Risk Score
Pending analysis
Investment Range
$69,840 - $129,643
Franchise Fee
$9,500
Total US Locations
11
Business Summary
HandyPro businesses offer a variety of home repair and improvement services to both residential and commercial customers within a designated geographic area. These services include minor carpentry, painting, drywall repair, ceramic tile work, gutter cleaning and repair, wallpaper hanging, and in-home modifications. HandyPro businesses typically operate as mobile services, often run from the franchisee's home, and rely on a network of independent contractors or employees, known as Craftsmen, to perform the services.
Corporate History
HandyPro International, LLC was formed as a Michigan limited liability company in March 2009 and began offering HandyPro franchises in June 2009. The company's origins trace back to its predecessor, HandyPro Franchise, Inc., which was incorporated in January 2000 and offered similar franchises until March 2009. At that time, HandyPro Franchise, Inc. transferred its business system, trademarks, and existing franchise agreements to HandyPro International, LLC.
Financial Overview
Investment Range
$69,840 - $129,643
Franchise Fee (Low)
$9,500
Franchise Fee (High)
$9,500
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$4,480
Equipment Costs (High)
$25,683
Working Capital
$10,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
HandyPro International has provided audited financial statements that include an unqualified opinion from its independent auditor. This indicates that the company's financial statements are presented fairly and in accordance with generally accepted accounting principles. The FDD does not contain any specific notes or concerns about HandyPro International's ability to continue operations or its working capital position.
Financing Details
HandyPro International does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
11
Franchised Units
9
Corporate Units
2
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
HandyPro International has reported one legal case. This lawsuit, filed in August 2016 against a franchisee, HandyPro of York, involved claims for breach of contract, misappropriation of trade secrets, past-due royalty payments, and trademark violations. The case was resolved through a settlement and dismissed in January 2017, meaning it is not a recent or ongoing legal matter for HandyPro International.
Bankruptcy History
HandyPro International has no bankruptcy history to disclose in its Franchise Disclosure Document.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their franchise agreement, HandyPro International franchisees must notify the franchisor between 6 and 12 months before their current term expires. They need to demonstrate their right to operate for the new term, complete all required upgrades to their business operations and equipment (including potentially a new vehicle) to meet current brand standards, and ensure they are not in breach of any agreements with HandyPro International or its affiliates. Additionally, franchisees must have paid all outstanding financial obligations, sign HandyPro International's then-current franchise agreement (which may have different terms, fees, and advertising requirements), complete any new training, and sign a general release of claims against the franchisor.
Training & Support Program
Franchisor Assistance
HandyPro International provides several forms of assistance to its franchisees. Before opening, HandyPro International designates the territory, offers an initial training program (for up to two people free of charge, with additional people or replacement training incurring a fee), loans the Brand Standards Manual, and advises on selecting Craftsmen. Ongoing support includes telephone, email, or fax consultations on business operations, updates on new programs and services, and additional training for new or existing personnel (potentially for a fee). HandyPro International's employees or agents may also provide on-site assistance in the franchisee's territory, for which travel, lodging, meals, and hourly rates may be charged outside of the initial 30 days post-opening.
Initial Training Hours
37
Training Location
Farmington, Michigan
Ongoing Support
After opening, HandyPro International offers ongoing support to its franchisees through telephone, email, or fax consultations on continued operation and management, advice on services, sales techniques, product supply, and customer relations. HandyPro International also provides updates on new programs and services. Additional training may be provided for new personnel or as refresher courses, for which fees may apply. On-site assistance may also be provided in the franchisee's territory, with franchisees covering travel, lodging, meals, and hourly rates if requested after the first 30 days of operation. HandyPro International may also hold annual conferences, which franchisees are recommended to attend every year and are mandatory every two years, with a convention fee charged regardless of attendance.
Franchise Requirements
Ideal Candidate Profile
HandyPro International emphasizes that the success of a HandyPro Business largely depends on the franchisee's business abilities, efforts, management skill, experience, and business acumen. Franchisees are responsible for recruiting and managing their own network of service providers, known as Craftsmen. They must also obtain specific certifications, such as 'Certified Aging in Place Specialist' and 'Certified Environmental Access Consultant,' before beginning operations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
HandyPro International defines its franchise territories based on geographic areas that include approximately 60,000 'Qualified Households,' which are households with an annual income of $50,000 or more. These population statistics are derived from current United States Census reports and other chosen statistical sources. While territories may be smaller in densely populated metropolitan areas, they can be significantly larger in less densely populated urban areas. Each HandyPro International territory is specifically identified by city or county limits, zip code areas, street boundaries, or other geographic boundaries in an attachment to the franchise agreement.
Staffing Notes
HandyPro International franchisees are solely responsible for all employment decisions and functions of their HandyPro Businesses, including hiring, firing, training, compensation, and compliance with all employment-related laws. All services are generally performed by independent contractors or employees, referred to as 'Craftsmen,' who are recruited by the franchisee. Franchisees must train their employees and Craftsmen according to HandyPro International's practices and procedures. HandyPro International emphasizes that it is not the employer of the franchisee's staff and has no obligation to direct them. Franchisees are also prohibited from soliciting HandyPro International's employees or those of other HandyPro franchisees.