It Cost to Open a Home Renovation or Handyman Franchise in the USA
In 2025, the demand for home improvement services in the U.S. has reached record highs. With over 80 million aging homes, a rising number of DIY-averse homeowners, and a booming real estate market, Americans are investing more than ever in renovations, repairs, and handyman services.
For entrepreneurs, opening a home renovation or handyman franchise offers a scalable, recession-resistant business model with strong consumer demand—and far lower overhead than traditional contracting companies.
But how much does it cost to start a home services franchise in 2025?
This detailed 3,000-word guide will walk you through:
- U.S. home services market trends (2025)
- Types of handyman and renovation franchise models
- Startup costs breakdown
- Top franchise brands and business models
- Revenue, margins, and breakeven analysis
- Franchisee qualifications and training
- Licensing and insurance requirements
- Funding options and financial assistance
- Risks, regulations, and service demand
- Final investor advice
1. U.S. Home Services Market Trends (2025)
- Market Size: $720 billion+ (including renovations, repairs, maintenance)
- DIY to DIFM Shift: Homeowners are increasingly hiring out work
- Aging Housing Stock: Over 35% of U.S. homes are 50+ years old
- Top Services in Demand:
- Minor renovations
- Drywall, painting, flooring
- Carpentry, fixture installation
- Kitchen & bathroom updates
- Seasonal maintenance
2. Types of Home Services Franchise Models
- General Handyman Services: Small jobs, home repairs, fixture installs, basic plumbing/electric
- Specialty Renovation Brands: Kitchen, bath, flooring, aging-in-place upgrades
- Full-Service Remodelers: End-to-end residential renovations
- B2B Services: Facility maintenance, apartment turn services
- Mobile/Van-Based: No physical office or showroom needed
3. Startup Cost Breakdown
| Expense Category | Estimated Range |
|---|---|
| Franchise Fee | $30,000 – $60,000 |
| Equipment & Tools | $10,000 – $50,000 |
| Vehicle Purchase/Wrap | $25,000 – $75,000 |
| Software/CRM | $3,000 – $10,000 |
| Insurance & Licensing | $5,000 – $15,000 |
| Staff Training & Uniforms | $5,000 – $20,000 |
| Marketing Launch Package | $10,000 – $25,000 |
| Working Capital | $25,000 – $100,000 |
| Total Estimate | $125,000 – $350,000+ |
Note: Some mobile franchises allow you to work from home and reduce costs significantly.
4. Top Handyman & Renovation Franchise Brands (2025)
1. Ace Handyman Services (by Ace Hardware)
- Startup Cost: $130K – $250K
- Franchise Fee: $60,000
- Royalty: 6% + 2% marketing
- USP: Trusted brand name, strong support, scalable model
2. Mr. Handyman (Neighborly Brands)
- Startup Cost: $130K – $210K
- Franchise Fee: $59,900
- Royalty: 6% + 2% marketing
- USP: Full support, CRM, routing, lead generation
3. Handyman Connection
- Startup Cost: $99K – $200K
- Franchise Fee: $60,000
- Royalty: 6% + 2% national marketing
- USP: Local subcontractor model with high flexibility
4. House Doctors
- Startup Cost: $80K – $160K
- Franchise Fee: $50,000
- Royalty: 7% + local marketing fund
- USP: Proven lead gen, home improvement & repair combo
5. Re-Bath (Specialty Bathroom Remodeling)
- Startup Cost: $225K – $500K+
- Franchise Fee: $45,000
- Royalty: 5% + marketing
- USP: High-ticket, full remodels with exclusive territory rights
5. Revenue & Profitability Benchmarks
| Brand | Avg Annual Revenue | Net Margin | Break-Even Period |
| Ace Handyman | $750K – $1.8M | 20–28% | 24–36 months |
| Mr. Handyman | $900K – $2M | 20–30% | 24–30 months |
| Handyman Connection | $650K – $1.5M | 22–28% | 18–30 months |
| House Doctors | $500K – $1.2M | 18–25% | 18–30 months |
| Re-Bath | $1.5M – $3M+ | 25–35% | 36–48 months |
6. Franchisee Qualifications & Training
- Net Worth: $250K – $750K
- Liquid Capital: $75K – $150K
- Construction Background: Helpful, not mandatory
- Ideal Traits:
- Project management or operations experience
- Customer service focus
- Willingness to manage subcontractors or techs
Most franchises offer:
- 2–4 weeks of initial training
- Ongoing operational coaching
- Access to software and marketing platforms
7. Licensing & Insurance Requirements
- Business License: Required in most municipalities
- Contractor License: May be required (varies by state)
- Bonding: Often needed for home repair and renovation work
- Insurance:
- General Liability
- Workers’ Comp (if hiring employees)
- Auto Insurance (for branded vehicles)
8. Financing Options
- SBA Loans: 7(a) loans suitable for franchise startups
- Franchisor Lenders: Some brands have approved lending partners
- Equipment Financing: Trucks, trailers, or specialty tools
- ROBS: Roll retirement funds into your business tax-free
- Veteran Discounts: 10–20% off franchise fees at select brands
9. Industry Risks & Service Demand Insights
Risks:
- Technician hiring challenges
- Pricing pressure from freelancers or small independents
- Seasonal slowdown in some markets
Opportunities:
- Aging-in-place modifications for seniors
- Eco-friendly renovations (energy-efficient doors/windows)
- Repeat customers and referral networks
- Partnerships with realtors, HOAs, or commercial clients
10. Final Thoughts
Opening a home renovation or handyman franchise in 2025 offers a compelling blend of reliability, scalability, and brand-driven support. From low-cost mobile options to high-revenue remodel specialists, there’s a franchise model for nearly every budget and market.
Before investing:
- Visit local franchisees to observe operations
- Request and review the Franchise Disclosure Document (FDD)
- Understand state-specific contractor licensing laws
- Compare support packages, tech tools, and lead gen systems
If you’re looking for a stable, in-demand business that builds equity and serves homeowners year-round, a home renovation or handyman franchise could be your ideal next step.
