Ace Handyman Services: $501K Average Sales vs. $131K-$220K Franchise Cost

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

Section I – Estimated initial investment (franchise costs) for an Ace Handyman Services franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Ace Handyman Services franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Ace Handyman Services outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Ace Handyman Services franchise opportunity

Section V – Presentation and analysis of Ace Handyman Services’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average revenue, cost of goods sold, and gross profit for the 43 single-territory Ace Handyman Services Reporting Operators who have been operating between one and three years, and provided the franchisor with complete financial reports during the full year of 2023

• 2023 average revenue, cost of goods sold, and gross profit for the 4 single-territory Ace Handyman Services Reporting Operators who have been operating more than three years, and provided the franchisor with complete financial reports during the full year of 2023

• 2023 average revenue, cost of goods sold, and gross profit for the 41 multi-territory Ace Handyman Services Reporting Operators with 110 territories who have been operating between one and three years, and provided the franchisor with complete financial reports during the full year of 2023

• 2023 average revenue, cost of goods sold, and gross profit for the 12 multi-territory Ace Handyman Services Reporting Operators with 43 territories who have been operating more than three years, and provided the franchisor with complete financial reports during the full year of 2023

Section VI – Key ratios, comparables, computations, and analyses for the Ace Handyman Services franchise opportunity (exclusive content for Platinum subscribers)

Section I – Ace Handyman Services Franchise Costs

• Ace Handyman Services franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $70,000 to $100,000
• Travel and Living Expenses While Training:  $3,500 to $6,000
• Lease Deposit:  $1,000 to $3,000
• Rent for First 3 Months:  $3,000 to $4,500
• Leasehold Improvements and Signage:  $800 to $5,000
• Furnishings:  $800 to $5,000
• Tools and Equipment:  $0 to $3,500
• Truck or Van:  $0 to $6,000
• Computer Hardware and Office Equipment:  $2,250 to $5,000
• Software and Internet Fees (3 months):  $1,497
• Initial Marketing Spend:  $11,000 to $16,000
• Utility Deposits and Fees:  $100 to $700
• Licenses and Permits:  $630 to $3,500
• Insurance:  $4,000 to $5,100
• Professional Fees:  $500 to $6,000
• Miscellaneous Opening Costs:  $2,000 to $4,500
• Additional Funds for 3 Months:  $30,000 to $45,000
• Total Estimated Ace Handyman Services Franchise Costs:  $131,077 to $220,297

Section II – Ace Handyman Services’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Ace Handyman Services’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $70,000 for a Territory size of up to 70,000 households. If your actual Territory size exceeds 70,000 households, the Initial Franchise Fee is increased $1.00 for each additional household located in the Territory, up to a maximum Territory size of 100,000 households.

• Royalty Fee:  6% of your actual Gross Revenues of the previous month, subject to annual reconciliation based on your Minimum Annual Gross Revenues requirements

• National Brand Fee:  2% of your actual Gross Revenues, subject to annual reconciliation based on your Minimum Annual Gross Revenues requirements

• Minimum Individual Marketing Expenditure:  $30,000 from your third full month through the end of your first year of operations, $40,000 in your second year of operations, and $50,000 for each subsequent year

Section III – Number of Franchised and Company-Owned Ace Handyman Services Outlets

Franchised

2021

• Outlets at the Start of the Year:  123
• Outlets at the End of the Year:  225
• Net Change:  +102

2022

• Outlets at the Start of the Year:  225
• Outlets at the End of the Year:  305
• Net Change:  +80

2023

• Outlets at the Start of the Year:  305
• Outlets at the End of the Year:  367
• Net Change:  +62

Company-Owned

2021

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  7
• Net Change:  0

2022

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  7
• Net Change:  0

2023

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  12
• Net Change:  +5

Section IV – News Updates on the Ace Handyman Services Franchise

• All in the Family for These Ace Handyman Franchisees

• The Evolution of Ace Handyman Services: A Tale of Growth and Success

• Ace Handyman Services Offers a Completely Different Way of Doing the Handyman Thing

• Ace Handyman Services: Handyman Services With a Heart

• Ace Handyman Services Named One of 2024’s Best of the Best Franchises by Entrepreneur

• Ace Handyman Services Ranked No. 132 on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Ace Handyman Services Franchise (Item 19, 2024 FDD)

• In this Item 19, the franchisor refers to the Ace Handyman Services Businesses as “Territories” and the franchise owners as “Operators.”

• As of December 31, 2023, there were 367 Territories operated by a total of 205 different Operators. There are 200 Territories operated by 100 Operators shown in the tables below.

• Of the Territories not shown in the tables below, 84 commenced operations during calendar year 2023 and 15 other Territories were closed by their Operators for periods of time during calendar year 2023 and therefore were not opened for at least 12 months as of December 31, 2023.

• Another 63 Territories are owned by Operators who did not provide Ace Handyman Services with complete financial reports showing the full year of 2023 operations. In addition, 5 Territories that were owned by Operators were acquired by Ace Handyman Services’ affiliate, AHHS, during calendar year 2023. None of those Territories are shown in the charts below.

• There were also 12 affiliated Ace Handyman Services Businesses in operation (including the 5 Ace Handyman Services Businesses acquired by Ace Handyman Services’ affiliate as noted above) that are not shown in this Item 19.

• The results of the remaining 100 Operators, all of whom operated for the full calendar year 2023, are shown in the tables below. These Operators are referred to as the “Reporting Operators.” There were 47 Reporting Operators that owned and operated in a single Territory, and 53 Reporting Operators who owned multiple Territories.

