How to Scale a Service Franchise Business

Today, the world is increasingly moving towards a “service economy” where people spend more money on services and less on retail shopping. As a result, service-based franchise brands — such as home improvement, senior care and pet care concepts — are becoming a popular choice for savvy entrepreneurs everywhere. 

Without the need for a brick-and-mortar retail store, service franchises offer competitively low start-up costs, simple operations and minimal staffing requirements. These benefits not only make it easy for franchisees to start their business but also to scale their business. Still, that doesn’t mean the business grows itself; service franchise owners need to pay attention to two primary factors if they hope to scale: staffing and customer service.

Adeola Shabiyi, the owner of the residential cleaning concept Home Clean Heroes* in Tampa Bay, Florida, for example, first signed on with the brand in early 2021 and has been able to scale the business quickly since then. A big reason for that, he says, has been his ability to overcome labor shortages and The Great Resignation. For service franchisees who want to scale, recruitment, training and retention are key factors.

“I have built a very collaborative environment that is team-oriented and caring,” Shabiyi said. “Compensation is also very important — you have to pay staff well so they don’t look for competing offers. We have incentive programs in place on a monthly basis to reward employees for doing a great job and we also have bonuses at the end of the year.”

In order to retain employees in this highly competitive labor market, Shabiyi says it is important to show employees what their future will look like with the company. “I am in business because I want to build my own company to eventually have hundreds of employees, so I can show staff ways they will grow alongside the company,” he said. “They are unlikely to remain just a cleaner — they can become an operational specialist or a marketing specialist. You need to show staff how they will be involved in the journey and provide the training necessary for them to thrive.”

With the right team in place, franchisees will be better equipped to do what they originally signed on to do — satisfy the customers. And as opposed to retail franchise concepts, service brands are all about making meaningful connections and building long-lasting relationships with customers, especially when the service offered lends itself to repeat business, such as residential cleaning or lawn care.

Bart Williams, the owner of the handyman franchise House Doctors in Somerset, Kentucky, has been with the company for 17 years and has seen an increase in gross sales every single year, even during tough economic times. 

“We’ve been somewhat insulated from the downturns of the economy, whether it be the home market crash back in 2008 or the COVID-19 pandemic,” Williams said. “Because we have a diverse product that is universally needed, we were able to weather those storms. During COVID, demand actually went up as people spent more money on their home, so we were able to see great growth in 2020 and 2021.”

But after 17 years, Williams says the ability to provide value to his community has been the primary reason he’s been able to scale his service franchise, with a large percentage of business coming from repeat customers and referrals. “Sommerset is a small, rural community, and I’ve built this business based on personal service and relationships,” he said. “I really enjoy it, and my team enjoys it. They are really devoted to the customer base. About 60% of the business is repeat customers, and another large segment is referral business.”

Carolyn Alonzo, a Chicago-based franchise owner with pet care brand Fetch! Pet Care, has been scaling her business since first signing on with the brand in 2007. She also notes that providing reliable and trustworthy service to the community is a must for growth-minded entrepreneurs, especially when it comes to service-based businesses.

“Being an integral part of the local pet care community has been beneficial to our growth,” said Alonzo. “A lot of our clients come to us through word of mouth and referrals from animal rescues and vets. Before I am comfortable planning a vacation, I make sure my pets are happy and well taken care of. If I don’t have proper, trusted care confirmed, then the vacation doesn’t happen because I can’t enjoy my time or have peace of mind if I’m not feeling secure with who is with them. I knew firsthand how important services such as dog walking and pet sitting are to pet owners, and also recognized there was a need for reliable, professional pet care in our area.”

Overall, service franchise brands offer entrepreneurs a scalable opportunity to achieve their entrepreneurial dreams while also providing meaningful service to customers and attractive jobs to employees.