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Handyman Connection Franchise ProfileHome Based Franchises > Home Repair Services |
Initial Investment and Financial Requirements for Handyman Connection Franchise
To open a Handyman Connection franchise, the initial investment ranges from $105,620 to $224,774, including a franchise fee of $65,000. Potential franchisees should have a net worth between $200,000 and $500,000, along with cash reserves to cover startup costs. Annual revenue per unit averages around $681,982, with a breakeven time of approximately 12 months, making it a potentially lucrative investment for those meeting the financial criteria.
Ongoing Fees and Royalties
Franchisees of Handyman Connection are required to pay a royalty fee of 5% on their revenue, along with a marketing fee of 10%. These ongoing fees are essential for maintaining brand presence and support, enabling franchisees to benefit from collective marketing efforts and operational guidance. Understanding these costs is crucial for financial planning and long-term sustainability in the business.
Revenue Performance and Profitability
The average annual revenue for a Handyman Connection unit is $681,982, with a median revenue of $511,572. While the lowest reported revenue is $236,617, the highest can reach up to $2,833,548. Despite the potential for significant revenue, franchisees should be aware of the operating expenses, which can consume a substantial portion of earnings, leading to an EBITDA of negative $44,088 on average.
Franchise Growth and Unit Development
As of 2023, Handyman Connection operates 62 franchised units, showing a slight increase from 58 units in 2022. The brand has maintained a consistent presence in the market without any corporate-owned units, emphasizing its focus on franchising. This growth trajectory indicates a steady interest in the franchise model, making it an appealing opportunity for prospective franchisees looking to enter a growing industry.
Handyman Connection 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:
Handyman Connection 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 | 61 | 58 | 62 |
| Net Change YoY | -3 | 4 | |
| Franchised Units | 61 | 58 | 62 |
| Net Change YoY | -3 | 4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
Handyman Connection offers a franchise opportunity with an initial investment ranging from $105,620 to $224,774. This includes a franchise fee of $65,000, along with ongoing royalty and marketing fees of 5% and 10% of gross sales respectively. Potential franchisees should have a net worth between $200,000 and $500,000 to qualify for ownership.
Revenue Potential
Franchisees can expect an average annual revenue of $681,982, with a median revenue of $511,572. The revenue range is broad, with the lowest annual revenue recorded at $236,617 and the highest at $2,833,548. This diverse revenue potential highlights the opportunity for significant earnings in the handyman services sector.
Breakeven and Payback
Handyman Connection franchises typically achieve breakeven within 12 months. This rapid payback period indicates a strong potential for profitability, allowing franchisees to recover their initial investment quickly and start generating returns on their investment.
Corporate Structure
Handyman Connection operates as a franchise system with no company-owned units, focusing entirely on franchised locations. As of 2023, the franchise has 62 units, demonstrating a steady growth trajectory and a commitment to expanding its network of franchisees.
Operating Expenses
The average annual operating expenses for a Handyman Connection franchise total approximately $483,000, which accounts for 71% of revenue. Key expenses include marketing and advertising, rent, utilities, and salaries, emphasizing the need for effective cost management to optimize profitability.
Financial Performance
The average gross profit margin for Handyman Connection franchises stands at 48%, with cost of goods sold (COGS) at 52% of revenue. Despite facing operating losses indicated by an EBITDA of -$44,088, franchisees can work towards improving financial performance through strategic management and operational efficiencies.
Frequently Asked Questions
The initial investment for a Handyman Connection franchise ranges from $105,620 to $224,774, which includes the franchise fee and other startup costs.