Mr. Handyman Franchise Information, Costs & Fees Mr. Handyman FDD

Mr. Handyman

Date of Incorporation: 1996

Franchising Since: 2000

Headquarters: Michigan

Country: U.S.

Description: The franchise provides residential and business repair and maintenance services, utilizing the Mr. Handyman business system.

Franchise Offer: The franchisee will employ individuals experienced in providing repair and maintenance services, to offer business and residential customers a professional and reliable maintenance and repair service, under the trade marks ‘Mr. Handyman’.

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'.

	Standard Financing	Secondary Financing	Enterprise Financing
Source of Financing	Franchisor	Franchisor	Enterprise
Down Payment	$34,400	$ 25,000	$0
Amount Financed	Up to $20,000	Up to $29,400	Up to $22,600 per vehicle
Term (years)	6 months maximum, or at least 1 week prior to attending Initial Training, whichever occurs first	6 months maximum, or at least 1 week prior to attending Initial Training, whichever occurs first	4 years
Rate of Interest plus Finance Charge	9.9% APR	No interest if paid within 30 days of signing the note. After that, there is 9.9% APR. There is a $250 fee to use this service.	Prime + 0.50
Monthly Payment	None - paid in one lump sum at the term end	None - paid in one lump sum at the term end	Varies depending on amount financed

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. All 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 five days of classroom training at the home office in Ann Arbor, MI. It may also be required that the franchisee attend one of the field training centers for two to four days.

Territory: The franchisee is awarded an exclusive 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.

Term of Agreement and Renewal: The initial franchise term is for 10 years with an option to add two additional consecutive renewal terms of 10 years.

Obligations and Restrictions: The franchisee must at all times faithfully, honestly, and diligently perform their obligations under the Franchise Agreement. In the Franchise Agreement, they must designate one Managing Owner who will be the primary contact with the Franchisor and who will operate the Franchised Business on a full-time basis. The Managing Owner must successfully complete the Initial Training program.

Total Number of Units: 289 units

Investment Tables:

Initial Investment:

Name of Fee	Low	High
Initial Franchise Fee	$14,900	$14,900
Territory Fee	$30,000	$40,000
Initial Package Fee	$9,500	$9,500
Initial Marketing	$7,500	$18,000
Vehicle - Lease Deposit	$1,950	$3,900
Real Estate and Utility Deposit	$250	$1,000
Furniture, Fixtures and Office Equipment	$0	$1,500
Tools and Equipment to Equip One Van	$1,000	$2,000
Permits & Licenses	$100	$1,000
Prepaid Insurance Premiums—3 months	$1,800	$2,800
Training Expenses: Travel, Food and Lodging	$500	$2,000
Additional Funds—3 months	$24,000	$36,000
TOTAL ESTIMATED INITIAL INVESTMENT	$91,500	$132,600

Ongoing Fees:

Name of Fee	Amount
Royalty	7% of Gross Sales less material revenue generated.
Royalty -Materials	3.5% of Gross Sales on material revenue generated
Local Marketing Requirement	$3,500 per month per territory. Declines to 4% of Gross Sales if the franchisee achieves a million dollars in annual Gross Sales.
Advertising Fund	1.25% of Gross Sales.
DSL, Cable or Satellite High Speed Internet, Anti-Virus Software and Electronic Mail	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.
Mr. Handyman toll free phone number usage	The then current fee. Presently, the current fee is $0.12 for each minute.
Server Hosting Fee	Currently $100 per month
Additional Training or Assistance	The then current fee. Presently, the current fee is $500 per person.
Conventions and Regional Meetings	The then current fee. Presently the current fee is $250 per person per event.
Renewal	20% of the then current Franchise Fee.
Transfer of Corporation Fee	The then current fee, presently this is $500.00
Transfer	The then current transfer fee. Presently, the fee is $9,900 if being transferred to a new franchise owner or $2,000 if being transferred to an existing franchise owner; If the franchisor is authorized to enlist a third party broker to locate the transferee, it is $17,000; Outstanding royalties and fees of Predecessor
Insurance	Cost of insurance.
Interest	Greater of 12% per annum or the maximum permitted by law.
Late Royalty Report and Payment Fee	The then current fee. Presently, the fee is accessed per week late: $20 per late report; 5% Royalty or $20 (the greater) per late payment; Non-sufficient funds is $33.
Audit	Cost of inspection/ audit, presently estimated at $2,500-$3,000; 100% of understated Royalty; interest (greater of 12% per annum or the maximum rate permitted by applicable law); and late fees
Costs and Attorneys Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.

Date of FDD: 2009

The above information has been taken from the UFOC/FDD and online sources of Mr. Handyman

Franchise Direct's Disclaimer

You may be interested in the following franchises...

Monkey Bars - Garage Storage Systems Monkey Bars is rewriting the book on garage storage. Low, one-time investment for a great dealership opportunity. Minimum Cash Required: $18,000.

Fresh Coat Fresh Coat is a low-cost, home-based, recession-resistant business opportunity with multiple revenue opportunities! Minimum Cash Required: $40,850.