In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Showhomes franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Showhomes franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Showhomes outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Showhomes franchise opportunity

Section V – Presentation and analysis of Showhomes’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 actual, average, median, highest, and lowest revenue for the 17 Showhomes reporting franchisees that were in operation during the entire 12‐month period ended December 31, 2023

• 2021, 2022, and 2023 actual, average, median, highest, and lowest revenue for the 15 Showhomes reporting franchisees that were in operation during the entire 3‐year period ended December 31, 2023

• 2023 average, median, highest, and lowest list price of properties under contract for the 17 Showhomes reporting franchisees that were in operation during the entire 12‐month period ended December 31, 2023

Section VI – Key ratios, comparables, computations, and analyses for the Showhomes franchise opportunity (exclusive content for Platinum subscribers)

Section I – Showhomes Franchise Costs

• Showhomes franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $12,995
• Travel, Lodging, and Meals for Initial Training:  $0
• Rent – Office:  $0 to $1,500
• Rent – Storage and/or Warehouse:  $0 to $1,500
• Opening Advertising, Marketing, and Promotion:  $2,000 to $5,000
• Staging and Design Inventory:  $0 to $70,000
• Office Equipment, Supplies, and Optional Equipment:  $1,000 to $2,500
• Insurance:  $150 to $600
• Required Licenses and Permits:  $250 to $2,000
• Professional Fees and Deposits:  $500 to $3,500
• Additional Funds for the First 90 Days:  $20,000 to $50,000
• Total Estimated Showhomes Franchise Costs:  $39,895 to $179,595

Section II – Showhomes’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Showhomes’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $12,995

• Service Royalty:  If monthly Service Sales were less than $75,000, the greater of: (a) the Minimum Royalty, (b) the total amount of monthly Per Transaction Fees, or (c) 10% of Service Sales if monthly Service Sales were $37,500 or less, or 8.5% of Service Sales if monthly Service Sales were more than $37,500 but less than $75,000. If monthly Service Sales were $75,000 or more, the greater of either: (a) the Minimum Royalty, or (b) 7% of Service Sales. The Minimum Royalty is $750 per Franchised Business per month.

• Product Sales Royalty:  5% of Product Sales

• Update Services Royalty: 3% of Update Sales if utilizing a licensed independent third party to perform labor; 7% of Update Sales if utilizing your employee or 1099 contractor to perform labor

• National Ad Fund:  greater of 2% of Gross Sales or a minimum contribution of $140 per Franchised Business per month; up to 4% of Gross Sales and a minimum contribution of $280 per Franchised Business per month

• Minimum Individual Marketing and Advertising Expenditure:  $15,000 in your first year of operations; $20,000 in your second year of operations; and $25,000 in your third year of operations and during each subsequent year

Section III – Number of Franchised and Company-Owned Showhomes Outlets

Franchised

2021

• Outlets at the Start of the Year:  35
• Outlets at the End of the Year:  31
• Net Change:  -4

2022

• Outlets at the Start of the Year:  31
• Outlets at the End of the Year:  26
• Net Change:  -5

2023

• Outlets at the Start of the Year:  26
• Outlets at the End of the Year:  22
• Net Change:  -4

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Showhomes Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Showhomes Franchise (Item 19, 2024 FDD)

• The information below reflects the historic financial performance of Showhomes Businesses in operation as of December 31, 2023. All of these franchisees operate a Showhomes Business at one Location.

• The information below is based on reports submitted to Showhomes by its franchisees.

• As of December 31, 2023, there were 22 Showhomes Locations. The data below is based upon information received from 17 of the 22 Locations (the “Reporting Franchisees”). The Reporting Franchisees excludes 1 Location that operated under a licensing agreement, 2 franchisees that commenced operations in 2023 and were not in operation for the entire 12-month period ended December 31, 2023, and 2 franchisees who did not report revenues to Showhomes for at least 5 months during the 12-month period ending December 31, 2023.

• The Reporting Franchisees also exclude the 6 Locations that closed in the year ending December 31, 2023.

