Could Home Improvement Franchises Offer The Foundations of Success?

What are home improvement franchises, should you become a franchisee and how much do they cost?

Home improvement, gardening and landscaping franchises

Home Improvement Franchises – The Foundations of Success

Home improvement is a resilient trend that has demonstrated growth for years. It is a frequently identified statistic that around 75% of UK homeowners spend on home improvement at least once every year. According to DIY Garden, the average homeowner spent around £1,500 on DIY projects. With around £110bn spent on home improvement projects in the UK alone in 2021, the market has shown considerable demand.

If you love to get involved in home improvement projects, DIY, construction and anything related to the home, home improvement franchises are a fantastic choice.

What is a Home Improvement Franchise?

Franchising is where a business owner or company will look to expand by opening up additional units in other locations. There are lots of home improvement franchises in the UK.

How does a franchise work? Well here’s a very basic example. A construction business operating in London may wish to expand and provide services in Reading for example. To do this as a franchise model, after preparing the necessary franchising documentation and setting up a pilot operation, the franchisor (the owner/company behind the intellectual property and trademark of the business) will profile and recruit suitable candidates as franchisees in the Reading area. A franchisee is someone who purchases the rights to trade as the business in their own area – in this case Reading. The franchisor would provide the reading franchisee with training, support and everything they need to run the business. Et voila, the company has, in the simplest terms, set up a franchise in Reading. They would then be able to serve clients under one brand, in those areas.

A home based franchise is a franchised business that operates in the property development and renovation market. Anything from interior design, garden and end-of-tenancy property management could be considered home improvement.

The Demand for Home Improvement Franchises

You might think that with such a high involvement rate of people doing it themselves, there is no demand for home improvement franchises. But this is far from the truth. Franchisees trading in the home improvement sector won’t be spending their time doing the small jobs that a handyman would otherwise do, franchising within this sector has demonstrated resilience, with major DIY projects that cannot be done alone.

Some of the biggest projects franchisees have taken on in the home include:

  • Garden and Landscaping – Whilst trimming and strimming the lawn is a manageable task for most, only around one in five spent time doing garden related projects in recent years. Because gardening and landscaping is such a profitable franchise sector, many franchisees are exclusively operating in the green sector.
  • Upgrading heating, electrics and installing double glazing windows are another big job handymen and home improvement franchisees are actively involved in.
  • Painting and redecorating, whilst a top job for aspiring DIY individuals, interior design is another biggie on franchisee’s lists.

What Are The Most Popular Types of Home Improvement Franchises?

At first glance, thinking about franchises that trade in the home improvement sector can seem pretty specialist and generic but it’s more than just paintbrushes and wood. Property improvement and house development is one of the most lucrative franchise sectors out there. Here are just some of the most popular types of franchises within home improvement.

Kitchen Makeover Franchises

Despite being niche, kitchen redevelopment is a big sector. Many franchises operate within kitchen design and installation, from TREND Transformations to Kitchen Makeovers* to name just a couple. For many businesses to be franchising in such a relatively niche market clearly shows there is both demand and profit. Kitchen related improvement franchises can turnover anywhere from one or two thousand right up to five figures in a single job. There is clearly big money.

*examples trading as of 2022

Gardening and Landscaping Franchises

Garden, lawn and landscaping franchises are a big sector. Many franchisees operating within this industry serve both domestic and commercial clients, enjoying fantastic territory sizes and potential. Almost every house has at least some sort of garden; even community flats will have greenery which will need maintaining. Over the years, artificial lawn has become popular to the point of being installed everywhere from gardens to council children playgrounds.

Garden and landscaping is a good example of home improvement, with the opportunity to generate additional revenue in the B2B sector.

Interior Renovation and Property Maintenance Franchises

There are a diverse range of franchises that trade in property fix-ups, home improvements, the like. We won’t go into too much detail here as there are a lot of different franchises doing different things, but some good examples are:

  • Loft Conversion and Loft Ladder Installation Franchises – Franchisees enable homeowners to unlock additional space by installing a loft ladder and boarding.
  • Blinds and Shutters Franchises – Many homeowners are opting for the modern look and appeal of window shutters and blinds. There is strong demand for this, with at least 3 well-known shutter franchises in the UK.
  • Everything Else – From outdoor pools, hard surface restoration, cleaning, chimney sweep, there is so much opportunity within home improvement.

