HomeSmart Franchise Review 2026: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

HomeSmart fits owner-operators looking for a mid-scale real estate concept.

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$66K - $205K

Franchise fee (Item 5)

$20K

System size (Item 20)

201 +27

Years in business

21+ yrs

Company-owned units

57

Model HomeSmart's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

258

Total units open

8 new franchised outlets

Units opened last year

12 franchised non-renewals and terminations

Units closed last year

−4

Net unit growth

from 262 at end of 2024 to 258 at end of 2025

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

5

Risks to review

4

Strengths identified

5

Questions to ask

Industry Benchmarks

How HomeSmart ranks against 80 Real Estate peers we've analyzed.

Initial investment

65th pct · of 80 peers

Franchise fee

27th pct · of 80 peers

System size

70th pct · of 80 peers

Real Estate industry averages

Avg investment

$145K - $361K

Avg franchise fee

$32K

Avg system size

276

Franchises analyzed

80

How HomeSmart stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
HomeSmart None $20K $66K - $205K 201
ShowhomesSimilar price Disclosed $60K $119K - $205K 5–10% 15
Re MaxBiggest system None $35K $50K - $337K 2,994
ItripTop-rated in category Disclosed $10K $119K - $153K 4–6.1% 105

Compare side-by-side ↗

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Frequently Asked Questions

How much does a HomeSmart franchise cost?

HomeSmart requires a $20,000 initial franchise fee and a total initial investment range of $65,500–$205,000, per the most recent FDD on file.

Who owns HomeSmart?

HomeSmart is franchised by HomeSmart International, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.

Does HomeSmart disclose financial performance (Item 19)?

No. HomeSmart does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.

What ongoing fees does HomeSmart charge?

Franchisees pay a royalty of Greater of $12/agent/month + $120/completed side or $500/month, plus $25 per rental/referral/lease and an advertising fund contribution of 4% on gross sales as defined in Item 6 of the FDD.

How many HomeSmart locations are there?

As of their 2026 FDD, HomeSmart has 201 total locations, with 27 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

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