When she and her husband started Handyman Matters back in 2004, Colette Bell had no thought of becoming a national brand. But that’s what happened to the Denver-based couple in 2019, when Ace Hardware acquired their thriving independent franchise business. As you’ll hear on this episode of the She Turned Entrepreneur podcast, the Bells and their lucky franchisees have been on a turbocharged ascension. Best of all, Ace chose to leave home office management in the hands of its founders – a wise choice! With their legacy systems of training and implementation, the Bells have facilitated a seamless transition.
It has been a huge rebrand but Colette had all the right protocols and instincts in place. Their owner-operator model ensures franchise owners who are committed to growing their businesses full-time. Their onboarding process includes a multi-phased training that leaves franchisees ready to roll (with ongoing support) in just over 12 weeks. And their commitment to community encourages doing well by doing good. It all adds up to valuable repeat business and solid returns. Ace Handyman Services saw 41% unit economic growth last year and the number of franchises has rocketed, nearly doubling to 111 territories in 2021 with about 30 more anticipated by the end of 2023.
There haven’t been many silver linings in pandemic, but Colette’s teams were ready to lend a hand when people suddenly locked down in their homes began to notice all kinds of deferred projects that Ace’s skilled craftsmen were ready to address. And if you’re wondering whether you need to have contracting skills in order to run an Ace franchise, the answer is definitely no. The model teams up skilled craftsmen with franchise owners who bring the admin. and customer service know-how. “This is more than just making widgets,” says Colette. “We are a very high-touch business. We go into people’s homes and hopefully make them better.”
Another interesting thing to note: Colette has found that women make fantastic Ace Handyman franchise owners. Their ability to multi-task, connect with homeowners and manage with a light touch makes a great fit. It’s a business model that is also working for millennials, retirees, corporate refugees and veterans – all of whom make up the successful ranks of Ace Handyman franchises.
The standards are straightforward: Integrity, fair wages, community spirit and professionalism. “We’re looking for people who want more than to run a great business. We want people who are going to make a positive impact in their community,” says Colette.
Here are key takeaways from the conversation:
• Having your franchise acquired by a corporate like Ace Hardware is like having your car completely repainted and updated. For Colette, her husband and their franchisees it has been nothing less than an American dream.
• The owner-operator model is designed to ensure a full-time commitment of time and resources on the part of franchisees.
• The Ace model is based in large part on a robust network that generates a lot of business, including referrals from real estate agents, home inspection companies, lawn care companies, carpet cleaners’ companies and local Ace retail outlets.
• The Ace Handyman onboarding process is comprehensive. Knowledge of construction is not required.
• Colette has found that women, still in the minority, make fantastic Ace Handyman franchise owners.
• Franchise owners saw an average 41% increase in unit economics last year over 2020, which was also a great year despite lockdown.
• The franchise system’s growth: An additional 61 territories in 2020 and 111 territories in 2021. The projection for this year is 140 territories.
• The franchise model is like buying a home – you can do it on your own or do what to Colette makes far more sense: Find an expert (like Dori) to show the way!
Here’s a quick look into the episode:
• Colette explains the evolution of Handyman Matters, the franchise she and her husband had built up over 22 years, to a wholly owned subsidiary of Ace Hardware that put all their franchisees on the map in a bigger way overnight.
• It was gravy that in addition to the powerful re-branding, Ace Hardware corporate opted to let the Denver-based Handyman Matters home office continue managing the concern.
• Ace/Handyman use an owner-operator model developed because staff are full-time W2 craftsmen who want to work somewhere where they are appreciated, fairly compensated and have an opportunity for growth – all of which can’t happen without singularly focused franchise management.
• All about networking and the role it plays locally in driving referrals from ancillary businesses. It’s an ongoing effort that Ace supports by onboarding franchisees with a list of 33 different trades in which to cultivate contacts.
• Why the Ace model focuses on short-term handyman-oriented projects (hint: recurring business is a great revenue driver).
• The Ace Handyman onboarding process provides help with:
o Recruiting and training qualified craftspeople.
o Twelve weeks of data, videos and other information hosted by an onboarding specialist.
o Support tools for learning about project management.
o A one-week live and “hands-on” Ace Handyman University, where franchisees learn everything to date and more.
o Field trainers follow up to ensure in real-time that franchisees roll out their businesses quickly – usually within two weeks.
o A final visit occurs at about 60 days to assess and implement any necessary course corrections.
• The Ace franchise community skews more masculine, which Colette would love to change. But women, she says, generally make up 50% of their Top 10 performing businesses. Why?
o They excel at the requisite multi-tasking.
o Women customers love a female-owned handyman business.
o Craftsmen who have never worked with a woman boss before find it a complementary relationship, marrying customer service and skills.
• The ideal Ace Handyman franchise owner may come from any walk of life:
o Corporate refugee looking to transition.
o Retirees.
o Married couples (as well as single people).
o Millennials who want something entrepreneurial.
o Military veterans.
• What all Ace Handyman franchisees have in common, however, is the desire to run a good, solid business and make a positive difference in their community.
• With respect to Covid, the acquisition of Handyman Matters was timely. People were stuck at home and looking for a trusted brand to help manage projects.
• The franchise system is growing exponentially with a $60,000 fee that covers the acquisition of a territory, defined by zip codes that optimally cover 70,000 households.
• Additional elements like marketing generally cost an additional $38,000 – for an estimated $150,000 all in.
• Possible vehicles for funding a franchise:
1. A Small Business Administration $150k express loan.
2. A 401K rollover.
3. A home equity line.
About Colette:
Colette understands the hard work, dedication and challenges that one has to overcome to build a successful franchise. She has been a franchisor for nearly 20 years and has been involved in starting up and operating formerly Handyman Matters and now Ace Handyman Services. The acquisition to Ace Hardware on September 4, 2019 will be a tremendous improvement to not only our franchise system, but the handyman industry as a whole.