Looking at the franchise world today, I’m seeing a trend. Service franchises in stable fields like roofing, fire and water restoration, and mold remediation are delivering consistent top line revenue growth and great potential returns providing owners with the opportunity to use their higher-level management skills to scale.
The numbers tell an interesting story. These service-based franchises require less startup money than traditional restaurant or retail options. Many operate in industries where customers pay through insurance claims, creating steady, predictable sales.
What makes these franchises truly appealing is their potential for owners to act in a strategic management capacity rather than as a hands on operator. With solid operations management in place, owners don’t need to spend their time delivering the services of the business and can focus on building the business.
In many ways, these franchise investments have many similarities to real estate. Both are financeable with 20% or lower down payments, both offer the potential for ongoing income streams, and both provide solid potential for capital appreciation returns at exit.
For investors wanting to spread their risk, service franchises offer clear benefits:
- Great sales to investment ratio opportunity and the potential for consistent returns
- Tax advantages through equipment depreciation
- Options to use retirement funds like 401(k)s to buy in
The secrets of the most successful franchise investors include:
- Hiring reliable and trustworthy managers
- Choosing franchisors with strong support systems
- Setting up clear goals, KPIs, and accountabilities
With thousands of franchise options available, finding the right match takes research. Working with experienced advisors who understand different brand concepts can help expedite your process and de-risk your investment.
For those wanting to build wealth while maintaining control over their investments, service-based franchises offer a unique path to growth and diversification.
