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

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

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

Section III – Number of franchised and company-owned Handyman Connection 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 Handyman Connection franchise opportunity

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

• 2023, 2022, and 2021 average, median, high, and low gross sales and average job size for 31 out of the 32 U.S. Handyman Connection franchisees (representing 33 of the 34 franchised territory outlets in the U.S.), who were in operation for more than 12 months as of December 31, 2023 and were still operating as of the time of the current FDD, and were not sold during that 12-month period

• 2023 average, median, high, and low number of leads from repeat customers and referrals for 32 out of the 33 U.S. Handyman Connection franchisees (representing 34 of the 35 franchised territory outlets in the U.S.) who were in operation for more than 12 months as of December 31, 2022 and were not sold during that 12-month period

• top 10 services that U.S. Handyman Connection franchisees have categorized as Quoting (or Estimating) in Handyman Connection’s new technology system for all U.S. franchisees that were open and operating for any portion of the 2023 data period

• 2023 average, median, high, and low gross margin percentage for the 29 U.S. Handyman Connection franchisees who were in operation for more than 12 months as of December 31, 2023, were still operating as of the time of the current FDD, were not sold during that 12-month period, and submitted their profit and loss statements to Handyman Connection

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

Section I – Handyman Connection Franchise Costs

• Initial Franchise Fee:  $65,000
• Travel and Living Expenses While Training:  $2,075 to $4,700
• Real Estate (leased):  $1,800 to $4,800
• Office Equipment:  $1,100 to $7,800
• Lease and Utility Deposits:  $850 to $2,100
• Insurance:  $3,235 to $7,824
• Licenses and Permits:  $215 to $7,500
• Grand Opening Marketing, Advertising, and Promotion:  $21,685 to $63,400
• Computer Hardware and Software:  $1,425 to $10,025
• Proprietary Software License:  $5,000 to $10,000
• Additional Funds – Working Capital (estimated for 3 months):  $3,235 to $41,625
• Total Estimated Handyman Connection Franchise Costs:  $105,620 to $224,774

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

• Initial Franchise Fee:  $65,000

• Royalty Fee:  5% of Gross Sales

• Minimum Royalty Fee:  for the 3rd through 5th calendar years (2nd through 4th calendar years if the Franchise Agreement is signed in either January or February), the amount of Minimum Royalty is $11,250 per Household Group (HH Group) in your Territory; for the 6th through 10th calendar years (5th through 10th calendar years if the Franchise Agreement is signed in either January or February), the amount of Minimum Royalty is $17,500 per HH Group in your Territory

• Brand Development Fund Contributions:  3% of Gross Sales up to $3,000,000 of sales. The BDF Contribution will be reduced to an amount equal to (i) 2.5% for annual Gross Sales between $3,000,000 and $5,000,000, and (ii) 2% for annual Gross Sales over $5,000,000.

• Local Marketing (including Local Cooperative Fees, if applicable):  10% of Gross Sales over 1st year of operations, 8% of Gross Sales over each subsequent years

Section III – Number of Franchised and Company-Owned Handyman Connection Outlets

Franchised

2021

• Outlets at the Start of the Year:  61
• Outlets at the End of the Year:  61
• Net Change:  0

2022

• Outlets at the Start of the Year:  61
• Outlets at the End of the Year:  58
• Net Change:  -3

2023

• Outlets at the Start of the Year:  58
• Outlets at the End of the Year:  62
• Net Change:  +4

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Handyman Connection Franchise

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

• This Item sets forth certain historical data reported to Handyman Connection by franchisees of the Handyman Connection System. Handyman Connection has not audited this information, nor independently verified this information.

Part 1 – Annual Gross Sales, Leads from Repeat Customers and Referrals, and Top Categories of Services Quoted

• In 2023, Handyman Connection changed its required technology and reporting systems, and the information presented represents data from both systems as described below. As part of the transition, some data inconsistencies arose from the fact that certain fields were not originally designated as mandatory in the new system (such as the tracking of lead sources). For areas where Handyman Connection has incorrect or incomplete 2023 data, it has included 2022 data, and it does not believe that the corresponding 2023 data is materially different from the 2022 data.

A.  Annual Gross Sales

• Part 1-A of this Item is created using information Handyman Connection has obtained directly from its new technology system, and provides Annual Gross Sales information for the period of January 1, 2023 through December 31, 2023 (the “2023 Data Period”).

• Part 1-A of this Item presents information for 31 out of the 32 U.S. franchisees (representing 33 of the 34 franchised territory outlets in the U.S.), who were in operation for more than 12 months as of December 31, 2023 and were still operating as of the time of the current FDD, and were not sold during that 12-month period (“Part 1-A Reporting Franchisees”).

