, but with that success brings
competition. If you will be competing with
many other independent operators and franchises
in your territory, and you will, you need
a strategic market advantage. And that can
be competitive pricing, faster reports, value
adds thrown in for free, more experience,
there are many ways to differentiate in the
market, be sure the franchise you buy reflects
the market you will serve. Additionally if
your preference is to scale and grow starting
as a one person operation, two, four 8 etc,
you will eventually want to expand beyond
your own territory. with highly established
brands that can potentially not be possible.Always
consider your future plans.
What does a home inspection franchise cost?
Your all-in total investment can be as low
as about $35,000 up to over $100,000. We suggest
buyers have realistically have at least $50,000
to invest but each franchise has their own
minimum requirements.
Any drawbacks to the business? There are drawbacks
in any business, but in home inspection you
need to have a strong strategy for client
acquisition, that is the backbone of the business
and if you dont have online lead generation
available and arent extroverted you may have
a difficult time. Make sure you have a market
differentiator as competition in this space
can be intense. And last but not least, if
you plan on running the business yourself,
be prepared to do some dirty stuff not every
house will look like this, some may look like
this. You should also be good with heights
as you’ll be up on roofs. For the right person
a home inspection franchise can be a good
fit especially for $400k a year. If you need
help identifying and comparing home inspection
franchises, or any franchises our service
is 100% free click above to learn more, please
like and subscribe and thank you for watching.

Home Inspection Franchises – $409,000.00 a Year?
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15 thoughts on “Home Inspection Franchises – $409,000.00 a Year?

  • October 3, 2019 at 3:38 pm
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    Hey thanks for the video. Do you have on first aid cpr business? Or / and one on school and medical transportation

    Reply
  • October 3, 2019 at 4:00 pm
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    Love all of your videos. I am subscribed and notified for everyone so you know I say this with love: you must, must, MUST get better audio! You need a microphone because the audio is too unfocused and distracting.

    Reply
  • October 3, 2019 at 4:34 pm
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    whats your opinion on becoming a loan officer?

    Reply
  • October 3, 2019 at 8:05 pm
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    I have a Small 2 bedroom cape. It took my inspector easily 4 hours. I don't see 5 a day. The last thing I wanted to see is him rushing through it and not taking the time to answer all my questions, all of them.

    Reply
  • October 3, 2019 at 8:59 pm
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    Hello Sir,

    Hope you are well. Do you think this Franchise is worth trying? I have a friend who's been a Handyman for years and now wants to try something different.

    Reply
  • October 3, 2019 at 9:37 pm
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    Accountability would be off the chart

    Reply
  • October 4, 2019 at 1:30 am
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    Great video! Thanks!

    Reply
  • October 4, 2019 at 2:12 am
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    I have a client that runs a home inspection franchise I JUST asked about his experience with and mentioned your channel as one I really enjoy and follow.. Very coincidental that you made a video on it!

    Reply
  • October 4, 2019 at 12:35 pm
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    There are certain business where the franchise model will get you in the door but not serve you well in the long run. Home inspection is one of those industries. A lot of large companies struggle with employee retention. Why would you want 35% to 45% (which is top pay at some firms) that is $95. after tax pay. So that is (in my area) 45 min commute one way 2 hours on site 1 hour to do the report totaling about 20 dollars an hour.

    Reply
  • October 4, 2019 at 4:01 pm
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    Please do a video on private and white labeling. Thank you in advance.

    Reply
  • October 4, 2019 at 6:20 pm
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    After retiring from the business, 4 much less 5 a day is ridiculous. There is NO WAY some one could do that with any means of consistency, accuracy, etc. Two is reasonable, but a lot depends on the size, age, location, and complexity of the property. It is reasonable to make in the 100,000 dollar range. YOU NEED TO BE ICC COMBINATION R5 certified. That is hard.

    Reply
  • October 4, 2019 at 8:21 pm
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    Hey everyone. Before uploading I expected there might be misinterpretation regarding doing 5 inspections a day. So I stated VERY clearly it was impossible, it would destroy the quality of the inspection, and was in no way something that should be considered. I quoted industry pros confirming this and then, to be safe I added (in giant letters with a giant asterisk) the fact it was completely unrealistic.

    Despite this we have already received comments stating "Obviously this guy is selling get rich quick schemes, you can't do 5 inspections a day"

    I love comments, appreciate anyone taking the time to comment and wont delete them but if you are going to comment, please watch the entire video before making accusations that simply are not true nor in keeping of the nature of this channel. Thanks for visiting.

    Reply
  • October 10, 2019 at 6:51 pm
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    love your videos. Can you make a video on starting up a Chinese fast food business? I see so many in the lower income areas and they're almost always busy. Thanks!

    Reply
  • October 11, 2019 at 1:48 am
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    Randys Donuts. The popular Donut Spot in Los Angeles is now Franchising wonder if in the same profile as Dunkin / Winchells?

    Reply
  • October 11, 2019 at 8:44 pm
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    Can you do one on Giant Eagle as they will let you own a store Please do Giant Eagle

    Reply

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