Your roof may not feel like the most glamorous aspect of your home, but a good roof represents the safety of your house and is a major component of curbside appeal. Honest Abe not only puts a roof over your head that looks good, but it also makes sure its roofs are the absolute best in the industry. By Elice Morgenson
CHESTER, N.J. — PatchMaster, a leading franchisor of drywall and plaster repair services, announced today a strategic investment from MPK Equity Partners, a Dallas-based private investment firm. The new funding will support PatchMaster’s nationwide expansion and strengthen its position as the leading provider of wall surface repair and related services to the residential and commercial markets. PatchMaster’s existing shareholder group, led by Michael Abdy, will maintain a meaningful ownership stake in the business, and Mr. Abdy and Paul Ferrara (CEO of PatchMaster) will be joining the board of directors alongside MPK. Additional details of the investment were not made public.
Founded in 2016, PatchMaster has over 110 locations across 26 states. PatchMaster’s low initial investment, non-discretionary service offering, robust profit margins, and lack of brick-and-mortar presence make it a unique and compelling franchise opportunity within the attractive home services space. As one of the only sophisticated players with national scale focused on drywall repair services, PatchMaster is well positioned to capture incremental market share within the large ($64 billion in the U.S.) and highly fragmented (comprised of ~135,000 businesses) drywall and insulation industry.
“We are extremely excited to welcome MPK to the PatchMaster family and look forward to working closely with the MPK team over the coming years as PatchMaster embarks on its next phase of growth,” said Paul Ferrara. “With the added financial and operational resources provided by MPK, we are even better positioned to support the accelerated growth of our franchise system.”
PatchMaster has experienced robust growth since its founding in 2016, and the partnership with MPK comes at an inflection point in PatchMaster’s growth trajectory, with PatchMaster posting record high systemwide sales and new franchise license sales in 2021.
“Paul and the entire PatchMaster team have built a category-leading home services franchise brand with significant momentum,” said Patrick K. McGee, managing partner of MPK. “We are thrilled to bring PatchMaster into our broader portfolio of home services franchise brands, and we look forward to supporting PatchMaster in its next stage of growth.”
About MPK Equity Partners
MPK Equity Partners is a Dallas, Texas-based private investment firm, which invests in growing, profitable, founder-owned businesses. MPK’s patient and flexible approach allows for control, non-control, and growth equity investments, and unlike a traditional private equity sponsor, is not constrained by institutional fundraising cycles. PatchMaster marks MPK’s 6th home services franchisor investment, with other MPK home services franchise brands including Restoration 1, bluefrog Plumbing + Drain, The Driveway Company, Softroc, and Zoom Drain. Additional MPK franchisor investments include Unleashed Brands and its portfolio of Urban Air, Snapology, The Little Gym, and Premier Martial Arts, as well as Radiance Holdings and its portfolio of Sola Salon Studios and The Woodhouse Day Spa. To learn more about MPK Equity Partners, visit www.mpkequitypartners.com.
PatchMaster is a franchisor of drywall and plaster repair services, offering customers fast, same-day, professional service across the U.S. PatchMaster technicians can blend plaster textures and match paint to make imperfections simply disappear, making walls and ceilings look new again. PatchMaster is headquartered in Chester, New Jersey, and has over 110 locations across 26 states. To learn more about PatchMaster, visit www.patchmaster.com or www.patchmasteropportunity.com.
PatchMaster commemorates the occasion, but has eyes set on the future.
CHESTER, N.J. — PatchMaster, the fast-growing drywall repair concept, has achieved a major benchmark in franchising in an incredibly short amount of time. This month, the franchise marks the sale of more than 100 franchise territories. It’s an impressive feat for a franchise: Less than 10 percent of brands ever reach that size.
But even within the small group of franchise systems that hit this coveted milestone, only a tiny fraction gets to that point as fast as PatchMaster.
Less than five percent of franchisors reach 100 units within five years. PatchMaster, which started franchising in 2017, has reached the 100th location benchmark in just four years.
“In 2020, our brand was impacted with two significant disruptors: the COVID-19 pandemic and the sale of our sister company, HouseMaster,” said Paul Ferrara, CEO of PatchMaster. “Either one of these events had the potential to significantly derail our ability to execute our vision. In many ways, it proved to be an accelerant that pushed our business even faster. There is a clear demand for our services, as is the need for ambitious people ready to start their own business. Once people understand our vision and how we developed a true turn-key model, it becomes a powerful motivator—it’s infectious. We have our team and franchisees to thank for this spectacular accomplishment.”
To reach the 100-plus threshold, PatchMaster sold 26 territories to 17 franchisees in 2020. That growth trajectory did not slowdown in 2021. Year-to-date, PatchMaster has sold another 24 territories to 14 franchisees for a total of 103 territories across the United States and Canada.
The growth has happened quickly, but PatchMaster aims to ensure it is fully supporting new and existing owners.
“PatchMaster has been all that I had hoped to get from a franchise,” said Jeremy Willes, co-owner of PatchMaster Serving Ogden to Logan in Utah. Willes contrasts the support he has received from PatchMaster with another franchise he recently purchased who he feels sold too many franchises too fast.