• Excluded from Part 1-A of this Item 19 are 14 U.S. franchises which were not open and operating for the entire 2023 Data Period, or were not open and operating as of the Issuance Date of the current Franchise Disclosure Document, or were sold during the 2023 Data Period. This includes one legacy U.S. franchisee that does not report information via Handyman Connection’s current technology system and is excluded from the entirety of Item 19.

• The following table presents the following data for the Part 1-A Reporting Franchisees during the 2023 Data Period: (i) the Gross Sales reported to Handyman Connection; (ii) the high, low, average, and median Gross Sales; and (iii) certain information regarding average job size and territory size.

• In addition, this table shows the same information for the 32 out of the 33 U.S. franchises (representing 34 of the 35 franchised territory outlets in the U.S.), who were in operation for more than 12 months as of December 31, 2022 and were not sold during that period (“2022 Reporting Franchisees”) and 28 out of the 29 U.S. franchisees (representing 31 of the 32 franchised territory outlets in the U.S.), who were in operation for more than 12 months as of December 31, 2021 and were not sold during that period (“2021 Reporting Franchisees”).

2023

• Number of Reporting Franchisees in the U.S.:  31
• Cumulative Number of Territories Operated by Reporting Franchisees:  33
• High Gross Sales Among Reporting Franchisees:  $2,429,030
• Low Gross Sales Among Reporting Franchisees:  $236,617
• Average Gross Sales Among Reporting Franchisees:  $681,982
• Median Gross Sales Among Reporting Franchisees:  $511,572
• Average Job Size Among Reporting Franchisees:  $1,202
• Number of Reporting Franchisees Exceeding the Average:  12 (39%)
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees:  129,199
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees Exceeding the Average:  146,194

2022

• Number of Reporting Franchisees in the U.S.:  32
• Cumulative Number of Territories Operated by Reporting Franchisees:  34
• High Gross Sales Among Reporting Franchisees:  $2,833,548
• Low Gross Sales Among Reporting Franchisees:  $269,531
• Average Gross Sales Among Reporting Franchisees:  $715,448
• Median Gross Sales Among Reporting Franchisees:  $523,460
• Average Job Size Among Reporting Franchisees:  $1,191
• Number of Reporting Franchisees Exceeding the Average:  10 (31%)
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees:  130,010
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees Exceeding the Average:  156,810

2021

• Number of Reporting Franchisees in the U.S.:  28
• Cumulative Number of Territories Operated by Reporting Franchisees:  31
• High Gross Sales Among Reporting Franchisees:  $2,151,074
• Low Gross Sales Among Reporting Franchisees:  $99,229
• Average Gross Sales Among Reporting Franchisees:  $715,675
• Median Gross Sales Among Reporting Franchisees:  $592,291
• Average Job Size Among Reporting Franchisees:  $933
• Number of Reporting Franchisees Exceeding the Average:  10 (36%)
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees:  166,260
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees Exceeding the Average:  155,992

• “Gross Sales” is defined as a franchisee’s total sales invoices or other items or services billed to the customer for all completed sales, less any discounts and cancellations reported to Handyman Connection on its software system (which did change in 2023 as noted above).

• Please note that some of these sales figures do not include the sale of materials. The Gross Sales figure forms the basis for the calculation of the Royalty Fee under the Franchise Agreement.

• The Territory presently being offered generally includes 75,000 to 100,000 Households (“HHs”).

B.  Leads from Repeat Customers and Referrals

• Part 1-B represents data from January 1, 2022 through December 31, 2022 from Handyman Connection’s prior technology system and includes information regarding leads from repeat and referral customers.

• Part 1-B of Item 19 contains information from 32 out of the 33 U.S. franchisees (representing 34 of the 35 franchised territory outlets in the U.S.) who were in operation for more than 12 months as of December 31, 2022 and were not sold during that 12-month period (“Part 1-B Reporting Franchisees”).

• Offering many different services through the Handyman Connection System will give you the opportunity to serve your customers in multiple ways at a single residence. In the course of operating your Handyman Connection Franchised Business, Handyman Connection recommends that you monitor certain performance measurements, such as Leads from Repeat Customers and Referrals.

• Service requests from Repeat Customers indicate multiple contacts for different services. Referrals can indicate satisfaction with the quality of service received, resulting in recommendations to others.

• This table presents the Percentage of Leads from Repeat Customers and Referrals as reported to Handyman Connection by Part 1-B Reporting Franchisees, as defined above.

• The following table presents the high, low, average, and median percentage of Leads from Repeat Customers and Referrals for the Part 1-B Reporting Franchisees during the 2022 Data Period. As noted above, Handyman Connection is using the 2022 Data Period because the lead source category was not marked as a mandatory field when it changed technology systems in 2023, and therefore it does not have accurate data for 2023 regarding the actual source of all of the leads. Handyman Connection believes that the average percentage of leads that come from repeat and referral sources did not vary materially between 2022 and 2023.

