Detailed Estimates of Ace Handyman Services Franchise Costs Based on Item 7 (Estimated Initial Investment) of Ace Handyman Services’ 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $20,000
2. Territory Fee: $35,000 to $40,000
- The Territory Fee is $35,000 for a single franchise with a Territory of up to 80,000 households. It increases by $0.50 for each additional household in your Territory.
- Ace Handyman Services has estimated in the chart a Territory of 90,000 households on the high end.
- There may be discounts available to you.
3. Travel and Living Expenses While Training: $2,500 to $4,000
- The initial training program is tuition-free for up to four people. However, you will pay for the expenses of attendance, including lodging, meals, transportation, and wages of trainees.
4. Lease Deposit: $600 to $1,850
5. Rent for First 3 Months: $1,800 to $3,000
- You must operate from an office outside of your home.
- A commercial lease normally requires payment of the first month’s rent, a security deposit, and a rent deposit equal to one month’s rent. A lease deposit may or may not be refundable and lease deposits vary widely from location to location.
6. Leasehold Improvements and Signage: $800 to $5,000
7. Furnishings: $800 to $5,000
8. Tools and Equipment: $800 to $2,800
- You can rent tools or you may find it cost effective to purchase various tools with a high use rate.
- The tools you are required to acquire include ladders of varying lengths, a tub saw for tile, a wet saw, a chop box with miter saw, a hammer drill, various pneumatic tools with an air compressor, and various hand tools.
9. Truck or Van: $0 to $2,950
- You are not required to purchase a vehicle for use in your Ace Handyman Services Business until you have obtained $250,000 in Gross Revenues during a year. However, depending on the market and other factors, you may find it desirable to acquire a vehicle on opening of your Ace Handyman Services Business.
- Most franchisees have a vehicle they initially use and do not incur this expense to start, so Ace Handyman Services does not consider this a typical expense you will incur.
- Most franchisees acquire a vehicle through a leasing program.
10. Computer Hardware and Office Equipment: $2,250 to $5,025
- Includes a computer and software meeting Ace Handyman Services’ minimum specifications that you purchase from suppliers selected by you. You will need a workstation, laser printer, fax software, hub router, network, and wiring. A high-speed Internet connection is also required where available.
- If you do not already own one, you will need a smart phone or other device Ace Handyman Services approves meeting its standards and specifications. The standards and specifications Ace Handyman Services is currently utilizing are set forth in the Operations Manual.
11. Software and Internet Fees: $1,497
- In exchange for the Software and Internet Fee, Ace Handyman Services gives you access to its scheduling software, email, location website, website, and online marketing services, and Ace Handyman Services maintains an Internet site for prospective customers and an Intranet site for you and other franchisees.
- Ace Handyman Services reserves the right to discontinue providing the e-mail account and Intranet sites, if technology advancements make these obsolete or impractical to provide.
- Ace Handyman Services pays a portion of the Software and Internet Fee to its designated supplier for website development services, search engine optimization, and other online marketing services.
12. Start-up Advertising: $7,500 to $9,000
- You will spend a minimum of $7,500 and a maximum of $9,000 as a required Start-up Advertising expense in the period starting 30 days before opening, and continuing through the end of the second full month after opening of your franchise.
- This amount includes collateral marketing materials that will last for a period of time beyond the first three months of operation and are purchased in quantities based on price considerations.
13. Utility Deposits and Fees: $100 to $450
14. Licenses and Permits: $630 to $1,600
- Licensing laws and permit requirements, including fees, may vary from state to state and from city to city, depending on state and local laws. You must comply with these laws.
- This estimate also includes the costs associated with obtaining the required LRRP Certification for your Ace Handyman Services Business and one individual representative, including the estimated costs for the required training course provided by the EPA or a third party.
15. Insurance: $1,500 to $2,800
- You must procure, maintain, and provide evidence of:
- (i) workers’ compensation insurance with employers’ liability coverage, with a broad form all-states endorsement coverage sufficient to meet the requirements of law;
- (ii) comprehensive general liability insurance including product liability, property damage, personal injury liability, bodily injury coverage, and premises/operation liability for the Business Location and its operations, with a limit of not less than $1 million per occurrence and $2 million in the aggregate, or such greater limit as may be required as part of any lease agreement for the Business Location; with a crime policy endorsement with a limit of not less than $25,000;
- (iii) comprehensive automobile liability insurance including hired and non-owned coverage with a limit of not less than $1 million per occurrence and $2 million in the aggregate;
- (iv) umbrella commercial excess coverage with a limit of not less than $1 million;
- (v) all-risk business property insurance covering all equipment, tenant improvements, inventory, and other personal property in an amount equal to at least 100 percent of the replacement costs of the contents and tenant improvements located at the Business Location, less a reasonable deductible which cannot exceed $5,000; and
- (vi) cyber liability insurance in an amount of not less than $1 million.
16. Professional Fees: $500 to $3,000
17. Miscellaneous Opening Costs: $2,000 to $4,500
18. Additional Funds for 3 Months: $15,000 to $25,000
- These expenses do not include your living expenses or expenses if you decide to employ assistants.
- You are required to appoint an office manager (“Office Manager”) who will answer the phone, schedule your craftsmen, and assist with running your office for your Ace Handyman Services Business within 90 days of signing your Franchise Agreement. Ace Handyman Services has included an estimate for the costs you will incur during the first three months to employ the required Office Manager.
- Ace Handyman Services estimates that you will pay the Office Manager an hourly rate of $14 to $18 per hour, for 40 hours per week, for each of the first 12 weeks of operation of your Ace Handyman Services Business.
19. Total: $93,277 to $137,472
- The estimated initial investment set forth above assumes that you will acquire the franchise rights for one Ace Handyman Services Business with a Territory of up to 80,000 households on the low end to 90,000 households on the high end. If you acquire more than one Ace Handyman Services Business or a larger Territory, your estimated initial investment will increase.
- Ace Handyman Services relied on over 65 years of combined experience of certain officers of the company in the handyman service business to compile these estimates.