10 Reasons to Invest in a Home Services Franchise

What are home services franchises and should you invest in one? Top home services franchises (with examples).

Home services, construction and van-based franchise opportunities

10 Reasons to Invest in a Home Services Franchise

Home Services Franchises broadly cover a range of different businesses which deliver a service within the client’s home. There are a wide range of property services franchises, and with property being one of the most expensive things a person can own, it’s understandable why home services is one of the most lucrative of opportunities. Home services doesn’t just refer to property maintenance, it can include anything related to the property and its contents. First up let’s take a look at what franchising is, some examples of home services franchises, and why you should consider investing.

What is Franchising? What is a Home Services Franchise?

Franchising is a method of business expansion. It is also a route to business ownership! Business owners generally have several ways to grow their company or brand, and the first is to purchase and set up additional units at company expense. Slow, this route generally involves the business owner baring the costs. But within franchising, the franchisee bares most of the costs – because they own the unit in their area – not the franchisor. Franchisees most often set up their own company in their own name, simply running the business under the brand name of the franchisor. Franchising involves many of the activities that you would find if you started up a business alone – marketing, working with partners/suppliers, etc, but in addition, you get full training and support plus of course the established brand and business model, with rights to trade.

A home services franchise is any franchised business model where the trade is carried out in the client’s home. Because there are so many opportunities that are classed as home services, so too diverse is the investment level.

Before we take a look at the reasons, let’s see what types of home services franchises are available.

What Types of Home Services Franchises are Available?

As discussed, home services is a big sector. Covering many different subsectors and niches operating a variety of services, some unique, some common between franchises, the diversity makes it a sector attractive to explore for both new and existing entrepreneurs.

1. Home Cleaning Services Franchises

Operational either management or by the franchise owner, cleaning in itself is one of the biggest and most diverse home services sector franchises you’ll come across. Trending franchise opportunities include:

  • Oven cleaning franchises, along with revenue streams such as BBQ cleaning and other appliances
  • End of tenancy B2B landlord property cleaning
  • Typical domestic or commercial cleaning franchise which can be run either owner-operated or management

Home cleaning generally has the potential to build a big turnover. Whilst owner operated businesses may sound limiting, most franchises offer the potential to be run multi cleaner, or multi van, management type franchises. Scaling the workload and the staff upwards, the franchise company benefits from increased turnover and value.

Home cleaning franchises (known as domestic cleaning) typically range from £10,000 up to £60,000 total investment. Whilst owner operated businesses are generally cash positive from early on, management run businesses generally require working capital.

2. Gardening Services Franchises

Similarly to cleaning, gardening too has a number of different opportunities within it. Landscaping, artificial lawn installation, lawn care are to name but a few. Many gardening franchisees also offer services such as driveway and patio cleaning and moss removal. Opportunities like Fantastic Services are amongst many types of van based franchises that require less than £20K investment – a brand that specialises in a wide range of home services, including gardening.

3. Domiciliary Care Franchises

Domiciliary care refers to care services provided in the client’s own home. This is opposed to care homes where the customer doesn’t receive services in their own home. Home services franchises includes domiciliary and homecare, often run on a management type basis. Not needing any past healthcare experience, franchisees generally employ carers who carry out the care work. The main role of the franchisee in this scenario is marketing the business, employing carers and ensuring the carers have sufficient jobs. This doesn’t necessarily need to be down to the franchisee, the business usually has the potential to take on numerous levels of staff to manage employment, back office etc, whilst still taking in a healthy turnover. Home care services franchises are often in the region of £50K – £100K investment.

4. Property Maintenance Franchises

There are a wide range of property services franchises. From construction and loft boarding and ladder installation, the opportunities are as big as the property. Discussed in the first point of our reasons to become a home services franchise owner below, property maintenance franchisees usually benefit from multiple revenue streams. For example this might include locksmith, security, chimney sweeping – all rolled into one. Jobs like loft conversion and ladder installation often come with a fantastic income, with these being jobs that usually cost a sizeable amount. Property maintenance franchises aren’t always ideal for an individual. Because they aren’t repeat business (clients returning again and again), rather one job work, more time will be spent finding clients therefore it’s ideal to employ someone to work on sourcing customers and marketing, or as a husband wife team.

