Handyman Connection Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$106,000

-

$214,000

OPERATING PROFIT

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Adam

Updated

February 26, 2024

Is

Handyman Connection

a franchise?

Yes,
Handyman Connection
is a franchise and
currently
accepts
franchise
applications

Handyman Connection, founded in 1990 and starting its franchising journey in 1993, is a well-established franchise that offers a wide range of home repair, remodeling, and renovation services. The franchise is headquartered in Cincinnati, Ohio. Handyman Connection prides itself on providing comprehensive training and support to its franchisees, ensuring they have the skills, knowledge, and tools needed for success. 

The franchise offers a robust training program that includes pre-opening business setup support, extensive franchise training via webinars, conference calls, and in-person sessions, as well as ongoing support through weekly calls and peer networking opportunities. This strong foundation of support is designed to help franchisees grow their businesses and adapt to a changing business environment​​.

Ideal candidates for a Handyman Connection franchise are individuals with a strong work ethic, adaptability, focus, drive, and a service-oriented mindset. Franchisees do not need to have all the skills and characteristics when they start, but Handyman Connection looks for traits that make a successful entrepreneur, including dedication, organization, assertiveness, and a growth mindset​​.

How many

Handyman Connection

franchises

are there?

In 2022, there were
45
outlets in the United States, of which
45
are franchises, and
0
are corporate-owned.

What are the

Handyman Connection

franchise

fees?

Initial franchise fee

$65,000

Royalty fee

5.0%

Advertising fee

8.0%

Initial Franchise Fee

The initial Franchisefranchise Fee is $65,000.

Royalty Fee

The Royalty Fee is 5% of Gross Sales generated by the Franchised Business over the preceding reporting period.

Advertising Fee

The advertising fee in the Handyman Contract is structured as follows:

  • First year: 10% of Gross Sales on local marketing.
  • After the first year for sales less than $1,000,000: 8% of Gross Sales on local advertising.
  • For sales between $1,000,000 and $3,000,000: 7% of gross sales on local advertising.
  • For sales over $3,000,000: 5% of Gross Sales on local advertising.

Technology Fee

The Technology Fee is $125 per user per month plus 1% of Gross Sales.

Transfer/Sale Fee

The fee for Transfer/Sale is currently $10,000.

Renewal Fee

The Renewal Fee is the greater of either 15% of the then-current initial franchise fee, $10,000, or $25,000 if you do not attend the Annual Conference in person each of the last three years of your Franchise Agreement.

Software License Fee

The one-time Software License Fee required before any initial training is provided is $5,000. The Annual Software License Renewal fee ranges from $200 to $300 per Client.

Call Center Fees

The Call Center Fees are currently $350 per month, with additional charges for any minutes in excess of those included in the selected package (currently, $0.85 per minute over 100 minutes a month).

How much does

it cost

to start a

Handyman Connection

franchise?

It costs between
$106,000
and
$214,000
to start a
Handyman Connection
franchise.
Type of Expenditure Amount
Initial Franchise Fee $65,000
Travel and Living Expenses while Training $2,075 - $4,700
Real Estate (Leased) $1,800 - $4,800
Office Equipment $1,100 - $7,800
Lease & Utility Deposits $850 - $2,100
Insurance $3,135 - $7,624
Licenses and Permits $215 - $7,250
Grand Opening Marketing, Advertising and Promotion $21,685 - $57,900
Computer Hardware and Software $1,425 - $10,025
Proprietary Software License $5,000
Additional Funds - 3 months $3,235 - $41,625
Total $105,520 - $213,824

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

Handyman Connection

provide

training

to its

franchisees?

Yes,
Handyman Connection
provides training to its franchisees.

The franchisor provides various types of training to franchisees, which include:

Initial Training

  • Franchisees are required to attend and successfully complete the franchisor's initial training program. This program is mandatory for at least one of the franchisee's general partners, principal shareholders, or managing members if the franchisee is a partnership, corporation, or limited liability company. One designated employee or Key Manager may also attend the operational component of the Initial Training tuition-free. Additional employees can attend upon payment of the then-current tuition fee and subject to availability.

On-going Supplemental Training

  • The franchisor may offer additional, expanded, or revised training programs and refresher courses for franchisees, their Key Employee, other managers, and employees. This is aimed at assisting in the operation of the franchised business.

Training Locations

  • All training is held at the franchisor's headquarters, at other locations designated by the franchisor, or virtually as designated by the franchisor.

Annual and Regional Conferences

  • Franchisees are required to attend annual and regional conferences held by the franchisor at designated locations. Failure to attend these conferences may result in penalties.

Does

Handyman Connection

provides

territory

protection?

The franchisor offers territory protection to its franchisees with certain conditions. As long as the franchisee is in substantial compliance with the terms of the agreement, determined by the franchisor in its sole discretion, the franchisee has the right to receive and service new residential leads located in the zip codes listed in Schedule A of the Franchise Agreement, received through the franchisor's lead generation internet platform or franchisor's centralized 1-800 phone number. 

However, the franchisor retains the right to establish and grant others the right to establish franchised businesses outside the franchisee's territory​​.

Additionally, the franchisee is granted territorial exclusivity under specific conditions: if the services offered fall within the definition of Residential Services as defined by the Agreement and if the franchisee is in substantial compliance with the Agreement as determined by the franchisor in its sole discretion. 

Can a

Handyman Connection

franchise

be run as

a passive

investment?

The franchisor stipulates that the Handyman Connection® Business must be actively managed on a full-time basis by a person who has successfully completed the mandatory training program and meets the franchisor's current standards. This implies that passive investment, where the investor is not actively involved in the day-to-day management, might not be allowed without express written consent from the franchisor. 

Specifically, if the franchise is owned by an individual, that individual is expected to be the manager of the Franchised Business unless a different manager is approved in writing by the franchisor. The manager is responsible for the day-to-day operations and is required to devote at least 40 hours per week to managing the business. 

The agreement allows the franchise owner to engage in passive investment activities, such as transactions in securities of publicly traded companies, only with the franchisor's express written consent​​.

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