In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a PatchMaster franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a PatchMaster franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned PatchMaster outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the PatchMaster franchise opportunity

Section V – Presentation and analysis of PatchMaster’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross revenue; and highest and lowest estimated population for the top 10%, top third, middle third, bottom third, bottom 10%, and all 27 PatchMaster franchisees that operated for the full 2023 calendar year and submitted monthly sales reports to the franchisor

• 2023 average, median, highest, and lowest gross revenue per Licensed Service Area (LSA); and average years operating for the top 10%, top third, middle third, bottom third, bottom 10%, and all 27 PatchMaster franchisees that operated for the full 2023 calendar year and submitted monthly sales reports to the franchisor

• 2023 average, median, highest, and lowest gross revenue per franchisee for the 27 PatchMaster franchisees that operated for the full 2023 calendar year and submitted monthly sales reports to the franchisor, grouped by number of LSAs owned

• 2023 average, median, highest, and lowest job size; and highest and lowest estimated population for the top 10%, top third, middle third, bottom third, bottom 10%, and all 27 PatchMaster franchisees that operated for the full 2023 calendar year and submitted monthly sales reports to the franchisor

• 2023 average and median total income, labor expenses, material expenses, cost of goods sold, and gross profit for the 13 PatchMaster franchisees that operated for the full 2023 calendar year and submitted sufficient gross profit and related information to the franchisor

Section VI – Key ratios, comparables, computations, and analyses for the PatchMaster franchise opportunity (exclusive content for Platinum subscribers)

Section I – PatchMaster Franchise Costs

• PatchMaster franchise costs (1 Licensed Service Area), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500
• Training Expenses:  $500 to $2,500
• RightTrack Startup Package (Tools and Materials):  $12,000
• RightTrack Startup Package (Grand Opening Package):  $16,850
• 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 Estimated PatchMaster Franchise Costs:  $87,350 to $112,850

Section II – PatchMaster’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• PatchMaster’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500

• Royalty Fee:  greater of: (1) 9% of first $150,000 in Gross Revenue per year; 8½% on $150,001 to $250,000; 8% on $250,001 to $500,000; 7½% on $500,001 to $1,000,000; 7% on $1,000,001 to $1,500,000; 6% on $1,500,001 to $2,500,000; 5% on $2,500,001 and above; or (2) a minimum royalty fee per Licensed Service Area (LSA)

• Marketing Contribution:  1% of all Gross Revenue (subject to change up to 3% of Gross Revenue)

• Digital Marketing Services Fee:  $300 per month (subject to change)

Section III – Number of Franchised and Company-Owned PatchMaster Outlets

Franchised

2021

• Outlets at the Start of the Year:  60
• Outlets at the End of the Year:  91
• Net Change:  +31

2022

• Outlets at the Start of the Year:  91
• Outlets at the End of the Year:  99
• Net Change:  +8

2023

• Outlets at the Start of the Year:  99
• Outlets at the End of the Year:  92
• Net Change:  -7

Company-Owned

2021

• Outlets at the Start of the Year:  15
• Outlets at the End of the Year:  14
• Net Change:  -1

2022

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  18
• Net Change:  +4

2023

• Outlets at the Start of the Year:  18
• Outlets at the End of the Year:  17
• Net Change:  -1

Section IV – News Updates on the PatchMaster Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the PatchMaster Franchise (Item 19, 2024 FDD)

• This Item 19 presents the following historical data for certain franchised outlets for the calendar year ended December 31, 2023: (1) average and median annual Gross Revenue; (2) average and median annual Gross Revenue separated based on the number of active Licensed Service Areas (LSAs); (3) average and median Gross Revenue per LSA; (4) average and median Gross Revenue per job; and (5) average and median Gross Profit.

• The data in this Item 19 is presented on a per franchisee basis and not a per LSA basis, because a number of franchisees operate multiple LSAs, which are reported together. The estimated population in each franchisee’s LSA varies. The information on population has been estimated based on available US census figures and is not necessarily the same as of the date of signing the franchise agreement.

