Ace Handyman Services
Ace Handyman Services is a white-collar home services franchise — no trucks, no heavy equipment, just skilled craftsmen and a small commercial office — with a total investment of $132K to $224K for a standard territory. The 2024 Item 19 data shows top-quartile single-territory operators earning $105K in Owner Discretionary Income on $760K revenue, but second-quartile operators earned just $38K and bottom-quartile operators averaged $22K. The 6% royalty plus mandatory $50K+ annual marketing spend creates a high fixed-cost base that requires consistent work volume to support.
Initial Investment Breakdown
| Category | Low | High |
|---|---|---|
| Initial Franchise Fee | $70,000 | $100,000 |
| Travel and living expense while training | $3,500 | $4,500 |
| Lease Deposit | $1,000 | $3,200 |
| Rent for first 3 months | $3,500 | $4,800 |
| Leasehold Improvements and Signage | $600 | $4,000 |
| Furnishings | $600 | $4,000 |
| Tools and equipment | $0 | $2,500 |
| Truck or Van | $0 | $9,000 |
| Computer Hardware and Office Equipment | $2,500 | $5,500 |
| Software and Internet Fees (3 months) | $1,797 | $1,797 |
| Initial Marketing Spend | $9,000 | $16,000 |
| Utility deposits and fees | $500 | $1,000 |
| Licenses and permits | $1,000 | $5,000 |
| Insurance | $5,500 | $7,000 |
| Professional fees | $500 | $6,000 |
| Miscellaneous opening costs | $2,000 | $4,500 |
| Additional Funds (3 months) | $30,000 | $45,000 |
| Total | $131,997 | $223,797 |
Financial Performance (Item 19)
Unit Growth
| Year | Total Units | Opened | Closed |
|---|---|---|---|
| 2022 | 312 | — | — |
| 2023 | 379 | — | — |
| 2024 | 387 | — | — |
Other Ongoing Fees
| Fee | Amount | Frequency |
|---|---|---|
| Minimum Individual Marketing Expenditure (Standard AHS Business) | $$30,000 (year 1, from 3rd full month), $40,000 (year 2), $50,000 (year 3+) | annual (as incurred) |
| Minimum Individual Marketing Expenditure (Mini AHS Business) | $$15,000 (year 1, from 3rd full month), $20,000 (year 2), $25,000 (year 3+) | annual (as incurred) |
| Meeting and Convention Fees | $$0 if attended; $1,500 if not attended; $750 if attended but did not stay at designated hotel or did not attend entire meeting/convention | per meeting/convention (as incurred) |
| Audit Fee | $Cost of audit (estimated $2,500 to $5,000, may be more) | as incurred (upon completion of audit) |
| Returned Electronic Funds Transfer Fee | $$100 | per occurrence (upon notice) |
| Supplier Approval Fee | $Currently none; franchisor reserves right to charge in future | as incurred |
| Additional Training Fee | $Currently $55 per hour per person plus out-of-pocket expenses | as incurred (payable within 30 days of invoice) |
| Interest and Late Fees on Late Payments/Reports | $Up to 18% per annum on all amounts owed; $75 per occurrence per late report or fee | as incurred (upon payment of late fee or submittal of late report) |
| Costs and Attorneys' Fees | $Will vary | as incurred |
| Indemnification | $Will vary | as incurred |
Quick Facts
FDD Analysis
What You'll Pay
The Ace Handyman franchise fee is $70,000 for a standard territory (up to 70,000 households), scaling to $100,000 for a larger territory up to 100,000 households — $1 per additional household over 70,000. That's among the higher entry fees in the home services category (1-800-GOT-JUNK? starts at $65,000 but scales differently). Discounts are available: $14,000 off for existing franchisees or affiliate franchisees adding territory, $7,000 off for veterans. None of the discounts can be combined.
Total investment for a standard territory runs $132K to $224K, notably lower than most retail or food franchises because there's no storefront buildout. The largest line items are the franchise fee itself, $9K–$16K in initial marketing, $5.5K–$7K in insurance, and $30K–$45K in three-month working capital. You must operate from a small commercial office (not home) — lease deposit and three-month rent add another $4,500–$8,000.
The ongoing royalty is 6% of gross revenues — right at the home services category average. But there's a reconciliation mechanism: if your actual revenues fall below a Minimum Annual Gross Revenue threshold, you pay royalty on that minimum regardless of what you actually earned. The National Brand Fee (marketing) runs an additional 2% subject to the same minimum reconciliation, making the effective combined rate 8% on minimums.