• Number of Reporting Franchisees:  32
• Cumulative Number of Territories Operated by Reporting Franchisees:  34
• High Number of Leads from Repeat and Referral Customers:  1,923
• Low Number of Leads from Repeat and Referral Customers:  81
• Average Number of Leads from Repeat and Referral Customers:  634
• Median Number of Leads from Repeat and Referral Customers:  477
• Average Percentage of Leads from Repeat and Referral Customers:  46%
• Number of Reporting Franchisees Exceeding the Average:  10 (31%)
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees:  130,010
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees Exceeding the Average:  157,304

• “Lead” is defined as a request from a potential customer for a Reporting Business to provide an estimate to perform services.

• “Repeat Customers” are defined as a customer that has used a Reporting Business’s service in the past.

• “Referral” is defined as a request initiated by a potential customer for a Reporting Business to perform services based on a recommendation by a previous customer.

C.  Quote Breakdown

• Part 1-C lists the top 10 services that the U.S. franchisees categorized as “Quoting” (or “Estimating”) in Handyman Connection’s new technology system and a list of the top categories of services “Quoted” (or “Estimated”) in Handyman Connection’s system for the 2023 Data Period.

• Part 1-C includes data from all U.S. franchisees that were open and operating for any portion of the 2023 Data Period.

• The following table represents a listing of the top 10 services that the Part 1-C Reporting Franchisees have categorized as Quoting (or Estimating) in Handyman Connection’s technology system presented as a percentage of the total number of services Quoted during the 2023 Data Period.

• As Handyman Connection changed systems in 2023, the categorization of services did not line up perfectly to how it categorized services in prior years, and therefore it had to assign some quotes that were performed in 2023 to different categories. Handyman Connection does not believe that the information provided and the shift in categorization would materially impact the representation of the different types of work that franchisees perform.

• Please note that franchisees often will make more than one Quote on a job.

Summary of Top 10 Services Quoted and Categorized

• Handyman:  24.17% of total Quote items
• Drywall:  9.33% of total Quote items
• Miscellaneous:  7.24% of total Quote items
• Carpentry:  7.24% of total Quote items
• Electric:  6.23% of total Quote items
• Doors:  5.64% of total Quote items
• Plumbing:  4.69% of total Quote items
• Painting:  4.26% of total Quote items
• Deck:  3.80% of total Quote items
• Remodel:  2.88% of total Quote items
• Total:  75.49% of total Quote items

Part 2 – Gross Margin on Service Revenue

• Part 2 of this Item provides information regarding the Gross Margin on Service Revenue for the 2023 Data Period, based on unaudited Profit and Loss Statements (P&Ls) provided to Handyman Connection by the Part 2 Reporting Franchisees.

• Handyman Connection requested P&Ls from all of the operating U.S. franchisees other than the legacy franchisee described above.

• Of the 33 U.S. franchises included in Part 1-A, Handyman Connection did not receive P&Ls from two U.S. franchisees. In addition, one of the two franchisees who operate two territories combined their P&Ls and reported one set of numbers to Handyman Connection, and therefore they are represented as a single franchise in Part 2. Therefore, Part 2 includes 29 of the 31 Part 1-A Reporting Franchisees (representing 31 franchised territory outlets) (the “Part 2 Reporting Franchisees”).

• This table presents the Percentage Gross Margin on Total Revenue based on unaudited Profit and Loss Statements provided to Handyman Connection by the Part 2 Reporting Franchisees. The following table presents the high, low, average, and median percentage of Gross Margin on Total Revenue for the Reporting Businesses during the 2023 Data Period.

• Number of Reporting Franchisees:  29
• Cumulative Number of Territories Operated by Reporting Franchisees:  31
• High Gross Margin Percentage Among Reporting Franchisees’ P&Ls:  71%
• Low Gross Margin Percentage Among Reporting Franchisees’ P&Ls:  36%
• Average Gross Margin Percentage:  48%
• Median Gross Margin Percentage:  48%
• Number of Reporting Franchisees’ P&Ls Exceeding the Average Gross Margin:  16 / 55%
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees:  129,972
• Average Number of Households/Single-Family Dwelling Units for Reporting Franchisees Exceeding the Average:  129,733

• “Gross Margin” is defined as Total Revenue – (Labor Cost + Material Cost), and “Gross Margin %” is defined as Total Revenue – (Labor Cost + Material Cost) / Total Revenue.

• “Total Revenue” is defined as revenue from both labor and materials.

• Handyman Connection received unaudited Profit and Loss Statements from 29 of the 31 Part 1-A Reporting Businesses (representing 31 Territories). Handyman Connection requested these statements from all franchisees that operated for 2023, other than the legacy franchisee described above. One of the two franchisees who operate two territories combined their P&Ls and reported one set of numbers to Handyman Connection, and therefore they are represented as a single P&L. Therefore, Handyman Connection used a total of 30 P&Ls in connection with the data provided in the table above.

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