In this FDD Talk post, you’ll learn the following:

• Section I – Estimated initial investment (franchise costs) for a The Patch Boys franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a The Patch Boys franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned The Patch Boys outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on The Patch Boys franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of The Patch Boys’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 number of owners, number of territories, average territories per owner, average and median revenue per owner, average and median revenue per territory, total jobs, average and median job value, and average and median years operating for the top 5%, 1st quartile, 2nd quartile, 3rd quartile, 4th quartile, bottom 5%, and all 34 franchisees (the “Represented Franchise Owners”), who collectively own 79 The Patch Boys businesses (the “Represented Franchises”), who have owned their businesses at least one year, and operated those franchises throughout all of 2021

• 2021 number of owners, number of territories, average territories per owner, average and median revenue per owner, average and median revenue per territory, total jobs, average and median job value, and average and median years operating for the Representative Franchise Owners with 1 license owned, 2 licenses owned, and 3 or more licenses owned

• Section VI – Key ratios, comparables, computations, and analyses for The Patch Boys franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Patch Boys Franchise Costs

• The Patch Boys franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $22,125 to $29,500
• Initial Package Fee:  $7,250
• Lease Deposit and First Month’s Rent, Utilities:  $0 to $2,000
• Leasehold Improvements:  $0 to $2,000
• Exterior Signage:  $0 to $2,000
• Licenses/Permits:  $0 to $500
• Technology System:  $100 to $2,000
• Initial Supplies and Inventory:  $1,000 to $3,000
• Insurance:  $2,093 to $5,165
• Vehicles:  $0 to $3,000
• Costs Incurred While Attending Training:  $1,000 to $2,500
• Initial Advertising and Marketing:  $500 to $2,500
• Miscellaneous Pre-Opening Expenses:  $1,500 to $5,000
• Additional Working Capital for 3 Months:  $12,000 to $15,000
• Estimated Total The Patch Boys Franchise Costs:  $47,568 $81,415

Section II – The Patch Boys’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• The Patch Boys’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $29,500
• Royalty Fee:  8% of Gross Sales
• National Marketing Fee:  none currently assessed
• Local Advertising and Marketing:  at least $10,000 in the first 12 months of operation

Section III – Number of Franchised and Company-Owned The Patch Boys Outlets

Franchised

2019

• Outlets at the Start of the Year:  62
• Outlets at the End of the Year:  92
• Net Change:  +30

2020

• Outlets at the Start of the Year:  92
• Outlets at the End of the Year:  100
• Net Change:  +8

2021

• Outlets at the Start of the Year:  100
• Outlets at the End of the Year:  192
• Net Change:  +92

Company-Owned

2019

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  0
• Net Change:  -1

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – Background Information on The Patch Boys Franchise

12 Things You Need to Know About The Patch Boys Franchise

Experiences Unprecedented Growth in 2021

1.  In early February 2022, The Patch Boys reported that it saw extraordinary growth and record sales from 2020 to 2021 by nearly doubling the number of new franchisees and growing existing location sales revenue by 50%. As the ongoing COVID-19 pandemic played out, The Patch Boys has seen an increased demand for services as people spend more time in their homes and invest in upgrades and renovations. Given the nature of their work in people’s homes, the franchise continued to prioritize safety measures and accommodate customers’ varying comfort levels.

2.  The company’s success can also be attributed to a unique labor market and an increase in owners from diverse backgrounds, many looking to leave the corporate world and start a business of their own.

3.  Ted Speers, president of The Patch Boys, said, “From an airplane pilot seeking a career pivot that would allow him to spend more time at home to a former hospital administrator who dreamed of owning her own business, we’ve seen an incredible increase in new franchisees across the country, all with unique backgrounds.”

4.  In 2022, The Patch Boys’ growth is focused on training new franchisees, hiring additional support, and continuing to add technology-driven resources throughout the network as the company scales its successful business model nationwide.