Should You Invest in a Home Improvement Franchise?

If you’re looking to become your own boss and run a business for yourself, franchising is a good way to go. Anyone looking to get into business ownership will have thought about the three most common ways of running a business:

  • Starting up a business from scratch,
  • Taking over an existing business or resale, either by purchase or from a family member,
  • Or investing in a franchise

Each of the above has its own benefits within home improvement. Starting up a business you get to choose your path entirely, full control over branding and the direction the business takes. Attractive, but this comes with many beginner mistakes if you haven’t had experience in the sector or business ownership. Buying a business is good because it is considered turnkey – trading from day one. However purchase can be expensive and whilst you have an established presence, you’re stuck with what you buy and any changes to the business model you make, could lead to you making mistakes you’d have made starting a business from scratch.

An Established Brand Name

But when it comes to franchising, you’ve got the best of both of these. You have the enjoyment of starting up a business from scratch, because you’re setting up the franchise unit new to your area. And the proven brand name and business model of the company. You’ll have a strong brand name behind you, one that customers may already recognise if they have used the company in a different area. Brands like McDonald’s and KFC are franchises and they are immediately recognisable. The same can be said for home improvement franchises.

It doesn’t matter that the business is new to a specific area. Provided you’ve done due diligence and explored the market and demand before investing, if a brand name is recognisable, you’ve got reputation and experience behind you. As a franchise network grows, so does its reputation and brand awareness – this benefits the entire network.

Home Improvement Franchisors Will Provide Training and Support

You won’t necessarily need any past experience within the home improvement trade, not necessarily any DIY experience either. While offering franchisees full training and ongoing support in all aspects of the business, from accounting to recruiting staff. Often home improvement franchises can be operated either as owner-operator – where the franchisee carries out work with or without small number of staff – or as a management franchise. A management franchise is where the franchise employs a workforce and the franchisee manages the staff, but doesn’t need to do the actual hands-on work themselves. Franchises that can be run on a management basis can appeal to a greater range of prospects, knowing they don’t need any experience in the field. The latter is appealing to those with strong skills and managerial experience, including those that aren’t fit or able to do strenuous lifting or construction.

Training and support within franchising will usually either be at home or away with a franchisee in the field or a combination of both.

Business Ownership Unlocks Unlimited Earning Potential

Being in charge of business, there is nobody to tell you how much you can and can’t earn. How many clients you take on and how much effort you put into marketing and bringing in money is up to you. Many successful home improvement businesses have expanded to take on more staff, being able to manage multiple clients at the same time. As demand builds, it is possible to cash in on this and maximise turnover by serving as many clients as possible. Some home improvement tasks can be very demanding so it may not be possible to run a franchise on a part time basis in home improvement unless you are operating a management setup. Speak to the franchisor to find out more. Working minimal hours may conflict with royalties and you may end up losing money. So it’s always a good idea to give it your all in the home improvement sector.

A Business You Can Later Sell

If later down the line you wish to end ownership of the business and sell the franchise, you can do just this in what’s known as a franchise resale. You can expect to make back more than what you initially paid for the investment. Your hard work and customer base all adds strong value to the business, plus its reputation and prominence in the local market. Many franchisees are able to sell their territory and business for upwards six-figures.

How Much Do Home Improvement Franchises Cost?

The investment required will usually be in the region of £50,000 plus a similar figure in working capital. Working capital is money set aside to keep the business trading for the months up to your return on investment. Initial marketing and products will eventually be exhausted so you will need this aside money to stay trading.

Many banks and lenders take favourably to franchising and can often lend up to 70% of the franchise investment. Even if you can afford the investment upfront, it’s a good idea to make use of the financial support available so you can set aside more as working capital.

Is a Home Improvement Franchise Right For Me?

If you want to be your own boss and love making clients smile, home improvement is a very rewarding, very lucrative and very successful sector. With many different types of home improvement franchises for sale out there, why not start your search today? From blinds and shutters to garden and landscaping, loft ladder installation to patio and driveway restoration, there are plenty of profitable franchises in home improvement. Discover a World of Franchises at Franchise Planet.

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