No Place Like Home: Why Home Service Franchises Are Still Hot Despite Economy

The total addressable home services market has reached a new high: $657 billion. The market exploded during the COVID-19 pandemic, but it has continued along a powerful upward trajectory ever since and continues to offer appealing franchise opportunities for entrepreneurs seeking stable, scalable franchise opportunities.

With talks of economic uncertainty in 2023, the home services franchise sector continues to thrive. Why?

Home Services Are Always in Demand

As long as there are people who live in homes, there will be a demand for home services. Because the home is one of the most important investments a person will ever make, home services franchisees can rely on consistent demand from homeowners who are looking to protect their investment.

Further, and especially in times of economic uncertainty, home services franchisees can also leverage the demand for home improvement services. When homeowners cannot afford to completely remodel their homes or purchase a new one, they may turn to maintenance and repair services to care for the home in a way that will increase longevity and potentially create a refreshed look.

Whether this is heating and air conditioning maintenance or pest mitigation services, homeowners often prioritize home-related care above other purchases, even in times of economic hardship.

Home Service Business Models Are Often Cost Effective

Unlike food service concepts or retail stores, home service businesses typically require a fairly minimal upfront investment. Many times, home services franchisees are taking a mobile business to the home itself, meaning the initial build-out required to launch the business, if any, can be confined to a smaller, simpler office space rather than a polished retail storefront.

Similarly, home services businesses will typically require a set of tools/equipment and non-perishable items to launch operations, but the franchise owner does not have to worry about perfecting the estimates to prevent spoilage and waste of perishable items. This model can reduce the initial investment relative to franchises in other models, just as it can decrease the ongoing costs required for the franchisee to continue operations.

Home Services Franchises Can Be Easily Scaled

Growth is a priority for franchise owners, and home services concepts cater to this demand. By working closely with clients and providing a top-notch experience, home services franchisees can build strong relationships that lend themselves to both recurring business and referral business.

Further, because home services franchisees can operate with minimal retail space, this also makes scaling up a bit more simple. When franchisees feel confident that they have built the volume and revenue necessary to expand to additional territories, they are not forced to build another retail storefront. Rather, they can buy another vehicle and onboard another team — a much smaller investment, making the act of scaling more accessible, even after the proper circumstances have been achieved.

The Industry Has Proven Its Resilience

With current conversations about a potential economic downturn, home services franchises continue to soar. In 2020, when the pandemic was disrupting countless industries and some businesses were even forced to close, home services franchises continued to soar. The industry has proven its ability to succeed during difficult circumstances, and prospective franchisees can expect that trend to continue moving forward.

There truly is no place like home, and homeowners continue to put their homes first, sacrificing other luxuries to ensure the home itself stays safe, healthy and secure. Whether this comes in the form of an emergency plumbing service or the choice to complete a hard surfaces refinishing project instead of a complete remodel or renovation, the budget for home services often allows franchise owners to both launch and grow a business with confidence in the future, regardless of the economic circumstances that might await.

Read more about 2023’s best home services franchise opportunities:

• Top 15 Home Improvement Franchise Opportunities of 2023
• 10 of the Top Work-from-Home and Mobile Franchises in 2023
• TruBlue Total House Care Launches 2023 with Several New Signings, Lands on the Prestigious Entrepreneur 500 and More
• Threshold Brands Closes Out Excellent Year; Home Services Industry Set to Thrive in 2023