As a franchise sales consultant and an individual who grew up with a franchise business (my family owned a Dunkin Donuts for over 2 decades) I am often asked what type of franchise business I would personally recommend to buy. Although all franchise business categories have their inherent advantages and disadvantages, my personal preference would be to buy a service related franchise concept for a number of reasons.
Better Life style:
Service franchises in my opinion can generally offer the owner/operator a better life style, less stress, and more freedom for a number of reasons including the following. They generally require less operating hours, most can be operated on 5 day work week, they usually have lower staffing requirements with less employee headaches, they have no inventory spoilage concerns, and overall they are generally easier to manage.
Because they generally do not require the expense of building out a retail location or store front in a high traffic area, or have the equipment requirements of a food or restaurant franchise, service franchises on a whole generally require lower overall start up costs. You can get a general idea of the investment level of some service franchises for sale here.
Easier To Grow:
Unlike retail franchise businesses that are confined to a specific location and are dependent on foot traffic, service businesses offer the owner the opportunity to go out and generate new business in a large geographic area through a number of different marketing options. Expanding a service business to new markets is also generally a lot less capital intensive or expensive than adding a new physical retail unit.
Easier To Manage:
I can assure you from personal experience that managing a service business is generally a lot easier as compared to a retail food or restaurant franchise. Most small businesses today have challenges with finding reliable employees to fulfill their staffing requirements. But for a number of reasons retail businesses, particularly restaurants, have more employee turnover and headaches than most.
Better Success Rate:
Although all categories of business franchising have a statistically higher rate of success than non-franchise business start-ups, It’s been my observation that the success rate of service related franchises is generally higher than retail franchises. I believe this can be contributed to a number of factors including lower start up and operating costs, less staffing requirements, better profit margins, generally less overhead, and an overall better life style that can be maintained operating a service related business.
About the Author
Ray Haiber has 10 years experience as franchise sales consultant as well as a professional small business broker in Arizona. Visit http://www.azfranchises.com to view and research franchise opportunities for sale through out the USA including service related franchises.