“PatchMaster is supportive, organized, accountable. They are growing, but not to the point that franchisees are lost in the shuffle,” he added. “My experience with PatchMaster’s training and support has been outstanding. We have weekly and bi-weekly meetings with one-on-one coaching to go through the steps necessary to get open and ensure success on both of our parts. My questions and concerns are always answered and addressed. I feel my voice counts.”
PatchMaster’s business model offers customers a fast, professional solution for drywall repairs. Most busy handymen, large drywall companies, or contractors don’t want to perform small drywall repairs. Service professionals like plumbers and electricians often lack the necessary resources to fix holes they leave behind.
PatchMaster specializes in fixing holes caused by renters, plumbing leaks, and DIY projects that just can’t seem to get finished. In most cases, PatchMaster can complete the job in one visit.
The franchise currently has locations in Alaska, Arizona, California, Colorado, Florida, Georgia, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, and Utah.
While it has grown fast, PatchMaster has plenty of room for further expansion. The franchise currently has opportunities for growth across the United States. As an organization that values and thanks those who serve, PatchMaster offers 50 percent off royalties for the first year of business for qualified military veterans and first responders.
The initial franchise fee for a PatchMaster franchise territory—which consists of a population between 300,000 to 350,000—is $49,500 USD. Ongoing fees include a technology fee and a downward sliding scale for royalties starting at 9 percent. Franchisees attend a week-long training program at the company’s headquarters in Chester, New Jersey.
PatchMaster is an in-demand franchise with a quick ramp up period. No drywall experience is required for owners—PatchMaster provides all the training, tools, and resources to learn the model and run the business. Franchisees have access to support for marketing, including digital marketing and social media, job pricing, hiring, managing technicians, and financial management.
For more information on this growing home services franchise, visit Patchmaster.com.
Headquartered in Chester, New Jersey, PatchMaster is a home services franchise brand offering customers a fast and professional solution for drywall repairs. The company provides high quality drywall services for small holes, dings, and dents, typically finishing jobs in one visit. Launched in 2016 and offering franchises since September 2017, PatchMaster has sold 103 territories to franchisees across the United States and Canada. PatchMaster is positioned to revolutionize the home services industry as a pioneering drywall franchise.
Visit patchmasteropportunity.com or call (973) 944-4900 to learn more.
Special Legal Considerations for Home Services Franchisees
By Jonathan Barber
If you plan to operate a home-services franchise, you’ve got some “legal-ish” things to look into. Cleaning, decorating, landscaping, moving and storing, renovating, repairing, and restoration franchisees work in and on customers’ homes, which probably means that specific insurance policies and state licenses will be necessary.
Getting these requirements squared away—as well as hiring trustworthy employees—can take a lot of time and money, which could affect your choice of franchise. Following are some areas you should examine in detail from the very beginning of your decision-making process.
Does your state require a license to perform the tasks involved with a particular franchise? For example, state laws for general contractors vary widely. In some states, anyone who performs work costing a certain amount or more is considered a general contractor and must be licensed to perform that work. If you aren’t licensed, you could face serious consequences, including fines.
The first step in navigating this issue is to ask the franchisor what licensing is required for this particular business. The second step is to look into your state’s licensing requirements. If reading statutes isn’t your thing, find a local attorney who can give you some guidance on whether you need to be licensed. If licensing is required, you should factor the cost of acquiring it and the time involved into your franchise decision. You won’t be making money while you’re waiting on a license.
States also may require certain types and amounts of insurance. Your franchise disclosure document should outline the franchisor’s insurance requirements. The franchise agreement should explain the insurance requirements in further detail.
You should speak with an independent insurance broker in your state to find out whether your state requires additional insurance — beyond what the franchisor specifies—for the type of business you’ll operate.
Today, most franchisors will not provide you with sample employment contracts because they try to avoid what’s called “joint-employer liability.” In other words, they don’t want to be considered an employer of your employees so they stay out of your hiring process as much as possible.
Make sure that your employment contracts are buttoned up because liability increases when your employees work at your customers’ homes. It’s best to follow the advice of a local attorney in getting your employment contracts in place.
You also should perform background checks on every employee. Obtain the employee’s written consent before performing a background check. Your customers and their property should be your No. 1 priority. One bad experience could really hurt your home-services franchise.
Choosing Your Franchise
The home-services market may seem to be so loaded with franchises that it’s difficult to select one. But great brands distinguish themselves from the competition by doing just one thing and doing it very well. So I suggest you consider a franchise that operates in a niche area with strong brand recognition and solid systems that are efficient and support you in every way. I’ve always said it’s better to be a Jack-of-one trade and master of it than to be a Jack-of-all-trades and master of none. (That’s why our firm handles only franchise law—no family law, real estate, estate planning, or criminal defense.) Doing one thing, and doing it well, is a terrific formula for success.
Jonathan Barber exclusively practices franchise law as a partner at Barber Power Law Group, in Charlotte, North Carolina. He has assisted hundreds of clients world-wide with their FDDs and franchise purchases. Barber also represents emerging and established franchisors. Contact Barber at 980-202-5679 or email@example.com