5.  Rusty Amarante, president of BELFOR Franchise Group, added, “In spite of the pandemic and other challenges, The Patch Boys has overwhelmingly excelled in its first two years within the BELFOR Franchise Group. We’re proud of their quick rise to be one of the most accessible, affordable home-based franchises in the industry.”

Experiences Rapid Growth and Record Sales After BELFOR Acquisition

6.  In mid-June 2021, The Patch Boys announced several company milestones. Since being acquired by BELFOR Franchise Group in June 2020, The Patch Boys has added 32 licenses nationwide. As the demand for the company’s services – including drywall repair and installation, ceiling and plaster repair, popcorn ceiling removal, and texture matching – significantly increased in the past year, The Patch Boys franchise network achieved record sales.

7.  Additionally, The Patch Boys was recognized by Entrepreneur Magazine as one of the “Fastest-Growing Franchises in 2020” and on their 2021 Franchise 500 ranking. The company was also named one of the “Top 100 Home Service Franchises to Invest In” by Franchise Connect Magazine and included in Franchise Business Review’s list of “200 Best Franchises to Buy.”

8.  Ted Speers, president of The Patch Boys, said, “Whether fixing a water damaged wall after a storm or helping homeowners with their quarantine projects, our franchisees are there for our customers’ every need. With our growth over the past year accelerating beyond our best predictions, we could not be more excited about the future of The Patch Boys.”

9.  Rusty Amarante, president of BELFOR Franchise Group, said, “As people spend more time in their houses, The Patch Boys franchise network has done an incredible job meeting the demand for home services and exceeding consumer expectations. As the most recent addition to our family of franchise brands, we have been extremely impressed with their exceptional work, growth and sales.”

Company History

10.  The Patch Boys was founded in 2006 by Leo Goldberger. The brand helps home and property owners restore drywall to its pre-damaged state. After nearly a decade of successfully running The Patch Boys, Goldberger began franchising the concept in 2015. Within a few years, the company grew to 96 locations across 20 states.

11.  Over the summer of 2020, The Patch Boys was acquired by BELFOR Franchise Group, a residential and commercial services franchise group. Under BELFOR’s leadership, The Patch Boys is looking for franchisees across the country.

Entrepreneur’s Franchise 500

12.  The Patch Boys did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Patch Boys Franchise (Item 19, 2022 FDD)

• The Patch Boys currently requires all franchise owners to provide periodic revenue and other financial reports concerning their franchises.

• In January 2022, The Patch Boys reconciled the revenue and other information provided by the franchisees relating to the operation of their The Patch Boys Business during 2021. The Patch Boys reconciled 2021 financial information from 34 franchisees (the “Represented Franchise Owners”), who collectively own 79 The Patch Boys Businesses (the “Represented Franchises”), who have owned their businesses at least one year, and operated those franchises throughout all of 2021.

• Franchisees that have either (a) not owned their business at least one year or (b) did not operate throughout all of 2021 were excluded from this Item 19. By the end of 2021, there were 192 total franchised territories.

• The Represented Franchise Owners have been in business for an average of 2.8 years in their markets and operate in a mix of urban, suburban, and rural areas, disbursed geographically throughout the U.S.

• Some operate on a part-time basis; however all offer the same products and services that The Patch Boys authorizes new The Patch Boys Businesses to sell.

• Despite the effect that COVID-19 has had on some businesses, (a) franchisee revenues are up 39% as of December 31, 2021 as compared to the same time frame in 2020, (b) franchisees have not had to streamline or otherwise modify their business operations due to the pandemic so the business operations are still the same as offered in the FDD, with the exception of employees wearing masks, and (c) 8 locations have closed in 2021, out of a total of 192, which is 4.2% of franchises.