• As of December 31, 2023, a total of 92 franchised LSAs were in operation. In this Item 19, PatchMaster reports Gross Revenue for 27 franchisees operating in a total of 57 LSAs. PatchMaster has excluded data from (i) 27 LSAs that were opened by a new franchisee after January 1, 2023 and therefore did not operate in the system for the entire 2023 calendar year, (ii) 2 LSAs which were not operated on a full-time basis for the entire 2023 calendar year, (iii) 4 LSAs that were transferred mid-year to a new franchisee and therefore did not have consistent reporting by a single franchisee, and (iv) 2 LSAs for which separate reporting per LSA was not available for the 2023 calendar year due to franchisee structure.

• In this Item 19, PatchMaster reports Gross Profit for 13 franchisees with a total of 28 LSAs. PatchMaster reports Gross Profit for this subset of franchisees because they were operating for the entirety of 2023 and have timely provided PatchMaster with the required financial reports to compile these records.

• If an existing franchisee purchased an additional LSA in 2023, the franchisee was reported in the tables below based on the LSAs owned at the end of the year.

Part 1 – Average and Median Annual Gross Revenue of PatchMaster Franchisees for the 12 Months Ending December 31, 2023

Top 10%

• Total Franchisees:  3
• Average Gross Sales:  $801,075
• Number and Percentage of Franchisees at or Above Average:  2 (67%)
• Median Gross Sales:  $831,307
• Number and Percentage of Franchisees at or Above Median:  2 (67%)
• Lowest Gross Sales:  $497,144
• Highest Gross Sales:  $1,074,775
• Lowest Population:  362,090
• Highest Population:  1,279,205

1st Tertile

• Total Franchisees:  9
• Average Gross Sales:  $521,781
• Number and Percentage of Franchisees at or Above Average:  2 (22%)
• Median Gross Sales:  $419,451
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Gross Sales:  $325,626
• Highest Gross Sales:  $1,074,775
• Lowest Population:  249,807
• Highest Population:  1,542,021

2nd Tertile

• Total Franchisees:  9
• Average Gross Sales:  $260,976
• Number and Percentage of Franchisees at or Above Average:  4 (44%)
• Median Gross Sales:  $254,968
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Gross Sales:  $203,857
• Highest Gross Sales:  $325,369
• Lowest Population:  306,150
• Highest Population:  893,702

3rd Tertile

• Total Franchisees:  9
• Average Gross Sales:  $146,052
• Number and Percentage of Franchisees at or Above Average:  7 (78%)
• Median Gross Sales:  $157,007
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Gross Sales:  $52,497
• Highest Gross Sales:  $186,438
• Lowest Population:  251,292
• Highest Population:  710,482

Bottom 10%

• Total Franchisees:  3
• Average Gross Sales:  $104,638
• Number and Percentage of Franchisees at or Above Average:  2 (67%)
• Median Gross Sales:  $110,951
• Number and Percentage of Franchisees at or Above Median:  2 (67%)
• Lowest Gross Sales:  $52,497
• Highest Gross Sales:  $150,466
• Lowest Population:  251,292
• Highest Population:  710,482

All Franchisees

• Total Franchisees:  27
• Average Gross Sales:  $309,603
• Number and Percentage of Franchisees at or Above Average:  10 (37%)
• Median Gross Sales:  $254,968
• Number and Percentage of Franchisees at or Above Median:  14 (52%)
• Lowest Gross Sales:  $52,497
• Highest Gross Sales:  $1,074,775
• Lowest Population:  249,807
• Highest Population:  1,542,021

Part 2 – Average and Median Annual Gross Revenue of PatchMaster Franchisees Per LSA for the 12 Months Ending December 31, 2023

Top 10%

• Number of Franchisees:  3
• Number of Active LSAs:  10
• Average LSAs per Franchisee:  3.3
• Average Gross Revenue per LSA:  $241,697
• Number and Percentage of Franchisees at or Above Average:  2 (67%)
• Median Gross Revenue per LSA:  $248,572
• Number and Percentage of Franchisees at or Above Median:  2 (67%)
• Lowest Average Gross Revenue per LSA:  $207,827
• Highest Average Gross Revenue per LSA:  $268,694
• Average Years Operating:  3.2

