It seems that lots of people are buying home services franchises. According to the Franchise Times, franchisors in the home services sector saw a 5.6 percent increase in total sales in 2020, and many brands in the sector have seen strong growth figures in 2021. If you are thinking about buying a home services franchise, here are some key considerations from franchisee lawyer Jeffrey M. Goldstein.
There Are Lots of Home Services Franchisors
Due to its recent growth – both prior to and during the pandemic – the home services sector has seen a lot of new entrants in recent years. As a result, prospective franchisees have no shortage of options from which to choose.
With that said, not all franchise opportunities are alike. From initial investment costs and mandatory purchases to franchisor support, there are several factors that can impact (positively or negatively) the viability of a franchise opportunity. Likewise, while well-established franchisors may offer brand recognition, up-and-coming franchisors may offer a fresh take that appeals more to today’s customers.
In short, there are many factors to consider when choosing a franchise to pursue. Narrowing your search to the home services sector is just the first step. Do you want a home-based franchise? Do you want to operate a retail outlet? Do you want to be involved in the day-to-day management of your franchise? These are factors that will shorten your list of potential franchise opportunities as well.
Don’t Commit Yourself to a Particular Franchise Opportunity Too Soon
While you need to make an informed decision about which specific home services franchise to pursue, you also need to make sure you don’t commit yourself to a particular franchise opportunity too soon. Once you select a franchise opportunity to target, you need to conduct thorough due diligence, and you need to hire a franchisee lawyer to conduct a franchise business review.
If the opportunity isn’t what you thought it was or if the franchisor’s terms are unreasonable, you need to be prepared to walk away. Remember, there are plenty of other home services franchises out there, so it is time to make your next choice and try again.
Make Sure You Know What You are Signing
One of the key aspects of a franchise business review is a thorough assessment of the franchise agreement. Most franchise agreements are heavily one-sided, and some franchisors take this even farther than others. When buying a franchise, you need to know what you are signing. Among other things, you need to make sure you have a clear understanding of your obligations and your franchisor’s rights, and you need to know what issues can lead to the termination of your franchise.
Discuss Your Home Services Franchise Opportunity with Franchisee Lawyer Jeffrey M. Goldstein
If you are considering a home services franchise, we encourage you to contact us for more information. To discuss your franchise opportunity with franchisee lawyer Jeffrey M. Goldstein, call 202-293-3947 or request a free initial consultation online today.
