HomeVestors' 3 Key Factors That Make a Successful Franchisee

We asked Adam Benshoof, Senior Director of Franchise Development at HomeVestors, “How do you identify if a prospect isn’t the right fit for your brand, and how do you let them know?”

HomeVestors of America (the “We Buy Ugly Houses” company) has experienced significant growth over the years. Even with more than 1,100 current franchisees, our growth mindset is stronger now than ever before. We are also very conscientious about how we grow, rather than simply how many we add. Adding the wrong franchisees can be detrimental to the system for many years to come. It’s a responsibility our team takes very seriously.

So, how do we make sure we’re growing with the right franchise owners and determine who may not be the best fit for our organization? To see if our prospects initially qualify, we start by identifying three key factors that make a successful franchisee.

1) Cultural fit. We buy and sell houses, but that is not only who we are. Our franchisees often help customers through tough situations involving what is likely the most valuable asset they will ever own. Our primary focus is to help solve a problem or improve a situation, which may or may not lead to the purchase of a house. We believe that if we can make a positive difference in someone’s life, the business of real estate investing happens naturally. We look for prospects who have empathy and the desire to help others.

2) Financial strength. When awarding franchises, we are very careful to make sure our candidates have the proper liquidity for the initial investment and ramp-up period. Not having the required financial criteria is any easy way to determine if a prospect is not a match.

3) Ability to follow a system. Most every franchisor will tell you one of the primary ways for a franchisee to be successful is to follow their system. That may be even more important in real estate, which comes with significant risk. A prospect who wants to operate on their own and does not believe a system is for them is a warning sign.

Not all candidates exhibit these qualities, and they may not be a good fit to own a HomeVestors franchise. Our team is skilled at educating and helping our prospects understand what their best franchise options may be, and sometimes it is not in real estate. If we are not the right fit, we want them to know why. Our hope is that the prospect will use that information to find the perfect franchise match for them.