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Home Services Franchises – 10 Reasons to Become a Business Owner with Franchising

There are many reasons to become a business owner with franchising. For many, investing in a franchise is a decision they haven’t looked back from. Here are ten top reasons why you should at least consider investing in a home services franchise as your next big career step.

1. Many Franchises Offer Multiple Revenue Streams

When it comes to the likes of businesses such as chimney sweeping, you might think the territory restrictive. After all, not everyone has a fire place and not everyone gets their chimney swept – at least not as often as they should. But regardless of what franchise you choose, the fact they’re franchising means the opportunity has proven to be sustainable. And it is sustainable, in most cases, because the business has diversified to offer a range of different services where required. Through offering multiple revenue streams, franchisees can continue earning a sizeable turnover throughout the year. Going back to the chimney sweep example, franchises such as Wilkins offer security services and other property services (driveway cleaning, bird nest removal, etc. When you recognise that each customer will pay at least £50 per service, often more, you only need a few customers a week to be earning a sizeable income.

Other types of home services franchises offer additional revenue streams too.

  • Oven cleaning franchises commonly offer and upsell cleaning on BBQs, hobs, and other appliances.
  • Gardening franchises are usually well diversified, ranging from lawn treatments to landscaping for both domestic and commercial clients. Again, including services like driveway and patio cleaning, like other types of van based property franchises.

2. Management Opportunities Are Available

If you’re looking for a franchise that you can run in oversight rather than carrying out the work yourself, home services is a top choice. As well as offering a range of owner-operated business models, there are equally as many that can be run management type basis. A management franchise is one where you employ a workforce, one, two or more staff who carry out the work. Your role as a franchisee being marketing the business and generating work for your team.

Management franchises are preferred by many people because they offer better work life balance. You can do your own outside of normal business hours if you wish Provided your team carry out the work and have sufficient jobs, it really doesn’t matter when you work or how many hours you put in. What does matter is knowing it is your business and the success is entirely down to you. If it is a failure, it can be damaging for you and the entire franchise network. Luckily you’ll benefit from full training, support and a proven business model, bringing us onto the next point.

3. Full Training and Support is Provided

The costs of investing in a franchise aren’t that much different to what you’d spend setting up your own business. The advantage with franchising, you’re not doing it alone. Franchising is an incredibly well supported sector. From the moment you start exploring franchising – from free franchise exhibitions to support from the British Franchise Association, right up to consultancy and making a decision, support is alongside you if you need it. Franchisors also provide full training – many involve several days or weeks. If you’re looking for a business opportunity that ticks all the right boxes, you can’t go wrong with franchising. However it’s important to do due diligence and carefully explore each opportunity.

You won’t necessarily need any past experience in professional or home services, managing a team or owning a business. The training provided will often cover both the managerial and operational aspects. Obviously having past experience in the trade you’re planning on choosing is ideal, but not often necessary, because…

4. Franchising is an Excellent Entry Point into Business Ownership

Franchising is a great way to get into business ownership. Not only to mention the training and support above, but that financially. Because of the proven business model, the support provided, and the positive reputation within the franchising sector, many banks and lenders favour the route to business ownership.

It is commonly quoted that banks can lend up to 70% of the franchise investment. They’re more likely to lend to someone looking to get their feet wet in franchising as opposed to the riskier counterpart that is a solo startup. Because of this financial support available, and the fact that a franchise offers a proven business model, established brand name, and a safety net that is support and guidance from the franchisor, franchising is a great entry point into business ownership. What’s more, the home services sector has many opportunities with a range of investment figures. From a small owner operated van based business up to full scale management operations, there is a lot of potential.

If you’re looking to transition out of employment and regain control of your future, stop working for someone else and start working for yourself. You can do this with franchising. Luckily if you’ve no idea about starting up a business yourself, this is a great reason to choose franchising.

5. The Sky’s The Limit – Enjoy Unlimited Earning Potential

When it comes to business ownership, there are generally no restrictions on how much work you put in. Franchising isn’t employment, and the business is yours – you’re simply using the business model under license. It is your responsibility to make sure it’s a success, but how much work and when you work is up to you. Obviously if you’re going to invest in becoming a business owner, you’ll likely want to succeed anyway. But what you get out of business ownership depends on your ambitions.

