Franchise Ownership Guide:
From Marketing to Operations

When it comes to considering owning a franchise, it’s important to weigh your options and take the variety of benefits into consideration. From the support you receive to the work/life balance gained in the process, these benefits can have an impact on both your professional and personal life.

• Hit The Ground Running In 2023 – Advantages Of Franchising
• 4 Fears Of Starting Your Own Business And How To Overcome Them

Managed Risk

• What Are the Pros and Cons of Franchising?
• Franchising 101: Owning Your Own Business vs Working a Job
• Something to Call Your Own: Franchise Ownership vs Self Employment

Franchising Support

• What Finance Options are Available to Fund My Franchise Business?
• Training & Support | Benefits of Franchising with Neighborly
• Financial Literacy: The Stepping Stone to Success

Marketing Resources, Employee Training, Recruiting, and More

• Marketing with Neighborly
• Franchise Marketing: The Benefits of a National Brand

Proprietary Technologies

• Are Franchises A Good Investment? Here Are the Facts

Brand Recognition 

• What Are the Pros and Cons of Franchising?
• Finding Strength In Numbers, Joining A Family Of Brands
  

Buying Power with Preferred Vendors

• How Neighborly Vendors Help Owners Save Time And Resources

Better Work-Life Balance

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• VIDEO: Experts Speak To Franchising vs. Independent Biz Ownership
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• Achieve The Perfect Work-Life Balance With Franchising
• How To Leave Your Corporate Job And Spend More Time With Family
  

Few things in life are more rewarding than owning your own business and the flexibility, financial freedom and professional opportunities ownership offers make starting a franchise an attractive prospect. While there are many benefits to starting a franchise, nothing worth pursuing is without risk, and business ownership is no different.

• What are the Pros and Cons of Franchising?
• Safety of the Home Service Franchise Industry
• Starting a Business? Here Are 10 Small Business Mistakes to Avoid
• 4 Reasons Why Home Services Franchising Is A Recession-Resilient Industry

When you find an opportunity and industry that really suits you, franchising can be rewarding in both the short and long term. If you’re interested in the home services industry — from house cleaning to HVAC to landscaping—connect with us at Neighborly. As a franchise business owner of one of our national award-winning brands, you’ll maintain independence and flexibility while having access to ongoing training and support.

Neighborly is proud to give aspiring and existing business owners the chance to stand out in competitive industries and build the lives— and the legacies —they’ve always wanted.

Related Content:

• What Are the Types of Home Services Franchises at Neighborly?
• Home Service Franchises: Starting An Essential Small Business In 2023
  
• 5 Key Questions To Consider Before Starting A Home Service Business
• Why The Home Services Industry Remains Recession-Resilient
  

Handyman Franchise:

Mr. Handyman Franchise Opportunities
Handyman Business Ideas For Growth

HVAC Franchise:

HVAC Franchise Opportunities with Aire Serv 
How To Start An HVAC Business

Plumbing Franchise:

Best Plumbing Franchise Opportunities | Mr. Rooter Plumbing 
How To Become A Plumber In 2023

Property Management Franchise:

Real Property Management

Buying a franchise is a significant financial investment, but unlike starting a business from scratch, there is relatively less risk to “learning through your wallet.” The franchisor can help you estimate the costs required to get your business up and running. These may include things like the investment price for the franchise, a building or office space, supplies, employees, working capital, and opening inventory (if selling a product). 

A reputable franchisor will help you estimate how much working capital you’ll need so that you don’t run out of money before your business starts to turn a profit. It’s also important to decide in advance how you will finance your business before you start shopping for a franchise.

Initial franchise cost varies significantly depending on the brand, industry, and territory. A majority of Neighborly home services franchise brands cost between have an estimated initial investment under $200,000, which is lower than many other franchise categories. Along with the initial costs of starting a franchise, there is the ongoing license or royalty fee to factor in as well. A variety of financing options are available, and a Franchise Developer can help provide a better understanding of how these work and what to expect.

Related Content:

• Costs of Starting A Franchise | Neighborly
• Five Key Things to Know About Franchising | Sales
• Dispelling The Myth That Rising Interest Rates Are A Good Reason To Hold Off On Investing In A Franchise
• 4 Lower-Cost Franchise Opportunities To Invest In 2023
  

Being your own boss and securing the funding you need isn’t always out of reach. Here are some options for financing a franchise, but keep in mind that each franchisor may have a more specific list of acceptable financing options.

7 Ways To Fund Your Franchise

1. Self Capitalized

   Some franchisees choose to launch their business from existing funds they accumulated from a savings account, money market account, inheritance, or from the sale of another business.
   
   Something To Call Your Own: Franchise Ownership Vs Self Employment
   
   

2. Commercial Bank Loans

   This type of loan gives you the money upfront, and you pay it back monthly (with interest) over time. Talk to your personal financial institution about this option. Lenders are more likely to approve loans for franchises than for new, independent small businesses. This is because franchises usually carry less risk, as they likely have proven business models and brand recognition.
   
   

3. Small Business Administration (SBA) Loans

   SBA loans operate similarly to commercial bank loans but with lower interest rates and longer repayment timelines because the U.S. Small Business Administration guarantees a portion of the loan amount.
   
   Money Matters: The Best Small Business Loans For 2023
   
   

4. Alternative Lenders

   Loans from alternative lenders operate like commercial bank loans, but they include some additional terms that will cost you. These loans may be smaller and have shorter repayment periods. Many small business owners pursue alternative franchise funding if they’re unable to secure a traditional loan. Check out this list of reputable alternative lenders at Business News Daily.
   
   

5. Investment Account Rollovers

   Rollovers as Business Startups (ROBS) is an often overlooked option for franchise funding. If you have an inactive IRA or 401K, you could roll it over to fund your business. This option for financing a franchise is typically used in conjunction with an SBA loan.
   
   

6. Franchisor Financing

   Ask the company you are working with to acquire your franchise if they offer tailored financing plans for new franchisees. They might do this through a lender partnership or with capital from the company itself. This can make the startup process smoother for a franchisee because financing plans from the franchisor will account for the franchise fee and accurate funds for items like equipment.
   
   

7. Friends-and-Family Loans

   You and your lender (a family member or friend you know and trust) can decide on the loan terms. Just make sure you create a contract. The terms should ideally include a lower interest rate and longer payback period than a commercial bank loan.

Here are some more ideas on how to fund your dream franchise:

• 3 Point Checklist for Starting a Franchise Business
• Investing in Your Future Part 4: Financing Your Property Management Franchise