How You Should Evaluate Home Restoration Franchise Opportunities
If you talk to any homeowner about the improvements they’d like to make to their home, you get the idea that it’s a fairly ongoing process. The market for home improvement is big — it’s a $300 billion industry — and whether you work in countertop installation or interior decorating, you’re likely to have fairly steady opportunities for work.
Home improvement franchise opportunities are a popular option for people who want to work for themselves, and make money for themselves, while still having the security of an established business plan and the reputation that comes with franchising from a well-known organization. Are you interested in home restoration franchises and seeing whether you could make your money this way? Here are three things to keep in mind.
Three Things You Should Look for in Home Improvement Franchise Opportunities
- In the U.S., the FTC requires that franchisors provide a Franchise Disclosure Document to their candidates. It’s important to examine this document before you invest in a franchise. One important thing to note is Item 20 — this tells you how many franchise units have closed, and why they failed. You don’t want to buy in only to realize there was a pattern of franchisees like you losing out on your investment from this company.
- Make sure there is adequate lines of communication between you and the franchisor. A good franchisor will make sure you’ll get support in the form of initial training and ongoing instruction to make sure your location is on track to succeed.
- The home renovation industry can be a great opportunity for success, but it’s not a good fit for people who are looking for a way to be hands-off in their work. Choose a franchise whose operations you have a decent understanding of so that you know what you’re getting into.
Three Questions You Should Ask of a Franchise
- One question to ask other franchisees is, “How would you rate your experience?” With the internet, it won’t be hard to find what others are saying. Knowing their experiences could help you avoid a franchise with good numbers but questionable practices.
- “What is it really like to work in this type of business?” It’s easy to look at home improvement franchises and think, “I could own that!” but businesses don’t run on autopilot — they involve a lot of background work you don’t see, so familiarize yourself.
- “How are conflicts resolved within the franchise?” Don’t forget than an essential aspect of franchising is that someone else makes the big business decisions — you might not get to make decisions you think would be good for the company.
Are you interested in home improvement franchise opportunities? Let us know in the comments.