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Mr. Rekey Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Initial Investment for a Mr. Rekey Franchise?
Starting a Mr. Rekey franchise requires a relatively low initial investment compared to many service-based industries. The total investment ranges from $33,000 to $80,800, which includes a standard initial franchise fee of $30,000. To qualify for ownership, candidates should have a net worth of at least $80,800 and liquid cash available of approximately $50,000. These costs cover the essential setup needed to begin providing professional locksmith and rekeying services under the established brand name.
What Are the Ongoing Fees and Financial Expectations?
Once your Mr. Rekey location is operational, there are ongoing fees to consider as part of the franchise agreement. Franchisees are required to pay a royalty fee of 7.5% of gross sales and a marketing fee of 2.0% to support brand awareness and lead generation. Based on recent data, the system has shown a median annual revenue per unit of $80,800, with some high-performing units reaching up to $245,000. On average, new owners have seen a breakeven point at approximately 14 months, with an investment payback period of about 11 months.
How Has the Mr. Rekey Franchise Network Grown?
Mr. Rekey has maintained a consistent and stable presence in the market over the last several years. From 2021 through 2023, the franchise network has held steady at 54 franchised units across the United States. Notably, the company does not operate any corporate-owned locations, meaning 100% of the brand's footprint is managed by independent franchise owners. This structure ensures that the corporate team is fully focused on supporting its franchisees rather than competing with them through company-owned outlets.
Is a Mr. Rekey Franchise the Right Opportunity for You?
If you are looking for a business model with a low entry cost and a focus on essential residential and commercial services, Mr. Rekey may be a strong fit. The brand specializes in high-volume locksmith services, particularly for the real estate and property management industries. While the lowest reported annual revenue in recent data was $245,000 for certain segments, potential owners should conduct thorough due diligence to understand their specific market. With a stable unit count and a streamlined operational model, Mr. Rekey offers a path for entrepreneurs to enter the home services sector with professional backing.
Mr. Rekey 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:
Mr. Rekey Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 54 | 54 | 54 |
| Net Change YoY | N/A | 0 | 0 |
| Franchised Units | 54 | 54 | 54 |
| Net Change YoY | N/A | 0 | 0 |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | N/A | 0 | 0 |
Mr. Rekey Company Overview
Mr. Rekey is a specialized locksmith service provider that focuses on the residential and property management markets. Known for its efficient "rekey" process, the brand has established a niche by offering standardized, high-quality locksmith services. The company has maintained a consistent footprint in the industry, operating 54 franchised units across the United States from 2021 through 2023, demonstrating a stable and focused business model.
Franchise Investment Details
Starting a Mr. Rekey franchise offers a relatively low barrier to entry compared to other service industries. The initial investment ranges from a low of $33,000 to a high of $80,800. This investment includes an initial franchise fee of $30,000. To qualify, prospective owners need a net worth of $80,800 and liquid cash of at least $50,000 to ensure proper capitalization during the launch phase.
Ongoing Fees and Royalties
Franchisees are required to contribute to the brand's growth and support systems through ongoing fees. The royalty fee for a new unit is set at 7.5% of gross sales, which covers the continued use of the brand name and corporate support. Additionally, there is a marketing fee of 2.0% of gross sales, which is utilized to fund brand-wide advertising initiatives and customer acquisition strategies.
Financial Performance and Revenue
The financial landscape for Mr. Rekey units shows a wide range of performance metrics. While the average annual revenue per unit is reported at $50,000 and the median at $80,800, the system has seen high-performing units reach annual revenues of $245,000. These figures reflect the diverse market conditions and owner engagement levels across the 54 existing franchised locations.
Time to Profitability
The Mr. Rekey business model is designed for a relatively quick transition to operational efficiency. Based on historical data, the average breakeven time for a new franchise unit is approximately 14 months. Furthermore, the investment payback period-the time it takes for the franchisee to recover their initial capital investment-is estimated at 11 months, indicating a strong potential for a return on investment.
Unit Growth and Stability
The Mr. Rekey franchise system exhibits a high level of stability and a 100% franchised business model. Between 2021 and 2023, the total unit count remained steady at 54 franchised locations, with zero corporate-owned units. This structure indicates that the parent company is fully committed to the success of its independent operators rather than competing with them through company-owned territories.
Frequently Asked Questions
The total investment required to open a Mr. Rekey franchise ranges from $33,000 to $80,800. This estimate includes the initial franchise fee and other essential startup costs.