Home Services Franchises with High Demand
Explore opportunities in the home services franchise industry during COVID-19 with Patrick Findaro, co-founder of Vetted Biz. Learn about industry trends, investment costs, and franchise options with lower risk than other sectors.
Table of Contents:
Introduction
Patrick Findaro, co-founder of Vetted Biz and managing partner at Visa Franchise, shares insights into businesses and franchises for sale in the United States. Vetted Biz offers over 1,700 franchise opportunities and an increasing number of businesses for sale.
Home Services Industry
Growth During COVID-19
The home services industry had a substantial growth during the COVID-19 pandemic, as people spent more time at home. Areas like landscaping, plumbing, flooring, and kitchen/bath renovation increased their demand.
Market Size and Growth
The U.S. home services market is valued at over $105 billion annually and is expected to grow at a low single-digit rate over the coming years.
Risk Analysis
SBA Loan Data
The Small Business Administration (SBA) loan data over the last 30 years shows that for every five home services franchisees who paid back their loan, one defaulted. This ratio (5:1) is slightly better compared to franchises as a whole (4:1). Over the past 10 years, the ratio for home services increased to 11:1, indicating reduced risk compared to food, beverage, and education franchises.
Investment Costs
Average Costs and Fees
- Royalty Fee: 6.9%
- Marketing Fee: 2.8%
- Initial Investment: $109,000 (includes franchise fee, working capital, and startup costs)
Patrick notes that potential investors can enter the home services franchise industry with an investment of around $100,000.
Trends and Opportunities
Home Office and Renovations
As more people work from home, investment in home offices, kitchens, and baths has increased, particularly in areas like the San Francisco Bay Area. Companies such as Twitter and Facebook have allowed employees to work from home, further contributing to demand for home services.
Franchise Options
Vetted Biz has analyzed 116 home services franchise concepts, such as Creative Colors International, StormGuard, and Five Star Bath Solutions. The platform offers over 1,800 franchises in total, including 116 in the home services space.
Services Provided by Vetted Biz
Patrick explains that Vetted Biz helps potential investors find, analyze, and finance businesses and franchises across the United States. Vetted Biz offers a concentrated approach to vetting business models, assessing availability, and considering various factors to improve success and reduce risk.
Conclusion
Patrick encourages viewers to explore Vetted Biz for home services franchise opportunities and existing businesses for sale. He invites those interested to reach out directly to franchises on their platform or to connect with Vetted Biz for more personalized guidance.
