Franchise Costs: Detailed Estimates of Pillar to Post Home Inspectors Franchise Costs (2019 FDD)

Detailed Estimates of Pillar to Post Home Inspectors Franchise Costs Based on Item 7 (Estimated Initial Investment) of Pillar to Post Home Inspectors 2019 Franchise Disclosure Document

1. Initial Franchise Fee: $19,900 to $45,900

  • The initial franchise fee will vary depending upon whether the exclusive territory granted by Pillar to Post to you is classified as a Tier 1, Tier 2, or Tier 3 exclusive territory.
  • The initial franchise fee for a Tier 1 exclusive territory is between $35,900 and $45,900. The initial franchise fee for a Tier 2 exclusive territory is $29,900. The initial franchise fee for a Tier 3 exclusive territory is $19,900.
  • Exclusive territories are classified as Tier 1, Tier 2, or Tier 3 based on a combination of demographic factors that include housing units, housing re-sale activity, real estate offices, and population.
  • The initial franchise fee is not refundable in whole or in part.

2. Travel Expenses to Training Site: $500 to $1,000

  • The cost of hotel accommodations, meals, and training materials during the initial training for one person is included in the initial franchise fee. You must pay for the cost of traveling to and from the location of the initial training and for any additional attendees.

3. Real Estate and Improvements: not included in total

  • The vast majority of Pillar To Post franchisees operate their businesses from their homes, which the franchisor recommends. If you decide to operate your business from a location other than your home, you may lease office space. Typical locations are commercial areas or strip centers.
  • Rent is estimated to be between $10 and $20 per square foot in most regions of the country, depending on factors such as size, condition, and location of the leased premises. The franchisor suggests that your office be less than 1,000 square feet.
  • If you choose to rent office space, the franchisor estimates leasehold improvements at between $0 and $5,000, depending on factors such as size, condition, and location of the leased premises.

4. Pillar to Post Tool Bundle: $3,000 to $4,000

  • You must purchase a set of specific tools from the franchisors approved supplier upon registering for initial training. This tools list will be provided to you at that time in the form of an order form with the approved supplier.

5. Local Tool/Equipment Purchases: $750

  • In addition to the Pillar To Post tool bundle that you order from an approved supplier, you will receive a list of tools/equipment necessary to operate your franchised business that you must purchase from local suppliers of your choosing. The franchisor estimates these additional tool/equipment purchases to be no more than $750.

6. Computer Equipment and Software: $1,000 to $2,250

  • Successful operation of your franchised business depends heavily upon the use of computers and the internet. Pillar To Post has a required inspection tablet computer, which you must order from the designated supplier prior to attending initial training. It will be ready for you when you arrive at training and will be used during training. The cost for 1 inspection tablet computer is included in the initial franchise fee.
  • You will be required to purchase an additional office computer. You will also be required to purchase a monthly data plan to support your inspection tablet computer.

7. Office Equipment, Furniture, and Supplies: $1,000

  • You will need to operate a home office with typical office equipment, which can be purchased locally from a supplier of your choice. This equipment includes, but is not limited to, a desk, desk chair, filing cabinet(s), office printer, scanner, telephone service, high speed internet service, etc.
  • You will also need to purchase office supplies including, but not limited to, paper, ink, pens, pencils, filing supplies, etc.

8. Foundations for Success Marketing Bundle: $1,500

  • You will be required to order a Foundations for Success Marketing Bundle from the franchisors approved supplier while you are in initial training. This bundle will include the materials you need for your start-up marketing program such as business cards, realtor brochures, face-to-face marketing materials, etc.

9. Foundations for Success Automated Marketing Campaign: $2,450 to $3,500

  • As part of your Foundations for Success start-up marketing program, you will be required to set up an account and utilize an automated marketing campaign with the franchisors approved supplier. The cost of this campaign will vary depending on the number of names in your initial database of realtor contacts.
  • The cost of this campaign is paid for while you are in initial training and is estimated to be between $2,000 and $3,500 depending on the size of the initial targeted market.

10. Pillar to Post Attire: $300

  • You and your employees are required to wear approved Pillar To Post logoed shirts when meeting with clients, realtors, conducting inspections, and at other business functions. You will order approved logoed shirts of your choice from the franchisors approved suppliers prior to or upon completion of initial training. The franchisor estimates the cost of these shirts to vary, but to not exceed $300 for the start-up of your franchised business.

11. Various Account Set-Up Fees and Organization Dues: $600

  • For the successful operation of your franchised business, you will want to maintain membership in various local trade organizations that will require annual dues. Examples of these organizations include the local Board of Realtors and national home inspection associations.
  • Additionally, there are several suppliers utilized in the ongoing operation of your franchised business with whom you will need to set up accounts and, with some, there may be initial set-up fees involved.

12. Errors and Omissions and Other Insurance Premiums for First 3 Months: $750

  • You must, prior to opening a franchised business and thereafter at all times during the entire term of the Franchise Agreement, and any renewal thereof, at your own expense, maintain in full force and effect, certain insurance policies, including (i) professional liability (errors and omissions) insurance, (ii) general liability insurance, including product liability insurance, (iii) commercial auto insurance, (iv) and business personal property insurance, insuring you and the franchisor against any liability that may accrue by reason of your operation of the franchised business.
  • The required minimum amount of insurance coverage is currently $1 million for professional liability coverage, $1 million for general liability coverage, $1 million for commercial auto insurance, and $1 million for business personal property insurance.
  • In addition, you must maintain workers compensation insurance, employers liability insurance, and such other insurance as may be required by law in the jurisdiction in which the franchised business is located.
  • The franchisor estimates that the cost of professional liability insurance and general liability insurance will be $2,600 to $3,000 in the first year.

13. Pillar to Post Annual Conference and Regional Meetings: $800 to $2,000

  • You are required to attend and participate in Pillar To Posts annual Brand Conference. The registration fee for Brand Conference during your first year is included in your initial franchise fee.
  • You also are required to attend and participate in at least 1 regional meeting each year. The costs necessary to attend these meetings will vary based on your location and the location of the meetings.

14. EZBook Connections: $750 to $1,350

  • You are required to use EZBook Connections, which provides telephone answering and inspection booking services. You must pay for this service monthly.

15. Additional Funds for 3 Months: $1,800 to $5,000

  • The franchisor recommends that you provide for the possibility that expenses may exceed revenues and maintain sufficient cash reserves to carry you through the start-up and development stage of your business. The exact amount of such reserves will vary from operation to operation and cannot be meaningfully estimated.
  • These additional funds may be used for expenses such as required state or local licensing or certification, which you are responsible for determining in your particular jurisdiction.
  • The franchisor has estimated this amount of additional working capital based on its over 20 years of experience operating a home inspection franchise business.
  • The figures stated above do not include any provision for managerial salaries or draws by you based upon the assumption that you will be the full-time manager of the franchised business. They also do not include any applicable taxes.

17. Total: $35,100 to $69,900

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