The Patch Boys Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$60,526 - $91,926
Franchise Fee
$22,125
Total US Locations
284
Business Summary
THE PATCH BOYS operates a business offering light restoration and reconstruction services. This includes the installation or repair of drywall, plaster, ceiling treatments, and additional services like painting or trim replacement. THE PATCH BOYS utilizes its own business system to provide these services to clients within a specific geographic area.
Corporate History
Patch Boys International, LLC was formed on May 6, 2020, as a Delaware Limited Liability Company and began offering franchises under THE PATCH BOYS brand in August 2020. The current franchisor acquired the brand's assets, business system, and existing franchise agreements on June 4, 2020, from its predecessor, Patch Boys Franchising, LLC. The predecessor entity had been offering and selling THE PATCH BOYS franchises since 2015.
Financial Overview
Investment Range
$60,526 - $91,926
Franchise Fee (Low)
$22,125
Franchise Fee (High)
$29,500
Royalty %
8%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$8,000
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
BFG Holdco, Inc., the affiliate guaranteeing THE PATCH BOYS's obligations, reported significant goodwill impairment losses of $10,519,000 in 2024 and $45,537,000 in 2023. These impairments were primarily due to deteriorating economic conditions and strategic shifts, including efforts to reduce the overall size of its franchise network to resolve franchisee noncompliance. Additionally, in 2022, BFG Holdco, Inc. recognized impairment losses of $787,000 and $4,165,000 related to intangible assets (trade name and franchise agreements) when its Delta Disaster Services subsidiary ceased operations. The company also has substantial amounts due from its parent company, Belfor USA Group, Inc., totaling $27,667,000 in 2024, and guarantees various related-party loans and performance obligations for other franchisors within the Belfor Franchise Group.
Financing Details
THE PATCH BOYS may offer financing for a portion of the Initial Franchise Fee, up to 40% of the fee. Franchisees must make a minimum down payment of $17,700. The loan term can range from 12 to 24 months, with an annual interest rate of 9%. There are no prepayment penalties. The financing is secured by a personal guaranty from the franchisee and all owners, as well as their respective spouses. If a franchisee defaults on the loan, THE PATCH BOYS can terminate the franchise agreement, demand immediate payment of the full outstanding balance, and recover attorneys' fees and court costs.
Performance Metrics
Total US Locations
284
Franchised Units
284
Corporate Units
0
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
THE PATCH BOYS, through its predecessor, Patch Boys Franchising, LLC, has been involved in three legal matters. In one case, a former franchisee filed a complaint alleging violations of the Minnesota Franchise Act in December 2019, which was voluntarily dismissed and later settled through arbitration. In another instance from September 2016, the New York Attorney General's office found that the predecessor had sold franchises without disclosing a 1999 felony conviction of one of its principals, Leiby Goldberger, resulting in a $10,000 fine and an offer of rescission to existing franchisees. Lastly, in June 2021, the Minnesota Department of Commerce issued a Consent Order against the predecessor for receiving funds from a prospective franchisee without effective registration, leading to a $7,500 fine. It is important to note that all disclosed litigation pertains to THE PATCH BOYS's predecessor and its former principals, who are not affiliated with the current franchisor entity.
Bankruptcy History
THE PATCH BOYS does not have any bankruptcy history to report for the franchisor or its management.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, THE PATCH BOYS franchisees must be in substantial compliance with their current agreement, not have received three or more notices to cure similar defaults within the last 30 months, and not have failed to make timely payments on three or more occasions within the last 24 months. Franchisees must also provide timely notice of their intent to renew, sign THE PATCH BOYS's then-current franchise agreement (which may have different terms), make any required remodels, repairs, or upgrades to their business (including vehicles and equipment), meet the financial and net-worth qualifications for a new franchisee, and meet the minimum gross sales requirements for an 11th year of operation. Additionally, franchisees must sign a general release of claims against THE PATCH BOYS, its parents, and affiliates, and pay a renewal fee.
Training & Support Program
Franchisor Assistance
THE PATCH BOYS provides franchisees with various types of assistance both before and after opening. Prior to opening, THE PATCH BOYS designates the franchisee's territory, provides an initial package of logo wear, marketing materials, and promotional items, and loans a copy of the operations manual. It also provides approval for business forms and marketing materials, specifies insurance limits, offers an initial training program, and provides the business phone number. After the business opens, THE PATCH BOYS provides ongoing guidance on new products, services, and methods, as well as the purchase and use of supplies. It assists with marketing and advertising programs, financial and daily operations, and general business and marketing advice. THE PATCH BOYS also provides support for its required franchise software management system, issues periodic modifications to the operations manual and system standards, and offers periodic refresher training courses and conferences (not exceeding one per year).
Initial Training Hours
38
Training Location
Ann Arbor, Michigan, or other designated locations
Ongoing Support
After opening, THE PATCH BOYS franchisees receive access to information for their business operations based on reports and inspections. The franchisor furnishes guidance on new products, services, and methods, as well as the purchase and use of supplies. They also provide assistance with marketing, advertising, and promotional programs, and advice on the financial and daily operations of the business, including accounting and record-keeping. Franchisees receive support for the required franchise software management system. THE PATCH BOYS periodically modifies the operations manuals and system standards, and offers periodic refresher training courses and conferences, not exceeding one per year. The franchisor also offers a call forwarding service for calls made to its toll-free number.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
THE PATCH BOYS defines each franchise territory by specific zip codes, which are designed to include between 250,000 and 350,000 people. The franchisor uses data from a national demographics company to determine the population within each territory. While the franchisee's territory is protected from other THE PATCH BOYS businesses, the franchisor explicitly states that franchisees will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by THE PATCH BOYS.
Staffing Notes
THE PATCH BOYS does not require franchisees to employ a full-time experienced service technician, although it is recommended. The Managing Owner can serve as the Service Technician if deemed experienced by THE PATCH BOYS. The Managing Owner or Designated Manager is required to dedicate their full-time best efforts to manage, promote, and enhance THE PATCH BOYS Business and may not engage in other conflicting business activities without prior written permission. Franchisees are required to ensure that all service technicians, sales, and account management employees sign non-disclosure and confidentiality agreements as a condition of their employment.