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Description
Investment Icon

What Are the Initial Investment Costs for an Ace Handyman Franchise?

To become an Ace Handyman franchisee, you will need to prepare for an initial investment ranging from $131,077 to $220,297. This includes a franchise fee of $70,000. Additionally, you should have cash on hand between $96,077 and $220,297, along with a net worth requirement of $100,000 to $300,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the venture.

Fees Icon

What Are the Ongoing Fees Associated with an Ace Handyman Franchise?

As an Ace Handyman franchisee, you will be responsible for ongoing fees that include a royalty fee of 6% of your unit's revenue and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting marketing initiatives to drive customer traffic. Being aware of these ongoing costs is vital for effective budgeting and financial planning as you grow your franchise.

Revenue Icon

What Is the Average Revenue for an Ace Handyman Franchise?

The average annual revenue for an Ace Handyman franchise unit is approximately $506,026, with a median revenue of $495,638. Revenue can vary significantly, with the lowest reported annual revenue at $214,214 and the highest at $2,505,407. This range highlights the potential profitability of the franchise, but it also emphasizes the importance of location, management, and operational efficiency to achieve optimal financial results.

Breakeven Icon

What Is the Breakeven Timeline for an Ace Handyman Franchise?

Franchisees of Ace Handyman can expect to reach breakeven within about 12 months. The investment payback period is notably quick, at just 6 months. This timeline is encouraging for potential franchisees, as it indicates a relatively swift return on investment, allowing owners to reinvest in their business sooner and potentially expand their operations. Understanding these timelines can help in planning and setting realistic financial expectations.

Ace Handyman 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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$100,000 - $300,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

6 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$70,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$131,077 - $220,297
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$96,077 - $220,297
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$506,026
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$495,638
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$2,505,407
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$214,214
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Home Based Franchises
Category icon A more specific division within the broader industry.

i Category:

Home Repair Services
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Andy Bell
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

12567 West Cedar Drive, Suite 200, Lakewood, Colorado 80228
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1998
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Ace Hardware Corporation

Ace Handyman Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

379
The number of locations owned by independent franchisees.

Franchised Units i

367
The number of locations owned and run by the franchisor.

Corporate Units i

12
Units 2021 2022 2023
Total Units 130 232 317
Net Change YoY 102 85
Franchised Units 123 225 305
Net Change YoY 102 80
Corporate Units 7 7 12
Net Change YoY 0 5
Investment About

Investment Overview

The Ace Handyman franchise offers a low initial investment range of $131,077 to $220,297, making it an accessible option for aspiring entrepreneurs. The initial franchise fee is set at $70,000, with ongoing royalty fees of 6% and a marketing fee of 2%. Prospective franchisees should have a cash requirement between $96,077 and $220,297, along with a net worth of $100,000 to $300,000, ensuring they are financially prepared for this business venture.

Potential About

Revenue Potential

Ace Handyman franchises show promising financial performance, with an average annual revenue per unit of $506,026. The median revenue stands at $495,638, while units can generate as little as $214,214 or as much as $2,505,407 annually. This range highlights the potential for significant earnings, depending on factors such as location and operational efficiency.

Metrics About

Breakeven and Payback

Franchisees can expect to reach breakeven within 12 months, which is a relatively quick timeline for recovering initial investments. Additionally, the investment payback period is just 6 months, allowing franchisees to recoup their costs swiftly and start reinvesting in their business sooner.

Fees About

Growth Trajectory

The Ace Handyman franchise has demonstrated robust growth, increasing from 123 franchised units in 2021 to 305 in 2023. This upward trend reflects the brand's expanding market presence and the growing demand for handyman services. The total number of units has also risen significantly, indicating strong franchisee interest and confidence in the business model.

Breakeven About

Operational Insights

While specific operating expenses are not detailed, understanding the average costs associated with running an Ace Handyman franchise is crucial for potential franchisees. Key expenses may include rent, marketing, utilities, insurance, and other opening costs, which together contribute to the overall financial health of the franchise unit.

Units About

Franchise Support

Ace Handyman provides comprehensive support to franchisees, including training, marketing assistance, and operational guidance. This support structure is vital for new owners, helping them navigate the initial challenges of running a franchise and ensuring they have the resources needed to thrive in a competitive market.

Frequently Asked Questions

The initial investment for an Ace Handyman franchise ranges from $131,077 to $220,297, including a franchise fee of $70,000.