Risk Score
Pending analysis
Investment Range
$122,950 - $242,450
Franchise Fee
$47,500
Total US Locations
133
Business Summary
PatchMaster Franchise, LLC offers franchises for businesses that specialize in wall surface repair and related services, including plaster, stucco, concrete, trim repairs, and painting. These PatchMaster Businesses serve both residential and commercial customers under the brand name PatchMaster®.
Corporate History
PatchMaster Franchise, LLC was formed on November 17, 2021, as a Delaware limited liability company. It acquired the PatchMaster system in December 2021 from its predecessor, PM Franchising, LLC. The PatchMaster system began offering franchises in September 2017 through the predecessor, and the current entity, PatchMaster Franchise, LLC, began offering franchises in April 2022. PatchMaster Franchise, LLC is a wholly-owned subsidiary of PM Holdco, LLC, which is managed by MPK PM LLC and MPK Equity Partners LLC. The franchisor itself has not operated a PatchMaster business, although some of its officers have experience in the business type. PatchMaster Franchise, LLC is affiliated with other franchise brands, including Restoration 1®, BlueFrog Plumbing + Drain®, Softroc®, and Zoom Drain®.
Financial Overview
Investment Range
$122,950 - $242,450
Franchise Fee (Low)
$47,500
Franchise Fee (High)
$114,500
Royalty %
9%
Marketing %
1%
Equipment Costs (Low)
$39,375
Equipment Costs (High)
$131,625
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
PatchMaster Franchise, LLC appears to be in good financial health. The company's total assets have shown a consistent increase, growing from approximately $5.5 million in 2022 to nearly $7 million in 2024. Although net income in 2024 was lower than in 2023, it remained positive at over $208,000. PatchMaster Franchise, LLC maintains healthy working capital, with current assets exceeding current liabilities. The independent auditor issued an unqualified opinion on the financial statements, indicating no significant financial concerns or "going concern" issues.
Financing Details
PatchMaster Franchise, LLC does not offer any direct or indirect financing options to its franchisees. This means PatchMaster franchisees must secure their own funding for notes, leases, or other obligations through third-party lenders.
Performance Metrics
Total US Locations
133
Franchised Units
130
Corporate Units
3
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
PatchMaster Franchise, LLC has one litigation case on record, which involved an affiliate, Restoration 1 Franchise Holding, LLC. In 2014, this affiliate entered into a settlement order with the Virginia State Corporation Commission. The allegation was that Restoration 1 Franchise Holding, LLC had offered and sold a Restoration 1® franchise in Virginia after its state registration had expired. The affiliate did not admit or deny the allegations but agreed to the settlement terms, which included paying $1,000, attending franchise sales compliance training, and committing to future compliance with the Virginia Retail Franchise Act. PatchMaster Franchise, LLC itself has no other litigation required to be disclosed.
Bankruptcy History
PatchMaster Franchise, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their PatchMaster franchise, franchisees must have substantially complied with their franchise agreement and all other agreements with PatchMaster Franchise, LLC and its affiliates throughout the initial term. They must update their Franchised Business Office, service vehicle(s), and equipment to meet current system standards for new franchisees. All monetary obligations must be paid, and franchisees must not be in default of any agreement. Franchisees need to notify PatchMaster Franchise, LLC of their intent to renew between 9 to 12 months before the agreement ends. They must sign PatchMaster Franchise, LLC's then-current franchise agreement, which may have different terms like higher Royalty Fees, Brand Fund Contributions, or modified service areas. Additionally, franchisees must complete any required training, pay a $2,500 renewal fee plus processing costs, meet current qualifications for new franchisees, and sign a general release of claims. Renewal is also contingent on PatchMaster Franchise, LLC offering franchises for PatchMaster Businesses in the geographic area of the franchisee's Licensed Service Area(s) at the time of the request.
Training & Support Program
Franchisor Assistance
PatchMaster Franchise, LLC provides extensive support to its franchisees. Before opening, PatchMaster Franchise, LLC provides system standards for the franchised business office, service vehicles, tools, and equipment. They also offer an initial training program for the franchisee and key personnel and grant access to the confidential operations manual. After opening, PatchMaster Franchise, LLC continues to provide access to the updated operations manual, administers a brand fund for marketing, and establishes pricing for national account clients. They also offer guidance for local advertising, with optional paid media and social media services available for an extra cost. PatchMaster Franchise, LLC specifies required technology systems, offers additional training as needed, and conducts periodic visits and inspections to ensure system standards are met.
Initial Training Hours
43
Training Location
Online and Chester, NJ
Ongoing Support
After opening, PatchMaster Franchise, LLC provides ongoing support through continued access to and updates of the confidential operations manual. They administer a brand fund for marketing and set prices for National Account Clients. Franchisees may receive periodic advice and guidance via telephone, electronic meetings, or consultations. PatchMaster Franchise, LLC may also require franchisees and their key personnel to attend various training courses, trade shows, ongoing education programs, webinars, and periodic meetings. Additionally, PatchMaster Franchise, LLC or its designees conduct announced or unannounced periodic visits and inspections of franchised businesses and job sites.
Franchise Requirements
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
Limited
Territory Size Requirements
PatchMaster Franchise, LLC territories, known as Licensed Service Areas (LSAs), are defined by zip codes. Each LSA is designed to have a general population of approximately 300,000 to 350,000 individuals, based on the most recent U.S. Census data available at the time the franchise agreement is signed. Franchisees can acquire up to three LSAs under one franchise agreement.
Staffing Notes
PatchMaster Franchise, LLC franchisees are solely responsible for all decisions regarding their employees, agents, and independent contractors, including recruiting, hiring, firing, training, compensation, and management. Franchisees must ensure their personnel are appropriately trained to meet system standards. PatchMaster Franchise, LLC may establish system standards for staffing levels, qualifications, training, uniforms, and appearance. Franchisees are also required to obtain prior written approval from PatchMaster Franchise, LLC for any subcontractors used to provide services, and these subcontractors must carry specific insurance naming PatchMaster Franchise, LLC as an additional insured.