Houzpital franchise unit economics
Houzpital franchisees run property restoration businesses that handle water, storm, fire, mold and environmental abatement work and rebuilding, from an office and warehouse with at least 2 service vehicles.
Houzpital franchise at a glance
Houzpital’s Item 19 reports 2023 to 2025 income by service, cost of goods sold, gross profit, imputed fees and owner’s draw for one affiliate-owned business, in New Britain, Connecticut.
Houzpital’s Item 19 covers one business, the affiliate-owned business in New Britain, Connecticut, which had $8,983,924 of total income in 2025, according to Item 19 of Houzpital’s 2026 FDD, issued 29 April 2026. Fees paid to Houzpital come to about 9.40%* of the affiliate’s 2025 income. A Houzpital franchise costs $214,675 to $345,900 to open.
- A Houzpital franchise costs $214,675 to $345,900 to open for one territory, including the $59,500 initial franchise fee, according to the 2026 FDD.
- Houzpital charges a royalty of 7% of Gross Revenue, a 2% Brand Fund Contribution and a 0.25% Warranty Claims Fund Contribution of up to $25,000 a year.
- Each Houzpital franchisee must spend at least 3% of Gross Revenue on local marketing and advertising, and Houzpital may raise that to 5%.
- Houzpital sets a minimum annual Gross Revenue of $900,000 in the first year, rising to $2,700,000 from the fifth year.
- The Houzpital affiliate had $5,089,089 of gross profit in 2025, after cost of goods sold that includes subcontractors, materials and payroll.
- Houzpital had no franchised outlets and 1 affiliate-owned outlet at the end of 2025, and Houzpital began offering franchises on November 25, 2025.
These figures come from Houzpital's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
Own this franchise?
See what your numbers should look like every month.
Talk to Averan → Move your books and accounting to Averan →- The Houzpital affiliate had $8,983,924 of total income in 2025, $8,880,950 in 2024 and $8,978,388 in 2023. The Houzpital affiliate’s three-year average is $8,947,754*. Houzpital affiliate income rose $102,974*, or 1.16%*, from 2024 to 2025.
- Houzpital affiliate gross profit rose from $3,233,601 in 2023 to $5,089,089 in 2025. Houzpital cost of goods sold fell from 63.98%* of income in 2023 to 43.35%* in 2025. Houzpital cost of goods sold includes subcontractors, permits, disposal fees, materials and supplies, testing fees and payroll.
- Repairs were 48.32%* of Houzpital affiliate income in 2025, water and fire work 20.68%* and asbestos work 20.21%*. Houzpital asbestos income rose from $839,871 in 2024 to $1,815,629 in 2025, and Houzpital repairs income fell from $5,165,148 to $4,340,732.
- Houzpital’s royalty, Brand Fund, warranty fund and technology charges come to 9.40%* of the affiliate’s 2025 income. The Houzpital local marketing requirement of 3% adds $269,518* at that level, for 12.40%* in all.
- The Houzpital first-year minimum of $900,000 of Gross Revenue is 10.02%* of the affiliate’s 2025 income. The Houzpital minimum rises to $1,300,000 in the second year, $1,700,000 in the third, $2,200,000 in the fourth and $2,700,000 from the fifth. A Houzpital franchisee who misses the minimum may face remedial measures, a smaller territory or termination.
Affiliate income
How much does a Houzpital franchise make?
| Line | 2025 | 2024 | 2023 |
|---|---|---|---|
| Repairs | $4,340,732 | $5,165,148 | $4,579,762 |
| Asbestos | $1,815,629 | $839,871 | $1,662,695 |
| Water & Fire | $1,857,879 | $2,082,384 | $1,962,429 |
| Other | $969,684 | $793,547 | $773,502 |
| Total income | $8,983,924 | $8,880,950 | $8,978,388 |
| Cost of goods sold | $3,894,835 | $4,963,674 | $5,744,787 |
| Gross profit | $5,089,089 | $3,917,276 | $3,233,601 |
| Imputed royalties | $628,875 | $621,667 | $628,487 |
| Imputed Brand Fund Contributions | $179,678 | $177,619 | $179,568 |
| Adjusted gross profit | $4,280,536 | $3,117,990 | $2,425,546 |
| Owner’s draw | $510,744 | $1,228,305 | $1,017,617 |
Figures as filed and unaudited. Houzpital income is all revenue less pass-through sales taxes and refunds. Houzpital cost of goods sold includes subcontractors, permits, disposal fees, materials and supplies, testing fees and payroll. The imputed Houzpital fees are 7% and 2% of income, and the affiliate does not pay them.
