If you have decided that franchising is for you, but haven’t decided on a brand or business sector, you still have lots to consider. Luckily there are tons of options out there with something for everyone. Here, we weigh franchise advantages and disadvantages in five different business sectors.
Senior Care
What you’ll do: Senior care franchisees help elderly clients live a more dignified and enriched life. Franchise owners have a team of caregivers who provide in-home support with household chores, cooking, errands and personal care. Some also provide nursing care and administer medication. The service is a lifesaver for families who are faced with the responsibility of caring for loved ones and know that aging gracefully at home is the most ideal scenario.
Advantages: This is a feel-good business in a booming industry. Franchise owners make a real difference in people’s lives. The industry has been booming and is projected to keep growing. Besides being an essential business, there is a huge customer base.
Disadvantages: Often a labor of love, franchisees will have to put in a lot of hours early on to establish themselves in their community and build a customer base and team. Franchise owners continually face the challenge of getting reliable help and have to hire strategically as they take on more clients. Since senior care clients rely so heavily on the service, franchise owners may have to step in occasionally to cover a shift if they cannot find a backup.
Cannabis
What you’ll do: As cannabis becomes legal in more in more states, additional opportunities will become available in franchising. People can already find opportunities as cultivators, dispensary owners, and in health center-based programs.
Advantages: This fragmented industry is about to explode and has huge income potential for early adapters. This is a truly entrepreneurial opportunity in an exciting new part of franchising. And it has already been deemed essential. As the COVID pandemic shut down the country, cannabis businesses were able to keep operating in states where it was legal.
Disadvantages: Owning a cannabis business is not for the risk averse. Even in a franchised model, there are obstacles to overcome including lots of red tape to obtain licenses.
Home Restoration
What you’ll do: Home restoration franchise owners offer services including water damage, fire and smoke restoration as well as mold remediation. Some also offer biohazard and virus clean up and reconstruction.
Advantages: This is a feel-good business where you can help people at their worst hour. Many major restoration franchisors have partnerships with—and are approved vendors of—insurance companies who refer business.
Disadvantages: Offering a 24/7 emergency service means calls at all hours. It also means that work ebbs and flows with an influx of jobs after natural disasters such as hurricanes and other extreme weather events.
Business Consulting
What you’ll do: There are many types of franchised business consulting opportunities. Some help business owners work more efficiently and effectively and some work with professionals who want to hone their soft skills. Examples include cost saving analysis, sales consulting and personal coaching.
Advantages: You will provide expertise, but you don’t need to be an expert to get started. Generally, the franchisor will give you all the tools and training to succeed. As a home-based business, there is low overhead and flexible hours and few (or no) employees needed. You can start off in a part-time structure or go all-in to aggressively build your business. Either way, you will reap the rewards of your efforts and can enjoy repeat business and referrals once established.
Disadvantages: This is the type of business that takes a while to build a clientele. Since most business consulting franchises are home-based, you’ll have to get out and network including joining local groups such as the Chamber of Commerce.
Educational Enrichment Programs
What you’ll do: Run enrichment programs, camps and kid’s birthday parties at elementary schools, day care centers and summer camp facilities.
Advantages: A fun, feel-good business, franchise owners help enrich children’s lives. You get the perks of being a teacher without all the bureaucratic headaches. Because these types of businesses can be run at the client’s location, no rent and few employees are needed.
Disadvantages: You will have to hustle a bit to build a client base. Franchise owners need to get out and develop relationships with administrators of local day care centers, schools and camp facilities as well as market and advertise to potential clients.
If you’d like to know more about franchise advantages and disadvantages, you can gain insights from industry publications and by visiting tradeshows. You may also seek the help of a Franchise Consultant, who can answer your questions and provide additional information. These franchise specialists, whose services are free of charge, educate their clients on the industry and, after considering numerous factors and input from clients, guide each individual toward his or her best fit with a particular franchise.
Jill Abrahamsen is Editorial Director at the International Franchise Professionals Group (IFPG), a franchise broker network that helps hopeful entrepreneurs identify and invest in franchise businesses. As Editor of Franchise Consultant Magazine and FranchiseWire, Jill Abrahamsen writes and edits articles about success through franchise ownership.