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Below is an in-depth analysis and side-by-side comparison of American Leak Detection vs HouseMaster Home Inspections including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $76,755 - $259,550 | $61,100 - $106,150 |
Franchise Fee | $29,500 - $120,000 | $42,500 |
Royalty Fee | 6-10% | 6%-7.5% |
Advertising Fee | - | 2%-2.5% |
Year Founded | 1974 | 1971 |
Year Franchised | 1984 | 1979 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/No |
Inventory | No/No | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 40 hours Classroom Training: 40 hours Additional Training: Annual convention | Classroom Training: 40-120 hours Additional Training: Technical training |
Support | Newsletter Meetings/Conventions Toll-Free Line Online Support Field Operations Proprietary Software Franchisee Intranet Platform | Newsletter Meetings/Conventions Toll-Free Line Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Co-op Advertising National Media Regional Advertising SEO Website development | Regional Advertising Social media Website development Email marketing Loyalty program/app |
Operations |
Franchise can be run from home. International franchisees required to buy multiple units/master licenses; 7% of all franchisees own more than one unit Number of employees needed to run franchised unit: 2 - 3
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)
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Franchise can be run from home. 30% of all franchisees own more than one unit Number of employees needed to run franchised unit: 1 - 5
Absentee ownership of franchise is not allowed. |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | Yes | Yes |
International Expansion | Yes | No |
Ken Austin began an independent house inspection service in northern New Jersey in 1970. Nine years later, he formed HouseMaster and began franchising, using marketing experience he gained at Johnson & Johnson and Warner Lambert Co. to spread the word about his new company. HouseMaster inspectors check out all the major systems of the house, providing an objective opinion of its physical condition. The HouseMaster Express Report provides a comprehensive on-site report. HouseMaster franchises offer homebuyers a limited inspection guarantee and has an errors and omissions insurance program to protect franchisees.