Ace Handyman Services
The “Ace” name is synonymous with home improvement. From a brand recognition perspective, it just doesn’t get much better. Did you know you can purchase an Ace franchise? You can! The purpose of this post is to provide a 10,000 foot overview of the ACE Handyman Services franchised business, but Ace offers various opportunities through related entities. Brands under the parent umbrella include Ace Hardware, Ace Handyman, Ace Painting, and Ace Plumbing.
Interested in learning more about becoming an Ace Handyman Services franchisee?
The Background of Ace Handyman Services
ACE Handyman Services was born when Ace Hardware acquired Handyman Matters in 2019. Andy Bell formed Handyman matters in 1998 and began franchising his concept. Eventually, he caught the eye of Ace and the rest is history. In 2019, Handyman Matters was operated in 23 states through 57 franchisee owned outlets. These outlets were converted to Ace Handyman Services in 2019/2020, and the brand has since grown from 57 outlets to 379 outlets opened and operating as of December 31, 2024.
What does an Ace Handyman Services Business Entail?
An ACE Handyman Services franchised business provides handyman, and repair and maintenance services, and sales to residential and commercial customers. They use Ace’s uniform system consisting of high standards of service, use of quality products, proprietary and exclusive technology, and their business format. The handyman services include basic services in the categories of carpentry, plumbing and electrical, drywall, painting, roofing, flooring, landscaping and many other miscellaneous repairs, and services to residential and commercial clients.
The services provided by franchisees do not include more specialized or advanced services. However, many states do require a contractor’s license to provide the handyman services. This means, franchisees will either need to obtain qualifications or hire qualified individuals. The requirements vary by state.
How much does it cost to launch an ace handyman franchise?
Interested in opening your own ACE Handyman Services franchise business? Expect to invest between $131,077 to $220,297 to launch your first standard location. That is what ACE Handyman Services estimates it will cost you to get your location ready to open and operate for 3-months according to its most recent disclosure document. They also offer a “mini” business for a smaller initial investment. This includes the initial franchise fee.
The Initial Franchise Fee
As of 2024, the initial franchise fee is $70,000 for a territory size including approximately 70,000 households or $35,000 for a territory including approximately 35,000 households. This fee goes to ACE Handyman Services when you sign the franchise agreement. This initial franchise fee has not increased over the past year. They also offer discounts for veterans. The fee structure is slightly dynamic, in that it is tied directly to the number of households. They charge $1 per household over 70,000 households.
The Build-out expenses
Like most businesses, you will need an office to use in the operation of the business. As part of your initial investment, you will need funds sufficient to build-out a franchised location. This includes obtaining an appropriate space, making certain improvements, buying furniture, and installing the appropriate signage.
The initial estimated expenses are laid out in Item 7 of the ACE Handyman Services Franchise Disclosure Document.
The construction and buildout expenses make up a bulk of the estimated startup costs. You will also need at least one Ace branded vehicle. The Ace vehicle can be either a truck or van, but we have typically seen trucks. The expense of purchasing a truck is typically less than purchasing a van.
The Operating Expenses
According to the 2024 FDD, you will need $30,000 to $45,0000 in cash on hand to operate a ACE Handyman Services franchise location for the first three months. This amount does not include any owner draw or salary, but it does include the cost of hiring an office manager. They estimate you will need to pay up to $30/hour to hire an office manager. Essentially, you must have someone to answer calls and assist with the day-to-day operation of the business.
The Ongoing Expenses due to ACE Handyman Services
You will naturally incur ongoing operating expenses for any business. The franchise relationship typically involves ongoing support and an ongoing obligation to pay certain royalty fees. As a franchisee, these are the costs of doing business as an Ace location. You are paying for branding, systems and processes, support, and general know-how required to operate the business.
As of 2024, ACE Handyman Services collects 6% of Gross Sale as ongoing royalty fee on a weekly basis (subject to a minimum royalty schedule). They also require a marketing contribution into a brand fund of 2% of Gross Sales , and require you to spend a minimum annual amount on local marketing efforts. Effective marketing is key to success in many lines of business, and that is likely to be particularly true with an ACE franchised business. Additional fees paid to the franchisor are included in Item 5 of the FDD. The largest recurring fee, aside from royalties, is a monthly technology fee which is currently $499/month.
