Franchising is usually expensive, but it may be possible to work in this business model when you rely on options like the Mr. Handyman franchise. However, is it the type of business you want for yourself?
There are way too many options when it comes to franchises, and, as a result, it is hard to choose since a large number of them come with great reputations and fees that are usually affordable.
If you need some advice in order to pick yours, we would recommend focusing on the niche you’re interested in, your budget, and the terms and conditions of the franchisor.
Based on these factors, it won’t be hard to decide from one of the large lists.
However, after going for a specific franchise, take the time to learn more about what you need to give to succeed with it.
Here, we will be reviewing Mr. Handyman and providing all the details you need to make a well-informed decision. This includes its inception but also fees, costs, and terms.
Ready to find out whether this is the jackpot you’ve been waiting for?
Mr. Handyman Inception: Founder & Structure
Learning about the basics of the company you’re considering is always crucial. Although you won’t find much about Mr. Handyman but rather the common details of its foundation and person behind it, we believe it is a great start.
Officially and legally known as Mr. Handyman International, LLC, a franchise company based in Ann Arbor, Michigan, USA.
The base concept of the business is to provide handyman and remodeling services to homeowners and businesses.
However, despite this introduction, the company was founded under the corporate name Mr. Handyman, Inc., and was established in Chelmsford, Massachusetts, by David Lavalle in June 1996.
It first started a basic company that provided the handyman services alone without any franchisees. However, when Service Brands International bought the concept, a Michigan-based franchiser was established in 2000 and was followed by the business model of having franchisees join.
Although there isn’t much information about the founder, you can learn more about decision-making and the company’s current structure.
First, the headquarters handles all aspects of information technology, including advertising, public relations, and training.
The corporate decision to schedule software is made, but individual franchise owners can use it to speed up customer service.
In 2009, the company used software from Servant Systems to manage customer relations and scheduling. Mr. Handyman provided that they follow specific rules about how to run the business.
In addition, the agreement gives the franchise owner the exclusive right to take service calls in a defined geographic area.
Franchise owners employ handyman workers, which they call “technicians,” and give them trucks and tools. They also pay them an hourly rate to do the work.
Background checks are done on all potential employees. They offer insurance coverage for damage or accidents.
Mr. Handyman asks prospective customers about their To-Do Lists, and the company also does odd jobs, carpentry, and repairs.
Where It Stands Today
The company has come a long way since its founding in 1996 by David Lavalle.
Due to the need for handyman services, the now franchise didn’t take too long to grow and has a large list of clients waiting for services.
David decided to sell the business concept to Service Brands International in order to expand the company and cover more vision for the future. However, this is not where Mr. Handyman Inc. stands today.
In 2015, the company Service Brands International was acquired by The Dwyers Group, including all the affiliated franchise brands.
Before this acquisition, the franchise was doing well with over 127 locations in 2004 in the United States only. In 2009, the company had about $100 million in revenue, and during this year, the franchised units increased to 250 but throughout USA and Canada.
Although these countries are the company’s main focus, Mr. Handyman operates in them and China, Ireland, and the United Kingdom.
Joining as Franchisee: How Much Is the Investment?
If you want to join a franchise, you will always have to pay an initial fee and additional costs that tend to cover the real estate property, training, and anything you need to start your business.
The main benefit of joining a franchise lies in how you won’t deal with all the logistics and steps alone. Instead, the franchisor will do it for you, thanks to the investment you have placed in the company.
Now, not all franchises cost the same when you decide to join. Some are expensive, others way too cheap, and others are simply affordable. Everything depends on the elements offered under the contract or agreement.
In the case of Mr. Handyman, you will need to comply or fulfill these fees:
- Initial franchise fee: $59,900.
- Total investment: $117,500 – $154,100.
- Working capital: $34,5000 to $54,000.
- Initial package fee: $5,500.
- Cash required: $50,000.
All the money you end up investing in the franchise, which tops at $154,100, includes a series of benefits:
- Initial training program before you open the franchise to learn everything about the services and how to perform them.
- Territory granted, which is basically the location and area where you will operate.
- Comprehensive ongoing training and support when needed.
- Registered trademarks.
- Marketing support and system.
- Financial assistance.
- Utility, appliances, equipment, insurance, and food (during training).
- A dedicated franchise consultant is available.
- Chances to assist regional and national conferences.
- National and customizable website.
- Take part in the International Franchise Association.
However, keep in mind that working under this business model means dealing with fees constantly.
Once you take part in the Mr. Handyman company, you need to consider ongoing expenses once you start to operate:
- Minimum license fees apply: 7% of gross sales.
- Superior marketing strategies, advertising, and promotion: 2% of gross sales.
- Local marketing requirement and local marketing groups: $3,000 per month per franchise agreement.
Also, a renewal fee is included and set at $5,000 after ten years, and software system monthly fees apply.
Pros & Cons: Big Opportunity to Make Money or Hard Pass?
You have to consider two different factors: The franchise business model and the franchise you choose to join. Individually.
If you decide to take part in ANY franchise, not only Mr. Handyman, you must feel confident and okay with the structure you follow as a future franchisee. If not, you better skip it and find a new opportunity.
However, if you agree that franchising is the best for your goals and projects, get to consider the pros and cons of the company.
Here, we will be mentioning every benefit and disadvantage of both factors:
- Mr. Handyman has been operating for over two decades and has a great reputation you will adopt when joining.
- Services are top-notch, and you get full training and support.
- The total investment covers all expenses, and the franchisor handles the process.
- Veterans’ discounts and financing options are available.
- You can get started in 2 to 4 months.
- You don’t need that many employees to get started.
- You can join as a franchisee in over three different countries.
- More affordable than other franchises.
- You need to handle fees and royalties all the time.
- It is renewable and quite expensive for it.
- You need to work full-time, and the remote option isn’t possible.
- You can’t work alone but rather require employees sooner than later.
- You must like the niche due to the type of job that will be handled.
Overall, Mr. Handyman is a top franchise we would recommend if you are interested in the business model.
You can save time, resources and have a hand helping you to establish everything to be an independent business owner (or not so independent).
Just take all considerations and have a look at them as many times as needed until you’re confident this is the type of business you want.
What We Choose Over Franchises
Franchises are great, and if you pick the right one, you will have a great business opportunity in your hands. However, independence isn’t that achievable when you have to pay fees and royalties.
It may seem at first that you won’t give much away. But when you start to earn thousands every month, you will notice how much you’re giving away.
It makes sense that you have to pay royalties, but in the long run, it can be consuming as you could be earning more by being on your own. Of course, that is easier said than done.
However, if you ask us, we prefer to have more control and options that allow us to make a profit. Working remotely would be a good idea as well so we don’t have to marry a place or territory to make money.
Also, alternatives that allow us to work from home or part-time are preferred since we don’t usually need staff or employees.
Our favorite option that meets these requirements so far is lead generation.
You can use it as your main source of income or incorporate it into your franchising journey to gain clients.
You can open your business from anywhere, and you can work remotely with lead generation. Even though it is hard work at the beginning, passive income can be earned by growing your business.
There are two options:
- Focus on the franchise operation and integrate lead generation to boost the clients you have.
- Or you can simply invest in lead generation and rely on it as your main source of profit.
It’s much easier than you think to understand the business opportunity that we offer. This involves creating websites and ranking them on Google. Then, you need to generate leads with the traffic generated when ranking each site.
Each lead generated for a client or website is paid. This is how passive income can be achieved later since you don’t need to work with the sites but rather just maintain their rankings.
Training is, however, necessary.
We are confident that whatever you choose from the previous options, this top training will help tons.
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