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Mr. Handyman Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Initial Investment for a Mr. Handyman Franchise?
To open a Mr. Handyman franchise, you need to prepare for an initial investment ranging from $123,000 to $159,600. This includes a franchise fee of $65,000. It's important to have cash on hand for startup costs and to meet the net worth requirements, which range from $500,000 to $1,000,000. This financial commitment is crucial for securing a successful launch and ensuring you can support your business in its early stages.
What Are the Ongoing Fees for a Mr. Handyman Franchise?
As a Mr. Handyman franchisee, you will be responsible for ongoing fees that include a royalty fee of 7% of your gross revenue and a marketing fee of 2%. These fees contribute to the overall support and branding efforts of the franchise, ensuring that you benefit from the larger network and marketing initiatives that can help drive customers to your business. Understanding these fees is essential for managing your budget and financial projections.
What is the Revenue Potential for a Mr. Handyman Franchise?
Mr. Handyman franchises have shown strong revenue potential, with an average annual revenue of $890,582 per unit. The median annual revenue stands at $801,113, while the highest reported revenue reaches $3,478,516. This wide range indicates that, with effective management and marketing, franchisees can achieve significant financial success. Evaluating these figures can help you gauge the potential return on your investment.
What is the Breakeven and Payback Period for a Mr. Handyman Franchise?
Franchisees can expect to reach breakeven within approximately 12 months of operation, with an investment payback period of around 10 months. These timelines are critical for assessing the viability of your investment and planning your financial strategy. Quick returns can be a motivating factor for aspiring franchisees, especially in a service-oriented business like Mr. Handyman, where demand for home repair and maintenance services is consistently high.
Mr. 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.
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Mr. Handyman Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 257 | 297 | 310 |
| Net Change YoY | 40 | 13 | |
| Franchised Units | 257 | 297 | 310 |
| Net Change YoY | 40 | 13 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Mr. Handyman franchise offers a low initial investment range of $123,000 to $159,600, making it accessible for aspiring entrepreneurs. The franchise fee is set at $65,000, with a royalty fee of 7% on gross sales and a marketing fee of 2%. Prospective franchisees should have a net worth between $500,000 and $1,000,000 to ensure adequate financial backing for operations.
Revenue Potential
Franchisees can expect strong revenue performance, with average annual revenue per unit reported at $890,582. The median revenue stands at $801,113, while the lowest annual revenue recorded is $276,179 and the highest reaches an impressive $3,478,516. This indicates a significant earning potential for those who effectively manage their units.
Financial Performance
The average profit and loss metrics reveal a healthy financial structure. With a gross profit margin of 82.6%, franchisees can benefit from solid earnings before interest, taxes, depreciation, and amortization (EBITDA) of $414,716, which constitutes 46.5% of revenue. This performance showcases the franchise’s ability to generate substantial profits.
Operational Efficiency
Franchisees typically achieve breakeven within 12 months, with an investment payback period of just 10 months. This quick return on investment highlights the operational efficiency of the Mr. Handyman model, making it an attractive option for new franchisees looking to minimize financial risk.
Growth Trajectory
Mr. Handyman has demonstrated consistent growth in its franchised units, increasing from 257 in 2021 to 310 in 2023. This upward trend reflects the brand's expanding market presence and potential for future franchise development, offering new investors a promising opportunity in the home repair and maintenance sector.
Brand Recognition
As part of the Neighborly family of service brands, Mr. Handyman benefits from strong brand recognition and support. This affiliation provides franchisees with access to established marketing strategies and operational resources, enhancing their ability to attract customers and build a successful business within their local communities.
Frequently Asked Questions
The initial investment for a Mr. Handyman franchise ranges from $123,000 to $159,600, which includes the franchise fee and other startup costs.