PatchMasterFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A PatchMaster franchise requires a total initial investment of $123K – $242K, including a $55K franchise fee. Per the 2025 FDD, average unit revenue was $331K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 20 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $123K – $242K
- 46th pct Home Services
- Avg gross sales
- $331K
- 7th pct Home Services
- Royalty
- N/A
- Units
- 133
- 59th pct Home Services
- SBA default
- 0.0%
- 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
Only 0.0% of 20 SBA loans charged off, well below the 16% franchise average.
The system grew 22% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $123K – $242K including a $55K franchise fee.
- Average unit revenue of $331K/year (median $263K).
- Verdict A (Top Quintile) with a risk score of 21/100. SBA loan charge-off rate of 0.0% across 20 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- PatchMaster Franchise, LLC
- Parent company
- PM Holdco, LLC
- Ultimate parent
- MPK Equity Partners LLC
- Predecessor
- began offering franchises in September
- 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
- $2.3M
- 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
PatchMaster franchisees operate drywall repair and wall restoration services in protected local service areas (LSAs). Day-to-day operations include estimating damage, performing patch/texture work, managing crews, scheduling appointments, and handling customer service for residential and light commercial properties.
- CEO
- Paul Ferrara
- Headquarters
- NJ
- FDD year
- 2025
- States available
- 29
FDD Item 7 · 2025 filing · 20 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.
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
$40K
12.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $123K – $242K
- Near category avg vs category
- Liquid capital req'd
- $6K – $25K
- Better than avg vs category
- Franchise fee
- $55K – $115K
- Near category avg vs category
- Royalty
- Greater of: (1) 9% of first $150,000 in Gross Revenue (st…
- 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 |
Financial Performance
- Avg gross sales
- $331K
- Per unit, per year
- Median gross sales
- $263K
- Item 19 type
- Historical
- Sample size
- 39 units
- vs category median 25
- Range (low → high)
- $76K→$1.2M
- Cohort dispersion (min → max)
- Quartile band
- $89K→$1.0M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 349 Home Services brands
vs Home Services averages
How PatchMaster Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 133
- Opened
- 37
- Last reporting year
- Closed
- 10
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.5%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +21.5%
- Net unit change last year
- 3-yr CAGR
- +14.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 18
- Terminated (3yr)
- 2
- Transfers (3yr)
- 5
- 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 · 22 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
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Commonwealth of Virginia, ex rel. State Corporation Commission v. Restoration 1 Franchise Holding, LLC and Andor Kovacs (Case No. SEC-2014-00028). Settlement Order entered July 16, 2014. Allegation: offered and sold Restoration 1 franchise in Virginia after Virginia registration lapsed. Settlement terms: paid $1,000 to defray investigation costs, agreed to attend franchise sales compliance training, agreed to never violate Virginia Retail Franchise Act.
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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 21 / 100 rating
- 01MEDNet income not disclosed in FDD despite average revenue of $330,653 — inability to validate profitability claims
- 02MINORComplex royalty structure (greater of 9% on first $150k or minimum monthly fee) creates unpredictable cost burden — needs clarification on actual franchisee payments
- 03MINOR2014 regulatory settlement in Virginia for operating without registration — suggests compliance management gaps, though resolved
- 04MEDHigh initial investment ($54,500 franchise fee + $122,950–$242,450 total) relative to disclosed revenue without net income transparency
- 05MEDModerate 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
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 | Licensed Service Area (LSA) defined by zip codes |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 300,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 | New Jersey |
| Litigation count | 1 |
View Item 3 litigation summary
Commonwealth of Virginia, ex rel. State Corporation Commission v. Restoration 1 Franchise Holding, LLC and Andor Kovacs (Case No. SEC-2014-00028). Settlement Order entered July 16, 2014. Allegation: offered and sold Restoration 1 franchise in Virginia after Virginia registration lapsed. Settlement terms: paid $1,000 to defray investigation costs, agreed to attend franchise sales compliance training, agreed to never violate Virginia Retail Franchise Act.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 20 hrs
- Training location
- On-site and off-site
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
49 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 – $242K, 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 $331K. The median is $263K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 114 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 risk score of 21 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.