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Ace Handyman Franchise ProfileHome Based Franchises > Home Repair Services |
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.
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.
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.
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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Ace Handyman Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| 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 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.
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.
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.
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.
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.
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.