Mr. Handyman Franchise Cost & Fees
Date of Incorporation: 1996
Franchising Since: 2000
Headquarters: Ann Arbor, Michigan
Business Description: Mr. Handyman International, LLC is franchisor. Mr. Handyman franchise owners provide residential and business repair and maintenance services.
Franchise Offer: The franchisor gives to qualified franchisees the right to use the “Mr. Handyman” and/or “My Handyman” trademark, and/or a similar trademark or other symbols used in the operation of a Mr. Handyman business, within a protected trading area, using the methods and operating systems that are defined in our Operating Manuals. The Mr. Handyman Franchised Business is devoted to providing consumers with a professional, safe, and reliable maintenance, repair and improvement service. Franchise owners do not perform the actual home maintenance and repair services but employ individuals experienced in providing such services.
Financial Assistance: The franchisor may offer financing for the Initial Fees if the franchisee meets the qualifications and credit standards. The ‘Standard Financing’ option and ‘Secondary Financing’ option cover this initial fee financing. The franchisor may also offer financing for vehicles, as outlined under “Enterprise Financing.” The franchisor has also been deemed eligible for streamlined and expedited loan processing through the Small Business Association (SBA). The franchisor also suggests third party sources for lending including, but not limited to FranFund, Benetrends, Guidant, Seigel Capital, Funding Solutions, Direct Connect Ventures and Directed Equity.
Training and Assistance: The franchisee must successfully complete an Initial Training program before opening the Franchised Business. Initial Training begins with “Right Start,” a six to eight week program that includes numerous pre-opening activities, including preparing a comprehensive financial plan, reviewing the Manuals, completing a territory review, coordinating an initial advertising program, and acquiring all permits, licenses, and approved vehicles. Right Start activities are conducted in the franchisee’s hometown with assistance from the franchisor’s home office staff. Upon successful completion of Right Start, the franchisee must attend up to 10 days of classroom training at the home office in Ann Arbor, MI or another location designated by the franchisor. Following the successful completion of classroom 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. Franchisees must attend at least one additional Training Session every 2 years.
Territory: The franchisee is awarded a Territory within which they may offer Mr. Handyman services to customers. The territory is identified by US Census Bureau Census Tracts or physical or political boundaries. The typical Territory includes approximately 55,000 Target Households. The minimum Territory size is 40,000 Target Households and the maximum Territory size is 60,000
Term of Agreement and Renewal: The initial franchise term is for 10 years. The franchise agreement can be renewed for one additional 10-year term by executing the then-current form of franchise agreement and meeting the other requirements for renewal.
Obligations and Restrictions: If the franchisee is an individual, he/she 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 must directly supervise the Franchise. An owner as well as any manager of a location must attend and complete initial training. If the franchisee is 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 consented otherwise. While you own the Franchise, you cannot have an interest or relationship with any competitors. The franchisee must offer and provide all of the services required for Mr. Handyman franchises. The franchisee may not market or perform any services that the franchisor has not authorized.
Estimated Number of Units: 205
|Name of Fee||Low||High|
|Initial Franchise Fee||$49,900||$49,900|
|Initial Package Fee||$10,000||$10,000|
|Vehicle Expenses - 3 months||$1,950||$3,900|
|Real Estate and Utility Deposit||$750||$3,000|
|Tools and Equipment to Equip One Van||$1,000||$2,000|
|Fixtures, Furniture and Equipment||$0||$1,500|
|Permits and Licenses||$100||$1,000|
|Prepaid Insurance Premiums — 3 months||$1,800||$2,800|
|Training Expenses: Travel, Food and Lodging||$3,000||$4,000|
|Additional Funds - 3 months||$34,500||$54,000|
|Type of Fee||Amount|
|License Fee||7% of Gross Sales except for material revenue and “roll in” sales. In addition, Minimum License Fees apply.|
|MAP Fee||2% of Gross Sales except for material revenue generated. In addition, Minimum MAP fees apply.|
|Local Marketing Requirement||$3,000 per month per franchise agreement, subject to adjustment for multiple franchise agreements.|
|DSL, Cable or Satellite High Speed Internet, Anti-Virus Software||The then current fee. Presently, the current fee ranges from $89-$159 per month for 1 account/user on 1 computer.|
|Internet Homepage||The then current fee. Presently, the current fee is $180 per year.|
|Software Systems Fee||The then current fee. Presently, the current fees are: access to the Software System is $99 per month for each office employee, and $39 per month for each service professional (iPad). Phone numbers will be USD$2.50 per local number per month, and USD$0.07 per local minute. Texts messages will be USD$0.03 per SMS. $40 per month for Quickbooks Online (“QBO”) and Qvinci.|
|Mr. Handyman Toll Free Phone Number Usage||The then current fee. Presently, the current fee is $0.12 for each minute.|
|Call Center Services Fees||The then current fee. Presently, the current set-up fee is $0.75 per minute and $10 per month.|
|Conventions and Regional Meetings||The then current fee. Presently the current fee is $275-$425 per person per event.|
|Failure to Attend Periodic Training Courses||$1,000|
|Change of Legal Entity Fee||$500|
|Transfer Fees||10% of then-current initial franchise fee ($500 if transfer to an immediate family member), plus $5,560 Transfer Initial Package Fee to receive our Transfer Initial Package.|
|Failure to Maintain Insurance||The franchisor’s actual cost for insurance premiums and a fee of 18% of the premium cost for expenses the franchisor incurs.|
|Interest||12% per annum on unpaid balances.|
|Late Fee||$10 per day.|
|Dishonored Check or ACH Draft||$25|
|Audit||Cost of audit plus expenses, plus any amount owed as shown by the audit plus interest and late fees.|
|Indemnification and Attorney’s Fees and Costs||Varies according to loss.|
|Territory Violation||Will vary depending on the type and severity of the violation.|
|Unapproved Suppliers||The franchisor’s actual out-of-pocket costs of inspection or testing.|
|Tax Reimbursement||Varies according to tax.|
|Franchisor Employee Training Fee||$7,500 or then current amount.|
|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 our Business Development Department or any similar group that is part of our company or is our designee; Gross Sales for work that is dispatched from any call center operated by us or our designee; Gross Sales that are audited by us or our designee according to Key Accounts standards or Gross Sales that otherwise benefit from our Key Accounts activities or management.|
The above information has been taken from the FDD of Mr. Handyman. Year of FDD: 2016
Franchise Direct's Disclaimer
You may be interested in the following franchises...