Ace Handyman Services Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$96,000

-

$220,000

LOCATIONS

379

Adam

Updated

May 2, 2024

Is

Ace Handyman Services

a franchise?

Yes,
Ace Handyman Services
currently
accepts
franchise
applications

Ace Handyman Services, initially established in 1998, has carved a niche for itself in the home improvement sector by offering professional and reliable handyman services. The company was acquired by the reputable Ace Hardware in 2019, marking a significant milestone in its journey. The franchise operates its headquarters in Denver, Colorado, a central hub from which it coordinates its extensive network of services across the United States.

The franchise began its journey into franchising shortly after its inception, aiming to extend its reach and impact by empowering local entrepreneurs to deliver Ace Handyman's unique service model in their communities. They offer a wide range of handyman services, addressing everything from minor repairs to significant home improvement projects, thereby catering to a broad spectrum of customer needs.

One of the key differentiators for Ace Handyman Services in the competitive landscape is its association with Ace Hardware, a brand that enjoys over 90 years of trust and credibility in the home improvement industry. This alliance not only enhances the franchise's market presence but also provides franchisees access to Ace Hardware's nationwide network, competitive pricing, and national rebate program.

Furthermore, Ace Handyman Services prides itself on its ethical business practices, focusing on providing value, serving people, and solving problems, which stands in contrast to the perceived lack of integrity in some parts of the home improvement industry.

How many

Ace Handyman Services

franchises

are there?

In 2022, there were
379
outlets in
the United
States, of which
367
are franchises, and
12
are corporate-owned.

What are the

Ace Handyman Services

franchise

fees?

Advertising fee

2% plus $50,000 per year

Initial Franchise Fee

The amount of the Initial Franchise Fee is detailed in the Franchise Agreement and is due upon signing. For those acquiring a Mini AHS Business, the Initial Franchise Fee ranges from $35,000 to $45,000, depending on the territory size, with similar adjustments for territories exceeding 35,000 households, up to a maximum of 45,000 households. There's a $7,000 discount for veterans under the VetFran initiative.

Royalty Fee

The royalty fee is 6% of the actual Gross Revenues of the previous month, subject to annual reconciliation based on Minimum Annual Gross Revenues requirements.

Advertising Fee

A required start-up advertising expense of $7,500 to $9,000 is to be paid directly to the supplier conducting the start-up advertising campaign.

Transfer Fee

In the case of transfer, the fee is $10,000 for franchise transfer, reduced to $3,500 for transfers to a family member. There is no fee for transfers to a business entity wholly owned by the franchisee.

Renewal Fee

Successor Franchise (Renewal) Fee is $5,500, payable upon execution of the successor Franchise Agreement, provided you are in good standing.

Audit Fee

The cost of an audit ranges from $2,500 to $5,000 but may be more. If the audit reveals an understatement of at least 2% of Gross Revenues, you also bear the cost of the audit.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Ace Handyman Services

franchise?

It costs between
$96,000
and
$220,000
to start a
Ace Handyman Services
franchise.
Type of Expenditure Amount
Initial Franchise Fee $70,000 - $100,000
Travel and living expense while training $3,500 - $5,000
Lease Deposit $1,000 - $3,000
Rent for first 3 months $3,000 - $4,500
Leasehold Improvements and Signage $800 - $5,000
Furnishings $800 - $5,000
Tools and equipment $0 - $3,500
Truck or Van $0 - $2,950
Computer Hardware and Office Equipment $2,250 - $5,000
Software and Internet Fees (3 months) $1,497
Start-up Advertising $7,500 - $9,000
Utility deposits and fees $100 - $450
Licenses and permits $630 - $1,600
Insurance $4,000 - $5,100
Professional fees $500 - $3,000
Miscellaneous opening costs $2,000 - $4,500
Additional Funds (3 months) $30,000 - $45,000
Total $127,577 - $204,097

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Ace Handyman Services

provide

training

to its

franchisees?

Yes,
Ace Handyman Services
provides
training

The franchisor, Ace Handyman, provides comprehensive training to franchisees, which includes:

  1. Initial Training Program: Franchisees, their Principal Representative, Franchise Manager, and Office Manager must attend and satisfactorily complete the Initial Training Program prior to opening the franchise. This program may be conducted in-person or virtually via video conference and covers essential operational aspects. The Initial Training Program is designed to ensure franchisees are well-prepared to start and run their franchise successfully.
  2. On-Site Training: Within the first 90 days of the franchise's operation, approximately 18 to 24 hours of on-the-job training is provided at the franchise's location, conducted over two to three business days. This mandatory training is crucial for the franchisee, Principal Representative, Franchise Manager, or Office Manager, and aims to reinforce operational procedures and standards.
  3. Additional Training: If additional training is required, either identified by the franchisor or requested by the franchisee, it will be conducted at a location designated by the franchisor or virtually. The franchisee is responsible for covering the travel, lodging, and other costs associated with attending this additional training, and will pay the franchisor standard fees for conducting the training as per the current fee schedule.
  4. Continuous Education and Meetings: The franchisor may offer seminars, conventions, continuing development programs, and other training or meetings, which can be conducted in-person or virtually. While some of these are voluntary, the franchisee must attend any mandatory events as specified by the franchisor. These programs are designed to provide ongoing support and ensure franchisees stay updated with the latest industry trends and operational best practices.

Does

Ace Handyman Services

provides

territory

protection?

Ace Handyman provides designated protected territories for their franchises, which are delineated by zip codes as determined by their business map software. When you become a franchisee, you receive a territory where Ace Handyman agrees not to operate or permit another Ace Handyman Services (AHS) Business to operate, giving you certain territorial protections. The size and configuration of your territory are based on the number of households within these zip codes.

The territory will be determined before you sign your Franchise Agreement and will be set forth in the Addendum to your Franchise Agreement. However, it's important to note that while you have rights to your designated territory, and Ace Handyman will not permit other AHS Businesses to operate within your territory as long as you are not in default of your Franchise Agreement, your territory is not deemed to be exclusive.

This means you may face competition from other franchisees, outlets that Ace Handyman owns, or from other channels of distribution or competitive brands that Ace Handyman controls. Additionally, you do not receive the automatic right to acquire additional franchises adjacent to your territory, but you may be granted permission to sell or service customers in an unsold adjacent territory at Ace Handyman's sole discretion.

Can a

Ace Handyman Services

franchise

be run as

a passive

investment?

The Ace Handyman franchise requires significant involvement of the franchisee in the day-to-day operations of their franchise. If you are an individual franchisee, either you or an individual you designate, who is approved by Ace Handyman as the Franchise Manager, must directly supervise the daily operation of your franchise at the business location. This involves actively managing the franchise and making key operational decisions. 

The franchisee, or the Franchise Manager if applicable, is required to devote full time and best efforts daily, in person, to the supervision and conduct of the franchisee's Ace Handyman Services (AHS) Business. This supervision must amount to no less than 40 hours per week. Operational Responsibilities: The franchisee is responsible for recruiting, appointing, hiring, firing, and supervising employees, independent agents, Office Managers, Franchise Managers, and other representatives. 

The franchisee holds sole authority and control over the day-to-day operations of the AHS Business and its employees and representatives. Training Attendance: The franchisee, the franchisee's Principal Representative, or the Franchise Manager, and the Office Manager, must attend and complete the Initial Training Program and any subsequent mandatory training programs, demonstrations, and seminars as required by Ace Handyman.

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