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Franchising is based on established brands—tested by others before you buy-in.
As a franchisee, you contractually operate under an existing business model. Franchising is about structure, but you get to choose the business industry and style from thousands of options. When we think of franchises, it’s easy to visualize Ace Hardware or McDonald’s in the local strip mall.
However, building your franchise dream doesn’t require bricks and mortar to be a reality.
As you choose the best franchise investment for yourself, it might be attractive to avoid retail stores. They took a hit during a worldwide health scare when many other businesses continued operating (and making money). Instead, look for advantages for working from home or having a mobile franchise. Depending upon your financial needs and franchise goals, you can toss the trowel and leave the build-outs for others.
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Your Expenses Are Lower
You’ve heard stories of early pandemic non-payment on rental leases. Businesses couldn’t pay rent when they were forced to close their doors. Many businesses closed permanently, but many shifted to working from home and paying no rent—what a boon for those who no longer pay rent and utilities for a storefront.
A franchise without a retail space eliminates overhead expenses associated with sites. Sure, you need a phone, a desk, a computer, and maybe some storage space or an office, but you don’t have to sign lease contracts for high rents and long terms. Those overbearing lease contracts were instrumental in thousands of business failures recently, and they are avoidable with service-driven, home/car-based franchises.
As a service provider, you don’t need brick-and-mortar locations. Instead, you provide your service remotely or at your customer's location. From home decorating to computer repair, owners of service-based franchises avoid the burden of the overhead and maintenance of a separate, physical business site.
Your Opening Day Comes Sooner
Storefront locations are slower to open than a remote-based franchise. A retail shop or building requires time, sometimes months, to negotiate leases and complete brand-consistent build-out and signage. Without a storefront, a service-based franchise opens a site in much less time.
New franchisees are eager to get started. Whether the franchise represents a lifestyle change or a realized dream, the sooner you get started, the better. Building your business without a physical location generates faster income, which is always welcome.
Service Franchises Reduce Risk
Most service providers are essential to ongoing operations for their clients. A tax franchise, for example, is needed whether there is a pandemic or high inflation. Computers and cloud services must remain intact and working. House repairs are needed year-round. Economic conditions will vary, of course, but a service-based franchise is less exposed to the risks that a restaurant or movie theater faces when people simply don’t show up.
Your clients need your expertise and help, so they are more reliable and less volatile than consumer-facing industries. A less-risky service-based franchise balances your customer needs with your investment in building the brand—without a brick-and-mortar location.
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.