• For the purpose of this financial performance representation, the term “revenue” means the total selling price of all services and products and all revenue of every other kind and nature related to a Showhomes Business. Reported revenues include Home Manager fees, administrative fees, homeowner fees, move‐out inspection fees, application fees, referral fees, delivery or pickup fees, revenue from the sale or lease of any furniture, accessories or other goods, revenue from the sale of decorating, staging, photography or other services, and any other revenue related to the Showhomes Business.

Part 1 – Annual Revenues of Reporting Franchisees in 2023

• The following chart shows average annual revenues of all Reporting Franchisees during the entire 12-month period ended December 31, 2023.

Average Annual Revenues for Reporting Franchisees for the 12‐Month Period Ending December 31, 2023

• Annual Revenues of the Highest Performing Reporting Franchisee:  $1,240,927
• Average Annual Revenues of All 17 Reporting Franchisees:  $486,242
• Annual Revenues of the Lowest Performing Reporting Franchisee:  $33,048
• Number and Percentage of Reporting Franchisees That Met or Exceeded the Average Annual Revenue:  7 (39%)
• Median Annual Revenues of 17 Reporting Franchisees:  $446,274

• The following chart reflects the revenues reported by each of the Reporting Franchisees for the 12-month period ended December 31, 2023.

• Franchisee 1:  $1,240,927
• Franchisee 2:  $935,504
• Franchisee 3:  $839,135
• Franchisee 4:  $805,589
• Franchisee 5:  $731,668
• Franchisee 6:  $677,889
• Franchisee 7:  $601,705
• Franchisee 8:  $459,065
• Franchisee 9:  $446,274
• Franchisee 10:  $344,364
• Franchisee 11:  $275,226
• Franchisee 12:  $270,263
• Franchisee 13:  $185,117
• Franchisee 14:  $174,656
• Franchisee 15:  $173,462
• Franchisee 16:  $72,226
• Franchisee 17:  $33,048
• Average Annual Revenue:  $486,242
• Median Annual Revenue:  $446,274

Part 2 – Annual Revenues of Reporting Franchisees for the 3‐Year Period Ended December 31, 2023

• The following chart shows average annual revenues of 15 of the 17 Reporting Franchisees that were in operation during the entire 3‐year period ended December 31, 2023. The information below includes information from only 15 Reporting Franchisees because the remaining 2 Reporting Franchisees commenced operations during the three-year period and therefore were not in operation for the entire three-year period ended December 31, 2023.

12-Month Period Ending December 31, 2021

• Annual Revenues of the Highest Performing Reporting Franchisee:  $1,183,321
• Average Annual Revenues of All 15 Reporting Franchisees:  $463,525
• Annual Revenues of the Lowest Performing Reporting Franchisee:  $123,757
• Number and Percentage of Reporting Franchisees That Met or Exceeded the Average Annual Revenue:  7 (47%)
• Median Annual Revenues of 15 Reporting Franchisees:  $384,481

12-Month Period Ending December 31, 2022

• Annual Revenues of the Highest Performing Reporting Franchisee:  $1,066,088
• Average Annual Revenues of All 15 Reporting Franchisees:  $496,322
• Annual Revenues of the Lowest Performing Reporting Franchisee:  $163,427
• Number and Percentage of Reporting Franchisees That Met or Exceeded the Average Annual Revenue:  7 (47%)
• Median Annual Revenues of 15 Reporting Franchisees:  $411,383

12-Month Period Ending December 31, 2023

• Annual Revenues of the Highest Performing Reporting Franchisee:  $1,240,927
• Average Annual Revenues of All 15 Reporting Franchisees:  $484,353
• Annual Revenues of the Lowest Performing Reporting Franchisee:  $33,048
• Number and Percentage of Reporting Franchisees That Met or Exceeded the Average Annual Revenue:  7 (47%)
• Median Annual Revenues of 15 Reporting Franchisees:  $401,714

• The following chart reflects the revenues reported by each of the 15 Reporting Franchisees described above for the calendar years ended December 31, 2021, 2022, and 2023.

