PatchMaster Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
PatchMaster is a home-services franchise specializing in drywall repair, patching holes, cracks, and texture, for homes and businesses. Franchisees run a mobile, crew-based operation handling small drywall jobs and scheduling in a territory.
FranchiseVerdict summary · 2026
A PatchMaster franchise requires a total initial investment of $123K – $158K, including a $55K franchise fee. Per the 2025 FDD, average unit revenue was $145K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 20 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $123K – $158K
- 47th pct Home Services
- Avg gross sales
- $145K
- 1st pct Home Services
- Royalty
- N/A
- Units
- 133
- 65th pct Home Services
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $123K – $158K including a $55K franchise fee.
- RETURNSAverage unit revenue of $145K/year (median $132K).
- RISKVerdict A (Strongest tier), verdict score 86/100 (higher is better). SBA loan charge-off rate of 0.0% across 20 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- PatchMaster Franchise, LLC
- Parent company
- PM Holdco, LLC
- Ultimate parent
- PM1 Investments LLC
- Predecessor
- PM Franchising, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Paul Ferrara
- Incorporated in
- DE
- HQ
- 57 Main Street, Chester, NJ 07930
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $3.0M
- vs $3.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- National Owners Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Paul Ferrara
- Headquarters
- NJ
- Founded
- 2021
- FDD year
- 2025
- States available
- 29
Can you afford it, and what does the money buy?
Entry cost runs 38% below the typical home services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $55K | $55K | |
| Training Expenses | $1K | $4K | |
| Local Advertising Requirement | $20K | $29K | |
| RightTrack Startup Packagenot refundable | $39K | $39K | |
| Computer, Phone and Office Equipment | $0 | $3K | |
| Vehicle(s) Down Payment | $0 | $6K | |
| Licensing, Permits, and Deposits | $0 | $2K | |
| Insurance Costs including Worker's Compensation | $2K | $6K | |
| Legal Services | $500 | $2K | |
| Additional Funds - 3 months | $6K | $15K | |
| Initial Franchise Fee (3 LSAs)not refundable | $115K | $115K | |
| Training Expenses (3 LSAs) | $1K | $4K | |
| Local Advertising Requirement (3 LSAs) | $29K | $38K | |
| RightTrack Startup Package (3 LSAs)not refundable | $39K | $39K | |
| Computer, Phone and Office Equipment (3 LSAs) | $0 | $3K | |
| Vehicle(s) Down Payment (3 LSAs) | $0 | $11K | |
| Licensing, Permits, and Deposits (3 LSAs) | $0 | $2K | |
| Insurance Costs including Worker's Compensation (3 LSAs) | $2K | $6K | |
| Legal Services (3 LSAs) | $500 | $2K | |
| Additional Funds - 3 months (3 LSAs) | $10K | $25K | |
| Total initial investment | $319K | $400K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $123K – $158K
- Middle of category vs category
- Liquid capital req'd
- $6K – $15K
- Top 40% of category vs category
- Franchise fee
- $55K – $55K
- Middle of category vs category
- Royalty
- Greater of: (1) tiered % of annual Gross Revenue — 9% on …
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of tiered percentage or $400-600/month minimum per LSA |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 88% below the home services norm.
Source: FDD 2025 · Item 19
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
$17K
12.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.7 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one PatchMaster unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
12%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 PatchMaster units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$145K
on $724K purchase
Total debt
$580K
SBA $0.4M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $145K
- Per unit, per year
- Median gross sales
- $132K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue
- Sample size
- 89 outlets
- vs category median 32 · large
- Range (low → high)
- $38K→$659K
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $145K/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 10.0% (near the Home Services average).
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 14.0% CAGR over 3 years across 133 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How PatchMaster Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 133
- Opened
- 37
- Last reporting year
- Closed
- 9
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 46.2%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- +14.0%
- Net unit change over 3 years
- 3-yr CAGR
- +14.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 93
- Closed (3yr)
- 38
- Terminated (3yr)
- 8
- Non-renewed (3yr)
- 14
- Transfers (3yr)
- 19
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 3.8%
- Owners selling to other franchisees
- Termination rate
- 3.0%
- Franchisor-initiated terminations
- Ceased ops
- 9.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 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.
Available to sell in · Item 12
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 20
- Loan volume
- $3.2M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
- Typical loan rate
- 10.4%
- avg rate to borrowers
- vs industry
- 15.9%
- brand is below its industry ↓
- Jobs supported
- 112
- 3.6 per loan
- Lender concentration
- 32%
- top lender's share
Borrower mix: 95% went to startups / new businesses, 5% to established operators
Top lenders financing PatchMaster franchisees
Showing 3 of 9 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into PatchMaster's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 12 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 20 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
PatchMaster presents moderate-to-cautionary risk due to missing profitability disclosure, opaque royalty mechanics, prior regulatory issues, and high capital requirements relative to revenue visibility.
Litigation (Item 3)
One disclosed action: Commonwealth of Virginia v. Restoration 1 Franchise Holding LLC and Andor Kovacs (2014) — affiliate settled with Virginia SCC for offering a franchise after registration lapsed; paid $1,000, agreed to comply. No other litigation required to be disclosed.
Largest disclosed settlement: $1,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 86 / 100 verdict
- 01MINORComplex royalty structure (greater of 9% on first $150k or minimum monthly fee) creates unpredictable cost burden — needs clarification on actual franchisee payments
- 02MINOR2014 regulatory settlement in Virginia for operating without registration — suggests compliance management gaps, though resolved
- 03MEDModerate unit growth (21.5% YoY) is healthy but system is still small (133 units) — limited scale economics and peer learning
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 350,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Chester, New Jersey |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 1 |
View Item 3 litigation summary
One disclosed action: Commonwealth of Virginia v. Restoration 1 Franchise Holding LLC and Andor Kovacs (2014) — affiliate settled with Virginia SCC for offering a franchise after registration lapsed; paid $1,000, agreed to comply. No other litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 20 hrs
- Training location
- Chester, NJ (or designated location; portions may be conducted virtually)
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
70 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
PatchMaster · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a PatchMaster franchise?
The total investment to open a PatchMaster franchise ranges from $123K – $158K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PatchMaster franchise owners earn?
According to Item 19 of the PatchMaster FDD, the average gross sales per unit is $145K. The median is $132K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the PatchMaster FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the PatchMaster FDD and qualifies whose outlets they describe.
What is PatchMaster's franchise failure rate?
Based on SBA 7(a) loan data, PatchMaster has a charge-off rate of 0.0% across 20 loans, meaning 0.0% 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 PatchMaster franchise locations are there?
As of their most recent FDD filing, PatchMaster has 133 total units in the United States, including 130 franchised units and 3 company-owned units. 37 new units were opened in the latest reporting year.
Is PatchMaster a good franchise to buy?
FranchiseVerdict rates PatchMaster as a A-grade franchise with a verdict score of 86 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent PatchMaster, you can request corrections or provide updated information.
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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.