• Because Multi-Territory Reporting Operators’ results may vary from the results of Single-Territory Reporting Operators, Ace Handyman Services includes below separate tables for the results of the Single-Territory Reporting Operators and Multi-Territory Reporting Operators.

• Part 1 shows the results of the Single-Territory Reporting Operators who have been operating between one and three years. Part 2 shows the results of the Single-Territory Reporting Operators who have been operating for more than three years. Part 3 shows the results of the Multi-Territory Reporting Operators who have been operating between one and three years. Part 4 shows the results of the Multi-Territory Reporting Operators who have been operating for more than three years.

Part 1 – Single Reporting Territories That Have Operated Between 1 and 3 Years (43 Reporting Operators)

Average

Revenue

• Labor Revenue:  $364,115 (72.0%)
• Material, Trash, Equipment Revenue:  $103,894 (20.5%)
• Service Charge Revenue:  $37,927 (7.5%)
• Total Revenues:  $506,026 (100.0%)

Less: Cost of Goods Sold (COGS)

• Craftsmen Personnel Expenses:  $159,563 (31.5%)
• Material, Trash, Equipment:  $92,341 (18.2%)
• Royalties:  $28,702 (5.7%)
• Tools, Credit Card Fees, Permits:  $1,185 (0.2%)
• Total COGS:  $281,791 (55.7%)

Gross Profit:  $224,235 (44.3%)

Part 2 – Single Reporting Territories That Have Operated More Than 3 Years (4 Reporting Operators)

Average

Revenue

• Labor Revenue:  $320,003 (71.5%)
• Material, Trash, Equipment Revenue:  $89,862 (20.1%)
• Service Charge Revenue:  $37,671 (8.4%)
• Total Revenues:  $447,535 (100.0%)

Less: Cost of Goods Sold (COGS)

• Craftsmen Personnel Expenses:  $178,573 (39.9%)
• Material, Trash, Equipment:  $66,136 (14.8%)
• Royalties:  $29,592 (6.6%)
• Tools, Credit Card Fees, Permits:  $1,542 (0.3%)
• Total COGS:  $275,843 (61.6%)

Gross Profit:  $171,693 (38.4%)

Part 3 – Multi-Territory Reporting Operators That Have Operated Between 1 and 3 Years (41 Reporting Operators with 110 Territories)

Average

Revenue

• Labor Revenue:  $505,190 (76.3%)
• Material, Trash, Equipment Revenue:  $98,502 (14.9%)
• Service Charge Revenue:  $58,028 (8.8%)
• Total Revenues:  $661,680 (100.0%)

Less: Cost of Goods Sold (COGS)

• Craftsmen Personnel Expenses:  $215,923 (32.6%)
• Material, Trash, Equipment:  $94,293 (14.3%)
• Royalties:  $38,487 (5.8%)
• Tools, Credit Card Fees, Permits:  $2,273 (0.3%)
• Total COGS:  $348,386 (52.7%)

Gross Profit:  $297,384 (44.9%)

Part 4 – Multi-Territory Reporting Operators That Have Operated More Than 3 Years (12 Reporting Operators with 43 Territories)

Average

Revenue

• Labor Revenue:  $651,492 (77.0%)
• Material, Trash, Equipment Revenue:  $145,807 (17.2%)
• Service Charge Revenue:  $49,110 (5.8%)
• Total Revenues:  $846,409 (100.0%)

Less: Cost of Goods Sold (COGS)

• Craftsmen Personnel Expenses:  $325,582 (38.5%)
• Material, Trash, Equipment:  $126,338 (14.9%)
• Royalties:  $47,984 (5.7%)
• Tools, Credit Card Fees, Permits:  $1,373 (0.2%)
• Total COGS:  $501,277 (59.2%)

Gross Profit:  $345,132 (40.8%)

• “Total Revenue” means all revenue derived from the Reporting Operators’ Ace Handyman Services Businesses, excluding sales tax and net of discounts, in calendar year 2023. The tables also break the Total Revenues into Labor Revenue, Material, Trash, Equipment Revenue, and Service Charge Revenues.

• “Craftsmen Personnel Expenses” includes the costs for personnel including craftsmen and subcontractors, insurance, training fees, background checks, drug checks, and all payroll benefit expenses paid by the Reporting Operators in calendar year 2023.

• “Materials, Trash, Equipment” includes the costs for all materials, trash removal/dump, and equipment rentals paid by the Reporting Operators in the calendar year 2023.

• “Tools, Credit Card Fees, Permits” includes the costs for tools, credit card processing fees, and permits paid by the Reporting Operators in the calendar year 2023.

• “Royalties” includes the 6 percent Royalty Fees paid to Ace Handyman Services based on the Total Revenues.

• “Total Cost of Goods Sold” was determined by adding the amounts shown for the Craftsmen Personnel Expenses, the Materials, Trash, Equipment expenses, Royalties, and the Tools, Credit Card Fees, Permits expenses.

• “Gross Profit” was determined by subtracting the Total Cost of Goods Sold from the Gross Revenues.

• The information in the tables were prepared from data obtained from the unaudited reports submitted by the Reporting Operators shown in each table to Ace Handyman Services from their QuickBooks software for calendar year 2023. Ace Handyman Services has not audited these reports and cannot guarantee their accuracy.

• Some Ace Handyman Services Businesses have sold and earned these amounts. Your individual results may differ. There is no assurance that you will sell or earn as much.

Section VI – Ace Handyman Services Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️