A franchise is a unique business opportunity for aspiring entrepreneurs to realize their dream of being their own boss and owning a business without having to start from scratch. A franchise often comes with an established brand, proven systems, technology infrastructure, ongoing support, and customer loyalty to accelerate the growth of the business. By purchasing a franchise, you get all the benefits of business ownership – financial freedom, flexibility, and personal fulfillment without any headaches.
If you’re thinking about starting a franchise, here are five key factors to consider:
1. The Industry
Investigate the industry thoroughly. When considering a specific franchise, it’s important for you to understand the industry – the marketability, growth potential, competition, and personal and professional development opportunities. When selecting an industry, you don’t necessarily have to have any prior education or experience in the field; however, you should have a passion for it and you should be able to give your full commitment to it
2. Your Franchisor
As a franchise owner, you have a unique relationship with the franchisor – partnering with them, learning from them, and growing with them. When deciding on the right franchise opportunity for you, be sure to look at the company as a whole to help determine not only if you’d be a good fit for the business, but if they’d be a good partner for you.
3. Franchisee Success Rate
It’s important to look at the company’s financial records and see what the current average gross revenue and success rate is for franchisees. This information is outlined in the Franchise Disclosure Document (FDD). When speaking with a franchise advocate, ask for a copy of the FDD and read it thoroughly to gain a better, more in-depth understanding of the processes and financials of the franchise.
4. Profit Margin
While it’s expected for a new business to take some time before seeing a strong profit, there needs to be the promise of a high profit margin. That means you need to yield more profit than it costs you to operate the business. Looking for franchises that have low start-up costs and virtually no overhead is a great opportunity to ensure a return on your investment.
5. Economic Stability
The economy may fluctuate frequently, so it’s important that your business can thrive even when the economy is down. Choosing a recession-resistant franchise can help you protect your investment and continue to build a successful business no matter the current economic situation.
An ideal franchise for you would be one you’re passionate about, supported by a company that’s invested in your success, in an industry that has great marketability, has a high-profit margin, and is recession-resistant.
So which industries are more likely to succeed?
While the success rate is greatly influenced by the company and the entrepreneur, there are a few industries that are more likely to succeed, and faster, than others: automotive, quick-service restaurants, technology, and home inspection. What do these industries have in common? They solve common consumer problems, and they will always be essential services. Of all four industries, there is one that has grown exponentially in recent years the home inspection industry.
The home inspection industry is a fast-growing and recession-resistant industry, and according to the Bureau of Labor Statistics, is expected to grow 10 percent by 2026. With 126 million households in the U.S., according to the Pew Research Center and the U.S. Census Bureau, and new construction neighborhoods on the rise, home inspection services are here to grow.
WIN Home Inspection is uniquely positioned in the industry’s market, as they offer in-house training and certification programs not only for home inspection services but also for light commercial and a range of value-added health and preventative maintenance services. As a home inspection franchise owner, you have the unique opportunity to help your community members purchase homes with confidence and protect their largest investments.