Why Threshold Brands Is Focusing on Mobile Brands

Threshold Brands, the 500-plus unit multi-brand home services franchisor, backs multiple franchise brands that are highly, or even fully, mobile.

“In the home services industry, franchisees are typically bringing their services directly to the homeowner,” explained R. Scott Sutton, chief growth officer of Threshold Brands. “This allows the businesses to operate on a highly mobile level, avoiding the costs and upkeep of brick-and-mortar retail spaces. As Threshold Brands acquires additional mobile brands, we will be able to make the booming home services market even more accessible to prospective franchisees.”

Mobile Brands Require Lower Overhead Costs

The mobile nature of many home services brands makes staffing and stocking a retail space optional, if not entirely unnecessary. 

For example, Threshold Brands’ Men In Kilts exterior cleaning franchise requires power washing equipment and a form of transport, but there is no need for an expansive office space or retail products. This leaves the brand’s initial investment between $157,290 and $191,950, with $14,000 dedicated to equipment and as little as $1,275 required for real estate.

Further, franchisees will save on month-to-month rental costs. According to Statista, the month-to-month rent on retail spaces has been steadily climbing for the last decade.

Mobile Options Provide a Lower Barrier to Entry

While the monthly financial requirements of a brick-and-mortar retail space can be demanding, establishing that space is often one of the main contributors to a high barrier of entry.

One of the most expensive portions of establishing a franchise location can be the buildout process. Some franchisees quickly exceed $500,000 or even $1 million in costs related to construction, furniture, equipment and associated architectural, zoning and contractor fees.

Heating + Air Paramedics, a Threshold-backed HVAC concept, does not require a storefront, keeping the initial investment relatively low, ranging from $105,250 to $205,800, and allowing new franchisees to direct those funds toward training, marketing materials, and other business development efforts.

A Return on Investment Can Be Made More Quickly

In the absence of a mandated retail space, the onboarding process is streamlined; some franchisees can begin serving customers as little as three months after signing.

With the ability to jumpstart the business sooner, owners can build a strong network of customers more quickly and see a faster return on their investment.

More Flexibility for Franchisees and Employees

Rather than being committed to sitting in an office for eight or more hours every day, franchisees with mobile businesses can work when and where they please. MaidPro, a Threshold-backed home cleaning service, is marketed as a great business option for entrepreneurs who want to work a flexible schedule while maintaining a work-life balance that allows time for other personal ventures and family time.

Many mobile businesses have access to a larger territory and number of clients due to their ability to travel to customers rather than rely on them to make a trip to a retail location.

Further, while many mobile services primarily require equipment, any other inventory needs often consist of a small number of non-perishable products. This, inherently, reduces the time and immediacy needed to deal with any stocking concerns compared to a food services business, for example, that would require nearly consistent, timely inventory attention.