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Handyman Matters Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Initial Investment for a Handyman Matters Franchise?
To open a Handyman Matters franchise, you will need to consider an initial investment ranging from $93,277 to $137,472. This amount includes a franchise fee of $20,000. It's important to ensure you have cash readily available within this range, as well as a net worth of between $200,000 and $500,000 to meet the financial requirements set by the franchisor.
What are the Ongoing Fees for a Handyman Matters Franchise?
Franchisees of Handyman Matters are required to pay a royalty fee of 6% on their gross sales, along with a 2% marketing fee. These ongoing fees contribute to the support and marketing efforts provided by the franchisor, helping you to grow your business and attract customers effectively.
What Can You Expect in Terms of Revenue?
Handyman Matters franchises have an average annual revenue of $478,621, with a median revenue of $452,270. The revenue can vary significantly, with the lowest reported annual revenue at $93,095 and the highest reaching $1,224,969. This potential for revenue highlights the demand for handyman services and the profitability of this franchise model.
How Quickly Can You Expect to Break Even?
Franchisees typically reach their breakeven point within 12 months of operation. This quick turnaround is appealing for aspiring entrepreneurs, as it indicates a relatively fast path to profitability. Additionally, the investment payback period aligns with this timeframe, making Handyman Matters a potentially lucrative opportunity for those ready to dive into the handyman services sector.
Handyman Matters Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Handyman Matters Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 132 | 122 | 122 |
| Net Change YoY | -10 | 0 | |
| Franchised Units | 128 | 115 | 115 |
| Net Change YoY | -13 | 0 | |
| Corporate Units | 4 | 7 | 7 |
| Net Change YoY | 3 | 0 |
Initial Investment
The Handyman Matters franchise requires a low to moderate initial investment, ranging from $93,277 to $137,472. This investment covers the franchise fee, equipment, and other startup costs necessary to launch your business. The initial franchise fee is set at $20,000, making it accessible for aspiring entrepreneurs looking to enter the handyman service industry.
Ongoing Fees
Franchisees are subject to a royalty fee of 6% of gross sales, alongside a marketing fee of 2%. These fees contribute to the overall support and marketing efforts provided by the franchisor, ensuring brand visibility and operational assistance. Understanding these ongoing costs is crucial for maintaining profitability and managing cash flow effectively.
Revenue Potential
The average annual revenue per Handyman Matters unit is approximately $478,621, with a median revenue of $452,270. Franchisees can expect a wide range of revenue, with the lowest reported at $93,095 and the highest at $1,224,969. This significant revenue potential highlights the demand for handyman services and the opportunity for franchisees to achieve financial success.
Breakeven and Payback
Franchisees typically experience a breakeven time of 12 months, which is a promising indicator of the business's potential for profitability. The investment payback period also stands at 12 months, allowing franchise owners to recoup their initial investment relatively quickly. This swift return on investment is appealing for those considering entering the franchise space.
Operational Structure
As of 2019, Handyman Matters operates a total of 122 units, with 115 of those being franchised and 7 corporate-owned. The franchise model supports both franchisees and corporate units, providing a balanced approach to growth and operational efficiency. This structure allows for shared best practices and resources between corporate and franchise locations.
Financial Performance
The average operating expenses for a Handyman Matters franchise total around $449,990 annually. Key expenses include royalties, marketing, and personnel costs. Understanding these financial metrics is essential for franchisees to optimize their operations and enhance profitability, ensuring that they can sustain and grow their business over time.
Frequently Asked Questions
The initial investment for a Handyman Matters franchise ranges from $93,277 to $137,472, which includes the franchise fee of $20,000.