Mr. HandymanFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Mr. Handyman franchise requires a total initial investment of $162K – $215K, including a $67K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $774K[2]. SBA 7(a) loans show a 11.6% charge-off rate across 147 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $162K – $215K
- 61st pct Home Services
- Avg gross sales
- $774K
- 27th pct Home Services
- Royalty
- 7.0%
- 28th pct Home Services
- Units
- 357
- 74th pct Home Services
- SBA default
- 11.6%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.1x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 2000. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $162K – $215K including a $67K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $774K/year (median $580K).
- Verdict D (Below Average) with a risk score of 71/100. SBA loan charge-off rate of 11.6% across 147 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MR. HANDYMAN SPV LLC
- Parent company
- Neighborly Assetco LLC
- Predecessor
- The Franchisor is Mr
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $461.7M
- vs $480.8M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- is Mr
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Michael Anthony Davis
- Headquarters
- TX
- Founded
- 2000
- FDD year
- 2026
- States available
- 39
FDD Item 7 · 2026 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $67K | $67K | |
| Initial Package Feenot refundable | $6K | $6K | |
| Vehicle Expenses - 3 months | $8K | $15K | |
| Computer Hardware Package | $4K | $6K | |
| Real Estate and Utility Deposit - 3 months | $1K | $2K | |
| Furniture, Fixtures and Office Equipment | $1K | $2K | |
| Tools and Equipment to Equip Two Vans | $1K | $2K | |
| Permits & Licenses | $100 | $1K | |
| Initial opening equipment, uniforms and marketing materials | $6K | $10K | |
| Prepaid Insurance Premiums - 3 months | $5K | $7K | |
| Training Expenses: Travel, Food and Lodging | $3K | $4K | |
| Professional Fees | $2K | $5K | |
| Additional Funds - 3 months | $60K | $90K | |
| Total initial investment | $162K | $215K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$77K
10.0% margin
Unlevered ROIC
29%
EBITDA / total invested capital
Payback
3.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $162K – $215K
- Near category avg vs category
- Liquid capital req'd
- N/A
- Below avg, review vs category
- Franchise fee
- $28K – $79K
- Below avg, review vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $196 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $774K
- Per unit, per year
- Median gross sales
- $580K
- Item 19 type
- gross_sales
- Sample size
- 165 units
- vs category median 25 · large
- Range (low → high)
- $208K→$5.4M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 349 Home Services brands
Revenue is 4.1x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Home Services averages
How Mr. Handyman Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 357
- Opened
- 22
- Last reporting year
- Closed
- 12
- Terminated
- 11
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +2.9%
- Net unit change last year
- 3-yr CAGR
- +9.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 10
- Closed (3yr)
- 1
- Terminated (3yr)
- 5
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 35
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 1.5%
- Franchisor-initiated terminations
- Ceased ops
- 0.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 41 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 147
- Loan volume
- $25.3M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 11.6%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 75.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 42
- Defaults
- 17
Vintage analysis
Mr. Handyman charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Mr. Handyman's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 22-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
10 case reference(s): 0 pending, 1 settled.
Largest disclosed settlement: $5,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy proceedings involving portfolio companies controlled by KKR (at the time of the bankruptcy proceeding) and not involving the Franchisor: Marelli Holdings Co. Ltd. On June 11, 2025, Marelli Holdings Co. Ltd, a global technology partner to the automotive industry, filed for Chapter 11 proce
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 71 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Postal codes or physical/political boundaries |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 2 |
View Item 3 litigation summary
10 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 37 hrs
- On-the-job training
- 20 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Offered
- Item 10
- POS system
- ServiceTitan
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ServiceTitan
Item 20 · call current owners
Franchisee Contacts
208 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mr. Handyman · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mr. Handyman franchise?
The total investment to open a Mr. Handyman franchise ranges from $162K – $215K, with an initial franchise fee of $67K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mr. Handyman franchise owners earn?
According to Item 19 of the Mr. Handyman FDD, the average gross sales per unit is $774K. The median is $580K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Mr. Handyman's franchise failure rate?
Based on SBA 7(a) loan data, Mr. Handyman has a charge-off rate of 11.6% across 147 loans, meaning 11.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Mr. Handyman franchise locations are there?
As of their most recent FDD filing, Mr. Handyman has 357 total units in the United States, including 326 franchised units and 0 company-owned units. 22 new units were opened in the latest reporting year.
Is Mr. Handyman a good franchise to buy?
FranchiseVerdict rates Mr. Handyman as a D-grade franchise with a risk score of 71 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.