What is Franchising?

A franchise is a business model in which a company (referred to as a franchisor) gives other parties (franchisees) the right to use its trademark to sell goods or services according to its terms. The legal contract for this arrangement is usually called a franchise agreement.

The franchisee may benefit from the company’s established business systems, recognized brand, training programs, and other support. These benefits are typically given in exchange for an initial investment, a franchise fee, and a set percentage of ongoing sales revenue (royalties). 

The Neighborly® family of brands is positioned in the growing and lucrative home services industry. Our brands are well known and many have home-based options. When compared to other franchise options, our franchise brands require relatively low franchise fees and equipment needed to get started. The overall cost of start-up varies by brand.

If you have ever thought about working for yourself, owning a business, or scaling your current home services business, you should consider Neighborly. With over 18 franchise brands, you have options to find the home services brand that is right for your lifestyle and the goals you have for your professional future.

Related content:


How Does Franchising Work?

Franchising is designed to make business ownership more accessible because the initial investment of time, money, and effort are generally less than starting a business from scratch. After all, it’s much easier to get started growing and scaling a business when it is a known, reputable brand than it is to explain an unknown brand to customers who want to know they are hiring reputable help for their needed service. 

So, how does franchising work? A company (referred to as a franchisor) gives other parties (franchisees) the right to use its trademark and recognized brand to sell goods or services according to the company’s terms and for a specific cost. Franchisees are independent, locally owned and operated businesses. The franchisee may benefit from the company’s established systems and other support.

Neighborly brands make franchising less painful for first-time business owners and seasoned pros alike. From our vendor discounts to established systems and extensive training programs, we help our owners get started on their path to realizing their dreams.

Related blog content: 


Is Owning a Franchise Worth It?

Is it Better to Start a Franchise vs Start a Business From Scratch?

Franchise ownership offers freedom, flexibility, and the opportunity to control your financial destiny. Unlike independent entrepreneurs and standalone business owners, franchisees have the benefit of backing and support from a proven, national brand from day one.

When you’re in charge of your own business, you can set your schedule, make staffing decisions, advertise and market to your community, and run day-to-day operations on your terms. Leave behind the guesswork and uncertainty that comes with standalone business ownership. 

As the world’s largest home services company with many franchise brands, Neighborly has more than 5,000 franchises with 18 brands.

Related blog content:


The Benefits of Owning a Franchise

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.

Managed Risk

Franchising Support

Marketing Resources, Employee Training, Recruiting, and More

Proprietary Technologies

Brand Recognition 

Buying Power with Preferred Vendors

Better Work-Life Balance


What are the Risks Involved With Franchising?

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.


18 Home Services Franchises to Consider

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 blog content:

What Are the Types of Home Services Franchises at Neighborly? 

  1. Handyman Franchise

    Mr. Handyman Franchise Opportunities 

  2. HVAC Franchise:

    HVAC Franchise Opportunities with Aire Serv 

  3. Plumbing Franchise:

    Best Plumbing Franchise Opportunities | Mr. Rooter Plumbing 

  4. Property Management Franchise:

    Real Property Management 

  5. Landscaping Franchise:

    The Grounds Guys 

  6. Cleaning Business Franchises: 

    Start A Dryer Vent Cleaning Business | Top Home Based Business. 

    House Cleaning Franchise Opportunities 

  7. Home Improvement Franchise:

    ShelfGenie | Shelving and Home Improvement Franchise 

  8. Window Cleaning Franchise:

    Window Genie | Window Cleaning Franchise 

  9. Glass Replacement Franchise:

    Own a Glass Repair Franchise | Glass Doctor 

  10. Garage Door Franchise:

    Garage Door Repair and Installation Franchise Opportunity | Precision Door Service® Franchise 

  11. Painting Franchise:

    Five Star Painting 

  12. Appliance Repair Franchise:

    Appliance Repair Franchise | Mr. Appliance 

  13. Home Inspection Franchise:

    HouseMaster | Home Inspection Franchise 

  14. Restoration Franchise:

    Restoration Franchise Opportunities | Rainbow Restoration 

  15. Pest Control Franchise:

    Mosquito Joe | Mosquito Control Franchise

  16. Electrical Franchise:

    Electrical Franchise | Mr. Electric


Understanding Franchise Costs & Fees Involved

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 blog content:


What are the Financing Options for Owning a Franchising?

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.

  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.

  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:

Untitled design (34)-1

3 Ways to Open Your Own Franchise

Where do you want to operate? Is it where you live currently or where you want to move to? 

Do you own a business that you want to scale through leveraging a well-known service brand?

Are you looking to take over an established territory in the franchise of your choice? 

If you have any of these questions, you have come to the right place! Visit our Territory Finder to help you find out where you can:

  • ​Open a New Franchise Location

  • Convert an Existing Industry Related Home Service Business

  • Established Franchise Locations for Sale

Why Work with Neighborly

There are many franchise options out there, and with Neighborly you’re getting a comprehensive business plan and resources to start you on the path to success from day one as well as the support of a Franchise Business Coach to help you grow and reach your goals. 

Neighborly’s franchise brands are dedicated to helping prospective or current business owners find the franchise that can help them achieve their goals while providing needed services in our communities.

Get Started