Top 400 Spotlight: Demand for Housing Upgrades Boosts Home Improvement Brands

Americans 65 and older own a sizable portion of the country’s homes at more than 34 percent.

According to the National Association of Home Builders, that calculates to 29.6 million homes, and many of those owners continue to seek upgrades on their houses. Andy Bell, the founder and CEO of Ace Handyman Services, said that’s created a good market for home improvement concepts like his.

“I think there is a bit of a ‘stay put’ economy we’re experiencing with high interest rates and affordability of housing,” Bell said. “Baby boomers tend to be modifying their homes significantly with walk-in bathrooms and things of that nature. We’ve seen more demand from them, and they’re a generation not likely buying another house. So, they’re doing upgrades in the existing house.”

Home improvement sales

That economy has resulted in a strong performance for home improvement brands listed on the Franchise Times Top 400, an exclusive annual ranking of the largest franchise brands by systemwide sales. In 2025, the home services category overall had $11.6 billion in sales, up more than 7 percent from $10.8 billion in 2024.

Ace Handyman Services is ranked No. 312, up from its No. 318 position with sales growth of nearly 13 percent to $118 million. Across all home service franchises, the highest ranked concept was No. 71 Window World with $1.2 billion, an increase of 7 percent despite its unit count staying at 211.

The biggest percentage sales grower across the category, though, was No. 276 Five Star Bath Solutions, up nearly 50 percent to $160 million in 2025. Not far behind was Floor Coverings International with a 46.3 percent jump to $300 million.

Bell said another contributing factor to the good market conditions is an older housing stock for many new home buyers, meaning structural fundamentals need improvements. Along with the positive conditions, Bell said the brand’s growth is also partially thanks to its name.

“Being part of Ace has put us at an intersection of trust and support for homeowners that need things,” Bell said. Ace Hardware bought and rebranded what was Handyman Matters in 2019. “The handyman industry, and construction services in general, are very fragmented. What Ace did when they acquired us is gave us the brand awareness and trust customers need.”

Service franchises growth

In the adjacent category with brands providing electric, plumbing and HVAC services, franchises had nearly $2 billion in sales, a 12.2 percent increase. Among the top growers was No. 142 Mr. Rooter, a plumbing business, with $540 million, up 16 percent. Brand President Chris Porcelli said the company’s position in the Neighborly portfolio has helped push sales up.

“We’re able to leverage Neighborly and all of our cross-marketing functions,” Porcelli said. “While others have seen some pullback or challenges in the market, we’re able to leverage other brands to help drive that multi-business consumer. We see a lot of cross-pollination, which led to our sustained performance through 2025 and certainly 2026.”

The largest percentage grower in the segment was electrical repair concept Mister Sparky, with sales up 23.1 percent to $231 million.

Painting and lawn care trends

While many home improvement brands reported positives in 2025, not all faired so well. Painting companies in the Top 400 had $883 million in sales, down 2.7 percent, with No. 310 Five Star Painting and No. 121 CertaPro Painters having declines. The latter’s sales fell 2.9 percent to $665 million, which CEO Mike Stone attributed to a market correction after a post-pandemic surge.

“We had a post-COVID boom where we went from $500 million to $722 million and then $770 million in 2023,” Stone said. “Then inflation hit and high interest rates hit. People didn’t have as much disposable income again. So, instead of investing in their homes, they started spending elsewhere. We saw a little pullback in the entire industry; it’s been a kind of flattening period.”

While macroeconomics played a role, Stone also admitted the brand could have done better as a franchisor. As a result, he said it was necessary to bring in some new leaders.

“We moved some people out who weren’t getting the job done,” Stone aid. “We needed fresh ideas and new ways to market. We’re now in the midst of building a new website and rolling out new technology. We were also predominantly a residential painting contractor, but we’re continuing get more commercial work. We’ve been developing competencies, best practices and standard estimates there, leading to substantial growth.”

Brands offering lawn services, meanwhile, had respectable growth, with sales increasing 4.6 percent, from $834 million in 2024 to $872 million in 2025. Leading the way was No. 154 Weed Man with $427 million, followed by No. 224 Lawn Doctor at $240 million.

Along with a 10.3 percent boost in sales, Weed Man also had a remarkable 25.8 percent increase in units, from 221 to 278 in both the United States and Canada. The unit expansion means sustainable growth for the future, Weed Man CEO Jennifer Lemcke said, as the brand puts an emphasis on getting repeat business.

“We’ve been focused on renewing with our customers and we’re seeing an uptick in retention,” Lemcke said. “The beauty of the recuring revenue model is you’re not starting January 1 at zero with no customers. Everybody is renewing. Our foundation is on good customer service to make that happen. In 2025, we also did some guerilla marketing and door knocking, while also getting heavy in the digital space.”

On the other end, No. 322 The Ground Guys saw sales fall 15.4 percent to $112 million.