Under the April 10, 2026 FDD, a HomeSmart franchisee operates one licensed HomeSmart Real Estate Brokerage Business from a Central Office, with Branch Offices as required in its Territory. The franchisee recruits and supervises licensed Agents; those Agents serve residential and commercial buyers and sellers; HomeSmart’s required technology records the transaction and compliance workflow.
HomeSmart International, LLC supplies the brand, System, Operations Manual, approved technology, marketing infrastructure, and operating standards; the franchisee supplies the licensed brokerage, office supervision, Agent relationships, local execution, records, and professional real-estate judgment, while Approved Suppliers, Designated Suppliers, local MLS organizations, and other third parties provide defined operating inputs.
Data basis. Legal franchisor: HomeSmart International, LLC; parent: HomeSmart Holdings, Inc. FDD issued April 10, 2026. Format: one HomeSmart Real Estate Brokerage Business per Franchise Agreement, using a Central Office and required Branch Offices in its Territory. Evidence: FDD Items 1, 6, 8, 11, 12, 15, 16, 19, 20; Franchise Agreement Sections 5, 7–10, 12; Attachment 1; Exhibit F. Item 20 covers 2023–2025. Official pages checked August 8, 2026. FDD citations are unlinked; see the official HomeSmart franchise page.
What does a HomeSmart franchise sell, and who buys it?
The consumer-facing product is residential and commercial real estate brokerage Services for purchasers and sellers. Operationally, the franchisee also runs an Agent-association model: licensed Agents work under the brokerage, use HomeSmart systems and support, and pay the brokerage under a written fee structure that HomeSmart must approve.
The 2026 FDD defines Services as brokerage assistance, guidance, recommendations, marketing and related work connected with disposition of Real Property. The franchisee must offer authorized Services to HomeSmart standards, may be required to add new Services on notice, and cannot use the HomeSmart Real Estate Brokerage Business for unrelated activity without written consent.
Buyers and sellers reach local Agents through office and brand channels, including the seller inquiry channel and Agent finder. The franchisee separately recruits to its Annual Agent Quota. Item 6 describes Lead Services that source referrals through strategic partners and lead programs, with program-specific splits at closing.
Sources: 2026 FDD, Items 1 pp. 2–3, 6 pp. 8–9, 12 pp. 25–26, 16 p. 30; Franchise Agreement §§1.18, 9.2(d)–(e), 9.2(t)–(u). Item 19 makes no financial performance representation.
How does work move from Agent recruitment to a closed transaction?
HomeSmart’s workflow is brokerage-centered: the franchisee builds and supervises the Agent base; Agents originate buyer, seller, rental or referral activity; RealSmart tools capture the file; broker review handles compliance; closing completes the transaction; and the franchisee reports required operating data.
- Actor
- Franchisee / Designated Business Manager
- Action
- Recruit and associate licensed Agents, execute written Agent agreements, apply the HomeSmart-approved fee structure, and supervise Agents as a reasonable real estate broker would.
- System / asset
- Central Office or approved Branch Office; recruiting and onboarding tools in the HomeSmart System.
- Output
- Licensed Agent capacity sufficient for the Annual Agent Quota and expected brokerage volume.
- Actor
- Agent
- Action
- Generate or receive a buyer, seller, rental or referral opportunity and begin the professional brokerage engagement. Internet marketing remains subject to HomeSmart’s channel controls.
- System / asset
- Agent marketing, HomeSmart brand channels, referrals and current public tools such as the HomeSmart Client App.
- Output
- A client relationship, listing, sale, rental or referral that must enter the brokerage workflow.
- Actor
- Agent
- Action
- Create and maintain the transaction file, submit documents, and update listing or deal information. Exhibit F’s Operations Manual table of contents includes listing, sale, rental, referral, paperwork and pending-approval procedures.
- System / asset
- RealSmart Agent, Agent mobile tools, local MLS data and required forms.
- Output
- A transaction record ready for broker review and compliance processing.
- Actor
- Franchisee, Designated Business Manager or brokerage staff
- Action
- Review documents, pending approvals and compliance status; return deficiencies to the Agent; supervise the professional work; and keep the brokerage file complete.
- System / asset
- RealSmart Broker, which HomeSmart currently describes as providing transaction visibility, document review, compliance tracking and audit history.
