PatchMaster Franchise Costs, Fees & Owner Salary (2023)

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​​​​​​.

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.

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​​​​​​​​​​.

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.

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.