Mr. Handyman Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$143,150 - $179,600
Franchise Fee
$32,500
Total US Locations
347
Business Summary
The Mr. Handyman franchise offers residential and business repair, maintenance, and improvement services. Mr. Handyman utilizes a business system focused on professionalism, advanced computerized systems, personalized marketing programs, and customer relationship management. Franchise owners typically employ individuals experienced in providing these services and operate with identifiable Mr. Handyman service vehicles. While home-based operations are possible with express written permission, leasing commercial office space is strongly recommended. Mr. Handyman differentiates itself through distinctive service techniques, unique delivery methods, comprehensive sales and marketing, specialized software, and potential cross-promotions with affiliated companies.
Corporate History
Mr. Handyman SPV LLC, the current franchisor, is a Delaware limited liability company organized in November 2020. It operates under the names MR. HANDYMAN® and My Handyman. The brand's predecessor, Mr. Handyman International, L.L.C., a Michigan limited liability company, was formed in January 2000 specifically to franchise the Mr. Handyman system. Franchising operations began in September 2000. In June 2015, Dwyer Franchising LLC (now Neighborly) acquired the predecessor. In March 2021, as part of a securitization transaction, Mr. Handyman SPV LLC became the franchisor for all U.S. Mr. Handyman businesses and acquired the associated trademarks and intellectual property. Mr. Handyman SPV LLC is an indirect subsidiary of Neighborly and is ultimately controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. (KKR) following an acquisition in August 2021.
Financial Overview
Investment Range
$143,150 - $179,600
Franchise Fee (Low)
$32,500
Franchise Fee (High)
$81,787
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$47,500
Equipment Costs (High)
$67,500
Working Capital
$64,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Mr. Handyman SPV LLC's direct parent, Neighborly Assetco LLC, has provided audited combined financial statements for 2022, 2023, and 2024. The independent auditor's report states an unqualified opinion, meaning the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in accordance with generally accepted accounting principles. The report indicates no conditions or events raising substantial doubt about Neighborly Assetco LLC's ability to continue as a going concern. This indicates Mr. Handyman SPV LLC's direct parent is in sound financial health.
Financing Details
Mr. Handyman SPV LLC may offer direct financing for a portion of the initial franchise fee, although it is not obligated to do so. The amount financed is typically less than 50% of the total financial support for the business, with a standard offering of up to 70% of the Initial Franchise Fee, and potentially up to 80% if certain requirements are met. Interest rates vary based on the franchisee's credit score: 12% for scores under 600, 11% for 600-649, 10% for 650-699, and 9% for 700 or more. Repayment terms are negotiable but generally range from up to 5 years for loans less than $45,000, to 9 years for loans greater than $150,000. Franchisees must sign a promissory note and security agreement, granting Mr. Handyman SPV LLC a security interest in all business assets. Prepayment is allowed without penalty. Enterprise Leasing Company may offer vehicle financing, but this is not directly from Mr. Handyman SPV LLC. Mr. Handyman SPV LLC also lists several third-party lenders that are willing to work with prospective franchisees but does not guarantee their obligations to these lenders. Renewal fees may also be financed in limited circumstances at a 12% interest rate.
Performance Metrics
Total US Locations
347
Franchised Units
347
Corporate Units
0
Franchising Since
2000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
2
Litigation Summary
Mr. Handyman SPV LLC has two administrative orders involving its affiliates, not itself directly. In 2017, the Commissioner of Business Oversight of California alleged that an affiliate's predecessor, FOR Franchising LLC d/b/a Window Genie, and its then-president, Richard Nonelle, violated California Franchise Investment Law by not submitting advertisements to the Commissioner before use. FOR and Mr. Nonelle entered into a consent order, paid a $5,000 penalty, and completed remedial education without admitting wrongdoing. In 2010, the State of Kansas alleged that another affiliate's predecessor, Molly Maid, Inc., violated the Kansas Consumer Protection Act because one of its franchisees could not document employee background checks and for selling gift certificates after a franchise was terminated. Molly Maid, Inc. settled the matter with a $25,000 civil penalty and reimbursed the District Attorney's office $25,175 for investigation costs, without admitting liability. Both cases are resolved. Mr. Handyman SPV LLC has no other reportable litigation.