1st Tertile

• Number of Franchisees:  9
• Number of Active LSAs:  22
• Average LSAs per Franchisee:  2.4
• Average Gross Revenue per LSA:  $274,909
• Number and Percentage of Franchisees at or Above Average:  4 (44%)
• Median Gross Revenue per LSA:  $268,694
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Average Gross Revenue per LSA:  $76,179
• Highest Average Gross Revenue per LSA:  $419,451
• Average Years Operating:  3.1

2nd Tertile

• Number of Franchisees:  9
• Number of Active LSAs:  18
• Average LSAs per Franchisee:  2.0
• Average Gross Revenue per LSA:  $136,272
• Number and Percentage of Franchisees at or Above Average:  4 (44%)
• Median Gross Revenue per LSA:  $127,484
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Average Gross Revenue per LSA:  $99,744
• Highest Average Gross Revenue per LSA:  $203,857
• Average Years Operating:  2.7

3rd Tertile

• Number of Franchisees:  9
• Number of Active LSAs:  17
• Average LSAs per Franchisee:  1.9
• Average Gross Revenue per LSA:  $81,963
• Number and Percentage of Franchisees at or Above Average:  3 (33%)
• Median Gross Revenue per LSA:  $76,249
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Average Gross Revenue per LSA:  $52,497
• Highest Average Gross Revenue per LSA:  $163,400
• Average Years Operating:  2.6

Bottom 10%

• Number of Franchisees:  3
• Number of Active LSAs:  5
• Average LSAs per Franchisee:  1.7
• Average Gross Revenue per LSA:  $61,069
• Number and Percentage of Franchisees at or Above Average:  1 (33%)
• Median Gross Revenue per LSA:  $55,475
• Number and Percentage of Franchisees at or Above Median:  2 (67%)
• Lowest Average Gross Revenue per LSA:  $52,497
• Highest Average Gross Revenue per LSA:  $75,233
• Average Years Operating:  2.8

All Franchisees

• Number of Franchisees:  27
• Number of Active LSAs:  57
• Average LSAs per Franchisee:  2.1
• Average Gross Revenue per LSA:  $164,382
• Number and Percentage of Franchisees at or Above Average:  8 (30%)
• Median Gross Revenue per LSA:  $127,484
• Number and Percentage of Franchisees at or Above Median:  14 (52%)
• Lowest Average Gross Revenue per LSA:  $52,497
• Highest Average Gross Revenue per LSA:  $419,451
• Average Years Operating:  2.8

Part 3 – Average and Median Annual Gross Revenue of U.S. PatchMaster Franchisees Based on # of LSAs for the 12 Months Ending December 31, 2023

1 LSA

• Number of Franchisees:  7
• Average LSA(s) per Franchisee:  1.0
• Average Gross Revenue per Franchisee:  $275,693
• Number and Percentage of Franchisees at or Above Average:  4 (57%)
• Median Gross Revenue per Franchisee:  $341,915
• Number and Percentage of Franchisees at or Above Median:  4 (57%)
• Lowest Gross Revenue per Franchisee:  $52,497
• Highest Gross Revenue per Franchisee:  $419,451
• Average Revenue Per Territory:  $275,693
• Median Revenue Per Territory:  $341,915

2 LSAs

• Number of Franchisees:  15
• Average LSA(s) per Franchisee:  2.0
• Average Gross Revenue per Franchisee:  $240,131
• Number and Percentage of Franchisees at or Above Average:  7 (47%)
• Median Gross Revenue per Franchisee:  $218,501
• Number and Percentage of Franchisees at or Above Median:  8 (53%)
• Lowest Gross Revenue per Franchisee:  $110,951
• Highest Gross Revenue per Franchisee:  $497,144
• Average Revenue Per Territory:  $120,066
• Median Revenue Per Territory:  $109,251

