PatchMaster Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$86,000

-

$112,000

LOCATIONS

123

Adam

Updated

April 11, 2024

Is

PatchMaster

a franchise?

Yes,
PatchMaster
currently
accepts
franchise
applications

PatchMaster, a franchise specializing in drywall repair services, was founded in 2016 and began franchising just a year later in 2017. This rapid start to franchising underscores the brand's commitment to filling a niche in the home services market by providing professional solutions for drywall repairs. The company's services are particularly geared towards small repairs, such as fixing holes caused by renters or plumbing leaks, which are often overlooked by larger contractors or deemed too complex for DIY solutions.

Headquartered in Chester, New Jersey, PatchMaster has quickly expanded its presence across the United States and Canada. The franchise's growth has been noteworthy, with over 100 territories established within a relatively short period.

This expansion is a testament to the demand for specialized drywall repair services and the effectiveness of PatchMaster's business model, which is designed to be a turn-key solution for entrepreneurs looking to venture into the home services industry.

PatchMaster's approach emphasizes quality and efficiency, aiming to complete most repair jobs in a single visit. This focus on customer satisfaction and service excellence, combined with the franchisor's support and the relatively low barrier to entry, makes PatchMaster an attractive option for individuals seeking to start their own businesses in the home improvement sector​​​​​​.

How many

PatchMaster

franchises

are there?

In 2022, there were
123
outlets in
the United
States, of which
105
are franchises, and
18
are corporate-owned.

What are the

PatchMaster

franchise

fees?

Advertising fee

1% +up to 3%

Initial Franchise Fee

The initial franchise fee is $49,500 for a single unit, granting a certain protected territory known as a Licensed Service Area (LSA). Each LSA consists of contiguous zip codes with approximately a 300,000 to 350,000 population. For territories with populations exceeding 350,000, an additional fee of $0.152 per person above 350,000 is required.

RightTrack Startup Package

The RightTrack Startup Package costs $27,950, which includes tools, materials, and a Grand Opening Marketing Package. This fee is payable within two weeks of signing the Franchise Agreement.

Royalty Fee

The royalty fee structure is tiered based on Gross Revenue, starting at 9% for the first $150,000 per year, with a minimum monthly royalty fee for each LSA starting at $400 in the first year, increasing to $500 in the second year, and $600 each year thereafter.

Marketing Contribution

The marketing contribution is up to 3% of Gross Revenue, with a current rate of 1%. This fee is subject to change with 30 days' notice.

Technology Fee

A technology fee of $275 per month is charged for the usage of specific technology tools required to operate the business.

Transfer Fee

A transfer fee of $10,000 is applicable if the franchise is sold to a new owner.

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

PatchMaster

franchise?

It costs between
$86,000
and
$112,000
to start a
PatchMaster
franchise.
Type of Expenditure Amount
Initial Franchise Fee $49,500
Training Expenses $500 to $2,500
RightTrack Startup Package (Tools & Materials) $11,750
RightTrack Start Up Package (Grand Opening Package) $16,200
Computer, Phone and Office Equipment $0 to $2,500
Vehicle(s) Down Payment $0 to $5,500
Licensing, Permits, and Deposits $0 to $2,000
Insurance Costs including Worker’s Compensation $2,000 to $5,500
Legal Services $500 to $1,500
Additional Funds – 3 months $6,000 to $15,000
Total $86,450 to $111,950

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

PatchMaster

provide

training

to its

franchisees?

Yes,
PatchMaster
provides
training

The franchisor provides a comprehensive Initial Training Program for franchisees, which covers various essential aspects of operating the franchise. The training includes:

  • Operations: Instructions on day-to-day operations, equipment handling, and maintaining brand standards.
  • Marketing: Guidance on marketing strategies, lead generation, and social media utilization.
  • Financial Reporting Requirements: Training on how to manage financial aspects, including reporting and bookkeeping.
  • Equipment and Brand Requirements: Information on the use and maintenance of necessary equipment and adherence to brand guidelines.
  • Products and Service Offerings: Details on the services offered, pricing, and customer service standards.

The Initial Training Program is offered at the franchisor's principal offices or another designated location, and it may also include online or webinar sessions. This program is provided at no charge for the life of the franchise, provided the franchisee is in good standing and complies with the franchisor's requirements and standards.

The franchisor may also offer additional training programs for franchisees and their employees at designated locations or online, potentially for an additional fee, especially in circumstances such as the introduction of new products and services or if the franchisee's performance is unsatisfactory​​​​​​​​​​.

Does

PatchMaster

provides

territory

protection?

The franchisor does not offer exclusive territory protection to its franchisees. Under the Franchise Agreement, franchisees will conduct and operate their business from a specific Licensed Service Area (LSA), but this does not imply exclusivity. Franchisees may face competition from other franchisees, company-owned outlets, or other channels of distribution and competitive brands controlled by the franchisor.

Franchisees have no territorial protection outside of their LSA. If a franchisee wishes to operate outside their designated LSA, they may be required to purchase additional territories. Furthermore, franchisees are obligated to focus their marketing efforts and business operations within their LSA and are prohibited from marketing, advertising, or soliciting business outside their LSA without the franchisor's prior written consent.

Can a

PatchMaster

franchise

be run as

a passive

investment?

The franchisor requires franchisees to devote full time and effort to the active management and operation of the Franchised Business. If the franchisee is a corporation or other entity, an Owner must directly supervise the business. While the franchisee may hire a full-time manager to run the Franchised Business, they must obtain the franchisor's prior written consent.

Even with a manager, the franchisee must continue to actively oversee the operations of the Franchised Business and supervise the manager. Any manager hired must complete the franchisor's Initial Training Program to the franchisor's satisfaction and must sign a confidentiality and non-competition agreement​​.

This requirement indicates that the franchisor expects franchisees to be actively involved in the business and does not support a purely passive investment approach where the investor is not involved in the day-to-day operations of the franchise.

Related Posts