Handyman Franchise Cost, Profit & Failure Rate 2024

Premium Performance Brands is looking for business people who share their commitment to client satisfaction and can carry the team and build on the heritage.

Handyman Franchise, one of the speediest home repair and remodeling franchises in the country, has a long history of providing high-quality multifamily housing handyman services.

After conducting thorough research on handyman franchises, we found the 10 best handyman franchises that you must own.

Handyman Franchise

About The Handyman

Mr. Handyman is the acknowledged leading company in-home repairs and maintenance.

Mr. Handyman is also the contemporary handyman service for tens of thousands of consumers each year, serving an aging Baby Boomer population, starting to come Millennials and every maintenance-conscious homeowner in between.

Moreover, Handyman franchisees offer various repairs and maintenance services for residential and commercial properties.


History Of Handyman

Mr. Handyman, Inc. was formed in June 1996 by David Lavalle in Chelmsford, Massachusetts.

Furthermore, In 2000, Service Brands International, a Michigan-based franchiser, licensed the business strategy and launched franchising operations.

In 2015, the Dwyer Group purchased Service Businesses International and its connected franchise brands.


Handyman Franchise Model

Cost Or FeesAmount
Investment$117,500 – $149,100
IndustryGeneral home repair industry
Net worth$250,000
Royalty fee5% of the gross sale
Area RequirementN/A
Total Outlets200

Key Takeaways

  • Over 100 million homes and corporate clients in the United States require assistance with their to-do lists. Mr. Handyman is a franchisor taking advantage of the increasing demand for dependable handyman services.
  • With $1.5 trillion in yearly revenue, the services industry is a major sector of the world’s largest economy. Consider starting a company in a fast-growing segment of the residential service market.
  • Our national recognition stems from The Oprah Winfrey Show, Good Morning America, Discovery Channel, and Fox & Friends.

Types Of A Handyman Franchise

There are mainly two types of handyman franchises: do-it-all franchises and niche franchises.

A do-it-all handyman business provides a wide range of skills, from minor repairs like mending broken plumbing to more substantial renovation tasks.

Whether it’s plumbing, electrical repairs, or painting, a niche handyman franchise concentrates on house repair and upkeep sectors.

The option you will also choose is determined by your set of skills and the requirements of local consumers.


Mr. Handyman Franchise Revenue & Profit

The revenue and profit of Mr. Handyman’s franchise can vary depending on the size of the business, location, operating expenses, etc.

However, as per sources, Mr. Handyman’s franchise owner makes $284,000 in revenue per year. And this figure is based on the annual median sales of 262 franchise locations in 2021.

If we assume a profit margin of 15% as per the industry standard, then we can calculate that Mr. Handyman’s franchise owners make $42,600 annually on average.

Here’s how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%284000.00
Rent10.63%(30175.00)
Insurance5.31%(15087.50)
Salaries21.25%(60350.00)
Franchise Royalty Fees5.31%(15087.50)
Utilities2.13%(6035.00)
Cost of Goods Sold (COGS)26.56%(75437.50)
Labor (Variable)13.81%(39227.50)
Total (Expenses)85.00%(241400.00)
Net Profit15.00%42600.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Mr. Handyman’s Franchise

With an investment of $149,100 and an estimated 15% profit on the average net revenue from 2021, the yearly profit would be $42,600.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $149,100 / $42,600 = 3.5 years

Based on these figures, it will take approximately 4 years to pay back the initial investment for Mr. Handyman. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Mr. Handyman

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020234257+23
2021257297+40
2022297310+5

For the Franchised outlets:

  • In 2020, the growth rate was (23)/234×100≈9.82%
  • In 2021, the growth rate was (40)/257×100≈15.56%
  • In 2022, the growth rate was (5)/297×100≈1.68%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Mr. Handyman grew from 2020 to 2022, showing a growth rate between 9.82% and 1.68%.


Training & Support Of Handyman Franchise

The training offered by all franchises is significant support. Franchisees will also have access to the franchisor’s instruction book, computer networks, and other tools to help them manage their handyman franchise profitably.

Moreover, The training required to become such a handyman varies considerably based on where you live, your quality, and the service you wish to provide.

Because there isn’t a single education program textbook or online class that will have all of the knowledge you’ll have to determine what you’ll learn, you’ll need to gain the abilities you’ll need.

Entrepreneurs considering a venture into the home service franchise sector might explore options such as Floor Coverings International and Budget Blinds franchises.


Handyman Comparison

CompanyHandymanHomeVestors
Founded In19961989
Initial Investment$117,500 – $149,100$53,000 – $421,250  
Franchise-FeeN/A$27,000 – $65,000  
Total Outlet20060
Annual Revenue$172 Million$1.6 Billion

Frequently Asked Questions

What is the total number of Mr. Handyman's locations?

Mr. Handyman is a statewide owner-operated franchise that provides private and business property repair and maintenance services. There are more than 200 sites countrywide.

In Michigan, how much does a handyman earn?

In Michigan, a handyman earns an average of $19.30 per hour and $5,625 in overtime per year.

What is the hourly rate of a handyman?

The typical hourly charge for handyman services is roughly $60, with a professional’s rate not being much higher.

Small to medium chores are frequently thought to be simple enough for a handyman to complete.

Is Handyman a franchise?

A handyman is a well-known company in the franchise industry that provides home improvement services.

How much does a Handyman franchise cost?

The initial investment required for the Handyman franchise is $117,500 – $149,100.

Who owns Mr. Handyman?

Mr. Handyman is a subsidiary of the Dwyer Group. It was founded in 1996 in Chelmsford, Massachusetts.

Who founded Mr. Handyman?

David Lavalle is the founder of Mr. Handyman. He is renowned for creating and launching the Mr. Handyman and Dryer Vent Wizard franchise.

Where is the headquarters of Mr. Handyman?

Mr. Handyman is headquartered in Waco, Texas, United States.

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