If you are looking towards opening a Winn Home Inspections Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Winn Home Inspections was founded in 1993 and they began franchising in 1994, about 26 years ago. The current CEO is Praful Mittal and they have their corporate head office at 3326 Aspen Grove Dr., #160 Franklin, TN 37067, USA. As of 2018, the company owns and operates 184 franchises in the United States.
World Inspection Network International, LLC (WINI) is the franchisor. The franchisor offers franchises to operate a home inspection business for single and multi-family residences. Franchisees receive proprietary training and the use of the franchisor’s marks, proprietary techniques, and proprietary methods to operate in a specific, non-exclusive geographic area.
Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Winn Home Inspections Franchise
- Initial Franchise Investment: $45,150 to $67,600. Please note that the total cost to open a World Inspection Network International, LLC (WINI) ranges from $45,150 to $67,600 depending on the size of the space and location
- Franchise Fee: $22,000
- Travel/Living Expenses for Training: $1,500 to $2,000 and the Due Date for this fee is Automatically upon next electronic transfer of funds.
- WIN Marketing and Branding Kit: $2,870 to $2,870 and the Due Date for this fee is Automatically upon next electronic transfer of funds.
- WIN Startup Tool Bundle: $2,350 to $2,350 and the Due Date for this fee is Automatically upon next electronic transfer of funds.
- Computer Hardware and Software: $1,200 to $2,200 and the Due Date for this fee is Immediately upon receipt of bill.
- WIN Convention: $0 to $1,500 and the Due Date for this fee is Immediately upon receipt of bill.
- Insurance Premiums – First 3 Months: $600 to $750 and the Due Date is When premiums are due.
- Business Organizational Filings, Industry Dues and Licensing Fees: $750 to $1,000 and the Due Date for this fee is Immediately upon receipt of bill.
- Startup Launch Marketing Program: $3,500 to $3,500 and the Due Date for this fee is Immediately upon receipt of bill.
- Additional Funds – First 3 Months: $1,500 to $2,000 and the Due Date for this fee is Immediately upon receipt of bill.
- Royalty Fee: For the first five full months, franchisees pay 7 percent of monthly gross revenues. Beginning in the sixth full month, franchisees pay the greater of 7 percent of monthly gross revenues or $280. The Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- System Brand Fee: For the first five full months, franchisees pay 4 percent of monthly gross revenues. Beginning the sixth full month, franchisees pay the greater of 4 percent of monthly gross revenues or $195.
- Infrastructure Fee: $350 per month, plus $90 per month for each additional inspector and the Due Date is When payments are due.
- Interest on Overdue Payments: The lesser of 18 percent per annum or the maximum contract rate of interest permitted by law and the Due Date for this fee is Automatically upon next electronic transfer of funds.
- Franchise Agreement Renewal Fee: $750 and the Due Date for this fee is At execution of new Franchise Agreement.
- Records and Rights of Inspection (audit): The amount of any under reported amount plus the lesser of (a) 1.5 percent interest per month or (b) highest interest rate permitted by law.
- Promissory Note Interest: Currently 8 percent per year on a loan that is payable in 36 monthly installments.
- Convention Fee: No fee for the first convention. For all subsequent conventions, $1,000 for the first attendee and $395 for additional attendee(s).
- Insufficient Funds Fee: Currently $50 per occurrence and the Due Date for this fee is Immediately upon receipt of bill.
- Third-Party Transfer Fee: $7,500 and the Due Date for this fee is Immediately upon receipt of bill.
- Lead Fee When Selling the Business: $5,000. This fee varies but the Due Date is Payable within 30 days of the termination of the franchise agreement.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by World Inspection Network International, LLC (WINI) and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse World Inspection Network International, LLC (WINI) if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to World Inspection Network International, LLC (WINI) if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if World Inspection Network International, LLC (WINI) is required to defend your unsuccessful claim against it.
- Veteran Incentives: 25 percent off franchise fee
- Term of Agreement and Renewal: The length of the initial franchise term is five years. Five renewal terms of five years each are available, if requirements are met.
- Financial Assistance: If franchisees meet the qualifications, the franchisor may finance up to $8,000 of the initial franchise fee for up to 36 months, provided at the time they sign the Franchise Agreement, they also sign the promissory note.
The effective annual interest rate will be 8 percent. Other than as described, the franchisor does not offer direct or indirect financing, the franchisor does not guarantee a franchisee’s loans, lease or other obligations, and the franchisor does not receive payments or other consideration for the placement of financing.
- Initial Investment: $45,150 – $67,600
- Net-worth Requirement: $100,000
- Liquid Cash Requirement: $35,000
- Ongoing Initial Franchise Fee: $22,000
- Ongoing Royalty Fee: 7 percent
- Ad Royalty Fee: 3 percent