2023 Revenue

• Franchisee 1:  $1,240,927
• Franchisee 2:  $935,504
• Franchisee 3:  $839,135
• Franchisee 4:  $805,589
• Franchisee 5:  $731,668
• Franchisee 6:  $677,889
• Franchisee 7:  $601,705
• Franchisee 8:  $459,065
• Franchisee 9:  $344,364
• Franchisee 10:  $275,226
• Franchisee 11:  $270,263
• Franchisee 12:  $185,117
• Franchisee 13:  $174,656
• Franchisee 14:  $173,462
• Franchisee 15:  $33,048
• Average Annual Revenue:  $516,508
• Median Annual Revenue:  $459,065

2022 Revenue

• Franchisee 1:  $933,224
• Franchisee 2:  $1,066,088
• Franchisee 3:  $888,090
• Franchisee 4:  $676,470
• Franchisee 5:  $754,309
• Franchisee 6:  $703,234
• Franchisee 7:  $717,705
• Franchisee 8:  $406,334
• Franchisee 9:  $293,382
• Franchisee 10:  $361,116
• Franchisee 11:  $245,043
• Franchisee 12:  $416,433
• Franchisee 13:  $158,395
• Franchisee 14:  $155,879
• Franchisee 15:  $163,427
• Average Annual Revenue:  $529,275
• Median Annual Revenue:  $416,433

2021 Revenue

• Franchisee 1:  $550,851
• Franchisee 2:  $1,183,321
• Franchisee 3:  $926,803
• Franchisee 4:  $562,079
• Franchisee 5:  $387,055
• Franchisee 6:  $584,618
• Franchisee 7:  $538,986
• Franchisee 8:  $1,028,561
• Franchisee 9:  $142,142
• Franchisee 10:  $320,384
• Franchisee 11:  $381,906
• Franchisee 12:  $187,054
• Franchisee 13:  $243,845
• Franchisee 14:  $253,013
• Franchisee 15:  $123,757
• Average Annual Revenue:  $494,292
• Median Annual Revenue:  $387,055

• All franchisees described above in Part 2 have operated for at least 3 years, and some have operated for over 10 years.

• In reviewing this information, you should keep in mind certain factors that influence the performance shown here, and that may influence performance of any franchisee:

• 1) Home values in market. Property values vary significantly among geographic markets. A franchisee in a market with very high property values may be able to charge significantly higher fees to Homeowners and Home Managers than could be charged in a market with lower property values.

• 2) Implementation of Showhomes’ business model. Some businesses shown here operate substantially according to Showhomes’ current business model, while others have not adopted certain recommended practices.

• 3) Local market conditions. Real estate markets vary significantly among regions. Extremely strong property sales may reduce demand for Showhomes’ services, but at the same time increase individual fees from homeowners. Weaker property sales may increase demand for Showhomes’ services, increase Home Manager fees collected for Showhomes’ services, but decrease fees collected from Homeowners.

Part 3 – Average Property Prices Under Contract

• All Reporting Franchisees had properties under contract during the 12‐month period ended December 31, 2023. The following chart reflects the minimum, average, and maximum list prices of properties under contract with Reporting Franchisees during the 12‐month period ended December 31, 2023.

• The chart also shows the middle 50% range of the list prices of properties under contract. The range represents the middle 50% of all list prices of properties under contract reported. The bottom of the middle 50% range is the 25th percentile, which means 25% of list prices of properties under contract reported fell below that amount. The top of the middle 50% range is the 75th percentile, which means 25% of list prices of properties under contract reported are above that amount.

List Price of Properties Under Contract During 12‐Month Period Ending December 31, 2023

• Minimum:  $127,500
• Average:  $1,172,596
• Maximum:  $6,495,000
• Middle 50% Range:  $449,000 to $999,000
• Number (and Percentage) of Franchisees Whose Average Property List Prices Met or Exceeded the Average Property List Prices of All 17 Franchisees:  5 (35%)
• Median List Price:  $839,000

• The financial performance representations do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• Some franchisees have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.

Section VI – Showhomes Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️