Landing an exclusive supply contract with a big company would seem like cause for celebration, but some Mr. Handyman franchisees aren’t so sure.
Their franchiser, Mr. Handyman International LLC, wants to launch a “national accounts” program, in which the franchise would become the preferred provider of repair and maintenance work for businesses with multiple locations. A pilot is already being tested at Wyndham Hotel Group properties in three states.
The concept sounds appealing; Mr. Handyman franchisees wouldn’t have to compete for such orders but would win them automatically if they were in the same region as the national-account client and had agreed to terms the franchiser had negotiated.
But wary franchisees, who communicate with each other over a private Web site, are concerned about how the program might affect their businesses. Some are raising money for an attorney to review the proposed addendum to their franchise agreements.
“There’s a lot of questions,” said Neils Brooks, co-chairman of the Mr. Handyman Franchise Advisory Council and a franchisee in Newport News, Va. For starters, individual franchisees worry they would have little say in what they could charge, since headquarters would set rates with the national-accounts clients. And some are concerned that if they refuse a job, the franchiser might give the assignment to a subcontractor who could tarnish the brand.