Houzpital’s Item 19 reports one business, the affiliate-owned Houzpital business in New Britain, Connecticut. The Houzpital affiliate has operated since 2011, under the Atlantic Restoration name until November 2024. No Houzpital franchised outlet was open when the FDD was issued.
The Houzpital affiliate had $8,983,924 of total income in 2025. Houzpital affiliate income was $8,880,950 in 2024 and $8,978,388 in 2023, a three-year average of $8,947,754*.
The Houzpital affiliate’s 2025 gross profit was $5,089,089, or 56.65%* of income. Houzpital gross profit was 44.11%* of income in 2024 and 36.02%* in 2023. Item 19 lists no Houzpital costs below gross profit other than the imputed fees and the owner’s draw, so it gives no Houzpital figure for rent, vehicles, insurance or office costs.
Item 19 deducts an imputed Houzpital royalty and Brand Fund Contribution from the affiliate’s gross profit. The imputed Houzpital royalties of $628,875 and Brand Fund Contributions of $179,678 in 2025 are 7% and 2% of income. That leaves a Houzpital Adjusted Gross Profit of $4,280,536, or 47.65%* of income.
The Houzpital affiliate’s owner’s draw was $510,744 in 2025, $1,228,305 in 2024 and $1,017,617 in 2023. Item 19 lists the Houzpital owner’s draw after Adjusted Gross Profit and does not say what it covers. Item 19 states that the Houzpital affiliate’s market area differs in size from a franchisee’s territory.
Income by service
Houzpital affiliate income by service, 2023 to 2025
| Service | 2025 | Share of 2025 * | 2024 | 2023 |
|---|---|---|---|---|
| Repairs | $4,340,732 | 48.32% | $5,165,148 | $4,579,762 |
| Asbestos | $1,815,629 | 20.21% | $839,871 | $1,662,695 |
| Water & Fire | $1,857,879 | 20.68% | $2,082,384 | $1,962,429 |
| Other | $969,684 | 10.79% | $793,547 | $773,502 |
| Total income | $8,983,924 | 100% | $8,880,950 | $8,978,388 |
Houzpital income figures as filed. The Houzpital share of 2025 income is an Averan calculation, marked *.
Item 19 does not split Houzpital results across locations, because Houzpital reports one business. The spread Houzpital does show is across service lines and years at the same affiliate.
Repairs brought in $4,340,732 of Houzpital affiliate income in 2025, 48.32%* of the total. Houzpital repairs income was $5,165,148 in 2024 and $4,579,762 in 2023.
Houzpital asbestos income rose 116.2%*, from $839,871 in 2024 to $1,815,629 in 2025. Houzpital asbestos income was $1,662,695 in 2023, so 2024 is the low year of the three for Houzpital asbestos work.
Houzpital water and fire income was $1,857,879 in 2025, against $2,082,384 in 2024 and $1,962,429 in 2023. Other Houzpital income rose from $773,502 in 2023 to $969,684 in 2025.
Brand charges
Brand charges
| Charge | Rate in the FDD | At $8,983,924 |
|---|---|---|
| Royalty Fee | 7% of Gross Revenue; 6% for the first 12 months for qualifying military members and veterans | $628,875* |
| Brand Fund Contribution | 2% of Gross Revenue; may rise to 3% | $179,678* |
| Warranty Claims Fund Contribution | 0.25% of Gross Revenue, up to $25,000 a year | $22,460* |
| System Technology Fee | $50 a month for each computer system; may rise up to 10% a year | $600* |
| Software license, Zor Software, LLC | $1,000 a month for up to 3 users | $12,000* |
| Annual Conference | Up to $500 a person, due whether or not they attend | $500 |
| Paid to the franchisor and affiliates, subtotal | $844,113 (9.40%)* | |
| Required Minimum Expenditure for Local Marketing and Advertising | 3% of Gross Revenue, may rise to 5%; paid to third parties and/or the franchisor | $269,518* |
| Total with local marketing | $1,113,631 (12.40%)* |
Rates as filed. The dollar column applies the Houzpital rates to the affiliate’s 2025 income, which pays none of them, and assumes one computer system and one conference attendee. Item 7 Note 6 states that the Houzpital software application from Zor Software, LLC is anticipated to launch in 2026.
