The Closet Factory vs HomeVestors of America Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of The Closet Factory vs HomeVestors of America including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
The Closet Factory Franchise
HomeVestors of America Franchise
Investment $208,500 - $356,000$70,000 - $426,250
Franchise Fee $46,500$32,000 - $70,000
Royalty Fee 5.75%Varies
Advertising Fee -Varies
Year Founded 19831989
Year Franchised 19861996
Term Of Agreement 5 years5 years
Term Of Agreement 5 years5 years
Renewal Fee $7K-


Business Experience Requirements
 
The Closet Factory Franchise
HomeVestors of America Franchise
Experience
  • General business experience
  • Marketing skills
  • People skills

  • General business experience
    		•

    Financing Options
     
    The Closet Factory Franchise
    HomeVestors of America Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/YesYes/Yes
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    The Closet Factory Franchise
    HomeVestors of America Franchise
    Training -1 week initial training
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperativesNewsletter, Meetings, Internet, Field operations/evaluations, Purchasing cooperatives, ongoing mentoring support in each market
    Marketing Co-op advertising, Ad slicks, National media, Regional advertisingCo-op advertising, Ad slicks, Regional advertising
    Operations International franchisees required to buy multiple units/master licenses; 30% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6

    Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)

    		 Less than 5% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 2

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    The Closet Factory Franchise
    HomeVestors of America Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About The Closet Factory

    John LaBarbera founded The Closet Factory in a small industrial space in Los Angeles in 1983. The company started out with six employees customizing closets, offices, garages and pantries, and now has more than 100 employees at its Los Angeles headquarters. There are also 11 other factories around the world.

    The Closet Factory works with homeowners, contractors and interior decorators, installing closets, entertainment centers, pantries and shelves for offices and garages.

    You are unique and so are your needs. No one knows that better than The Closet Factory. When it comes to creating custom solutions that are imaginative, well organized and satisfy your design sensibilities, The Closet Factory believes the process must begin with a partnership between you and one of our designers.

    About HomeVestors of America

    "HomeVestors
    HomeVestors Franchise offers real estate entrepreneurs and investors with an opportunity to create their own successful real estate company buying and selling homes. Since our initial franchise offering in 1996, HomeVestors has grown to currently have over 200 independently owned and operated franchisees throughout the United States, and has received numerous awards and recognitions from top franchise business publications.

     HomeVestors of America, commonly known as We Buy Ugly Houses, is the number one home buyer in America. Since HomeVestors began its franchise in 1996, We Buy Ugly Houses / HomeVestors franchise owners have purchased over 45,000 houses throughout the US. HomeVestors franchise owners pay cash for ugly homes that often have their owners in difficult situations. Our franchisees renovate houses and then sell or lease them. This improves neighborhoods in the process and offers great opportunities for first time buyers, renters, and real estate investors.

    The total investment necessary to begin operation of a Full Franchise HomeVestors Business is $108,000 to $426,250. This includes $70,000 that must be paid to the franchisor or affiliate.
    The total investment necessary to begin operation of an Associate Franchise HomeVestors Business is $70,000 to $363,250. This includes $32,000 that must be paid to the franchisor or affiliate.

    With approximately 200 franchisees independently operating in 33 states, We Buy Ugly Houses / HomeVestors commits itself to enforcing high ethical standards and strict systems that result in responsible business practices. We are proud of the service we provide that helps homeowners and people who would like to start their own profitable real estate franchise business.

    HomeVestors Franchise Model
    HomeVestors offers a low cost franchise opportunity for investors interested in building a real estate business. Our unique model includes proprietary software that our franchisees use to assess homes for purchase and renovation. It also includes mass advertising billboard campaigns that achieve quick market awareness and direct selling programs that help franchisees identify and locate buyers and investors interested in specific neighborhoods. With ongoing support from HomeVestors and our development agent mentors, franchisees build wealth by purchasing houses at discount prices.

    We Get It.
    You Want a Business.
    Not a New Boss.


    Our franchisees either renovate and sell or renovate and rent properties they buy, which generates a positive cash flow and equity. We Buy Ugly Houses / HomeVestors franchisees must complete our intensive training program. It incorporates all of our systems for buying homes as well as good business standards. Our franchisees learn how to deal with homeowners who may be in an ugly situation, how to explain our home buying process, and how to carry out as-is all cash buyout deals that create a profit for franchisees while helping a homeowner get out of an ugly house.
    Veteran Incentives   10% off franchise fee
    ""        "Entrepreneur

    In Franchise Business Reviews Top 200.
    #19 in Franchise 500 for 2020.
    #36 in Franchise 500 for 2021.