How to Grow a Seasonal Franchise

A seasonal service business can be a blessing and a curse. 

Seasonal franchises, such as holiday-themed businesses, lawn care and landscaping, or pool services, generate most of their revenue during a particular season or time of year. Such businesses face some challenges that are less common for year-round businesses. In effect, they must earn 12 months of revenue in a compressed period — anywhere from three to nine months, with the average time being around six months. 

It takes extraordinary discipline and foresight to successfully launch a seasonal franchise. And seasonal businesses often have less margin for error than year-round ones. That’s the curse. 

Because of the limited timeframe, effectively managing cash flow is critical for new seasonal businesses. The runway to profitability is typically shorter for seasonal businesses than for companies that are open throughout the calendar year. External factors such as weather or a sluggish economy can have outsized effects on a seasonal company, especially in its first few years. 

But in the end, seasonal operations can amplify the rewards franchises offer. Many franchise owners are looking for financial freedom and flexibility. A successful seasonal business can deliver both on a scale that might not be achievable in a year-round business. That’s the reward. 

Year-round commitment to seasonal success

Too often, new owners see the upside of a seasonal franchise immediately but fail to recognize the challenges particular to the industry. Many of them imagine vacations that last all summer or escaping winter for several months in a tropical climate. While those are within reach for seasonal franchise owners, it’s best not to plan a months-long excursion too soon. 

Most seasonal businesses require some investment of time and effort throughout the year, especially during the critical first few years of operation. Establishing the trust and awareness necessary for recurring seasonal revenue requires strategic marketing plans. Recruiting, hiring and training workers must start well before the season. 

The particular challenge for seasonal businesses is that those crucial activities take place when the owners are seeing little to no income. For established, successful businesses, that’s not always easy. For brand-new ones, it can be a make-or-break challenge.  

Successfully navigating extended periods without income demands discipline and planning. In many cases, it can take two full years to generate 12 months of business revenue. It’s essential to build a ramp to the future during those two years. 

Many people choose to invest in a franchise because it streamlines the processes — and reduces the risks — involved in launching a small business. Turnkey operations and franchisor support are among the franchise industry’s most powerful advantages. That’s especially true for seasonal franchises, where standardized systems and proven support can make a critical difference. It’s in the franchisor’s interest for franchise owners to succeed, so successful ones invest in their owners. 

Seasonal success = lifetime value

The best seasonal franchise models for home service businesses offer lifetime value for customers, which leads to high retention rates and predictable recurring revenue. When customers come back year after year, they also provide positive reviews and refer friends and family members to your company at a high rate. 

Seasonal service franchise businesses built around high retention rates and positive word of mouth tend to outperform their competitors. A stable, predictable base income every year supports rapid success and growth for franchise owners and franchisors. As individual franchises grow, their owners see exponential increases in their financial return based on that loyalty. If 85 customers out of 100 come back the next season, that’s great. When you have 1,000 customers and 850 of them return year after year, the impact is impossible to ignore. 

Michael Moorhouse is president of Mosquito Shield, America’s trusted provider of effective residential mosquito and tick control service. Part of the Five Star Franchising platform of home service brands, Mosquito Shield delivers the best results in the industry to help customers in over 350 territories enjoy their outdoor spaces.