Part 1 – Average and Median Revenue Per Owner and Per Territory, Job Value, and Years Operating, Grouped by Quartile, Top 5%, and Bottom 5%

Top 5%

• Number of Owners:  2
• Number of Territories:  9
• Average Territories Per Owner:  4.5
• Average Revenue Per Owner:  $1,110,266
• Median Revenue Per Owner:  $1,110,266
• Average Revenue Per Territory:  $246,726
• Median Revenue Per Territory:  $362,640
• Percentage of Owners Exceeding Average Revenue Per Owner:  50%
• Number of Owners Exceeding Average Revenue Per Owner:  1
• Total Jobs:  1,268
• Average Job Value:  $1,843.23
• Median Job Value:  $1,843.23
• Average Years Operating:  4.0
• Median Years Operating:  4.0

1st Quartile

• Number of Owners:  9
• Number of Territories:  36
• Average Territories Per Owner:  4.0
• Average Revenue Per Owner:  $721,878
• Median Revenue Per Owner:  $566,018
• Average Revenue Per Territory:  $180,470
• Median Revenue Per Territory:  $168,715
• Percentage of Owners Exceeding Average Revenue Per Owner:  44%
• Number of Owners Exceeding Average Revenue Per Owner:  4
• Total Jobs:  4,690
• Average Job Value:  $1,390.84
• Median Job Value:  $1,382.23
• Average Years Operating:  3.0
• Median Years Operating:  3.0

2nd Quartile

• Number of Owners:  9
• Number of Territories:  15
• Average Territories Per Owner:  1.7
• Average Revenue Per Owner:  $226,798
• Median Revenue Per Owner:  $216,527
• Average Revenue Per Territory:  $136,079
• Median Revenue Per Territory:  $166,025
• Percentage of Owners Exceeding Average Revenue Per Owner:  44%
• Number of Owners Exceeding Average Revenue Per Owner:  4
• Total Jobs:  2,432
• Average Job Value:  $911.65
• Median Job Value:  $966.50
• Average Years Operating:  3.0
• Median Years Operating:  3.0

3rd Quartile

• Number of Owners:  8
• Number of Territories:  14
• Average Territories Per Owner:  1.8
• Average Revenue Per Owner:  $117,435
• Median Revenue Per Owner:  $112,474
• Average Revenue Per Territory:  $67,106
• Median Revenue Per Territory:  $56,237
• Percentage of Owners Exceeding Average Revenue Per Owner:  38%
• Number of Owners Exceeding Average Revenue Per Owner:  3
• Total Jobs:  937
• Average Job Value:  $1,128.10
• Median Job Value:  $1,076.16
• Average Years Operating:  2.8
• Median Years Operating:  2.0

4th Quartile

• Number of Owners:  8
• Number of Territories:  14
• Average Territories Per Owner:  1.8
• Average Revenue Per Owner:  $63,873
• Median Revenue Per Owner:  $65,710
• Average Revenue Per Territory:  $36,499
• Median Revenue Per Territory:  $32,721
• Percentage of Owners Exceeding Average Revenue Per Owner:  50%
• Number of Owners Exceeding Average Revenue Per Owner:  4
• Total Jobs:  520
• Average Job Value:  $1,230.61
• Median Job Value:  $1,338.50
• Average Years Operating:  2.5
• Median Years Operating:  2.0

Bottom 5%

• Number of Owners:  2
• Number of Territories:  4
• Average Territories Per Owner:  2.0
• Average Revenue Per Owner:  $26,766
• Median Revenue Per Owner:  $26,766
• Average Revenue Per Territory:  $13,383
• Median Revenue Per Territory:  $13,383
• Percentage of Owners Exceeding Average Revenue Per Owner:  50%
• Number of Owners Exceeding Average Revenue Per Owner:  1
• Total Jobs:  19
• Average Job Value:  $1,142.25
• Median Job Value:  $1,142.25
• Average Years Operating:  2.0
• Median Years Operating:  2.0

