Winning at Franchising: First-Time Franchisees Give Advice

When investing in a franchise for the first time, the initial year can be a major eye-opener, and many entrepreneurs may find they weren’t prepared for some of the challenges that can come with owning a business. To offset some of these surprises, 1851 spoke with two first-time franchisees to learn about some lessons they learned during their first year in business, how they found the right franchise fit and their future plans. 

Home Clean Heroes* franchisee David Houck originally joined the residential cleaning brand in June 2021 after a decade in the banking industry. 

“My entry into franchising might not have been the traditional way — I actually got laid off for the fourth time in 10 years last February,” said Houck. “I was a career banker, and after that experience, my wife convinced me to start a business and build something that was on my own. I wanted to be in business for myself, but didn’t want to be by myself, so franchising was the right fit.”

When it comes to finding the right concept, Houck says his approach was very analytical, and he recommends first-time candidates create a list of what qualities they need in the business before diving into their research. “I created an Excel spreadsheet and divided all attributes into three categories: must-have, important and not-so-important. I had probably ten must-have characteristics of the business, including strong onboarding training, ongoing support, support in every aspect of the marketing. I just kept going down the list, and Home Clean Heroes checked every box.” 

Now, a year into ownership, Houck says his biggest advice for first-time franchisees is to come into the experience with mental fortitude and a commitment to the system. 

“In the first year, you’re not going to make money — no business is going to be successful overnight,” he said. “I started last June and will hopefully break even in May or June of this year. It is mentally taxing, and stress can wear on you, so you need to ensure you will have the confidence and fortitude to keep your head down and follow the system. You hear that a lot — just follow the system — but until you are really living it, it is hard to see how essential it is.”

And Houck says with the right attitude (and the right concept), all that hard work will certainly be worth it in the end. “I’m having the absolute best time in my career right now,” he said. “I am building something of my own, and I can see we are really doing something good for our customers and our team members. That is very rewarding.”

1-800-JUNKPRO franchisee Chad Zaniewski spent 18 years working in the corporate world for a Fortune 500 company before diving into business management, first as an operator of a corporate-owned location. “I had experience running someone else’s business, and that drove me to franchising as a way to start my own business,” he said. “As I researched my options, I found that my skill set would lend itself better to a system that was already in place. I can execute on a proven system, I just need someone to help me set up all the little things. The thing I would tell people considering franchising is to remember that you always pay for education, you are either going to pay up front with royalties and ongoing costs, or pay on the back end through making mistakes. I wanted to expedite that education.”

When it comes to finding the right concept, Zaniewski says everyone’s entry point into a franchise is going to be different, but the key is understanding that it requires a lot of thought and due diligence. “This is a bold decision, and starting a business requires a lot of sacrifice,” he said. “Making that jump from a secured paycheck into a world of being self-employed is a big step. Do your research so you can make that bold decision safely. From there, it is really a leap of faith.”

One piece of advice Zaniewski has for first-time franchisee candidates considering a brand is to have an open mind. “A lot of people may want to go with an established brand, but they shouldn’t be afraid of a smaller system,” he said. “Smaller companies come with several advantages, such as stronger relationships with the leadership team and the people behind the brand. I have a direct line to the CEO, and who better to give me business advice? After my experience, I would actually probably be a little reluctant to join a larger system.”

After a year of ownership, Zaniewski shares similar insights to Houck, noting that a franchise isn’t going to make money immediately, and first-time owners need to be prepared financially to deal with that. 

“My advice is to start preparing yourself for the franchise system prior to getting involved in it,” Zaniewski said. “With every business, you will need some level of management experience, sales knowledge and negotiation skills. Develop those skills early — you don’t need to be in a leadership position to start learning about running a business. If you start preparing today, you can be better prepared to start franchising in the future.”