Basically the title, I'm a long-time W-2 that is new to the searcher space. This is a new world to me and I'm at the point of exploring all options.
I've found a home services franchise and at first glance, it appears to be a good opportunity. It's a niche industry with no national presence, simple to get up and running, and high margins###-###-#### % after royalty and franchise fees). What kind of things should I be considering as I evaluate? Just looking for general thoughts or guidance from anyone that has taken the franchise path vs. traditional search.
Thanks!
New searcher here considering a home-service franchise.
by a searcher from Northwood University
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I think franchises are definitely looked down on in the ETA world because of the more limited geographic growth options, but when you find a good resale it can be a great platform for expansion. Make sure you talk to other franchisees in the network (preferably something that they didn't refer you to) so you can get a realistic idea of what it's like to work with that franchisor.
Other things that could bite you in a home services acquisition: vehicle transfer fees, insurance costs being different from the old owner, family/friends doing free work for the business that will need to be replaced by paid employees, etc. Really dig into the insurance part, especially auto insurance and workers comp, as previous owners may be riding with lower premiums because no audit has been done recently, whereas you'll get audited immediately your first year and any sleeping issues will immediately show up in your new premium.