Choosing a Service Franchise

Anyone seriously considering the purchase of a franchise will ultimately have to decide if a "service" franchise or a "retail" franchise is a better fit. It's an important distinction in terms of both entry requirements and operational realities, and it's a decision that can determine your ultimate effectiveness as a franchise operator.

First, a basic summary of some typical service franchise opportunities available today, here are just a few: trade and handyman (electricians, plumbers), lawn maintenance, landscape services, childcare, tutoring, education, business coaches accounting, bookkeeping real estate agents, travel agents, commercial, domestic cleaning, automotive-related services, computer-related services, and interior design/decorating.

With this is mind, consider that service franchises generally can offer more economical start up and operating costs and often require much less personnel for daily operation. A service franchise is frequently home-based and allows for - and often requires - a lot of mobility. Of course, there are pros and cons to this business model.

Service franchise advantages

Service franchises typically allow you entry at a fraction of the cost of a retail franchise - often just a few thousand dollars of investment compared to six figures for many retail opportunities. Yet, the income potential is still attractive and can be considerable. So there's the affordability factor and a lower upfront risk from day one.

There's also a wide selection of opportunities and niches in the service franchise sector. And many of these businesses have a healthy and constant demand (plumbing will always need to be repaired, for example).

Service franchises are typically "skills based" and offer those with the ability, interest, and dedication to be active and "work with their hands" as they build their business.

Because many service franchises do not require a brick and mortar location for franchisee operations, overhead is typically much lower. It's very easy to turn a quick and healthy cash flow when you work from a home-based office. And with very few employees, your staffing headaches can be minimal. And later on, the lack of a physical location makes it easier to take on additional territories at a minimal cost.

Additionally, working hours can be flexible - often by appointment only - so you're not restricted by long retail hours. This can be a big plus for some lifestyles. But keep in mind, like most businesses, the more you work the more you earn.

Service franchise disadvantages

Because of the nature of the beast, service-oriented franchises may not offer the kind of customer and transaction volume you'd find at a retail franchise. That fact alone can limit your degree of profitability. Especially, if you are a one man operation, there are only so many appointments you can make in a day. And small operations can become seriously derailed in the case of personal illness or any major sickness.

Also, some service franchisees can limit the number of employees you have and can also restrict your territory. You'll want to ask about this right off the bat. And, it's not uncommon to have to function as the owner/operator as well as the employee (you wear all the hats). You may be providing electrical repairs for your customer by day while marketing your business and handling paperwork by night.

And some trades, such as plumbers and electricians, require technical knowledge, certification, and continuing education. That could occupy time that would otherwise be spent making customer calls.

You'll certainly want to evaluate how these pros and cons measure up for you. For many who are active and like to be right in the middle of the action, a service franchise may be just right choice.

Back:
6.3: Attend Franchise Trade Shows
 
Index
Next:
6.5: Choosing a Retail Franchise

Social Reach:

Viewer Response:

comments powered by Disqus

Franchise Guides »

Featured Choices:

Popular Choices:

Hot Opportunities

Perkins Restaurant & Bakery Franchise Opportunity

Perkins Restaurant & Bakery
In today's market, the opportunity to buy a Perkins® couldn't be better...

Add
Taco John's Franchise Opportunity

Taco John's
Taco John's is one of the largest Mexican quick service restaurant brands...

Add
In Home Personal Services Franchise Opportunity

In Home Personal Services
Attitude is everything. When you partner with In Home Personal Services,...

Add
Togo's Eateries Franchise Opportunity

Togo's Eateries
One of the things that makes Togo’s a great franchising system is the...

Add
Pronto Insurance Franchise Opportunity

Pronto Insurance
As a franchise owner with Pronto Insurance, you can capitalize on the...

Add
WineStyles Tasting Station Franchise Opportunity

WineStyles Tasting Station
Turn your passion for wine, craft beer and gourmet food into a rewarding...

Add
Xavier Artisan Franchise Opportunity

Xavier Artisan
Xavier Artisan offers an artisinal approach to it's food. With gourmet...

Add
ZIPS Dry Cleaners Franchise Opportunity

ZIPS Dry Cleaners
ZIPS, since 1996, began as eight dry cleaners in the Baltimore-Washington,...

Add

Learn More

Multi-Brand 50    

Multi-Unit Franchisee Magazine

Issue II, 2016

Multi-Unit Buyers Guide    

2016 Multi-Unit Buyers Guide

Special Edition

A Franchise Update Media Group Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2016. All Rights Reserved. Site Hosting Provided By: wishVPS on FUMG3

In Loving Memory Of Timothy Gardner (1987-2014)