Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
Franchisee must use the accounting system and the pre-formatted template required by the Franchisor, if any.
From the filings
HomeSmart requires every office to run its proprietary RealSmart Broker software on company-specified hardware, sourced through affiliate-owned approved suppliers like VirtuSmart. Software decisions for all 258 locations run through corporate real estate leadership in Arizona, not individual brokers.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing. It is a floor, not a total — the filing discloses one of the two headline fees.
4%+of gross sales (FY2026)
15% reference
Franchisor behaviours
25 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
Franchisee must use the accounting system and the pre-formatted template required by the Franchisor, if any.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have the right to independently access your electronic information and data through our proprietary RealSmart BrokerTM.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee will also submit to the Franchisor, Franchisee’s current financial statements and other reports as the Franchisor may reasonably request to evaluate or compile research and performance data on any operational aspect of the Business.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Our parent, HomeSmart Holdings, Inc. owns an economic interest in Smart Referral Network, LLC, an approved provider of referral management and lead generation services, VirtuSmart, LLC, an approved supplier of hardware, software, and printing services, HomeSmart University, LLC, an approved supplier of real estate…
Is there a franchisee advisory council, association or committee?
YesItem 11
The Franchise Owners Advisory Council (“Council”) will have at least three (3) representatives each of whom are appointed by the Franchisor.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 16
We reserve the right to change standards and specifications on 30 days’ prior written notice to you.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
In the fiscal year ending December 31, 2025, and as of the effective date of this disclosure document, neither we nor our Affiliates derived any revenues, rebates, or other material consideration from the sale of required goods and services to franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
Franchisee further acknowledges and agrees that the Franchisor is entitled to keep, for its own use and account, these rebates, and this revenue.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
25Item 8
will be approximately 25% to 50% of your total cost to establish a HomeSmart Real Estate Brokerage Business and 25% to 50% of your total cost of operating a HomeSmart Real Estate Brokerage Business
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If we have appointed Approved Suppliers or Designated Suppliers with respect to Required Products or Services, you may not purchase such Product or Service from anyone other than an Approved Supplier or Designated Supplier without prior written approval.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee hereby acknowledges that all telephone numbers, facsimile numbers and Internet addresses used in the operation of the Business constitute assets of the Franchisor; and upon termination or expiration of this Agreement, Franchisee will take action within five (5) days to cancel or assign to Franchisor or its…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 8
Specifically, you shall comply with, among other laws and regulations: (i) state and federal laws and regulations relating to data privacy, data security and security breaches; and (ii) our security policies and guidelines, as may be amended from time to time (collectively, “Data Safeguards”).
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor and Franchisor’s representatives will have the right during business hours to inspect the Business and all Offices.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisee acknowledges that the Franchisor may modify its standards and specifications and operating and marketing techniques set forth in the Operations Manual unilaterally under any conditions and to the extent in which the Franchisor deems necessary to protect, promote, or improve the Marks, and the quality of…
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Approve Franchisee’s proposed Offices.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee may not independently market on the Internet, or use any domain name, address, locator, link, metatag, or search technique, with words or symbols similar to the Marks or otherwise establish any presence on the Internet without Franchisor’s prior written approval.
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
Franchisee must purchase all services, equipment, supplies and Hardware and Software from only those suppliers, manufacturers and distributors who have been designated or approved in advance by Franchisor.
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
Franchisee must purchase all services, equipment, supplies and Hardware and Software from only those suppliers, manufacturers and distributors who have been designated or approved in advance by Franchisor.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
The Franchisor requires Franchisee to remit all Fees and other amounts due to the Franchisor hereunder via electronic funds transfer (“ACH”) or other similar means utilizing a Franchisor approved Computer System or otherwise.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
If you are an individual, you must directly supervise the HomeSmart Real Estate Brokerage Business at your initial and primary franchised location (“Central Office”).
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Only advertising and promotional materials, services, equipment, tools, inventory, products, signage, supplies, and uniforms that meet the Franchisor’s standards and specifications are used at the Business.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
Franchisee must purchase all services, equipment, supplies and Hardware and Software from only those suppliers, manufacturers and distributors who have been designated or approved in advance by Franchisor.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have the right to independently access your electronic information and data through our proprietary RealSmart BrokerTM.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 6
For all subsequent trainings during the Initial Term and/or Successor Terms of the Agreement at Franchisor's training facility, each person in attendance will be charged at a rate of $500 per person for 4 days or more and $250 per person for 3 days or less.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Hold a mandatory annual conference to discuss sales techniques, new service developments, training, bookkeeping, accounting, performance standards, advertising Exhibit B 2026 HomeSmart International Franchise Agreement B-17 15206886v4/26231-0017 programs, marketing procedures and other topics.
HomeSmart is a 258-office real estate brokerage franchise — 201 franchised, 57 company-owned — where franchised outlets fell 2.0% year over year. The FDD makes no financial performance representation, but it is explicit about technology: every office runs the franchisor's own RealSmart Broker software.
CEO and founder Matt Widdows and COO Katie Cooper head the franchisor's listed management, alongside Chief Industry Officer Todd Sumney and SVP of Franchise Sales Bryan Brooks. The franchisor, not individual brokerages, sets HomeSmart's technology requirements.
Item 11 of the FDD requires every office to purchase and use RealSmart Broker, HomeSmart's proprietary software, along with desktop and agent computers meeting the franchisor's specifications. VirtuSmart, an approved supplier of hardware and software in which HomeSmart's parent holds an economic interest, is one source for them.
Item 8 runs an approved-supplier list, and HomeSmart's parent, HomeSmart Holdings, holds an economic interest in several of the named suppliers: VirtuSmart for hardware, software and printing; HomeSmart University for real estate education; Equitable Title Agency for title services; and On the Run Printing for printing. The initial franchise term is 10 years, and franchisees in good standing may add successive 10-year terms by signing a new agreement, staying current on payments, and paying a Successor Franchise Fee.
The embedded PDF viewer below carries HomeSmart's 2026 Franchise Disclosure Document in full — talk to FranCloud for a ranked target list of brokerage franchises with an in-house software mandate like this one.
Questions vendors ask
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FDD alert
We’ll email you the moment HomeSmart files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
1 operators run 1 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 1 |
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Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.