Ace Handyman Services Franchise Costs, Fees & FDD

Year Business Began: 1998

Franchising Since: 2001

Headquarters: Lakewood, Colorado

Estimated Number of Units: 390

Franchise Description: Ace Handyman Franchising, Inc. is the franchisor. The franchisor offers the opportunity to operate a business providing high-quality repair and maintenance services for residential and commercial properties. Prior experience or knowledge of the construction trade is not needed. The business operates during normal business hours using the trade name “Ace Handyman Services.” The franchise is the former Handyman Matters. It changed to Ace Handyman Services in September 2019 after being acquired by Ace Services Holdings LLC, a subsidiary of Ace Hardware Corporation.
Training Overview: Prior to attending the initial business training program, franchisees will undergo approximately 10 to 12 weeks of onboarding work and study. Once franchisees have completed their onboarding work and study, the franchisor will provide an initial business training program to be conducted at its corporate headquarters in the Denver, Colorado metropolitan area, or another location designated by the franchisor, or via a video conference. The initial business training program lasts approximately three business days. Franchisees, or, if applicable, their franchise manager, and the office manager plus up to two other individuals designated by the franchisee (for a total of four individuals), are eligible to participate in the initial business training program without a tuition charge. Franchisees or their franchise manager and the office manager must successfully complete the initial business training program prior to the commencement of operations of the business. Within the first 90 days of operations of the business, the franchisor will conduct on-site training at the franchisee’s business location. The on-site training program lasts approximately two to three business days. If the franchisor determines that franchisees, their franchise manager, their office manager, or other representatives require training in addition to the initial training program and on-site training, or if franchisees request additional training, then the franchisor will provide notice to them of the additional training and conduct the additional training program at a location it designates or virtually via video conference. The franchisor may present seminars, national or regional conventions, continuing development programs, other additional or refresher training programs, or other meetings. Some of these are voluntary and attendance is not required. Franchisees or the franchise manager, and the office manager, must attend one regional meeting for the franchisee’s region and the annual national convention each year if these meetings are held.

Territory Granted: Franchisees will receive a designated protected territory that will be delineated by zip codes as determined by the business map software that the franchisor utilizes. The territory will be determined by the franchisee and the franchisor before the Franchise Agreement is signed. The size and configuration of the territory is based on the number of households. As long as franchisees are not in default of the Franchise Agreement, the franchisor will not operate or permit another AHS business to operate within the territory.

Obligations and Restrictions: If franchisees are individuals, either they individually or an individual who they designate and is approved by the franchisor to be an operating manager for their franchise (who the franchisor refers to as the franchise manager), must directly supervise the operation of the franchise at the business location. If the franchisor believes the franchisee lacks sufficient business experience, the franchisee will be required to designate and hire a franchise manager whom the franchisor approves. If franchisees are a corporation or other business entity, a franchise manager must be approved by the franchisor and must perform the direct, on-site supervision of the franchise. A franchise manager is not required to have any ownership interest in a business entity franchisee. The franchise manager will need to attend and successfully complete the initial business training program and abide by the obligations in the Franchise Agreement and the Operations Manual. Franchisees may offer and sell only those products and services that the franchisor has approved or that meet the standards and specifications set by the franchisor. Franchisees are required to offer all handyman, repair, and maintenance services that the franchisor designates as required for all franchisees within their market area. If franchisees perform work or provide services to commercial customers in their territory, they must participate in the franchisor’s Commercial Quality Service Program. Franchisees will be required to achieve minimum gross revenues on an annual basis.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they can acquire additional successor franchise terms of 10 years each.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$70,000	$100,000
Travel and Living Expenses while Training	$3,500	$5,000
Lease Deposit	$1,000	$3,200
Rent for First 3 months	$3,500	$4,800
Leasehold Improvements and Signage	$600	$4,000
Furnishings	$600	$4,000
Tools and Equipment	$0	$2,500
Truck or Van	$0	$9,000
Computer Hardware, Software and Office Equipment	$2,500	$5,500
Software and Internet Fees	$1,797	$1,797
Initial Marketing Spend	$9,000	$16,000
Utility Deposits and Fees	$500	$1,000
Licenses and Permits	$1,000	$5,000
Insurance	$5,500	$7,000
Professional Fees	$500	$6,000
Miscellaneous Opening Costs	$2,000	$4,500
Additional Funds (3 months)	$30,000	$45,000
ESTIMATED TOTAL	$131,997	$223,797

 
Other Fees

Type of Fee	Amount
Royalty	6% of the actual gross revenues of the previous reporting period, subject to annual reconciliation based on the minimum annual gross revenues requirements.
National Brand Fee	2% of the actual gross revenues, subject to annual reconciliation based on the minimum annual gross revenues requirements.
Software and Internet Fees	Currently $599 per month, but may be changed by the franchisor upon 30 days’ notice.
Minimum Individual Marketing Expenditure	$30,000 in the first year of operations, $40,000 in the second year of operations, and $50,000 for each subsequent year.
Meeting and Convention Fees	$0 if the franchisee attends. If the franchisee does not attend: $1,500 per meeting. If the franchisee attends but does not stay at the designated hotel or does not stay for the entire meeting or convention: $750 per meeting.
Transfer Fee	Generally, $10,000. There is no transfer fee for a transfer to a business entity wholly owned by franchisee, and the transfer fee is reduced to $3,500 for transfers to a family member.
Audit Fee	Cost of audit.
Returned Electronic Funds Transfer Fee	$100
Successor Franchise Fee	$5,500
Supplier Approval	Currently none. However, the franchisor reserves the right to charge a fee in the future.
Additional Training	The then current rate. The current rate as of the date of this disclosure document is $55 per hour per person plus out-of-pocket expenses.
Interest and Late Fees on Late Payments and/or Reports	Not to exceed 18% per annum on all amounts owed. Also, $75 per occurrence per late report or fee.
Costs and Attorneys’ Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.

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