3 or More LSAs

• Number of Franchisees:  5
• Average LSA(s) per Franchisee:  4.0
• Average Gross Revenue per Franchisee:  $565,490
• Number and Percentage of Franchisees at or Above Average:  2 (40%)
• Median Gross Revenue per Franchisee:  $457,075
• Number and Percentage of Franchisees at or Above Median:  3 (60%)
• Lowest Gross Revenue per Franchisee:  $165,060
• Highest Gross Revenue per Franchisee:  $1,074,775
• Average Revenue Per Territory:  $141,373
• Median Revenue Per Territory:  $99,744

Total

• Number of Franchisees:  27
• Average LSA(s) per Franchisee:  2.1
• Average Gross Revenue per Franchisee:  $309,603
• Number and Percentage of Franchisees at or Above Average:  10 (37%)
• Median Gross Revenue per Franchisee:  $254,968
• Number and Percentage of Franchisees at or Above Median:  14 (52%)
• Lowest Gross Revenue per Franchisee:  $52,497
• Highest Gross Revenue per Franchisee:  $1,074,775
• Average Revenue Per Territory:  $164,382
• Median Revenue Per Territory:  $127,484

Part 4 – Average and Median Job Size of PatchMaster Franchisees for the 12 Months Ending December 31, 2023

1st Tertile

• Total Franchisees:  9
• Average Job Size:  $1,593
• Number and Percentage of Franchisees at or Above Average:  5 (56%)
• Median Job Size:  $1,742
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Job Size:  $980
• Highest Job Size:  $2,355
• Lowest Population:  249,807
• Highest Population:  1,542,021

2nd Tertile

• Total Franchisees:  9
• Average Job Size:  $1,330
• Number and Percentage of Franchisees at or Above Average:  5 (56%)
• Median Job Size:  $1,354
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Job Size:  $799
• Highest Job Size:  $3,099
• Lowest Population:  306,150
• Highest Population:  893,702

3rd Tertile

• Total Franchisees:  9
• Average Job Size:  $1,376
• Number and Percentage of Franchisees at or Above Average:  4 (44%)
• Median Job Size:  $1,243
• Number and Percentage of Franchisees at or Above Median:  5 (56%)
• Lowest Job Size:  $874
• Highest Job Size:  $2,755
• Lowest Population:  251,292
• Highest Population:  710,482

All Franchisees

• Total Franchisees:  27
• Average Job Size:  $1,475
• Number and Percentage of Franchisees at or Above Average:  13 (48%)
• Median Job Size:  $1,354
• Number and Percentage of Franchisees at or Above Median:  14 (52%)
• Lowest Job Size:  $799
• Highest Job Size:  $3,099
• Lowest Population:  249,807
• Highest Population:  1,542,021

Part 5 – Gross Profit of PatchMaster Franchisees for the 12 Months Ending December 31, 2023

1st Tertile

• Average Gross Revenue:  $502,127 (100%)
• Average Labor Expenses:  $151,346 (30%)
• Average Material Expenses:  $62,656 (12%)
• Average Cost of Goods Sold:  $214,003 (43%)
• Average Gross Profit:  $288,124 (57%)

2nd Tertile

• Average Gross Revenue:  $260,549 (100%)
• Average Labor Expenses:  $103,171 (40%)
• Average Material Expenses:  $25,313 (10%)
• Average Cost of Goods Sold:  $128,484 (49%)
• Average Gross Profit:  $132,065 (51%)

3rd Tertile

• Average Gross Revenue:  $75,010 (100%)
• Average Labor Expenses:  $35,788 (48%)
• Average Material Expenses:  $10,677 (14%)
• Average Cost of Goods Sold:  $46,464 (62%)
• Average Gross Profit:  $28,545 (38%)

All Franchisees (calculated by Franchise Chatter)

• Average Gross Revenue:  $279,229 (100.0%)
• Average Labor Expenses:  $96,768 (34.7%)
• Average Material Expenses:  $32,882 (11.8%)
• Average Cost of Goods Sold:  $129,650 (46.4%)
• Average Gross Profit:  $149,578 (53.6%)

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – PatchMaster Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️