Why Buy A Service Franchise?
As a franchise
sales consultant and an individual who grew up with a franchise
business (my family owned a Dunkin Donuts for over 2 decades) I am
often asked what type of franchise business I would personally
recommend to buy. Although all franchise business categories have
their inherent advantages and disadvantages, my personal
preference would be to buy a service related franchise concept for
a number of reasons.
franchises in my opinion can generally offer the owner/operator a
better life style, less stress, and more freedom for a number of
reasons including the following. They generally require less
operating hours, most can be operated on 5 day work week, they
usually have lower staffing requirements with less employee
headaches, they have no inventory spoilage concerns, and overall
they are generally easier to manage.
generally do not require the expense of building out a retail
location or store front in a high traffic area, or have the
equipment requirements of a food or restaurant franchise, service
franchises on a whole generally require lower overall start up
costs. You can get a general idea of the investment level of some
service franchises for sale here.
Easier To Grow:
franchise businesses that are confined to a specific location and
are dependent on foot traffic, service businesses offer the owner
the opportunity to go out and generate new business in a large
geographic area through a number of different marketing options.
Expanding a service business to new markets is also generally a
lot less capital intensive or expensive than adding a new physical
Easier To Manage:
I can assure you
from personal experience that managing a service business is
generally a lot easier as compared to a retail food or restaurant
franchise. Most small businesses today have challenges with
finding reliable employees to fulfill their staffing requirements.
But for a number of reasons retail businesses, particularly
restaurants, have more employee turnover and headaches than most.
categories of business franchising have a statistically higher
rate of success than non-franchise business start-ups, Itís been
my observation that the success rate of service related franchises
is generally higher than retail franchises. I believe this can be
contributed to a number of factors including lower start up and
operating costs, less staffing requirements, better profit
margins, generally less overhead, and an overall better life style
that can be maintained operating a service related business.
About The Author:
Ray Haiber has 14
years experience as franchise sales consultant as well as a
business broker in Arizona.