The Houzpital royalty is 7% of Gross Revenue, paid by the 5th day of each month. Houzpital sets no minimum royalty. Houzpital Gross Revenue is calculated on an accrual basis, with no exclusion for uncollected debt.
The Houzpital Brand Fund Contribution is 2% of Gross Revenue and may rise to 3%. The Houzpital Warranty Claims Fund Contribution is 0.25% of Gross Revenue, up to $25,000 a year, and covers customer warranty claims across the Houzpital system.
Houzpital franchisees must subscribe to a software application from the Houzpital affiliate Zor Software, LLC. The Houzpital FDD puts the license at $1,000 a month for up to 3 users and states that the application is designed to replace most other software subscriptions. Houzpital also charges a System Technology Fee of $50 a month for each computer system.
At the $900,000 first-year minimum, the Houzpital charges paid to the franchisor and its affiliate come to $96,350*, or 10.71%* of Gross Revenue. The Houzpital 3% local marketing requirement adds $27,000* at that level.
Houzpital charges a Transfer Fee of 75% of the then-current initial franchise fee and a Successor Agreement Fee of 10%. A Houzpital transfer to an existing franchisee costs 50% of the fee, and a transfer to an entity the franchisee owns and controls costs $1,500.
Cost to open
Cost to open
| Line | Low | High |
|---|---|---|
| Initial franchise fee | $59,500 | $59,500 |
| Initial training expenses | $3,400 | $6,500 |
| Lease Review Fee | $500 | $500 |
| Lease, utility and security deposits | $3,500 | $8,500 |
| Design and architectural fees | $500 | $1,000 |
| Leasehold improvements | $1,000 | $3,000 |
| Computer systems | $6,675 | $8,900 |
| Furniture and fixtures | $2,300 | $3,000 |
| Signage | $1,300 | $3,000 |
| Vehicles | $35,000 | $65,000 |
| Equipment, mitigation and abatement | $52,000 | $95,000 |
| Supplies | $5,000 | $10,000 |
| Business licenses and permits | $1,500 | $3,500 |
| Grand opening marketing | $8,000 | $10,000 |
| Professional fees | $2,500 | $3,500 |
| Insurance | $7,000 | $30,000 |
| Additional funds, 3 months | $25,000 | $35,000 |
| Total | $214,675 | $345,900 |
Figures as filed. The Houzpital insurance line is an annual premium without employee policies. Item 7 uses the full $59,500 Houzpital initial franchise fee at both ends.
Discounts available
- Houzpital charges $49,500 instead of $59,500 for the first franchise bought by active members or honorably discharged veterans of the U.S. Armed Forces, or their spouses or widows.
- Houzpital reduces the royalty to 6% for the first 12 months for the same military group.
- Houzpital charges a $104,125 Development Fee for at least 3 outlets under a multi-unit development agreement, plus $22,312.50 for each additional outlet, which credits $59,500 to the first outlet and $22,312.50 to each later one.
From Item 5 of the Houzpital 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
One Houzpital territory costs $214,675 to $345,900 to open. The Houzpital total includes the $59,500 initial franchise fee, the $500 Lease Review Fee and $6,675 to $8,900 for the computer system from the Houzpital affiliate, $66,675 to $68,900 paid to the franchisor or its affiliate.
Houzpital estimates mitigation and abatement equipment at $52,000 to $95,000. Houzpital franchisees must have at least 2 service vehicles, estimated at $35,000 to $65,000, and the Houzpital high end reflects a down payment on 2 vehicle purchases.
The Houzpital estimate assumes an office site with at least 2,500 square feet of warehouse space and 1,500 square feet of office space. Item 7 states Houzpital monthly rent at approximately $6 to $15 per square foot, depending on the size, condition and location of the premises.
The Houzpital additional funds of $25,000 to $35,000 cover about three months after opening. The Houzpital estimate lists software access fees, additional inventory and supplies, and vehicle expenses, and names no amount for owner pay.
Houzpital offers a discounted initial franchise fee of $49,500 for a first franchise bought by active members or honorably discharged veterans of the U.S. Armed Forces, or their spouses or widows. A Houzpital multi-unit development agreement for at least 3 outlets carries a $104,125 Development Fee, and Item 7 puts the Houzpital total under it at $259,300 to $390,525. Houzpital estimates 60 to 90 days from signing to opening.