- Output
- An approved, compliant file that can proceed toward closing or completion.
- Actor
- Agent and brokerage closing / transaction function
- Action
- Complete the closing or other transaction event, process the closing package and commission instructions, and record the completed side, rental, referral or lease activity used by the franchise system’s flat-fee royalty mechanics.
- System / asset
- RealSmart transaction record, closing documents and accounting records.
- Output
- A closed or completed transaction and an auditable operating record.
- Actor
- Franchisee
- Action
- Prepare the prior month’s Gross Revenue statement and other required reports, maintain the prescribed accounting records, and remit required amounts through ACH or another approved method.
- System / asset
- Required accounting template/system, RealSmart Broker data, bank account and retained business records.
- Output
- Monthly reporting, system-level fee calculation, data available to HomeSmart and records subject to inspection or audit.
Sources: 2026 FDD, Items 6 and 11, pp. 8, 24; Franchise Agreement §§6.7–6.8, 7.1–7.5, 9.2(t)–(v), 9.9, 9.12; Exhibit F. Public technology pages are supplemental.
Who performs the work, and what does the owner have to do?
The FDD requires direct brokerage supervision, not a hands-off ownership structure. An individual franchisee must directly supervise the business/Central Office; an entity must use a Designated Business Manager for direct, on-site Central Office supervision; and each Branch Office must also be managed by a Designated Business Manager.
The 2026 FDD does not define an absentee operating option. If HomeSmart believes the franchisee lacks sufficient business experience, it can require a Designated Business Manager, who must complete initial training and assume specified confidentiality, noncompetition and performance obligations.
Franchisee / manager
- Supervise the brokerage and Agents.
- Maintain licenses, offices and insurance.
- Recruit to the Annual Agent Quota.
- Set day-to-day staffing and professional execution.
- Maintain records, reporting and local advertising.
Agents
- Serve residential and commercial buyers and sellers.
- Create listings and transaction files.
- Submit documents and respond to broker compliance review.
- Use their own required Hardware and Software where specified.
- Operate under franchisee brokerage supervision and licensing rules.
HomeSmart / third parties
- HomeSmart supplies System standards, marketing infrastructure and mandatory specifications.
- MLS organizations supply local listing data and credentials.
- Approved Suppliers and Designated Suppliers provide required inputs.
- Technology support may be routed to third parties, including Affiliates.
- HomeSmart can inspect Offices, review records and access system data.
The FDD does not prescribe headcount, shifts or staffing ratios. Exhibit F names functions including Career Services, Broker Services, Agent Services, Transaction Management, Paperwork, Closing, Reception and Accounting, but those functions do not establish mandatory employee counts.
Sources: 2026 FDD, Item 15, p. 30; Franchise Agreement §§9.2(k), 9.3, 9.6; Exhibit F. Current tools: HomeSmart Apps & Tools and Agent App.
Which systems, suppliers and records are mandatory?
RealSmart Broker and required Software are contractual operating infrastructure. The franchisee must also use Hardware, supplies, services and other Required Products and Services that meet HomeSmart specifications and, when HomeSmart has designated a source, buy from an Approved Supplier or Designated Supplier unless written approval permits another source.
Required technology layer
The Computer System includes RealSmart Broker, required Software, Internet access and specified Hardware. HomeSmart integrates MLS-generated data into RealSmart Broker, requires MLS administrative credentials, can mandate upgrades, and has contractual rights to access and use electronic information stored through its proprietary system.
Required purchasing layer
Item 8 says HomeSmart controls specifications for Office equipment, supplies, forms, Services, advertising, signage and many other inputs. The current Approved Supplier and Designated Supplier list is maintained in the Operations Manual; HomeSmart can add or remove approved sources.
Item 8 names VirtuSmart, Smart Referral Network, HomeSmart University, Equitable Title Agency, On the Run Printing and HS Brokerage Holdings-related referral services. No Affiliate is the only approved supplier in a category; HomeSmart still defines specifications and purchasing channels.
The franchisee must use HomeSmart’s required accounting system or template, prepare monthly Gross Revenue statements, keep prescribed transaction and financial records for six years, and permit inspection and audit. The public RealSmart Broker page describes current broker review, compliance, historical-record and cross-office functions.
