Mr. Handyman Franchise Costs, Fees & FDD

Year Business Began: 1996

Franchising Since: 2000

Headquarters: Waco, Texas

Estimated Number of Units: 350

Franchise Description: Mr. Handyman SPV LLC is the franchisor. The parent company is Neighborly Assetco LLC. The franchise owner will provide residential and business repair, maintenance and improvement services, utilizing the Mr. Handyman business system.
Training Overview: Franchisees must successfully complete the initial training program before opening the franchised business. Initial training begins with “Sure Start,” a six to eight week program that includes numerous pre-opening activities. Sure Start activities are completed before attending training in Dallas, Texas and are conducted in the franchisee’s hometown with assistance from the franchisor’s home office staff (or virtually). Upon successful completion of Sure Start, the franchisee must attend up to 10 days of classroom training at the franchisor’s offices in Dallas, Texas or another location designated by the franchisor. Following the successful completion of classroom (or virtual) training, final confirmation will be made of the franchisee’s business launch date which will include two days of training at the franchisee’s site (which training may be conducted virtually). The franchisor may also require that franchisees attend one of its field training centers for two to three days. Currently, the franchisor has chosen to provide ongoing training through conventions and regional meetings, as well as through webinars. Franchisees must attend some form of periodic training session every two years.

Territory Granted: Franchisees will receive the right to operate a Mr. Handyman business at a location within their territory that meets the franchisor’s site selection guidelines. The Franchise Agreement will also specify a designated territory that will provide franchisees limited territory protection. The franchisor identifies territories by U.S. Postal codes or U.S. Census Bureau Census Tracts or physical or political boundaries. Within the territory, franchisees and the franchisor will agree upon an approximate number of target households that meet its current demographic formulation. The typical territory includes approximately 60,000 target households. The minimum territory size is 40,000 target households and the maximum territory size is 60,000 target households. Provided franchisees are in full compliance with their Franchise Agreement, the franchisor will not operate or grant a franchise for the operation of another Mr. Handyman franchise with rights to market within their territory during the term of the Franchise Agreement.

Obligations and Restrictions: If franchisees are individuals, they must directly perform or supervise the operation of the business unless the franchisor consents otherwise. If agreed that the franchisee need not personally perform or supervise operation of the business, an individual who has successfully completed the training program (a manager) must directly supervise the business, and that individual must be a bona fide manager, as determined by the franchisor. If franchisees are a corporation or other legal entity, direct, on-site supervision must be done by a designated owner who has successfully completed the training program unless the franchisor consents otherwise. While franchisees own the franchise, they cannot have an interest or relationship with any competitors. Franchisees must offer and sell only the goods and services that conform to the franchisor’s standards and specifications. Franchisees must offer the goods and/or services that the franchisor designates as required for all franchisees and they may elect to offer other products and/or services only if the franchisor approves them in advance.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The Franchise Agreement can be renewed for one additional 10-year term by executing the then-current form of the Franchise Agreement and meeting the other requirements for renewal.

Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specified terms and conditions. The decision to finance the initial franchise fee will be based, in part, on the franchisee’s creditworthiness, the collateral the franchise has available to secure the financing and the franchisor’s then-current financing policies. The franchisor does not provide any financing in any transaction in which brokers are involved. The franchisor may periodically agree with third party lenders to make financing available to its qualified franchisees and it may, in its sole discretion, refer franchisees to a third party lender for financing. Enterprise may offer franchisees financing for vehicles if they meet its qualifications; however, franchisees are not required to purchase or lease their vehicles from the company. The franchisor also suggests third party sources for lending. In addition, if franchisees are a United States or Canadian honorably discharged veteran (as such term is defined by the franchisor in its sole discretion) who meets the qualifications for purchasing a franchise, the franchisor will discount the minimum initial franchise fee by 20%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Licensing Fee	$65,000	$65,000
Initial Package Fee	$5,500	$5,500
Vehicle Expenses – 3 months	$3,000	$8,000
Computer Hardware Package	$3,500	$6,000
Real Estate and Utility Deposit – 3 months	$750	$3,000
Furniture, Fixtures and Office Equipment	$0	$1,500
Tools and Equipment to Equip One Van	$1,000	$2,000
Permits & Licenses	$100	$1,000
Initial Opening Equipment, Uniforms and Marketing Materials	$6,000	$10,000
Prepaid Insurance Premiums—3 months	$1,800	$2,800
Training Expenses: Travel, Food and Lodging	$3,000	$4,000
Professional Fees	$0	$5,000
Additional Funds—3 months	$54,000	$74,000
ESTIMATED TOTAL	$143,150	$179,600

Other Fees

Type of Fee	Amount
License Fee	7% of gross sales except for material revenue, subcontractor revenue, and “roll in” sales. In addition, minimum license fees apply. In the case of material revenue and subcontractor revenue, license fee shall be 3.5% of gross sales.
Marketing, Advertising and Promotion (MAP) Fee	2% of gross sales except for “roll in” sales. In addition, minimum MAP fees apply.
Minimum Local Marketing Spending Requirement	$60,000 in Year 1, $75,000 in Year 2. Thereafter, annually: 8% of prior year’s gross sales.
Local Marketing Groups	Not to exceed 3% of gross sales.
Software System Monthly Fees	$80 per month, plus applicable fees for any additional licenses, email accounts, or any support or maintenance on the point of sale system.
Late Fees (on Software System Monthly Fees)	$25 per month or the maximum amount allowed under the law, whichever is less.
Mr. Handyman Toll Free Phone Number Usage	The then current fee. Presently, the current fee is $0.25 for each minute.
Regional Meetings	The then-current fee.
Reunion	The then current fee. Currently up to $1,000.
Renewal Fee	$5,000
Change of Legal Entity Fee	$500
Transfer Fees	The greater of (i) $9,900 or (ii) 5% of the sale price, plus $5,500 transfer initial package fee to receive the transfer initial package.
Interest	12% per annum on unpaid balances.
Late Fee	$10 per day.
Dishonored Check or ACH Draft	$50
Audit Noncompliance Fee	$500 per document (up to $2,500 per audit) that the franchisee fails to timely make available to the franchisor in connection with an audit; and/or: cost of audit, if audit is rescheduled due to the failure to cooperate with the audit.
Indemnification and Attorney’s Fees and Costs	Varies according to loss.
Territory Violation	First intentional violation: 50% of cumulative revenue from a customer wrongfully serviced. Any subsequent violation: 100% of cumulative revenue from a customer wrongfully serviced.
Amendment Fee	$300
Unapproved Suppliers	The franchisor’s actual out-of-pocket costs of inspection or testing.
Tax Reimbursement	Varies according to tax.
Additional Training Fee	The then-current fee, currently, $500.
Call Center Program Fees	Current fees: $349.99-$449.99/month (depending on the third-party vendor the franchisor is able to use) plus $25 per booked appointment.
Key Accounts/Management Fee	Up to 3% of total gross sales related to key account work, including gross sales that relate to key accounts; gross sales that are the result of any lead or any agreement developed by the franchisor’s business development department or any similar group that is part of the franchisor’s company or is its designee; gross sales for work that is dispatched from any call center operated by the franchisor or its designee; gross sales that are audited by the franchisor or its designee according to key accounts standards or gross sales that otherwise benefit from the franchisor’s key accounts activities or management.

The above information has been compiled from the FDD of Mr. Handyman. Year of FDD: 2025.
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