Bath Remodeling Business: 5 Questions to Ask Franchisors
2022 proved to be a great time to start a business. During the recession from 2007 to 2009, innovative small businesses like Square, Venmo, and Slack were born. In challenging times small businesses of all kinds find opportunities to thrive. Small businesses are the heart of the economy. Amid big business giants like Walmart and Amazon, many Americans are unaware that small businesses make up 99.9% of all businesses in the US.
The home improvement industry is growing! A bath remodeling business is worth considering if you plan to start your own home improvement business.
Bath Remodeling Business
Bathroom remodeling businesses offer services to update, reconfigure, or restore a bathroom. A bathroom remodel may include new cabinetry, fixtures, and flooring to replace or rearrange a tub, shower, or toilet. More than a jack-of-all-trades handyman business, a bathroom remodeling business is a specialty that focuses on just the bathroom. Bath remodeling professionals bring a homeowner's vision to life, whether they want better functionality, or to make their bathrooms more aesthetically pleasing.
Is it Profitable?
59% of homes in the US were built before 1980 and 92% were made over 20 years ago. The age of American homes means homeowners are often looking to sell, update, or both. It’s an excellent time to consider purchasing a home remodeling business, particularly a bath remodeling business. By rule of thumb, it is important for a home to have a sufficient amount of bathrooms. The standard rule is to include one bath per every bedroom.
Bathroom remodeling is in high demand. Bathroom remodels are a good investment for homeowners due to their high ROI, making bathrooms a popular choice when planning home projects. Business First Online names home remodeling one of the top 8 home improvement businesses to own.
How Do I Start a Successful Bath Business?
If you are considering owning a bathroom remodeling business, deciding if you want to pursue purchasing a franchise or starting an independent remodeling business is an essential first step. Either way, it’s imperative to do market research and consider the cost and risk factors.
There are many advantages to purchasing a home remodeling franchise. For example, owning a franchise includes a strong support network, a simplified start-up process, instant brand recognition, and many other franchise benefits. There are many bathroom remodeling business opportunities available. When deciding which franchise to purchase, you should find out as much as possible about the franchisor you are considering.
5 Questions to Ask Franchisors
What Type of Training Do You Offer?
Find out about the training received when starting a franchise. Training should include all operational procedures, including administrative work and marketing. Learning about the franchisor's operational training program and additional support is a vital part of evaluating a franchise.
What is Your Success and Failure Rate?
Understanding a franchisor's success and failure rate will help you consider your chances of success. A franchisor's success includes more than the number of units they have. While units determine a franchise's size, many other factors determine profitability. Ask the franchisor what their success and failure rates are and the reason behind failed units.
What Kind of Territory Do Your Franchisees Receive?
Franchise businesses come with a territory. An assigned territory is an area where the franchisee can conduct business. Three main types of territories are offered, and each franchisor provides something different.
- Exclusive: An exclusive territory means the franchisor will not place another franchise within your designated area. Only the franchise owner can offer the franchise's goods and services in that territory.
- Protected: a protected territory also indicates a designated area; however, the franchisor may place other franchises in the same area. Typically, the protection involves a set radius within a protected area.
- Open: Open territories do not include any territorial security.
What is the Total Initial Investment?
The franchise fee and total investment are two different things to consider when buying a franchise. The franchise fee is a payment to the franchisor to cover associated costs and assistance provided to new franchise owners. The franchise fee may cover initial system setup, training, and possibly some technical aspects of business, such as a website.
The total investment differs from the franchise fee in that it is a dollar amount or range a new franchisee can expect to spend altogether to start their business. The total investment includes the franchise fee and other expenses, including property, technology, equipment, supplies, marketing, and more.
A franchisor will be able to provide exact amounts of their franchise fee and a range, or the estimated total investment for starting a franchise business with their company.
What are the Ongoing Fees?
Buying a franchise business includes ongoing fees or royalties paid to the franchisor. These fees will be due for the life of the franchise. The royalty is a fee helps reimburse the franchisor's continual operational, marketing, training, and other support services.
Bathroom remodels are in high demand, and Bath Tune-Up provides many resources to help you establish a successful new bathroom remodeling business. Bath Tune-Up requires a modest upfront commitment, and provides valuable training, support, and resources to help you get your business off the ground. Plus, Bath Tune-Up is part of the Home Franchise Concepts family of brands, with 30 years of experience in franchising. Contact us today to learn more about owning your own bath remodeling business with Bath Tune-Up