Total

• Number of Owners:  34
• Number of Territories:  79
• Average Territories Per Owner:  2.3
• Average Revenue Per Owner:  $293,781
• Median Revenue Per Owner:  $167,288
• Average Revenue Per Territory:  $126,437
• Median Revenue Per Territory:  $116,606
• Percentage of Owners Exceeding Average Revenue Per Owner:  26%
• Number of Owners Exceeding Average Revenue Per Owner:  10
• Total Jobs:  8,579
• Average Job Value:  $1,164.47
• Median Job Value:  $1,076.16
• Average Years Operating:  2.8
• Median Years Operating:  3.0

Part 2 – Average and Median Revenue Per Owner and Per Territory, and Years Operating, Grouped by Number of Licenses Owned

1 License Owned

• Number of Owners:  11
• Number of Active Territories:  11
• Average Active Territories Per Owner:  1.0
• Average Revenue Per Owner:  $182,299
• Median Revenue Per Owner:  $166,025
• Average Revenue Per Territory:  $182,299
• Median Revenue Per Territory:  $166,025
• Percentage of Owners Exceeding Average Revenue Per Owner:  36%
• Number of Owners Exceeding Average Revenue Per Owner:  4
• Average Years Operating:  3.2
• Median Years Operating:  3.0
• Total Jobs:  2,168
• Average Job Value:  $1,057.20
• Median Job Value:  $1,100.00

2 Licenses Owned

• Number of Owners:  14
• Number of Active Territories:  28
• Average Active Territories Per Owner:  2.0
• Average Revenue Per Owner:  $210,443
• Median Revenue Per Owner:  $108,222
• Average Revenue Per Territory:  $105,221
• Median Revenue Per Territory:  $54,111
• Percentage of Owners Exceeding Average Revenue Per Owner:  29%
• Number of Owners Exceeding Average Revenue Per Owner:  4
• Average Years Operating:  2.5
• Median Years Operating:  2.0
• Total Jobs:  2,195
• Average Job Value:  $1,262.44
• Median Job Value:  $1,128.22

3 or More Licenses Owned

• Number of Owners:  9
• Number of Active Territories:  40
• Average Active Territories Per Owner:  4.4
• Average Revenue Per Owner:  $559,674
• Median Revenue Per Owner:  $526,664
• Average Revenue Per Territory:  $118,364
• Median Revenue Per Territory:  $128,270
• Percentage of Owners Exceeding Average Revenue Per Owner:  44%
• Number of Owners Exceeding Average Revenue Per Owner:  4
• Average Years Operating:  2.9
• Median Years Operating:  3.0
• Total Jobs:  4,216
• Average Job Value:  $1,143.20
• Median Job Value:  $1,028.26

Total

• Number of Owners:  34
• Number of Active Territories:  79
• Average Active Territories Per Owner:  2.3
• Average Revenue Per Owner:  $293,781
• Median Revenue Per Owner:  $167,288
• Average Revenue Per Territory:  $126,437
• Median Revenue Per Territory:  $116,606
• Percentage of Owners Exceeding Average Revenue Per Owner:  26%
• Number of Owners Exceeding Average Revenue Per Owner:  10
• Average Years Operating:  2.8
• Median Years Operating:  3.0
• Total Jobs:  8,579
• Average Job Value:  $1,164.47
• Median Job Value:  $1,076.16

• “Total Jobs” reflects the total number of jobs completed by the owners in that group.

• A number of factors impact franchise owner’s revenue, such as the operational capability of the franchise owner, the price that the franchise owner decides to charge, the competition in the market, and the franchise owner’s ability to sell ancillary and higher margin services. The price you charge and your ability to sell may differ from the Represented Franchise Owners.

• The figures in these tables reflect the actual results reported by the Represented Franchise Owners. The figures have not been audited by the The Patch Boys or independently verified. No certified public accountant has audited these figures or expressed his or her opinion concerning their contents or form.

• This financial performance representation does not report other variable costs or fixed operating expenses, or other costs or expenses that must be deducted from the revenue figures to obtain net income or profit.

• Some franchised businesses have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – The Patch Boys Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️