In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Mr. Handyman franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Mr. Handyman franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Mr. Handyman outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Mr. Handyman franchise opportunity
Section V – Presentation and analysis of Mr. Handyman’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, highest, and lowest gross sales for the 155 Mr. Handyman franchisees that operated 257 franchised businesses that were in operation and reported sales for all 12 months of the calendar year 2022, grouped by the number of franchised businesses that the franchisees own (1, 2, 3, 4, and 5 to 6)
- 2022 average and median percentage of gross sales from repeat business for the 155 Mr. Handyman franchisees that operated 257 franchised businesses that were in operation and reported sales for all 12 months of the calendar year 2022
- 2022 average, median, highest, and lowest gross sales per job for the 155 Mr. Handyman franchisees that operated 257 franchised businesses that were in operation and reported sales for all 12 months of the calendar year 2022
Section VI – Key ratios, comparables, computations, and analyses for the Mr. Handyman franchise opportunity (exclusive content for Platinum subscribers)
Section I – Mr. Handyman Franchise Costs
- Mr. Handyman franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Licensing Fee: $63,000
- Initial Package Fee: $5,500
- Vehicle Expenses – 3 Months: $2,350 to $4,300
- Computer Hardware Package: $3,500 to $6,000
- Real Estate and Utility Deposit – 3 Months: $750 to $3,000
- Furniture, Fixtures, and Office Equipment: $0 to $1,500
- Tools and Equipment to Equip One Van: $1,000 to $2,000
- Permits and Licenses: $100 to $1,000
- Initial Opening Equipment, Uniforms, and Marketing Materials: $5,500
- Prepaid Insurance Premiums: $1,800 to $2,800
- Training Expenses (Travel, Food, and Lodging): $3,000 to $4,000
- Professional Fees: $0 to $5,000
- Additional Funds for 3 Months: $34,500 to $54,000
- Total Estimated Mr. Handyman Franchise Costs: $121,000 to $157,600
Section II – Mr. Handyman’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Mr. Handyman’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Licensing Fee: $63,000
- License Fee: 7% of Gross Sales except for material revenue, subcontractor revenue, and “roll in” sales. In addition, Minimum License Fees apply. In the case of material revenue and subcontractor revenue, License Fee shall be 3.5% of Gross Sales.
- Marketing and Promotion (MAP) Fee: 2% of Gross Sales except for “roll in” sales. In addition, Minimum MAP Fees apply.
- Local Marketing Requirement and Local Marketing Groups: $3,000 per month per franchise agreement, subject to adjustment for multiple franchise agreements
Section III – Number of Franchised and Company-Owned Mr. Handyman Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 257
- Net Change: +23
2021
- Outlets at the Start of the Year: 257
- Outlets at the End of the Year: 297
- Net Change: +40
2022
- Outlets at the Start of the Year: 297
- Outlets at the End of the Year: 310
- Net Change: +5
Company-Owned
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
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – News Updates on the Mr. Handyman Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Mr. Handyman Franchise (Item 19, 2023 FDD)
- The following charts and tables are a historic financial performance representation and are not a forecast of your future financial performance. Neither Mr. Handyman nor its independent certified public accountants have audited or verified any of the sales figures reported to it. Franchisees are not required to use generally accepted accounting principles when reporting these figures.
- For purposes of the representations below, “Gross Sales” means the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade, or other consideration) that arise, directly or indirectly, from the operation of, or in connection with, a Mr. Handyman Business, whether under any of the Marks or otherwise.
- Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates, or discounts that Mr. Handyman authorizes in writing. Gross Sales also exclude sales from any Excluded Services. Gross sales reflect the total sales for the Operators as reported to Mr. Handyman through the Software System.
- As of December 31, 2022, there were 310 Mr. Handyman businesses in operation in the United States, all of which were franchised businesses. Parts 1, 2, and 3 of this Item 19 include data for 257 franchised businesses (“Reporting Businesses”) that were in operation and reported sales for all 12 months of the calendar year 2022 (the “Reporting Period”).
- Parts 1, 2, and 3 do not include data for (a) 24 franchised businesses that opened in 2022 and therefore did not report data for the entire Reporting Period; (b) 9 franchised businesses that underwent a transfer during the Reporting Period and as a result did not report data for all months of the Reporting Period; and (c) 20 franchised businesses that did not report data to Mr. Handyman for all 12 months of the Reporting Period.
