What You Need to Know to Open Your Own Service Franchise Business

Service franchises can make for a great entryway into the world of business ownership. They typically have lower startup costs, reduced risk and a healthy potential for scalability. Here’s what else you need to know about them before you make the leap into the franchise world.

Research and Find a Franchise

The service franchise industry is huge and encompasses a wide variety of services, including handyman, lawn maintenance, child care, travel agents and automotive-related services — and that’s not even half of it. Because of the scale of the service franchise industry, it may be hard for you to figure out what business to invest in.

As such, it’s recommended that you consider your own interests and goals; find a business that aligns with your values and overall mission. During your search, you will discover the pros and cons of different businesses. As many franchise owners say, this process is absolutely crucial to finding an opportunity that you’re personally passionate about.

“Running your own business is hard work,” said Dadong Wan, who operates a Seniors Helping Seniors franchise in the northeast Dallas Fort Worth metro area. “There are insane hours involved and, at the beginning, you may also dig a financial hole for yourself, too. So, it’s super important to find a business that feels right to you. There are so many opportunities out there. Spend time exploring them until you find the one that’s aligned with your heart. Just like falling in love, you know it when the right one is showing up in front of you.”

To help you in your search, we’ve compiled a list of some of the hottest service franchise brands to invest in this year.  

Secure Financing

Once you’ve found a brand that you’re ready to spend the foreseeable future with, you’ll need to figure out exactly how much it will cost to become a franchisee. Many franchisors will list their investment information publicly. But if they don’t, you’ll also be able to see the brand’s costs on their Franchise Disclosure Document (FDD) upon expressing your interest in becoming a new owner. Once you know how much you’ll need to spend, you can start looking at securing financing.

As previously mentioned, service franchises do tend to require lower startup costs than other businesses. For example, it costs roughly $10,500 to become the owner of a Dream Vacations travel agency franchise. While each franchise will have significantly different investment ranges, securing financing will make your life easier by ensuring you have enough capital to fund the start of your business. 

Luckily, there are a number of ways you can go about securing financing. Some franchisors offer their own financing programs or work with third-party organizations to provide financing. Alternatively, you can always apply to get an Small Business Administration (SBA) or conventional bank loan. You can find more financing solutions here.

Become an Owner

After securing financing, getting approved by the franchisor and ultimately signing the franchise agreement, you can now call yourself the owner of a service franchise brand. At this point, you’ll be invited by the franchisor to participate in training programs to learn the ins and outs of the business. This can include classroom training and in-the-field learning, and typically covers operations to customer service. The training you receive all depends on the franchisor. In theory, you should learn everything you’ll need to know to get your business off the ground and running.

Additionally, due to the nature of the service industry, your business may not require a physical brick-and-mortar location; a mobile setup could be sufficient. This will also depend on the brand. For example, franchises like ecomaids, Scoop Soldiers and Lawn Doctor* are all service brands that don’t require physical locations. This will have the added benefit of reducing your overhead costs. Regardless of your chosen setup, you will now be ready to open your business to the public.

One Final Reminder

If you’re committed to pursuing business ownership, remember that it demands careful planning, dedication and genuine passion. Take your time on this journey. When you find a service brand that aligns with your values, you’re on the right track to starting your own service franchise.