8 Advantages & Disadvantages of Franchising


If you’re charting a new course for the future, franchising can help you reach your destination.

Franchising will put you in the fast lane toward potential success by equipping you with a roadmap to avoid common speed bumps facing new business owners. Franchising enables you to own and operate your own business and use the branding, products, and services of an established company. Nearly 29% of people opened a franchise to be their own boss, and 24% were dissatisfied with corporate America, according to a survey conducted by Guidant Financial.

As part of the arrangement, you’ll pay an initial fee and ongoing royalties to the franchisor, the company that owns the brand and business model. In return, you’ll also receive ongoing support in various aspects of the business, such as training, marketing, and operations. At least 64% of franchise owners were “very happy” or “somewhat happy” with their decision to open a franchise.

Franchising allows the franchisor to expand its brand and reach new markets, and entrepreneurs get to take a shortcut to business ownership with less risk. You’ll also benefit from brand recognition, customer loyalty, and operational efficiencies. Are you interested in owning a franchise? Bath Tune-Up can help you build a future in the lucrative home services industry. Check out these advantages and disadvantages of franchising to decide if it's the right path.

Advantages of Franchising

Franchising can take the hassle out of business ownership. You control your business but get support, training, and a network of peers for guidance. Here are some of the benefits of franchising.

1. Proven business model: One of the most significant advantages of franchising is the proven business model you inherit. Franchisors have already done the heavy lifting in market research, branding, and operational procedures. You're not reinventing the wheel — you're benefiting from someone else's successful innovation. As a result, franchising is considerably less risky than starting a business from scratch. Bath Tune-Up is a franchise that specializes in bathroom remodeling and renovations. We offer full-scale bathroom remodels and updates to appeal to a wide range of customers. Whether someone wants to completely revamp their bathroom, or make a few changes, Bath Tune-Up has it covered.

2. Brand recognition and customer loyalty: Franchises often come with brand recognition. Customers are more likely to trust a name they know, which can lead to quicker sales and sustained business. For example, Bath Tune-Up has built a strong brand identity in the home renovation industry, making it easier for new franchisees to attract customers.

3. Training and ongoing support: Franchisors offer comprehensive training programs to get you up to speed with business operations, marketing strategies, and customer service. Ongoing support can be invaluable, especially if you're new to the industry. Bath Tune-Up conducts four weeks of online pre-training that covers marketing, sales, accounting, hiring, profitability, and more. It’s followed up by nine days of in-person training at our corporate headquarters. We also help new owners get started with a 12-week action plan to provide a smooth transition to business ownership. Our operations managers provide ongoing support after you open to ensure your business runs smoothly.

4. Protected territories: Many franchises offer protected territories, which means you won't have to compete with other franchisees of the same brand in your area. This can be a significant advantage when you're trying to establish a customer base. Every Bath Tune-Up owner receives a protected territory with about 41,000 households to help build a solid customer base.

5. Brand guidelines and procedures: When you buy into a franchise, you agree to run the business according to someone else's blueprint. You get a business with a proven track record of success with less risk than starting a business from scratch.

Disadvantages of Franchising

There are pros and cons to all business ventures, and there are many advantages and disadvantages of franchising, too. Let’s explore a few of the disadvantages of launching a franchise.

6. Initial costs and ongoing fees: Franchising requires an initial investment, which can be quite substantial depending on the brand. And franchisees are often required to pay ongoing royalties and marketing fees, which can eat into your profits. The initial investment for a Bath Tune-Up location ranges from $104,930-$158,850. We offer up to $36,000 of in-house financing to help you get started, and veterans can receive further assistance.

7. Dependence on the franchisor’s reputation: Your success is partly tied to the franchisor's overall reputation. If the brand suffers owing to reasons beyond your control, it could negatively impact your franchise. Bath Tune-Up is one of the Home Franchise Concepts’ family of 10 home services brands. Being part of a larger network like Home Franchise Concepts offers a safety net and a sense of community. You get to benefit from the collective experience and wisdom of other franchisees in the network, which amplifies your business’s potential for success.

8. Contractual obligations: Franchise agreements often come with rules and restrictions, which can include everything from the products you sell to the suppliers you use. Failure to adhere to these can result in penalties or even termination of the franchise agreement.

Why Bath Tune-Up is a Smart Choice

Franchising offers a unique blend of entrepreneurial freedom and the support of an established brand. While it comes with challenges, the advantages often outweigh the disadvantages, especially if you choose a strong, reputable brand like Bath Tune-Up. We focus on making the remodeling process as stress-free as possible by offering curated, designer-selected collections to take the decision-making burden off the customer. It's like having a personal stylist for your bathroom, making the whole process more enjoyable. And an upscale bathroom remodel provides homeowners with a 48.8% return on investment.

If you're considering a franchise in the home renovation industry, Bath Tune-Up offers a proven business model fine-tuned for success.

Now that you understand the advantages and disadvantages of franchising, inquire now to find out more details about partnering with Bath Tune-Up to pursue your entrepreneurial journey.

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