PatchMaster Franchise Cost, Revenue & Review 2026
- Investment
- $123K – $158K
- Disclosed sales
- $145K
- gross sales, not profit
- SBA charge-off
- Limited · 20 loans
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 and an ongoing 9.0% royalty[2]. Per the 2025 FDD, average unit revenue was $145K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $123K – $158K
- 47th pct Home Services
- Avg gross sales
- $145K
- 1st pct Home Services
- Royalty
- 9.0%
- 72nd pct Home Services
- Units
- 133
- 65th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · 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, 9.0% ongoing royalty.
- RETURNSAverage unit revenue of $145K/year (median $132K).
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better).
- GROWTHPositive: net +23 franchised outlets in the latest year (37 opened, 14 closed); 18 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- PatchMaster Franchise, LLC
- Parent company
- PM Holdco, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- PM1 Investments LLC
- FDD Item 1, page 8 of the 2025 FDD
- 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 16% below the typical home services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown10 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 | |
| Total initial investment | $123K | $158K |
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
- 9.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 9.0% of gross sales |
| 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 75% below the home services norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for PatchMaster until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$151K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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→$659KCited, not corroborated — printed on page 45 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- 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 319 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% — above the Home Services median of 8.0%.
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 medians
How PatchMaster Compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 14
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.5%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 4
- Not renewed
- 1
- Transferred
- 5
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 18
- 0.14 per open outlet · Item 20 Table 5
- Projected new
- 39
- Franchisor's next-year forecast
- 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).
Where the owners are · Item 20 owner list
70 current owners across 31 states.
- FL 10
- TX 6
- GA 5
- PA 4
- MI 3
- MO 3
- NC 3
- NJ 3
- NY 3
- AZ 2
- IL 2
- IN 2
- +19 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 20 loans
- Limited SBA coverage: 20 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 20 loans
- 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%
- NAICS 238310
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for PatchMaster from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 77%
- Avg interest rate
- 10.39%
- Lender concentration
- 31.6%
- Job velocity
- 3.6 per $100K
- NAICS benchmark
- 15.9%
- NAICS 238310
- Jobs supported
- 112
Top SBA lendersTop lender holds 32% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 6 | $900K | N/A |
| 2 | The Huntington National Bank | 5 | $522K | N/A |
| 3 | First Bank of the Lake | 3 | $707K | N/A |
| 4 | Magnifi Financial CU | 1 | $139K | N/A |
| 5 | Old National Bank | 1 | $218K | 0.0% |
| 6 | The Fidelity Bank | 1 | $259K | 0.0% |
| 7 | Bank Five Nine | 1 | $144K | N/A |
| 8 | ACC Capital | 1 | $230K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 5 | 0 | -- |
| FLFlorida | 2 | 0 | -- |
| MOMissouri | 2 | 0 | -- |
| NCNorth Carolina | 2 | 0 | 0.0% |
| COColorado | 1 | 0 | -- |
| IDIdaho | 1 | 0 | -- |
| ILIllinois | 1 | 0 | 0.0% |
| MIMichigan | 1 | 0 | -- |
| NJNew Jersey | 1 | 0 | -- |
| NYNew York | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2024 audited total operating revenue: initial franchise fees $1,215,886; royalties $1,305,147; marketing fees $298,158; technology fees $203,289; other operating revenue $1,208.
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 71 / 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 territory |
| 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
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.
Who owns PatchMaster?
PatchMaster is franchised by PatchMaster Franchise, LLC. Its parent company is PM Holdco, LLC. The ultimate parent named in the FDD is PM1 Investments LLC. Source: FDD Item 1, 2025 filing.
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?
SBA 7(a) loan charge-off data is not available for PatchMaster (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 71 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
Other Home Services franchises
Compare similar franchise opportunities in the Home Services category
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.