Home Renovation Franchises: Here’s What to Look For

When considering home renovation franchises, you have many options from which to choose. You can pick a specific aspect of the industry like flooring or landscaping, or you can choose a broader business such as retail but with a niche market.

As you evaluate franchises, knowing some of the key reasons that franchisees fail can help you avoid a similar fate and can bring clarity to the considerations you need to spend some time on when making a business ownership decision.

IFA list of eight considerations

When looking at any size franchise, the International Franchise Association (IFA) created a list of eight things to consider:

• Costs
• Demand
• Brand name
• Experience
• Your abilities
• Competition
• Training and support
• Expansion plans

Costs

Perhaps the most important factor in evaluating home renovation franchises is whether you can afford it. Your costs extend beyond the franchise fee and upfront operating costs – you’ll also need to know how long it will be before the franchise becomes profitable and what that profit will be. The franchise disclosure document will provide some details on this, but you should know your own cash flow situation before you get to that point. One of the key reasons franchises fail is because the franchisee didn’t plan for cash flow needs.

Consumer demand

Most home renovation franchises are in a growth phase right now with an expected growth of between 3.3% and 4.2% through 2026 according to the Home Improvement Research Institute. That said, some franchises can be more seasonal (i.e., landscaping, or outdoor painting), so be sure to consider what the year-round opportunity is for customers.

Franchise reputation

A better-known franchise may be easier for customers to recognize, but even little-known franchises can provide great opportunities if they have high-quality standards. Dive into the quality of the suppliers, the reputation of the franchise, and how they have handled any issues in the past.

Franchisor experience

Tagging onto the reputation, look at the story of how the franchise became established. What was the idea and who was responsible for bringing it to fruition? Did it operate independently before franchising? What is the experience of the franchisor team who will be helping you?

Your abilities

While a franchise is built on a repeatable model, you still need to evaluate whether you have the appropriate skills to be successful in this line of work. Be brutally honest about the skills you bring to the table, and the skills you think might be required that you may not have. This doesn’t automatically eliminate a home renovation franchise from consideration; it may just mean you need more training in certain areas. Choose a franchise that works well with your strengths.

Competition

You will always have competition in business, and it’s not a bad thing. Just make sure you have a good position in the industry from which to be successful. For example, if you choose a flooring franchise and there are other flooring franchises in the area, plus big-box retailers, you may have a tougher go of it than selecting a franchise that is not prevalent in the same territory or that has more of a niche market audience.

 Training and support

Even if you have experience in the industry or in running a business, you want a top-notch training and support program. The best franchises will have obvious investments in these areas and will stand out when you compare them to others. Training and support go beyond the launch experience and into marketing, technology, operations, human resources, vendor evaluations, and more. You want a deep bench of commitment from your franchisor here.

Expansion plans

In this area, you want to know two things. First, is the franchise growing at a sustainable rate? Second, is there room to grow with multiple units? Sustainability and long-range plans show good business practices by the franchisor. Even if you don’t become a multi-unit franchisee, if the franchisor has a good track record in growth, that’s good for you.

Join a home renovation franchise that meets the criteria

While you are evaluating, ProSource Wholesale should be on your list of considerations. This franchise offers a $5.8 million AUV, multi-unit growth, key support investments, and a billion-dollar buying power platform that serves a niche market in the industry. Find out how ProSource Wholesale could be the home remodeling franchise opportunity that would be a great fit for you.