Bottom line
- Total investment $162K – $215K including a $67K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $774K/year (median $580K).
- Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 233 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Mr. Handyman unit return on the cash you put in?
Unlevered ROIC · per unit
41%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Mr. Handyman units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.4M purchase
Total debt
$4.3M
SBA $2.7M + senior + seller note
Overview
About
Mr. Handyman franchisees run local home maintenance and repair service businesses, handling tasks like drywall repair, painting, carpentry, and handyman work. Franchisees manage technician teams, coordinate customer jobs within protected territories, and generate revenue through labor, materials, and subcontractor referrals. Daily operations involve scheduling, customer acquisition, job quality control, and managing the split royalty obligations on different revenue streams.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mr. Handyman presents moderate-to-cautionary risk: slow unit growth, active franchisor litigation, missing financial disclosures, and complex royalty structures warrant deep validation before committing capital.
Score breakdown · what drove the 41 / 100 rating
- 01MINORDeclining unit growth (2.9% YoY) indicates system stagnation despite mature brand presence
- 02HIGHActive litigation against franchisees raises concerns about franchisor-franchisee relationship and potential disputes over marketing obligations
- 03MINORNo Item 19 (Average Unit Volumes) disclosure prevents validation of $773,574 average revenue claim and profitability assessment
- 04MINORDual royalty structure (7% vs 3.5%) creates complexity and potential disputes over revenue categorization and material/subcontractor definitions
- 05MEDHigh initial investment ($161,900–$215,000) combined with undisclosed net income creates uncertainty about ROI timeline and profitability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mr. Handyman · FDD (2026) PDF