4 Service Franchise Opportunities That Are Thriving
A service franchise may be a better investment than other franchise businesses. Let's explore the different types of franchises and what makes them a smart investment for aspiring entrepreneurs.
What are the Different Types of Franchises?
A franchise is a business model that allows entrepreneurs to use the brand and systems of an established company. You’ll pay an initial fee and ongoing royalties to the business (franchisor) in exchange for the right to use its trademark, sell its products or services, and access its proven business system and ongoing support. There are several kinds of franchise options for you to evaluate.
- Investment franchise: Investment franchise owners invest capital into a franchise without being involved in day-to-day operations. Instead, they hire a management team to run the business and focus on generating returns. Investment franchises are typically larger franchises such as hotels or big restaurant chains.
- Product franchise: A product franchise focuses on the retail or wholesale distribution of a franchisor’s products, rather than on providing a service, and is common in industries such as automotive parts, appliances, and consumer electronics.
- Business format franchise: A business format franchise is a turnkey approach to business ownership. Franchise owners get guidelines on business operations, marketing, sales strategies, and often ongoing support. Restaurant chains and retail stores are examples of business-format franchises.
- Job franchise: As an owner-operator business, job franchisees are directly involved in the day-to-day operations of the business. Job franchises are low-investment, scalable businesses that can often be operated from home or a mobile setting, eliminating the need for a physical storefront or large staff.
- Service franchise: This franchise primarily provides services rather than focusing on selling physical products, such as home remodeling and cleaning services. They typically cater to essential or recurring needs, making them integral to daily life. Service business owners can adjust their workforce based on demand and build strong customer relationships, leading to repeat business and referrals.
Choosing the Right Service
Service-based franchises are expected to be one of the fastest-growing industries this year, according to the International Franchise Association (IFA). Owning a service business can help you achieve your financial and lifestyle goals, particularly if you choose a thriving industry. Here are four service franchise opportunities to consider:
- Home remodeling and repair: With the real estate market continually evolving, home remodeling and repair services like Bath Tune-Up are thriving. On average, homeowners spent $13,667 on home projects in 2023. These franchises cater to homeowners looking to enhance their living spaces, making the jobs both profitable and fulfilling.
- Cleaning services: Both residential and commercial cleaning services are perennially needed, ensuring a stable customer base and consistent revenue.
- Personal care: Franchises in the personal care sector, such as salons and spas, tap into the evergreen demand for wellness and grooming services. IFA forecasts personal care services to grow 3% in 2024.
- Automotive services: Automotive repair and maintenance services are essential for vehicle owners, providing a steady stream of business due to the necessity of vehicle upkeep. With the average age of cars on the road hitting 12.5 years in 2023, auto repair and maintenance is in high demand.
The Bath Tune-Up Advantage
The outlook for the home remodeling industry is bright. The National Association of Realtors forecasts 4.71 million home sales in 2024, up 13.5% from last year. New homeowners are willing to spend money to turn their new houses into homes, making a home remodeling business an advantageous investment.
Partnering with Bath Tune-Up means joining a franchise community that values innovation, customer satisfaction, and quality service. Our business model is designed for success. It focuses on efficient operations, marketing strategies, and a customer-first approach. Whether you're new to entrepreneurship or looking to expand your portfolio, Bath Tune-Up provides a solid foundation for building a successful business.
By focusing on bathroom renovations, we enable franchisees to become experts in their field, differentiating them from general contractors. We also offer comprehensive training and ongoing support, ensuring franchisees are equipped to meet customer needs.
Our brand is part of the Home Franchise Concepts family, providing a strong network of resources and brand recognition. Home Franchise Concepts has 10 brands in its franchise family, including Budget Blinds, Kitchen Tune-Up, and Aussie Pet Mobile, with 2,600 franchised territories.
If you're ready to start diversifying your portfolio and achieving financial freedom as an entrepreneur with a service business, inquire now to learn more about Bath Tune-Up.