Home Improvement Franchise: 3 Pros & Cons of Owning a Renovation Business
The U.S. home improvement market saw a $268 billion increase between 2010 and 2021 and expects continued growth in 2022. Homeowners work on an average of 2.7 to 3.7 home improvement projects per year. Continual growth in the industry is expected due to innovative home technology trends and the number of people purchasing properties to update and rent out. The home improvement industry is exploding! It is a great time to consider a home improvement franchise.
Defining home improvement is a great place to start when considering purchasing a franchise in the home improvement or home remodeling industry. In general, all services involved in interior design fall under the broad umbrella of “home improvement.” Home improvement services include interior design services, basement remodeling, bathroom remodeling, kitchen remodeling, window replacement, and many other aspects.
Home Improvement Franchise
The booming home improvement industry has opened the door for more home improvement franchise opportunities. A franchise is a business ownership option that involves a franchisor. The franchisor has an established brand and proven business system that owners can purchase and follow in order to achieve success. If you have decided to purchase a franchise, a home improvement franchise is a wise investment due to market growth. Also, a home renovation business is poised for repeat business because people often renovate different rooms or areas of their homes over time. Customers will likely call you again when you provide good service the first time. A home improvement franchise like Bath Tune-Up, a bathroom remodeling franchise, is a wise choice for consideration. Bath Tune-Up recently ranked as one of the Top New & Emerging Franchises on Entrepreneur’s Franchise 500® list, and as one of the Top Low-Cost Franchises. It is based on its widely successful sister-brand, Kitchen Tune-Up, which has been in business for over 34 years.
Even though the market is growing, there are pros and cons to owning a home improvement franchise.
Pros & Cons of Owning a Home Improvement Franchise
- High Demand: Home renovations and remodeling are in high demand, and the demand is expected to grow.
- Advantage Over Independent Competitors: Built-in brand recognition and a trusted name give franchise owners an advantage over independent businesses in the same sector.
- Poised for Profitability: High demand makes owning a home improvement business primed for profitability. In 2020, the home improvement industry experienced a $6.6 Billion profit and a profit margin of 6.8 percent.
- Startup costs: Although you receive so much with your purchase, a franchise’s initial investment and startup costs may seem high compared to opening an independent business.
- Limited Flexibility: As a franchise owner, creative flexibility is restricted for your marketing and business operations. While this can serve you in many areas, it can be frustrating if you have an innovative idea you want to try.
- Franchise Contracts aren’t Permanent: When you purchase a franchise, you sign a contract that sets the time frame of your ownership, typically 5, 10, 15, or 20 years. Contracts are often renewable without any issues as long as the franchisee and franchisor maintain a good working relationship.
Know Before You Buy
Franchise businesses are growing across all sectors. Commercial and residential services franchises are predicted to be a top leader in the growth of the franchise industry in 2022. With so many options available, choosing the most popular franchise or selecting one based solely on a lower initial investment may be tempting. On the other hand, popularity or the least expensive option may not mean it is the right business for you.
It is imperative to ask questions and do your research before you buy.
Here are a few essential things to know before you purchase a franchise:
- Is industry experience necessary? Experience with home improvement, home repairs, or general contracting may be helpful but is not required to own a home improvement franchise with Bath Tune-Up.
- Does the franchisor offer verifiable training and ongoing support? Will the franchisor deliver what they promise regarding ongoing training and support? The only way to find out is by asking other franchise owners.
- Ask about territories: Purchasing a territory will involve a geographical region for you to conduct business. A territory may be exclusive, protected, or open. Understanding territories and determining what type of region you will have is critical before buying a franchise.
- Is this a home-based franchise, or do you need a storefront? Many home improvement franchises operate as home-based businesses. Lower operating costs and more control over your schedule are two advantages of home-based franchise businesses. A franchise that requires a storefront may affect how quickly you can make a profit.
Bath Tune-Up is a full-service bathroom remodeling franchise that applies a unique approach to the bathroom remodeling process. As a Bath Tune-Up franchise owner, you simplify the renovation process by offering your customers curated, designer-selected collections to choose from to complete their bath remodel. This takes the endless decision-making stress out of the equation for your clients, allowing the remodel to go more quickly and smoothly.
With a modest initial investment and no experience required, Bath Tune-Up is an ideal home improvement franchise to consider. As part of Home Franchise Concepts, one of the largest home services franchisors in North America for over 30 years, this franchise opportunity provides many franchise benefits including a dependable support network and ongoing education for our franchise owners.
Buying a Bath Tune-Up franchise includes everything you need to start your business in this booming home improvement market. Get in touch today to see if you qualify to own your very own Bath Tune-Up.