Sources: 2026 FDD, Item 8, pp. 13–16; Item 11, pp. 23–24; Franchise Agreement §§7.1–7.5, 9.9–9.12 and 10.1–10.4.
What does HomeSmart control, and what remains with the franchisee?
HomeSmart controls the System, required Services, technology, supplier standards, Office approval, Internet channel, advertising standards and audits. The franchisee controls day-to-day management and professional real-estate judgment, selects staff and proposed sites, recruits Agents, chooses local advertising within standards, and establishes Service fees subject to law.
HomeSmart-controlled
- Operations Manual standards and future operating changes.
- Authorized and newly required Services.
- RealSmart Broker, Software specifications and required upgrades.
- Approved/Designated Supplier rules and specifications.
- Central Office and Branch Office location approval.
- Internet presence, brand website and system-wide campaigns.
- Inspection, data access, reports and audits.
Franchisee-controlled
- Professional brokerage judgment where law governs the practice.
- Day-to-day managerial execution and staffing choices.
- Agent recruiting and supervision, subject to quota and standards.
- Proposed Office sites, subject to HomeSmart approval.
- Consumer Service fees; HomeSmart does not set minimum or maximum prices.
- Initial local advertising approach, subject to brand standards and required campaigns.
The Territory is non-exclusive. If the franchisee maintains a qualifying Central Office, meets the Annual Agent Quota and opens required Branch Offices, HomeSmart generally will not open another competing HomeSmart brokerage there. Other HomeSmart franchisees and Agents may still list or sell there, the franchisee may work outside its Territory where licensed, and HomeSmart reserves Internet channels.
The Central Office must be a conventional location outside a personal residence and dedicated to the brokerage; a Short Term Location requires written approval. The Franchise Agreement separately reserves Internet marketing to HomeSmart and requires approval for independent HomeSmart-branded online presence, so digital demand does not create customer exclusivity in the Territory.
Sources: 2026 FDD, Items 11–12, pp. 24–26; Franchise Agreement §§5.1–5.4, 9.3, 12.1–12.3. See the official HomeSmart office locator for the current public office channel.
What does Item 20 show about the HomeSmart operating footprint?
At the end of 2025, Item 20 reports 258 HomeSmart Real Estate Brokerage Businesses: 201 franchised and 57 company-owned. Franchised businesses represented 77.9% of that reported systemwide population, while company-owned businesses represented 22.1%.
Source: 2026 FDD, Item 20, Table 1, p. 33. Percentages calculated as 201 ÷ 258 and 57 ÷ 258; counts reconcile to 258 and percentages to 100.0%.
Which operating details are still deal-specific or undisclosed?
The 2026 FDD defines the operating architecture, but several high-impact requirements are completed for each franchisee in Attachment 1 or maintained in the Operations Manual. Those variables determine much of the actual day-to-day workload.
- Territory boundaries: verify the exact zip codes or other boundaries and the Central Office term needed to preserve Territory rights.
- Annual Agent Quota: verify the year-by-year Agent count required for the proposed Territory; the blank Attachment 1 does not supply a candidate-specific quota.
- Branch Office schedule: verify how many Branch Offices must open, in which years, and which manager roles will be needed for them.
- Current supplier list: obtain the current Approved Supplier and Designated Supplier list from the Operations Manual and identify which categories allow alternatives.
- Current technology stack: confirm the required RealSmart Broker System Instances, MLS integrations, upgrades, optional modules and local MLS dependencies for the proposed market.
Sources: 2026 FDD, Items 8, 11–12 and 15; Franchise Agreement Attachment 1 and §§5.3–5.4, 9.9–9.12, 10.1–10.4.
HomeSmart operates through licensed brokerages that recruit and supervise Agents, then process residential and commercial buyer/seller transactions through the HomeSmart brand, RealSmart technology and operating procedures. The franchisee’s primary responsibility is brokerage supervision and local execution; the strongest dependency is HomeSmart’s control over the System, technology, suppliers, Internet channel and compliance standards.
The key distinction is the non-exclusive Territory: conditional protection can apply against another HomeSmart brokerage location, but not to customers, listings, Agents or online channels. The largest undisclosed question is the candidate-specific Annual Agent Quota, Branch Office schedule and current supplier/technology list, which determine the operating load.
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