As we go to press, Franchise Brands LLC has acquired majority ownership of HomeVestors® of America, Inc. A guiding resource behind Franchise Brands is brilliant billionaire franchise legend Fred DeLuca, founder of Doctors Associates, owner of megabrand Subway sandwiches. HomeVestors, famous for its “We Buy Ugly Houses” billboards, is one of the only national brands that specialize in real estate investment properties for the individual real estate investor.
Founded in 1989, HomeVestors sold its first franchise in 1996 to set a new benchmark for professional residential real estate investing. HomeVestors’ franchisees make up the largest home buying network in the U.S. and specialize in buying, rehabbing and selling single-family homes to make money as investors and for investors; and reinvigorate communities across the country. HomeVestors has 230-plus franchise offices in 35 states and more than 100 major markets. It has purchased more than 35,000 houses since 1989. HomeVestors’ franchisees sell most of the houses to other investors and first-time home-buyers.
“We’re delighted that Franchise Brands recognizes the potential of our franchise network and decided to acquire a majority interest,” said John P. Hayes, Ph.D., president and CEO of HomeVestors. “The past 12 month have proven to be challenging for most real estate-related businesses including HomeVestors, but when the real estate market completes its correction and begins to expand again, HomeVestors will be perfectly situated to continue expanding, too. Our company, and especially our franchisees, will gain from the support of Franchise Brands.”
Franchise Brands, owner of several other market leading franchise companies, invested several million dollars in HomeVestors’ operations in 2007. They continued to monitor company development and recently decided to buy controlling interest. HomeVestors is now their premium brand. Hayes said no changes are expected to HomeVestors’ management team. Hayes is a longtime franchise author and colleague of Fred DeLuca. Hayes has served as president under founder Ken D’Angelo and has been CEO and chairman since the death of D’Angelo in January 2005.
“DeLuca got involved in 2005 and came to understand the opportunities offered by a well run real estate franchise business,” says Hayes.
Franchise Brands is lead by Lisa Oak. Oak was mentored by and instrumental in helping DeLuca grow Subway from 1,000 units in 1988 to 25,000 unites in 2005 as a co-development manager and president of Sunway Real Estate Corporation.
Personal Real Estate Investor Magazine expects the involvement of Franchise Brands will produce evolutionary changes that improve the customer experience from the traditional HomeVestors’ buy, renovate and sell model. The arrival of this vision indicates a significant change for out industry. Expect great things.
Contact: www.HomeVestors.com or www.FranchiseBrandsllc.com.
