How much can I make?

Quite frankly, it’s up to you.

Nobody wakes up in the morning and says to themselves ‘I want to be average today,’ yet most people focus on averages when they research buying a franchise.

Average is average.

Please don’t stop at average. We encourage you to aspire to a lot more!

Please see the table below to see information on our franchisee’s results. Like all companies, some people become top producers and some struggle.  We want you to make a decision you feel good about, which is why we don’t hard sell or candy-coat our earnings claims.

We are looking for new members for our winning team. Unlike a lot of franchise companies, Showhomes doesn’t do well unless you do well, and we want you to become a top producer. We want people who see themselves as potential top-producers and can’t wait to break our records.

If you want to be above average, we can tell you how.

Master’s Club

The pinnacle in our community is the Master’s Award, given each year to franchisees that gross over half a million in the previous year.  Pictured at left are this year’s winners: Cindy Montgomery, who owns Showhomes Minneapolis, and Beth George, who owns Showhomes LA / Orange County.

We love to celebrate wins at Showhomes, and at our annual gathering we give out a range of awards to recognize a job well done. Our franchisees work hard and we are really proud of their efforts and success.

Franchisee earnings are reported in our Franchise Disclosure Documents that you will receive a copy of when you begin a conversation with us. We’re really proud of our track record, and that our revenues have increased for the past 5 years in a row.

Showhomes Earnings Claim

The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Franchise Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.

The following information reflects the historic financial performance of certain Showhomes Businesses, as further described below:

Statement of Material Basis

As reflected in Item 20, there were 25 Showhomes Businesses operating as of July 31, 2007 (22 franchised and three company-owned), 33 Showhomes Businesses operating as of July 31, 2008 (32 franchised and one company-owned), and 53 Showhomes Businesses operating as of July 31, 2009 (all franchised).  Of these Businesses, 12 Businesses have been in continuous operation from July 31, 2007 through July 31, 2009 (some operated by multiple owners). The following charts reflect the historic financial performance of these 12 Businesses.  These 12 Businesses include franchised Businesses only, and exclude the three licensed Businesses (see Item 13).

Historic Financial Performance of Select Group of Businesses

Average Monthly Revenues

For Showhomes Businesses in Continuous Operation

from July 31, 2007 through July 31, 2009

Seven additional units operated during this period, however due to audit findings of under-reporting of revenues and/or failure to continuously operate full-time due to health or other personal issues, they have been excluded from the calculations in the above chart and in this Item 19.

Of the 12 Businesses represented in these charts, four Businesses attained or surpassed the average stated results during our fiscal year 2007, four Businesses attained or surpassed the average stated results during our fiscal year 2008, and five Businesses attained or surpassed the average stated results during our fiscal year 2009.

The following chart reflects the historic financial performance of each of the 12 Businesses described above for our fiscal years 2007, 2008, and 2009.

Average Monthly Revenues by Business

Note 1.  The following table reflects the average monthly revenues of the 12 Businesses depicted above during the relevant periods.  During the fiscal year ending July 31, 2008, three of the businesses in the above data set subdivided their territories.  Business 1 and Business 2 subdivided into 2 businesses and 3 businesses respectively, and Business 3 subdivided into two separate businesses.  In the above chart, the businesses have been combined so as to provide continuity with prior years’ performance.

Note 2.  In interpreting this information, you should keep in mind certain factors that influence the performance shown here, and that may influence performance of any Showhomes Business:

1)                   Length of time in operation.  All Businesses shown here have operated for at least 36 months, and some have operated for over 10 years.

2)                   Territory size.  Businesses shown here operate in Territories that vary greatly in size.  The franchises represented by Businesses 6, 7 and 10 operate in Territories comparable to or less than our typical Territory size (i.e., 10,000 valued at $400,000 or more).  Businesses 1-5, 8, 9, 11 and 12 operate in Territories large enough to be classified, under our current system, as two or more Territories.

3)                   Home values in Territory.  Home values vary significantly among geographic markets.  A Showhomes Business in a market with very high home values may be able to charge significantly higher fees to Homeowners and Home Managers than could be charged in a Territory with lower home values.

4)                   Implementation of Showhomes business model.  Some businesses shown here operate substantially according to our current business model, while others have not adopted certain significant revised practices.

5)                   Market penetration.  A few Showhomes Businesses have achieved strong overall market penetration in their Territories, reaching high percentages of their target markets.  Most Showhomes Businesses currently reach significantly smaller percentages of their target markets.

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

Note 3.  We have recently introduced guidelines to help Showhomes Businesses set Home Manager fees with greater consistency, taking into account relevant market conditions.  During the quarter ending July 31, 2009, the average monthly Home Manager fee collected by all Showhomes Businesses (franchised and company-owned, but excluding licensees) was $1,344.  The lowest monthly fee was $500, and the highest monthly fee was $5,500.  This fee excludes professional discounts offered by franchise owners, their staff or other non-arms-length relationships.

As stated in note 1 above, this financial performance representation reflects information about Showhomes business that have been in continuous operations for more than 36 months and some for as long as ten years. A new franchisee’s individual financial performance may differ from the results stated in this financial performance representation.

Written substantiation for this financial performance representation will be made available to you upon reasonable request.

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. You should conduct an independent investigation of the costs and expenses you will incur in operating your Showhomes Business.  Franchisees or former franchisees, listed in the Franchise Disclosure Document, may be one source of this information.

Understanding that a low investment, work-from home business can generate these levels of revenue is a critical step in your decision process.  We’re proud of what our franchisees have accomplished!