Service-based franchises have become increasingly popular as a result of the aging population and peoples’ busy lifestyles. Home services in particular is a rapidly growing industry that’s estimated to be “an over $500 billion-a-year industry in the US” (Invoca). It’s an attractive industry for prospective franchisees “because of recurring revenue and recession resistance, even during the pandemic” (FranchiseWire).
Home services is a diverse industry with a wide range of services that include:
- Cleaning services
- Pest Control
- Landscaping and Lawn Care
- Handyman and Repair Services
- HVAC and Plumbing
- Home Inspection Services
- Restoration and Disaster Recovery
- Storage Solutions
- Painting Services
- Home Security
While the home services industry is ripe with opportunity, there are a number of things to consider before buying a home services franchise.
5 Things to Know About Home Services Franchises
#1 – Seasonal Demand Fluctuations
The need for many home services are seasonal, which will naturally affect the demand for home service franchises. Franchisees need to understand the seasonality of the business and plan for potential downtime or off-peak strategies.
A few examples of home services that experience peak demand during specific seasons include:
- HVAC Services – The demand surges in summer for cooling services and in winter for heating needs.
- Landscaping and Lawn Care – There’s a higher demand in spring and summer when homeowners prepare and maintain outdoor spaces.
- Home Cleaning and Organization – The demand peaks around spring (spring cleaning) and before holidays as people prepare their homes for gatherings.
#2 – Reliance on Local Reputation and Word-of-Mouth
Home service franchises rely heavily on local reputation and trust within the community. Key characteristics of a reliable and well-recommended business include being punctual, responsive, and transparent about pricing and services.
Furthermore, customers looking for a home services franchise typically rely on recommendations, online reviews, and personal referrals. Because of this, it’s crucial for home services franchisees to focus on building their local reputation from the start of their business. This includes encouraging satisfied customers to leave reviews and also promptly responding to both positive and negative feedback, displaying their commitment to improving customer experiences.
#3 – In-Home Customer Interaction and Trustworthiness
Not only does reliability and trustworthiness build a reputation that brings more customers, it’s essential that customers feel safe as home service providers enter their homes. Franchisees can create a comfortable environment for their customers by offering clear communication, employee identification, and respectful conduct. In fact, home services franchises in particular will have strict standards for vetting, training, and certifying franchise employees.
#4 – Employee Training in Customer Service
While home service providers’ primary purpose is to perform a technical task, it’s also important for them to effectively engage with customers in their personal spaces. For this reason, franchisees must ensure their staff is trained in both service delivery and customer service etiquette to obtain customer satisfaction and repeat business.
This includes providing initial and ongoing customer service training that covers:
- Problem solving
- Emphasizing respect for customers’ property and privacy
- Handling customer complaints
- Being mindful of body language and tone
- Providing consistent experiences
- Encouraging a customer-centric mindset
#5 – Adaptability to Local Regulations and Licensing Requirements
Home services franchisees must also navigate local regulations and ensure compliance. It’s important to stay updated on any local or state regulatory changes, as these can impact everything from materials allowed in construction to environmentally-friendly practices mandated by the government. Additionally, home services such as plumbing and electrical work require specific licenses that vary by region.
While most franchisors will provide the resources and legal support needed to help franchisees stay informed, it’s also important for franchisees to stay connected to local regulatory agencies.
Looking to Buy a Home Services Franchise?
The home services industry is booming, providing great opportunities for aspiring entrepreneurs. If you’re interested in buying a home services franchise, FranNet is here to help. Our expert franchise consultants can evaluate your skills and interests to match you with the right franchise opportunity. We’ll walk you through the process of buying a franchise from start to finish, answering any questions you have along the way. Schedule your free consultation to get started!