The local marketing minimums are substantial and mandatory: $30,000 in Year 1 (starting the third full month of operation), rising to $40,000 in Year 2 and $50,000 in Year 3 and beyond. This is a real cash outflow — $50,000 per year in marketing before any other operating expense — that the upfront investment table doesn't fully capture. The technology fee is $599/month, covering scheduling software, website, SEO, and online marketing services.
What You Could Earn
Ace Handyman discloses unusually granular Item 19 data for single and multi-territory operations, split by quartile with full P&L breakdowns.
For single-territory operators in 2024 (72 reporting territories): - Top quartile (18 units): Average revenue $760K, Owner Discretionary Income (ODI) of $105K (13.9% margin). Median ODI $100K. - Second quartile (18 units): Average revenue $477K, ODI $38K (7.9% margin). - Third quartile (18 units): Average revenue $352K, ODI $22K (6.2% margin). The low unit showed -$18K. - Bottom quartile (18 units): Average revenue $242K, ODI $30K (12.4% margin — counterintuitively higher than Q3, likely due to very lean staffing).
For multi-territory operators (76 reporting groups with 2–3 territories average): - Top quartile: Average $1.28M revenue, $185K ODI (14.5% margin).
Owner Discretionary Income is not the same as net profit — it may include owner salary and personal business expenses. Real net profit is likely lower. The data also reveals the challenge: a second-quartile single-territory operator earning $38K ODI on $70K+ in franchise fees is not a compelling early-year picture. This franchise rewards operators who build to multiple territories.
Growth & Stability
Ace Handyman has grown steadily and consistently: from 312 total units in 2022 to 379 in 2023 to 387 in 2024. New openings held strong at 88 in 2022, 82 in 2023, and 35 in 2024 — a significant slowdown in 2024 new openings is worth noting. Closures have been minimal: 6 in 2022, 4 in 2023, 15 in 2024 (the highest in the window). Net growth remains positive, but the 2024 slowdown in new openings warrants a question to the franchisor about territory availability and franchisee acquisition pace.
With 18 affiliate (company-owned) locations providing ongoing operational reference data, this system has real skin in the game on the operating model.
Watch Out For
The marketing minimums are a major cost that doesn't appear prominently in the Item 7 table. $50,000 per year in mandatory local marketing — plus $14,208 average National Brand Fee (shown in P&L data) — means total marketing spend exceeds $64,000 annually for an established operator. That's 8–9% of a $760K top-quartile revenue operation.
The royalty reconciliation against minimum annual gross revenues creates exposure in slow years. If your territory underperforms the minimum, you're paying royalties and brand fees on a revenue floor that doesn't reflect your actual sales — effectively a guaranteed payment to the franchisor regardless of your business performance.
The Office Manager requirement (must be appointed within 75 days of signing the franchise agreement, at $24–$30/hour for 40 hours/week) means labor costs begin before revenue does. Meeting non-attendance penalties ($1,500 for missing a required convention) add up. The $2,500–$5,000 audit fee applies if underreporting exceeds 2% — a standard threshold that leaves little margin for accounting error.
Explore More
Seriously considering Ace Handyman Services?
A franchise consultant can verify the Item 19 numbers with real franchisee contacts, flag territory conflicts, and walk you through the FDD before you sign. Their fee is paid by the franchisor — your consultation is free.
Source: FDD filed in MN, 2025. Extracted 2026-03-28.
These figures are sourced from the Ace Handyman Services 2025 Franchise Disclosure Document filed in Minnesota. They represent franchisor-reported data and historical performance of existing franchisees, not guarantees of future results. Your actual costs and revenue will vary based on territory size, market conditions, financing terms, and operational execution. Consult with a franchise attorney and accountant before making any investment decision.
Frequently Asked Questions
- Is Ace Handyman Services a franchise?
- Yes, Ace Handyman Services is a franchise with 387 locations. Prospective owners purchase the right to operate under the Ace Handyman Services brand and system by signing a franchise agreement and paying a franchise fee. The full terms are disclosed in the Franchise Disclosure Document (FDD).
- How much does it cost to open a Ace Handyman Services franchise?
- The total initial investment for a Ace Handyman Services franchise ranges from $132K to $224K, according to the 2025 FDD. This includes the franchise fee, build-out, equipment, and initial working capital.
- How much do Ace Handyman Services franchise owners make?
- According to the 2025 FDD Item 19, the median annual gross revenue for a Ace Handyman Services franchise is $699K. Note that gross revenue is not profit — operating costs, royalties, rent, and labor must be subtracted. The estimated payback period is 1.3 years.
- How many Ace Handyman Services franchise locations are there?
- As of the 2025 FDD, Ace Handyman Services has 387 total units (+2.11% growth rate).