Why Buy A Service Franchise BusinessTop reason why you should consider buying a service franchise opportunity. Ray haiber
As
a franchise sales consultant and an individual who grew up with a
franchise business (my family owned a Dunkin Donuts franchise 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.
Better Life style:
Service
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.
Lower Investment:
Because they 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.
Unlike
retail 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 retail
unit.
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.
Better Success Rate:
Although all categories of business franchising have a statistically higher rate of success than non-franchise business start-ups, It’s 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. |
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