These Recession-Resistant Franchises Offer Endless Possibilities for Growth and Complementary Businesses
Home services franchises save their clients time, handle jobs that homeowners lack the skills or physical ability to do themselves, or both. Demand for home services has grown steadily for several years and is expected to continue: In 2018, the home services market was valued at $281.65 billion and is growing at nearly 19% a year, according to Homefranchiseconcepts.com. Aging boomers and time-pressed millennials and Gen-Zers, spread thin by their careers and parental duties, will feed that demand.
The home services industry holds strong appeal for entrepreneurs because of recurring revenue and recession resistance, even during the pandemic. As more people worked from home, they wanted to do so in a comfortable, pleasant environment, according to the Better Business Bureau. The BBB reported in March 2021 that 76% of U.S. homeowners had undertaken at least one home improvement project since the start of the Covid-19 pandemic – and that number has doubtlessly increased since.
The home services sector offers several advantages to franchisees. Many are low-cost to launch, and in most cases, franchisees don’t need work experience within the field of their franchise’s service — they’ll either operate as managers or receive the required training from the franchisor. And of course, franchisees are backed by a tried-and-true system compared to independent start-ups that face trial-and-error challenges. As a bonus, there’s a feel-good aspect to owning a home services business: Customers are grateful to have nagging repairs handled; to enjoy fresh paint or a new kitchen; to be rid of pests, junk and weeds; to enjoy a clean house; and so on. Referrals and repeat business assure a home services franchisee of a thriving customer base.
Complementary Businesses
Home services offer a ton of flexibility and options for growth. These niche services lend themselves well to add-on businesses. Many home services portfolio groups like HorsePower Brands, O2E Brands and Neighborly make it easy for investors to add a second business that complements their first franchise investment and appeals to the same customers. For example, Gatsby Glass can be a wonderful addition to an established construction company or a lighting franchise. Border Magic is an ideal complement to a landscaping business or lawncare franchise.
Vast Opportunities in Home Services Franchises
From painting and insulation to window cleaning and landscaping, there is a wide variety of opportunities in home services franchises.
- Painting: A new coat of paint can elevate the look and feel of a home or business. Franchises in this space include Groovy Hues, Color World Painting, WOW 1 DAY PAINTING, and CertaPro Painters.
- Insulation: Insulation franchises offer essential services to homeowners and contractors. Popular franchise brands include iFoam, Spray Foam and Koala Insulation.
- Window Cleaning: Every home and office building has windows, and they all need to be cleaned. Window cleaning franchises like FISH Window Cleaning, Wallaby Windows, and Squeegee Squad meet that demand.
- Landscaping: A house isn’t a home without personal touches to the landscape, such as edging products, decorative walkways, stepping stones, commercial concrete and curbing. Caring for grass is another essential service. Franchises in this space include Border Magic, Lawn Doctor, Heroes Lawn Care and U.S. Lawns.
- Roofing: With a roofing business, business owners can feel confident that the demand for their services will never stop. Franchises to consider include Mighty Dog Roofing and Bumble Roofing.
- Bathroom Remodeling: Bathroom remodeling increases the value of homes and makes them more enjoyable. Franchises that offer this service and more include Re-Bath and Five Star Bath Solutions.
- Home Staging: With a home staging franchise, business owners can help homeowners sell their homes for thousands more. Showhomes Home Services is a leader in this space.
- Junk Removal: Junk removal franchises help homeowners clear clutter and are simple to run. Business owners have found great success with franchises like Rubbish Works and Junk King.
Home Services Statistics
With in-demand services and simple business models, home services franchises offer endless possibilities for growth-driven entrepreneurs.
- Angi’s Home Spending Report reports that home maintenance spending averaged $2,467 in 2021, and the average emergency spending totaled $1,953.
- U.S. home improvement sales are predicted to reach $620 billion by 2025, according to Statista.
- Data from the Home Service Market Report states that the home services industry supports approximately 5 million jobs.
- Approximately 32% of U.S. homeowners who did projects in 2021 painted their home’s interior, 28% remodeled a bathroom and 27% installed smart devices, according to Zippia.