Bankruptcy History
Mr. Handyman SPV LLC itself has no bankruptcy history to report. However, Item 4 discloses bankruptcy proceedings of five portfolio companies controlled by Kohlberg Kravis Roberts & Co. L.P. (KKR), the ultimate indirect parent of Mr. Handyman SPV LLC. These include The Collected Group LLC, a Delaware limited liability company, which filed a prepackaged Chapter 11 Plan of Reorganization in April 2021 and emerged in May 2021. Envision Healthcare Corporation, a healthcare provider, filed a Chapter 11 reorganization in May 2023 and emerged in November 2023. Genesis Care Pty Limited, another healthcare provider, filed Chapter 11 reorganization in June 2023 and emerged in February 2024. IPI Legacy Liquidation Co., a pharmaceutical company, filed a Chapter 11 reorganization in December 2023 and emerged in April 2024. Lastly, Café Coffee Day, a retail chain operator in India, filed an insolvency resolution in August 2024, with creditors having filed an initial petition in January 2021. The insolvency order was set aside in February 2025. These proceedings did not directly involve Mr. Handyman SPV LLC but are disclosed due to common control by KKR.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Mr. Handyman SPV LLC franchisees must meet several conditions: they cannot be in default of their current Franchise Agreement or any related agreements, must have satisfied all monetary and material obligations on a timely basis, be in good standing, and have received no more than two written notices of default during the term. They also must not have failed to meet the Minimum Performance Standards for any two calendar years (or two measurement periods) during the term. Franchisees need to provide written notice of their request to renew between 180 and 240 days before the current term ends. They and their guarantors must sign a general release of claims and pay a renewal fee of $5,000. Additionally, they must complete Mr. Handyman SPV LLC's then-current training requirements and sign the then-current version of the franchise agreement, which may have materially different terms, conditions, and fees.
Training & Support Program
Franchisor Assistance
Mr. Handyman SPV LLC provides comprehensive support to its franchisees. Before opening, Mr. Handyman SPV LLC or its designee assists with site selection guidelines, provides lists of approved supplies, and furnishes the Operations Manual. It also provides initial training programs, including a six to eight-week "Sure Start" program with pre-opening activities, followed by up to ten days of classroom (potentially virtual) training and two days of on-site (potentially virtual) training. Ongoing assistance includes maintaining the Marketing, Advertising and Promotion Fund (MAP Fund), providing updates to approved supplier lists, and researching new products. Mr. Handyman SPV LLC also conducts periodic site visits for consultation, offers refresher training courses, and organizes regional meetings and an annual Reunion that franchisees are required to attend. A toll-free phone number, 877-MrHandyman, routes selected customer calls to franchisees for a fee, operating 24/7. Additionally, Mr. Handyman SPV LLC provides an optional web-based job applicant tracking system and offers a Call Center Program for rollover and after-hours customer calls for a fee.
Initial Training Hours
65
Training Location
Our offices in Waco, Texas and/or Dallas, Texas, with portions potentially conducted virtually.
Ongoing Support
After opening, Mr. Handyman SPV LLC provides ongoing assistance through several channels. It maintains the Marketing, Advertising and Promotion Fund (MAP Fund) for brand and system success, updating lists of approved supplies and researching new products. Franchisees receive periodic visits from representatives for consultation and guidance. Mr. Handyman SPV LLC also offers refresher training courses and regional meetings, and requires attendance at an annual "Reunion" event every two years, which may incur a fee. Support includes ongoing communication and updates to the Operations Manual. A toll-free phone number, 877-MrHandyman, routes selected customer calls to franchisees for a fee, operating 24/7. Additionally, Mr. Handyman SPV LLC provides an optional web-based job applicant tracking system and offers a Call Center Program for rollover and after-hours customer calls for a fee.
Franchise Requirements
Ideal Candidate Profile
Mr. Handyman seeks franchisees who are managers or owner-operators, capable of supervising residential and business repair, maintenance, and improvement services. While they generally do not perform the actual services themselves, they are expected to employ individuals experienced in providing such services. Ideal candidates should possess a professional approach, be adept at utilizing business systems (including advanced computerized systems and personalized marketing programs), and prioritize customer relationship management. Financial qualifications and credit-worthiness are important, as is the ability to commit to the direct supervision of the business or appoint a trained manager. The franchisee must also comply with all applicable federal, state, and local laws and licensing requirements. Previous experience as a franchisee of a Neighborly affiliate is a plus, and honorably discharged military veterans are offered discounts. The franchisee must not have an interest in or relationship with any competitors while owning the business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Mr. Handyman SPV LLC defines franchise territories by U.S. Postal codes or physical/political boundaries. Each territory is based on an approximate number of target households that meet Mr. Handyman SPV LLC's demographic criteria. A typical territory includes about 60,000 target households, with a minimum size of 40,000 target households and a maximum of 60,000 target households.
Staffing Notes
Mr. Handyman SPV LLC requires franchisees to employ a sufficient number of competent and trained employees to provide efficient customer service. Franchisees are solely responsible for all employment decisions and actions related to their workers, including hiring, discharging, tax withholdings, and setting wages and benefits. It is also the franchisee's responsibility to ensure that no employee or subcontractor enters a customer's home without passing required background checks. The FDD emphasizes that no employee of the franchisee is considered an employee of Mr. Handyman SPV LLC. Franchisees, or their Principal Owners, must provide full-time attention to the business, which must be under their direct and active supervision. If the owner does not personally supervise, a designated "bona fide manager" who has completed the training program must do so. Managers may be required to sign confidentiality agreements.