By Dean Hartley

Opportunities for immediate returns and fast growth are hallmarks of the franchise industry. The overall benefit of the franchise model is that franchise owners can focus on their strategic vision for growth while mitigating the risk associated with starting an independent small business.

Franchise businesses have built-in advantages compared to independent small businesses, such as a proven business model, brand awareness and shared resources. Leaning into the full set of tools available and leveraging all the advantages of the franchise model is a key to success in the franchise industry.

That means franchise owners should take advantage of all the systems and resources provided by their franchisor in order to maximize their returns and achieve the full rewards of their investment. Here are some of the most important ways a franchise empowers business owners to keep costs down while growing profitability:

  • Buying power: The shared buying power of the franchise model is an immediate advantage for keeping costs down and maximizing profitability. The franchise model empowers a network of business owners to create value by negotiating competitive pricing, access to exclusive products and services, and profit-driving opportunities such as rebates that aren’t available to independent business owners. Franchise owners also save time and effort by connecting to an existing network of preferred vendors, allowing them to focus on growing their business.
  • Shared services: Franchise businesses often take on operational processes such as human resources, accounting, legal and IT on behalf of franchise owners. The efficiencies created through shared services allow individual owners to concentrate their efforts on sales and growing their business.
  • Data: Franchise businesses can access a deeper set of data and more powerful analytics tools than any independent business owner. With more and better data and analytics, franchises and owners can identify trends in business and the economy so they can adapt and evolve quickly. Insights can be filtered by location, demographics and other variables to support precise decision-making. Sharing data across the franchise system allows companies to test, learn, transfer and scale best practices quickly and effectively, enhancing customer experience and distinguishing themselves in their market.
  • Marketing: One of the most powerful tools franchisors can offer franchise owners is a marketing system designed to efficiently target new audiences, consistently communicate with existing and former customers, and generate leads. It’s one of the most direct ways that franchisors can drive overall growth for the brand while supporting the success of individual owners.

Not all franchise opportunities are created equal. Some franchise models are designed to amplify the industry’s built-in benefits. Home service franchises, such as convenient bathroom remodeling, pest control, and home improvement services are among the most flexible franchise opportunities available. They can be opened and operational quickly, don’t always require a brick-and-mortar location or large staff, and are highly scalable. Lean operations mean they can respond quickly to evolving customer needs.

Some of the reasons these opportunities enhance the overall advantages of the franchise model include:

  • Low cost of entry: Home service franchises often offer lower initial investments and tend to be easier to launch and operate than opportunities in other sectors, such as food service or fitness. With limited inventory to stock or store and streamlined staffing needs, they can be operated from home or a mobile location, eliminating the time and expense involved in securing and maintaining a physical storefront.
  • Quick to open: The same things that tend to keep initial costs down for home service franchises help those businesses streamline and accelerate the steps to opening. In the right circumstances, home service franchises can be operating within a few weeks of signing the franchise agreement. That means owners start serving customers faster, generate revenue more quickly and begin to see a return on their investment sooner.
  • Low overhead: Continuing operational costs for these home service businesses tend to be lower than brick-and-mortar locations. Ongoing savings on rent, utilities, furnishings, and other expenses mean more revenue stays with you and can be invested back into scaling the business, opening new territories, or adding a complementary franchise business to your portfolio.

Franchise systems are designed to help people quickly launch a new business and see the rewards of their investment. They free owners from many of the time-consuming administrative responsibilities that can overwhelm new businesses. Flexible franchise opportunities with few barriers to entry and low ongoing overhead, such as home services, amplify those benefits so franchise owners can accelerate growth and profitability.

As brand president of Five Star Bath Solutions, Dean Hartley directs franchise systems and processes to assist franchise owners in growing successful, profitable businesses. Dean brings over 15 years of experience in the one-day bathroom remodeling industry and a vast knowledge base to assist in building the Five Star Bath Solutions franchise system. Before joining Five Star Bath Solutions, he most recently held the position of vice president of sales and marketing with Design Imaging, where he supported dealers with sales and technical assistance.