Choosing the best franchise to invest in requires research and careful consideration. To help you make the right decision, Fresh Coat recommends 7 key things to look for when evaluating a franchise.
All franchises are not equal, and there are more than 770,000 franchises in the United States to choose from. While fast-food chains and big-name brands like Century 21 and 7-Eleven are what people commonly think of when they envision franchising, there are numerous options to fit a variety of budgets, with a number of differing business models. Some franchises offer products, while others provide a service like cleaning or painting. Some franchises have brick-and-mortar locations, or you can select a mobile or home-based opportunity. Investing in a franchise allows you to be in business for yourself, but not by yourself. It also allows you to operate a business with brand recognition.
With so many different options, it’s hard to know where to begin your evaluation. To help get your research started, Fresh Coat, a nationally recognized painting and home services company with more than 175 locations across the U.S., has compiled a list of what to look for when choosing a franchise. You should start with cost, then consider other factors like profit potential, workload, revenue streams, growth potential, and recession resistance.
Key Factors to Consider
Cost. One of the first steps you need to take is understanding the amount of money you want to invest in your business. Acknowledging how much you can or want to spend will help narrowdown your choices. Fresh Coat is an affordable option for first-time franchise owners. In fact, it was designed as a franchise that would be accessible to anyone with the desire to succeed. Fresh Coat has been ranked a top 500 franchise under $100,000 by Entrepreneur magazine and has special financing opportunities for qualified franchise owners. Fresh Coat also has relationships with third-party sources that can help cover the franchise fee, startup costs, equipment, and payroll.
Profit Potential. At the end of the day, you are starting a business to make money. You will need to make sure the business you want to start will generate the profits you need to succeed. You can learn more about a brand’s profit potential by taking a close look at its financial performance in their Franchise Disclosure Document (FDD) or getting feedback from existing franchise owners. As a home-based franchise, Fresh Coat franchise owners typically generate profits quickly because they save on the expenses that would be required to open and run a brick and mortar location. Fresh Coat franchise owners also have access to a variety of product and supply discounts through national alliances.
Workload. Most people consider opening a business because they are tired of the corporate grind. They might be tired of commuting or unhappy with how difficult it can be to climb the corporate ladder. One of the benefits of owning your own business is flexibility. If your corporate job keeps you from attending dance recitals and baseball games, you will appreciate a franchise that offers flexibility. Fresh Coat franchise owners are able to work from home and set their own schedule, which allows them more time to spend with their families.
Multiple Revenue Streams. It’s important for a franchise to offer multiple revenue streams to allow owners to keep profits up when the economy is unstable. The franchise system should also be able to handle challenges caused by weather disasters, pandemics and even fluctuations in trends. In addition to home painting services, Fresh Coat recently established a comprehensive commercial training program that provides owners with the tools to be successful in the robust commercial painting market. Once franchise owners complete the training program, they are given added support, oversight, and an operations system that maximizes revenue at no additional cost. In the first quarter of 2021, about 25 percent of the brand’s painting projects shifted to commercial work.
Recession-Resistant Industry. In addition to providing multiple revenue streams, picking a recession-resistant industry will help fuel success. Fresh Coat is part of the booming home services sector. The home services industry is expected to grow nearly 19 percent by 2026, according to Verified Market Research.
The outbreak of the pandemic forced Americans to stay at home to flatten the curve, and many responded by calling contractors to make repairs and to tackle remodels that had been on the back burner. Households are now completing 728.3 million projects per year to maintain or improve their homes. And, as millennials hit their peak home-buying age, the home services sector will continue to flourish.
Growth Potential. Starting a business venture can be intimidating. Many franchise owners like to start small and scale their business over time. It’s important to choose a franchise with growth potential so, as you gain experience, you can expand and generate higher profits. Fresh Coat partners with Sherwin-Williams, which makes their store your on-demand paint supply resource. With low overhead costs and high margins, Fresh Coat provides a scalable business option that is easy to expand.
Training and Support. One of the advantages of franchising is that you aren’t reinventing the wheel. You get a proven business model that sets you up for success. A franchisor needs to offer training and support for you to get your business started. Ongoing support and new product research and development are also essential. Make sure to speak with franchise owners of the brand you are considering to learn if the company’s training and marketing support meets your standards. Fresh Coat offers a turnkey operation. No painting experience is required. The company will provide training on hiring quality painters, effectively bidding projects, and managing your business , as well as understanding the target market you need to reach.
Fresh Coat also provides marketing support to help build your customer base. They offer digital marketing, collateral marketing, and grassroots networking.
Deciding to purchase a franchise is a huge life decision and requires significant research to find a good fit. Knowing what to look for as you begin your search is a valuable head start toward success.
If you are ready to experience self-sufficiency and financial freedom with a business that provides high profit margins and training tools to succeed, contact Fresh Coat to learn more about our franchise opportunities.