How much can i make as an ace handyman services franchisee?
Few entrepreneurs go into business wanting to earn less. However, expectations do not always mirror reality. One of the benefits of purchasing a franchise over operating an independent business is that franchisors sell franchises by disclosing the FDD, which often contains earning representations. Although franchisors do not typically make any representation as to profit, they often make revenue representations. These can be in the form of actual historic data or can be based on reasonable projections. These are known as a financial performance representation or “FPR”.
Does Ace make a financial performance representation?
Yes! Although franchisors are not required to make a Financial Performance Representation (“FPR”), they can choose to do so. ACE Handyman Services makes an extensive FPR in their 2024 FDD.
Business is never without risk and no one can guarantee results; however, an FPR allows a prospective buyer to make a more informed purchasing decision. Carefully reviewing the Item 19 to understand the potential, along with any exclusions or exceptions is a vital part of considering a franchise opportunity. We also help franchisees by making sure they know how to ask for more detailed financial information.
Growth Trajectory
Franchisors disclose the total number of outlets in operation in Item 20 of the FDD. Over the past four years, ACE Handyman Services franchisee owned outlets have increased at a fast pace. They grew from 122 opened locations on January 1, 2020 to 379 locations opened by December 31, 2023. Company owned outlets have grown slightly, as they reacquired 5 franchisee outlets last year.
Are there ACE Handyman Services franchise Requirements to Participate in Day-to-Day Operations?
Almost any business requires full time attention and management to be successful. Cultivating growth is particularly important in the early stages. The ACE Handyman Services disclosure document provides that the franchisee’s managing owner must either participate in the day-to-day operations or employ a designated manager who completes initial training. A full time office manager will also be required to answer calls, schedule appointments, assist with employment applications, and provide day-to-day support.
Where can i find the ACE Handyman Services franchise fDD?
The best way to obtain a current disclosure document applicable right now to your state is to ask the franchisor. The document can vary by state and change slightly over time. However, if you want to obtain a “good enough” copy of the document without speaking to the franchise development team, then there are public resources available online. The easiest to use is the NASAA electronic filing depository. You can search for any franchise disclosure document using their search portal. We like the depository because it contains records filed in many franchise registration states. However, there are limitations. The depository only contains a brands FDD if they file for registration through the NASAA’s system. If you go this route, you will still need to be disclosed an official copy before purchasing a franchise, but it can be on your terms.
Has Waldrop & Colvin Worked with Ace Franchisees?
Yes, we have worked with Ace franchisees during the explorative process. We have spoken to members of the Ace team and we have attended one of our client’s grand opening events. We will be happy to share our perspective and provide legal guidance if you need assistance in reviewing the FDD.
Fee to Review the FDD
Franchising provides the right and obligation to operate a franchised business. Obtaining a qualified franchise attorney is an important part of the diligence process. Franchising is a unique and niche area of the law because franchising is regulated on the federal level and to varying degrees across the country. We charge a flat rate to help conduct business and legal due diligence.
What does your fixed fee franchise review include?
Need help considering an Ace franchise?
We excel at empowering clients to make informed decisions and we love supporting entrepreneurs as they explore opportunities in franchising. We would be honored to provide legal guidance as you explore an opportunity with Ace or any other franchised brand. Our goal is to be the law department for your business.
Meet the Author
Derek A. Colvin
Derek is a graduate of Penn State Law and Old Dominion University. He started his legal career in public service as a prosecuting attorney before entering private practice. He currently serves business clients as a partner at Waldrop & Colvin, the law department for your business.
Derek is laser-focused on delivering efficient and effective solutions for business legal needs. As a seasoned litigator set on thinking critically and communicating effectively, Derek is well-suited to advise and protect your business as an independent owner, franchisor, or franchisee.
Derek A. Colvin offers a free 15 minute consultation.
You can call or email Derek Colvin directly or you can schedule a video conference today!