- Eleven franchised businesses closed during the Reporting Period (and therefore did not report data for the entire Reporting Period) and thus were excluded from this Item 19; of the 11 businesses that closed during the Reporting Period, two businesses closed after being open for less than 12 months.
Part 1 – Average and Median Gross Sales for the Period of January 1, 2022 to December 31, 2022
- The following table provides the average and median Gross Sales for the Reporting Period for 155 franchisees that operated the Reporting Businesses (the “Reporting Franchisees”).
- Because Mr. Handyman franchisees have historically reported data to Mr. Handyman aggregated by franchisee (rather than by a franchised business) and a number of Mr. Handyman franchisees operate multiple Mr. Handyman franchised businesses, Mr. Handyman has separated the data reported in this Part 1 by the number of franchised businesses that the franchisees own – i.e., separately showing average and median Gross Sales data for franchisees that own one franchised business/unit, franchisees that own two franchised businesses/units, franchisees that own three franchised businesses/units, franchisees that own four franchised businesses/units, and franchisees that own five to six franchised businesses.
Single-Unit Franchisees Group
- Number of Reporting Franchisees: 84
- Number of Reporting Franchised Businesses: 84
- Average Gross Sales: $818,581
- Number and Percent of Franchisees that Achieved at Least the Average: 31/37%
- Actual Highest Gross Sales: $2,591,168
- Actual Lowest Gross Sales: $216,954
- Median Gross Sales: $717,483
2-Unit Franchisees Group
- Number of Reporting Franchisees: 50
- Number of Reporting Franchised Businesses: 100
- Average Gross Sales: $1,090,420
- Number and Percent of Franchisees that Achieved at Least the Average: 18/36%
- Actual Highest Gross Sales: $3,119,539
- Actual Lowest Gross Sales: $419,137
- Median Gross Sales: $963,513
3-Unit Franchisees Group
- Number of Reporting Franchisees: 15
- Number of Reporting Franchised Businesses: 45
- Average Gross Sales: $1,410,316
- Number and Percent of Franchisees that Achieved at Least the Average: 6/40%
- Actual Highest Gross Sales: $3,112,099
- Actual Lowest Gross Sales: $581,087
- Median Gross Sales: $1,342,007
4-Unit Franchisees Group
- Number of Reporting Franchisees: 3
- Number of Reporting Franchised Businesses: 12
- Average Gross Sales: $1,313,024
- Number and Percent of Franchisees that Achieved at Least the Average: 2/66%
- Actual Highest Gross Sales: $1,686,003
- Actual Lowest Gross Sales: $767,018
- Median Gross Sales: $1,486,050
5 to 6 Unit Franchisees Group
- Number of Reporting Franchisees: 3
- Number of Reporting Franchised Businesses: 16
- Average Gross Sales: $2,635,913
- Number and Percent of Franchisees that Achieved at Least the Average: 1/33%
- Actual Highest Gross Sales: $3,014,405
- Actual Lowest Gross Sales: $2,381,718
- Median Gross Sales: $2,511,617
Part 2 – Percentage of Jobs from Repeat Customers for the Year 2022
- The following table provides the average and median percentage of jobs from Repeat Customers during the Reporting Period for the Reporting Franchisees. Repeat Customers are customers who received a service from the same Mr. Handyman franchisee in 2021 and 2022.
- Number of Reporting Franchisees: 155
- Average % of Gross Sales from Repeat Business: 74%
- Number and Percent of Franchisees that Achieved at Least the Average: 82/53%
- Median % of Gross Sales from Repeat Business: 74%
- Number of Reporting Franchisees is the number of franchisees whose data is included in this Part 2 (i.e., franchisees who reported Gross Sales data to Mr. Handyman for the entire Reporting Period for each of their franchised businesses).
Part 3 – 2022 Average and Median Gross Sales per Job
- The following table provides the average and median 2022 Gross Sales per Job for the Reporting Franchisees for the Reporting Period.
- Number of Reporting Franchisees: 155
- Number of Reporting Franchise Businesses: 257
- Average Gross Sales per Job: $684
- Number and Percent of Franchisees that Achieved at Least the Average: 60/39%
- Highest Gross Sales per Job: $1,334
- Lowest Gross Sales per Job: $407
- Median Gross Sales per Job: $650
- Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.
Section VI – Mr. Handyman Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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