Franchising Since: 1997
Headquarters: Charlottesville, Virginia
Estimated Number of Units: 90
Franchise Description: The franchisor is House Doctors, LLC. The franchisor is owned by PSB Group, Inc., which is owned by Premium Service Brands, LLC. The franchisor grants franchises to qualified individuals and business entities to establish and operate handyman services business offering countless handyman services, from miscellaneous home repairs and maintenance to carpentry, remodels, and more under the name “House Doctors” along with certain other trademarks, service marks, trade names, and logos the franchisor designates from time to time. House Doctors businesses are typically operated from a van or truck and a home office. The concept is targeted towards any residential or “light commercial” real estate owners who are looking for quality interior or exterior handyman services.
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Territory Granted: When franchisees sign the Franchise Agreement, the franchisor will grant them a protected territory, which is defined as the residential geographic area in which they will have the right to use the marks and the system to operate their House Doctors business and which will be set forth in the Franchise Agreement. Franchisees must operate their franchise only in the protected territory defined in the Franchise Agreement, and only from their home office (or other approved office space) and their vehicles. All vehicles must be located in the protected territory at all times. The protected territory will be delineated by zip codes and will consist of a geographic area containing not less than 50,000 to 80,000 single family dwellings.
Obligations and Restrictions: The business must always be under the direct, “on-premises”, full-time supervision of a designated manager, which is the franchisee if the franchisee is an individual, or an individual selected if the franchisee is a business entity. The designated manager must meet the franchisor’s standards and must attend and satisfactorily complete the initial training program before opening the business. If franchisees are not an individual, all principals of the organization (i.e., persons or partners who sign the Franchise Agreement and in the case of a corporation, partnership, or limited liability company, the shareholders, partners, managers or members of that organization and their respective spouses), must sign the Guaranty Agreement as the franchisor deems necessary for adequate security. Franchisees must operate their franchise in strict conformity with the methods, standards and specifications in the Brand Standards Manual and as the franchisor may require otherwise in writing. Franchisees may not deviate from these standards, specifications and procedures without written consent. As a handyman services contractor, franchisees may be required to obtain a contractor’s license in certain states.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two additional successive terms of 10 years each are available if requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisor’s note, lease or obligation. The franchisor offers two different discount options on the franchise fee: (1) for honorably discharged U.S. military veterans and individuals working in rescue, emergency services and policing who purchase a new franchised business, and (2) for franchisees who already own and operate an existing franchise and are in compliance with the terms of their Franchise Agreement.
Estimated Initial Investment
| Name of Fee | Low | High |
| Franchise Fee | $65,000 | $65,000 |
| Vehicle (lease) | $1,500 | $5,000 |
| Real Estate and/or Leasehold Improvements | $0 | $3,000 |
| Equipment & Supplies | $1,250 | $4,500 |
| Insurance | $2,000 | $5,000 |
| Signage | $3,000 | $4,000 |
| Technology Fee | $5,000 | $5,000 |
| Grand Opening | $2,500 | $5,000 |
| Training Expenses | $3,000 | $5,000 |
| Licenses/Bonds | $100 | $1,500 |
| Professional Fees | $1,500 | $3,000 |
| Additional Funds – 3 months | $25,000 | $35,000 |
| ESTIMATED TOTAL | $139,850 | $191,000 |
| Type of Fee | Amount |
| Royalty | 6% of gross sales; $150 per week, minimum. |
| Marketing Fund Contribution | The greater of 2% of gross sales per week or $50 per week. |
| Contact Center Fee | The greater of 2% of gross sales or the then current weekly minimum. |
| Technology Fee | $210 per week. |
| Accounting and Business Advisory Services Fee | $85 per week. |
| Late Fees and Insufficient Funds Fees | $100 per late payment, plus 1.5% per month or the highest rate allowed by law, whichever is less; $100/report/week. |
| Advertising Cooperative Fee | Up to greater of $10,000 or 2% of gross sales per year. |
| Insurance Policies | Amount of unpaid premiums plus expenses in obtaining the policies. |
| Renewal Fee | Greater of 25% of the then-current initial franchise fee or $15,000. |
| Transfer Fee (or expenses) | Greater of $20,000 or the franchisor’s actual out-of-pocket expenses. |
| Annual Convention | Attendance fee varies (recently, $1,000 per attendee). $2,000 if franchisees do not attend. (Franchisor may modify the fees on notice to franchisees based on the then current allocated costs.) |
| Cost of Enforcement | All costs and expenses, including attorneys’ fees. |
| Indemnification | All damages and costs including attorneys’ fees. |
| Warranty Service after Transfer | The franchisor’s cost, plus 15%. |
| Warranty Assurance | $10,000 |
| Taxes | Amount required to reimburse the franchisor for certain taxes imposed on payments to it. |
| Lost Profits | An amount equal to the royalties, marketing fund payments and other fees that franchisees would have paid to the franchisor had the franchisee operated the business for the full duration of the term of the Franchise Agreement. Payable if the franchisee is terminated for cause or otherwise fails to operate the business for the entire term of the Franchise Agreement. |
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