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Why Service-Based Franchises Are Trending: Pros and Cons

No-H2O Franchise

Service-based businesses are integral to any economy, which is why service-based franchises are trending. People are always looking for ways to make their lives easier so they can focus on their passions and the important things. And since a service-based franchise is a business that provides a service, whether at home or commercially, they also provide convenience, which enables customers to save time and even money.

With a service-based franchise, you control your own destiny, career-wise. It’s up to you to sell your services and establish your franchise in your territory. Your franchisor stands behind you to help, but you are the one who makes the decisions that determine your success.

Why Entrepreneurs Love Service-Based Franchises

  1. Startup Costs Can Be Reasonable

Search the America’s Best Franchises Directory by investment. It’s absolutely possible for you to start a new business for under $20,000 with a service franchise.

  1. Demand-Ready Opportunity

Things break. Equipment needs to be maintained. Accidents happen. All types of services are always needed by homeowners, business owners, and people of all ages. It’s built right in. A healthy business environment always supports a healthy array of services for consumers to choose from.

  1. Almost Unlimited Desire

Service-based franchises thrive in America because people are willing to:

  • spend money to buy time they can use the way they choose, like doing more with family and friends.
  • pay someone else for chores they could do themselves but they’d rather not, like lawn work, residential painting, oil changes, or installing home entertainment systems.
  • Buy services they are unable to do themselves or they lack the skills, the equipment, or the confidence to do them. Services like setting up computer devices, hair styling, fitness training, and massage therapy fall into this category.

1-800-Water Damage Franchise

Good Fit For A Service-Based Franchise

Franchisors look for these attributes in service-based franchise candidates:

  • They love serving people
  • They are passionate about and adept at the service skill
  • They also possess marketing skills and savvy
  • They believe in the service and become brand ambassadors
  • They are good communicators
  • They are expansion-minded and community-oriented
  • They move easily through all the different roles of a franchisee
  • They know how to run a business, follow the rules, pay royalties on time, and are willing to give back to the system
  • They show leadership and growth potential
  • They know how to hire, train, manage, and retain staff

Mosquito Joe Franchise Business


Pros of Service-Based Franchises

  1. The wide variety of opportunities. You can choose from a big selection of service franchises, many with steady demand in any economy. Examples include:

Automotive: repair, oil change, car wash, muffler and brakes, paint and body, transmission

Business: tax services, accounting/bookkeeping, coaching, staffing, janitorial, signs, printing, pack and ship, security

Children: art, fitness, sports, tutoring, daycare, preschool

Consumer: hair cutting, travel, photography, sports, coaching, massage, tanning

Home: handyman (electrical, plumbing, HVAC, carpentry), painting, security, real estate, inspection, insulation, windows, junk removal, storage pods, moving

Pets: washing/grooming, training, pet stores, boarding, poop scooping

Seniors: home care, medical services, estate planning, renovations, physical therapy

Technical: computer and other equipment service and repair, web design, telecommunications

  1. Easy start-up. Service-based franchises frequently allow entry at a fraction of the cost of other types of franchises like food, with a lower investment to start and an attractive return on investment (ROI) for those on a small budget. Service franchises can also have a quicker path to positive cash flow than other franchises.
  2. Flexible schedule. Many services are scheduled by appointment only, allowing you to set your own hours and balance your personal and business lives.
  3. Low overhead. Many service-based franchises can be run from home, eliminating the expense of monthly rent and equipment. This depends on the service business you’re starting. Some require specialized supplies, equipment, and a vehicle, such as a mobile business like pet grooming or traveling handyman. You can choose a business where you’re the only one who provides the service with just an assistant or partner.

Furry Land Dog Grooming Franchise


Cons of Service-Based Franchises

  1. The need for a staff. Some services require you to hire and manage a staff instead of doing it all yourself, like a painting business. Hiring staff is time-consuming and often a source of pain and expense. If you prefer to work alone, though, you can choose a franchise that allows this.
  2. The right skills and training. Some service-based franchises require a specialized set of skills, training, or licensing to do business. If you’re already skilled or licensed for a service, though, you’ll still need to know how to represent a company as a franchisee, learn good customer service, and deal with the legal and financial side of managing a franchised business.
  3. Slow economic climate. Business can slack off due to the state of the economy. People may still want your services but when cash gets tight, they may not hire you as often. You just need to be prepared for downturns in business, no matter what kind of business you’re in.
  4. Lower earning potential, loneliness, and burnout. Many service-based franchises need a little time to get off the ground. Therefore, your earning potential may be lower than if you were working for a corporation. And even if you like working alone, too many hours at work could cause massive burnout, especially if you don’t have a plan for when you need a vacation to recharge, you get sick, or have problems with supplies, equipment, or even customers.

Service-Based Franchise Opportunities Poised For Growth

Take a look at these popular service-based franchises at America’s Best Franchises that are ripe for a growth spurt:

Home Remodeling Franchises

Maid Franchises

Mosquito Control and Pest Control Franchises

Computer Repair or Services Franchises

Find Your Best Franchise

Becoming a business owner is a big deal. With thousands of available business and franchise opportunities for sale, finding the perfect fit can feel like the hardest part.

America’s Best Franchises is here to help you narrow your search based on budget, location, skills, and passion, everything you need to find the franchise opportunity that’s just right for you. We focus on you – your interests, your capabilities, your goals, your needs – enabling you to discover the franchise you didn’t even know you’d been dreaming about. Find your best franchise now.

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