How to Franchise a Home Services Business 

Franchising can enable home services business owners to expand their businesses without adding excessive manual labour or administrative work to their working days. The franchising model involves a business owner allowing others to operate independently under their brand’s model and business name. This article will further explain the franchise model and how business owners can approach franchising their home services businesses. 

The Franchise Model 

Franchising is a specific approach to brand growth. It involves a business owner allowing others to operate independent businesses that use their proven business model, systems and trade name. The owner of the original business is the franchisor, and those operating independent businesses under their brand are the franchisees. 

A benefit of franchising is that it enables business owners to expand their brands into new locations. This allows for an increase in their customer bases without the need to operate each new business manually. As independent operators, franchisees are responsible for running their businesses. They deal with the day-to-day operations and manage their employees. 

The franchisor’s role includes the following:

• managing their franchise network;
• training franchisees to conduct their roles; 
• developing and marketing their brand; and 
• supporting franchisees. 

Franchising Home Service Businesses 

Home service businesses provide services relating to housing. The phrase ‘home services’ encompasses a broad range of services, including:

• domestic cleaning services; 
• plumbers; 
• pet sitting; 
• painters; and
• electricians. 

These roles are often in ‘one man and a van’ type businesses. For this reason, franchising can be a great way to expand a home service business. Many home services companies operate in particular areas. Franchising thus enables them to branch out and develop their brand in new locations without adding excessive hours, manual labour, or administrative work to the working day. 

How to Franchise a Home Services Business 

1. Conduct a Franchising Health-Check

First, you should determine whether franchising is an appropriate brand expansion method for your business. 

Successful home services franchise businesses start with the following:

• a business model that others can copy; 
• a profitable track record; and
• evidence of sufficient market demand for their brand’s services in further locations. 

Your business is in a good position for franchising success if:

• you believe franchisees would be able to copy your business model and use the same processes to deliver your brand’s unique home services;
• your business model has a good track record; 
• your brand has a solid reputation; and
• market research indicates there are potential customers for your brand’s services in other geographic areas. 

2. Seek Legal Advice and Draft Franchising Documents

The franchise agreement is an essential part of any franchise business. It is the legally binding agreement you will share with your franchisees, forming the basis of your relationship. It is a good idea to seek legal advice about this document. A lawyer can review it or draft it on your behalf. A good franchise agreement can mitigate risk and protect your brand’s image. 

You will also need to prepare a franchise operations manual. This detailed document informs franchisees of everything they need to know about the business. A lawyer can also draft and review this critical document for you. 

3. Develop a Training Program 

The franchisor trains their franchisees and supports them to operate their businesses. You should thoroughly plan and establish how you will facilitate an effective training program. It should teach them the intricacies of running a business in your brand. Additionally, the program should show them how specific systems and operating processes work. 

For example, strong customer service is vital for home service businesses. Customers will likely let your franchisees into their homes. For a positive and consistent brand image, franchisees must deliver customer services in a manner that aligns with your brand. In training, demonstrate how franchisees and their employees should conduct themselves. Good customer service is essential for your brand’s image, as brand recognition for home services businesses often grows through word-of-mouth recommendations. 

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4. Seek Franchisees 

The final stage in starting a home service franchise business is to recruit franchisees. You can seek prospective franchisees by advertising franchise opportunities. When you find a good candidate, ensure that you conduct due diligence and background checks. Interview them and consider whether you can share a positive working relationship. If so, give them the legal documents to review. These documents will help prospective franchisees decide whether the opportunity is right for them. 

Once they sign the franchise agreement, they are officially franchisees. You will then provide the initial training program to prepare them to operate their businesses and help them set up in their new location. 

Key Takeaways

If you would like to start a home service franchise business, you should do the following:

• consider whether franchising is a suitable approach for your business; 
• seek legal advice and draft essential legal documents, including the franchise agreement and operations manual; 
• develop a comprehensive training program for new franchisees; and
• begin the franchisee recruitment process. 

If you would like legal advice about franchising your home services business, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.