Business Format Franchise: Definition, Examples and Ideas
Aspiring entrepreneurs embrace business format franchises for a turnkey path to achieve success. As part of the franchise model, franchisees get extra support for operating their business and pulling in new customers. Learn more about the business model.
This type of franchise business model grants franchisees access to a proven business system, which includes the product or service offerings, marketing strategies, operational procedures, and comprehensive guidance. As part of the franchise agreement, you need to follow the rules and guidelines laid out by the franchisor.
Business format franchises set themselves apart from other franchise models in several key ways:
- Turnkey business: Unlike other franchises that may offer a singular product or service, this format provides franchisees with a comprehensive business system encompassing all aspects of the operation.
- Proven brand: Franchisees not only benefit from the business system but also gain the right to use established brand names and trademarks, a significant advantage in attracting customers and building trust. Leveraging an established brand name can expedite customer acquisition and foster immediate trust among your target audience.
- Ongoing support: As part of the franchise deal, this business model comes with continuous support, ensuring franchisees are equipped to manage day-to-day operations efficiently, which can be particularly valuable for first-time entrepreneurs or those new to a specific industry. They offer extensive training and guidance, Franchisors also offer marketing and advertising support, aiding in reaching a broader audience effectively.
This franchise model spans diverse industries, catering to a wide range of interests and skills. Some notable business format franchise examples include renowned brands like McDonald's and Subway in the food industry, household names like The UPS Store and 7-Eleven in the retail sector, and established fitness centers such as Anytime Fitness and Orangetheory Fitness. In addition to these, The Tailored Closet stands out as a niche player in the home organization and closet design industry with 169 locations.
The Tailored Closet: Remodel Your Future
Amidst a growing desire for efficiency, convenience, and aesthetics in their homes, Americans are turning to professional home organization services. The trend is fueling a surge in demand for business format franchises like The Tailored Closet, which provides a turnkey solution for aspiring entrepreneurs to capitalize on the booming market. With its comprehensive business system, established brand recognition, and unwavering support, The Tailored Closet is poised to help aspiring home organization experts achieve their entrepreneurial dreams.
The U.S. home organization market is valued at $11.79 billion. At least 16% of homeowners renovated a closet in 2022, and nine out of 10 homeowners relied on a professional for a renovation project last year, according to a study conducted by Houzz.
You don’t need experience in contracting or home organization to be successful. We provide comprehensive training in organization and design techniques, business operations, and exceptional customer service. With a proven business system encompassing effective marketing strategies, streamlined sales processes, and precise operational guidelines, you can leverage an established brand to give franchisees a competitive edge in their local markets. The average annual sales for 25 single-territory The Tailored Closet locations in 2022 was $458,202. The average ticket price at 53 locations was $5,902.*
For an initial investment starting at $155,220, you can get all the tools you need to run a home organization business. We also offer flexible business models, including showroom-based or home-based options, to cater to a range of budgets. Most franchisees provide in-home consultations using our proprietary 3D software to paint a picture for customers. We pride ourselves on building first-class franchisor-franchisee relationships.
Here are some of the ways we stand out as a prime franchise opportunity:
- Protected territories with 100,000 minimum homeowners per area
- Sliding scale royalty fees
- National lead generation programs
- No franchisee manufacturing
- Minimal inventory
- Scalable business model
- Residential and commercial client opportunities
Learn More About The Tailored Closet
If home organization is your calling, we could be the brand to help you realize your entrepreneurial dreams. Inquire now to explore franchise opportunities with The Tailored Closet. *This is a historical representation of what some of The Tailored Closet franchised agencies earned, as described further in Item 19 of the FDD.