Locations
Locations, 2023 to 2025
| Year | Franchised at start | Opened | Terminated | Not renewed | Reacquired | Ceased other | Franchised at end | Affiliate-owned at end |
|---|---|---|---|---|---|---|---|---|
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| 2025 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
Figures as filed. The affiliate-owned Houzpital business is in Connecticut. At December 31, 2025, Houzpital had no signed franchise agreements for outlets not yet open, and projected 3 new franchised outlets and 9 new affiliate-owned outlets in the next year.
Houzpital had no franchised outlets from 2023 to 2025 and 1 affiliate-owned outlet in each year. Houzpital began offering franchises on November 25, 2025, and Item 20 records no Houzpital transfers, terminations or closures.
Houzpital projects 3 new franchised outlets in Florida in the next year. Houzpital also projects 9 new affiliate-owned outlets: 5 in Connecticut, 3 in Massachusetts and 1 in Rhode Island.
HF System, LLC, the Houzpital franchisor, is a start-up franchisor. Item 21 includes an audited Houzpital balance sheet opinion as of January 31, 2026, because the Houzpital franchisor has not been in business for three years. The Houzpital franchisor was formed in Florida on December 30, 2020 as Atlantic Restoration of Collier County, LLC and renamed on November 26, 2024.
The Houzpital franchisor’s parent is Zor USA Group, LLC. The Houzpital affiliate HF System IP, LLC owns the Houzpital marks, and the Houzpital affiliate Zor Software, LLC supplies the computer system.
Questions we get asked
Questions owners ask
How much does it cost to open a Houzpital franchise?
The 2026 Houzpital FDD estimates $214,675 to $345,900 for one territory. That Houzpital total includes the $59,500 initial franchise fee, $52,000 to $95,000 of mitigation and abatement equipment, $35,000 to $65,000 for vehicles and $25,000 to $35,000 of additional funds for three months. Item 7 puts the Houzpital total under a three-outlet development agreement at $259,300 to $390,525.
What fees does Houzpital charge?
Houzpital charges a royalty of 7% of Gross Revenue, a 2% Brand Fund Contribution and a 0.25% Warranty Claims Fund Contribution of up to $25,000 a year, with no minimum royalty. Houzpital also charges $50 a month for each computer system, and its affiliate charges $1,000 a month for the required software. On Averan’s reading, charges paid to Houzpital and its affiliates come to about 9.40%* of the affiliate’s 2025 income.
How much does a Houzpital franchise make?
Houzpital’s Item 19 reports no franchisee results, because no Houzpital franchised outlet was open. The affiliate-owned Houzpital business in New Britain, Connecticut had $8,983,924 of total income in 2025 and $5,089,089 of gross profit. The Houzpital affiliate pays no franchise fees.
Does Houzpital report profit?
Houzpital’s Item 19 reports the affiliate’s gross profit, an Adjusted Gross Profit of $4,280,536 after imputed royalties and Brand Fund Contributions, and an owner’s draw of $510,744 for 2025. Houzpital gives no figure for the affiliate’s rent, vehicle, insurance or office costs, so it reports no net profit.
How big is a Houzpital territory?
A Houzpital territory holds about 250,000 people or 100,000 owner-occupied households, whichever is less, and it is not exclusive. Houzpital sets minimum annual Gross Revenue of $900,000 in the first year, $1,300,000 in the second, $1,700,000 in the third, $2,200,000 in the fourth and $2,700,000 from the fifth.
How many Houzpital locations are there?
Houzpital had no franchised outlets and 1 affiliate-owned outlet, in Connecticut, at the end of 2025. Houzpital began offering franchises on November 25, 2025, and projects 3 franchised and 9 affiliate-owned openings in the next year.
Questions worth putting to Houzpital
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- What separates the highest-selling locations from the lowest: territory, years open, staffing, or the owner?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Houzpital locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a Houzpital owner
We review your unit economics and cash forecast and build your monthly reporting around the figures on this page.
Talk to Averanthe franchise library, all 447 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Other brands in the Restoration guide:
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from HF System, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Houzpital is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: HF System, LLC, 2026 Franchise Disclosure Document, issued 29 April 2026.