Many franchises can be run on a part time basis, requiring fewer than 35 hours a week and when you work is up to you. Business ownership allows many people to fit in their personal requirements such as school runs and running alongside employment for additional income. As mentioned before, owner operated franchises obviously have a limit to the amount of work that can be viably fit into 7 days, but there’s no reason why you can’t expand and recruit staff.

6. A Proven Business Model

Starting up a business alone carries an average success rate of 79%. Franchising on the other hand carries a 93% success rate. This figure is according to a Natwest British Franchise Association survey. Franchising’s greater success rate is all thanks to the support and the proven, established business model you get as part of your investment. A streamlined method of business expansion, each franchise scales their business by delivering the same products, services utilising the same business model. Many of the potential pitfalls and mistakes you’d make starting up alone are identified and mitigated by the franchisor. Uniformly expanding a business means there is less risk, as opposed to each franchisee offering different services.

7. A Profitable Booming Sector

As well as franchising contributing £17bn to the UK economy, the opportunities within are also thriving. For example home care franchises are in constant, growing demand. There are more than 950,000 people in the UK receiving domiciliary care, a figure that is continually on the rise as mortality rate drops on a global scale. With improvements in healthcare, better live in care services and advances in research, leading to an ageing population.

Whilst there are indeed over 8,000 CQC approved home care providers in England alone (or 10,000+ UK wide), that’s around 100 clients per provider – more than enough for most home care franchisees, assuming each patient gets several visits a week (or even a day)!

Locksmiths, gardeners, pet sitting, there are many home services franchises in strong demand. Window and gutter cleaning, driveway and patio washing, handyman services, to name just a few more of what is one of the biggest sectors in franchising.

8. A Flexible Work Life Balance

Many people dream of starting their own business. Not just for the financial and lucrative aspect but the chance to be their own boss and ditch employment. Successful business ownership can offer all of these things – and with franchising, the chances of doing it right are greater. Many franchises can be run on a part time basis, and equally as many home based franchises ideal for parents that need to work varying hours during the day.

Most – if not all – of the businesses i’ve listed above (gardening, home care, cleaning, property maintenance), these are all perfect for parents or those who plan to run a business alongside employment part time. The ones run managerial like home care, enable franchisees to work the hours that suit them, such as between school runs or once the kids are in bed. Or businesses like van based and gardening, owner operated businesses too offer fantastic work life balance. These owner operated franchises generally enable the franchisee to plan clients around their own schedules. Again, fitting in with employment, or other commitments.

9. Immediate Brand Recognition

It can take years to get a start up business off the ground. The main holdback is the brand recognition. Unless you have a business model in an untapped market, chances are your customer base is already using your competitor. They won’t have heard of you. We all know that marketing leaflets generally end up in the bin, but the chances will be reduced if you choose a business model that uses a brand name they’ve heard of. A big benefit of investing in a franchise, you use a name that customers know. Hopefully one they associate positively with too! Some brand names are instantly recognisable, such as Wiltshire Farm Foods, Trophy Pet Foods and Time For You Cleaning. All three of these are actively franchising, and franchisees benefit from immediate brand recognition.

10. You Can Sell The Home Services Business Later On

Like any business, it can be sold. There are a number of fees involved when selling your franchise territory as a “franchise resale”, but in most cases, what you get back will be more than what you initially paid for the franchise. Your hard work into making the business a success adds value to your business for sale. Many franchise resales are sold between £50,000 and £250,000 – some even more.

Home Services Franchise FAQ

Can a home services franchise be home based?

Yes – it may sound contradictory but many home services franchises can be run from your own home. Whilst there are franchises that can be run owner-operated, home based home services businesses are usually run managerial. You manage the business from home whilst employing a team who do the client facing work.

How much do home services franchises cost?

Home services franchises will vary in costs depending on whether they’re owner operated or management franchises. With the former, overheads are kept to a minimum and an owner operated business usually tends to be less than £30K. The latter tends to require working capital to cover wages and recruitment until break even so are generally more.

What is a home services franchise?

A home services franchise is any franchised business that carries out a service in the client’s home. Oven cleaning, domiciliary care, loft ladder installation – these are all examples of home services franchises.

Can I get financial support when buying a franchise?

Many banks can lend money for you to invest in a franchise. This enables you to better allocate funds to working capital or getting the business off the ground. Barclays, Lloyds and HSBC UK are all BFA registered banks and can help you launch a franchise subject to good financial history.

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