Five franchise brands run a handyman business. Here they are beside the independent version of the same business, with each brand’s fees as it publishes them and worked out in dollars. A brand can bring customers an independent has to earn one by one. The question is whether it brings in more than it costs.
Typical for a handyman business: $150k to $500k in sales, and the owner keeps 10% to 18% after paying for its own marketing. Change either to your own numbers.
Work each brand out at
How the two sides are counted
Sales. A brand’s name brings customers an independent wins one at a time, so each brand is worked out at the sales it reports where we have them, and at yours where we don’t.
Marketing. On your own you pay for all of it, about 10% of sales here. The ad fund does part of that job, so it is counted once, not twice.
Survival. New franchised businesses were about 5 to 6 points more likely to make it through their first two years in Census data, and about half of all new businesses close within five years. It is not in the dollars; each brand’s details give the sources.
Your own handyman business and each brand, side by side
The independent version
Your own handyman business
Built and run under your own name
Cost to open
$45k to $141k
Annual sales
$270ktypical
Franchise fee
None
Royalty + ad fund
Noneall marketing is yours
$37,800
The owner keeps in a year, after about $27k of marketing
Taking new owners
TruBlue Home Service Ally
Home maintenance and handyman
Total investment
$70k to $96k
Avg. annual sales
$314k to $369k
Franchise fee
$50k
Royalty + ad fund
6% + 2% of sales
$27k
The owner keeps in a year at $342k in sales (what it reports), after $27k to the brand
$10k less a year than on your own
Taking new owners
Handyman Connection
Handyman and small remodeling
Total investment
$116k to $239k
Avg. annual sales
$449k to $575k
Franchise fee
$71k
Royalty + ad fund
6% + 2% of sales
$41k
The owner keeps in a year at $512k in sales (what it reports), after $41k to the brand
$3k more a year than on your own
Taking new owners
House Doctors
Handyman services
Total investment
$120k to $191k
Avg. annual sales
$621k
Franchise fee
$65k
Royalty + ad fund
6% + 2% of sales
$50k
The owner keeps in a year at $621k in sales (what it reports), after $50k to the brand
$12k more a year than on your own
Taking new owners
Ace Handyman Services
Handyman and home repair
Total investment
$131k to $224k
Avg. annual sales
Franchise fee
$70k
Royalty + ad fund
6% + 2% of sales
$22k
The owner keeps in a year at $270k in sales (your sales), after $22k to the brand
$16k less a year than on your own
Taking new owners
Mr. Handyman
Handyman repairs
Total investment
$162k to $215k
Avg. annual sales
Franchise fee
$67k
Royalty + ad fund
7% of sales
$19k
The owner keeps in a year at $270k in sales (your sales), after $19k to the brand
$19k less a year than on your own
Free account
See all 5 handyman business brands side by side
Every brand’s investment and fees, and what the owner keeps against running your own
The yearly sales the first 3 report, and a plus to add brands to your comparison and benchmark them in your account
Members see the sales every franchisor reports, for every brand
Free, no card. A new account accepts the Terms and the Privacy Policy. smbnest is a self-assessment tool and never takes a cut of your deal or a fee from a franchisor.
Before you sign: what to read in the disclosure document
Every franchisor must give you its Franchise Disclosure Document at least 14 days before you sign or pay. These are the parts that answer the questions above.
Items 5 to 7, the fees and the investment. The franchise fee, every other fee (technology, training, transfer, renewal), and the full opening budget, including working capital.
Item 19, what owners earn. Whether the brand states owner sales or earnings at all, and for which units. Put its figures in the boxes above in place of the typical ones.
Item 20, units opened, closed and sold. How many owners left in each of the last three years, and a list of current and former owners you can call.
Item 12, the territory. Whether you get a protected area, and what the brand can open or sell inside it.
Item 21, the franchisor’s own finances. Whether the company behind the brand is in good health.
smbnest is a self-assessment tool, not individualized advice. Fees are as each brand publishes them on its franchising page and in its disclosure document, reviewed in the month shown, and change; the figures in dollars are worked out at the sales you enter and are not a forecast. We never take a cut of your deal or a fee from a franchisor. Before you sign, speak with a franchise attorney and a qualified financial adviser, and call owners from the disclosure document.
Your guidesmbnest
The guide is an automated assistant. Answers come from this business’s model, its sources and your plan; they are general information, not legal, tax or financial advice. Talk to a person