Take Customer Service To The Next Level With These Service-Based Franchises
Want to own a business that "serves" others? Here are some top choices.
It should go without saying that service-based franchises come in many different forms. Though it's not an overly broad sector, it's an industry that offers several advantages for entrepreneurs looking to establish their own business. Service-based business models include both B2C and B2B opportunities. These franchises typically aren't known for a specific product, but rather the various means for which they provide consumers with a satisfactory service-based experience. This may include postal services, senior living advisors, realty related services, consultancies, regulatory and compliance services and refuse removal — just to name a few. To be successful in a service-based franchise operation, customer service is at a premium.
Advantages of service-based franchising
Service-based franchise establishments allow owners the opportunity to provide basic "skills based" offerings, many of which could be considered recession-resistant business models. Locksmithing or home inspection are basically on-demand businesses — the need for their services is ongoing and constant. As a category, many of the services-based franchises can be mobile-based, meaning no brick-and-mortar lease and location is necessary, and they often come with low overhead requirements. This can be advantageous for candidates looking to establish a multi-unit play with expanding territories to cover. They also have a reputation for being affordable, with concepts that are more frequently found on the lower investment side of typical buy-in opportunities. While other franchise categories have higher fees that can run into six figures, the majority of service-based franchise concepts can be found for $50,000 or less. Lastly, most have a niche market appeal, so if the direct competition in your area is low, you have the opportunity to capitalize.
Related: Customer Service Is the New Upsell
Which service-based franchises top the current list?
The UPS Store was the top performer in this category, coming in at No. 2 overall. This brand is now up to nearly 5,500 unit locations in the U.S. and has witnessed a 5.3% increase in awarded units in just the past three years alone. Another concept generating buzz is HomeVestors of America, which earned the No. 35 spot. This brand's popularity can be traced back to their instantly recognizable billboards touting its tagline, "We Buy Ugly Houses," yet its also the current leading franchise operation in the home-buying category. Many other notable names in this category that made the Franchise 500 list include Two Men and a Truck (No. 111), Keller Williams (No. 92), RE/MAX (No. 130), and redbox+ (No. 183). To view the full list and see which service-based franchises earned a spot on Entrepreneur's prestigious Franchise 500 list, simply follow this link.
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