If any contractor can believe it, you can franchise damn near any business on Earth.
We see these franchise opportunities for compartmentalized services of a construction and contracting nature sprouting up. They are taking certain market segments of home and commercial services and packaging them up for sale, with some pretty impressive backing.
The majority of these are in the areas of space utilization (shelving and closets), restoration and refinishing. I have found a few franchises for Inspectors as well.
I have done a little research and they can range in cost from about $20,000 to $150,000 (and greater) for what they call the “minimum cash required”. And it only starts there.
One franchisee says in addition to the “minimum cash required” amount, he had to spend another $20,000 in training and his living expenses for the term of the “corporate education requirements” which was another $11,000. Plus, he had no income for that time period.
Now you go to work in your new business, partially owned by some conglomerate or corporation where you are bound by rules, that if you violate them, you could loose your rights as a franchise owner and possibly pay stiff penalties from way down in the fine print.
Most franchises that you buy into for their brand or label also have “maintenance fees” of 10% of all your income, or in some cases much higher than that.
But here is my argument: WHY? Why would you line someone else’s pockets with your hard earned money? If you already are a technician or a craftsman why wouldn’t you just start your own enterprise?
Just the other day I talked to a very good friend and associate whom I will call Barney. He is a retired long haul trucker. His son said he wanted to start a business, so, after identifying what that business would be, they spent a lot of money on a franchise. In 4 years they have grown up to 7 service trucks, 11 techs and Barney and his wife, as well as thier son and his family, help operate the business.
Barney told me that if he had it to do over again he would have started from scratch. He said that while the business can support and expand with the help of the franchiser, and the family can make a living, there is no real profit in it because what would be profit all goes to the parent franchise company.
Well, doesn’t all this look like you are still working for someone else and not building your own business and your own reputation and your own brand? Building a business today is easier than ever if you get to know and use the basic nuts and bolts principles to establish and operate your company. There are basic, proven, plans to follow which teach you how to be successful.
I am not bad mouthing these franchise outfits, as they do deliver exactly what they promise. And a person could do well with one of them, but, you are essentially working for someone else.
Control your own destiny. Take charge of your own future and the future of your own company. You can learn how to do it and you can do it.