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A seasonal franchise earns most or all its revenue during a particular time of year. You’ve seen the holiday stores that pop up for Halloween costumes or Christmas decorations. Another type could be weather-based like a snow-removal company or a mobile pool service. Some are high-season businesses like tax preparation franchises or tutoring services.
As with any franchise, prospective owners must consider what interests them and what type of franchise suits their style. And then, you must research each idea that sounds appealing as you determine the best match. Don’t ignore a seasonal franchise. The dynamics of running a seasonal business are a little different, but their unique time-based seasons of high revenue offer significant benefits to owners.
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Here are five benefits of seasonal franchises to consider:
- You may get large chunks of time for personal use. When your franchise is not operating, you are freer to travel more extensively. Or tour with your band. Or write your novel. Or earn a degree. Running a business often monopolizes an owner’s time. Still, you could consciously choose to limit the stranglehold that some operations have on owners by working during high season and enjoying the benefit of more time for personal pursuits. The result is a happier and satisfied franchisee.
- Budgeting is easier, and expenses are sometimes lower. Seasonal doesn’t necessarily mean not working in the off-season. The quiet time of year allows franchisees to work on their profit plans. Seasonal businesses have a regularity that improves budgeting and financial planning—and that is important when there are months without revenue. Part of the financial planning includes bulk buying and using franchisor buying power to its highest potential. After the first year, you can anticipate what you will need for your season and purchase materials in larger quantities at lower per-unit rates. Bulk buys help lower expenses and avoid last-minute scrambles for items when they are the most expensive.
- Marketing is highly planned. Franchisors fully understand the best ways to market for high-season success. Your local knowledge adds to that accomplishment. If you like planning ahead and knowing that everything is ready for your busy times, a seasonal franchise may suit your style better than the year-round juggling that other franchises experience. Also, when you don’t rush your marketing materials, they cost less to produce – savings that go directly to your bottom line.
- Hiring and training are efficient. Slow seasons are ideal for recruiting and training seasonal help. Franchisees can focus more easily on this important task when the business is slow or closed for the off-season. Employees and franchisees can focus on improving skills and deliverables without the distractions of the franchise’s daily operation.
- You can operate a complementary seasonal franchise. Two franchises can still offer flexibility and time off in-between seasons. For example, that snow removal franchise might pair with a pool service franchise for summertime revenue. Even with two businesses, you could arrange a couple of months without active customers to focus on endeavors like travel or planning. Supplementing income with another seasonal franchise is a great way to ensure year-round income while still benefiting in all the ways seasonal franchises provide.
Choosing the franchise that is the best match for you and your style is important. As you consider what industry sector interests you and meets your needs, be sure to consider the many benefits of seasonal franchises.
Anne Daniells is a co-owner of Enterprising Solutions, a professional services firm specializing in corporate communication and financial improvement for businesses where she shares decades of corporate and entrepreneurial experience—including franchise ownership—in her writings on business culture. She has authored hundreds of articles for publications including AllBusiness.com, TweakYourBiz.com, and MSN.com. Reach out via her website for more on where corporate culture, communication, and human architecture collide.