Why Service Franchises are Smart Investments
Explore the world of service franchises. Unlock the reasons behind their success, understand compelling statistics, and identify high-demand sectors that could be your key to entrepreneurship.
What is a Service Franchise
A service franchise focuses on providing a service rather than selling a product. Common examples of this type of franchise are cleaning services, automotive repair, handyman services, tax preparation, tutoring, or senior care. A service-based opportunity can cater to consumers or commercial businesses, such as commercial cleaning, marketing, or printing.
There were at least 743,506 service-based franchises in 2023. Service-based businesses are forecasted to be one of the fastest-growing industries this year, according to the International Franchise Association. The personal services sector, which includes health and wellness and childcare services, is expected to jump 3% in 2024.
These customer-focused franchises offer recurring revenue because their services are consistently in demand. Services like home repair, cleaning, and personal grooming are always needed, regardless of economic fluctuations, providing a steady stream of business opportunities. Many service-based franchises require a low initial investment and can be operated from a home office.
While some service franchises are designed as owner-operator businesses, many need to hire reliable talent to serve customers. Recruiting the best talent can be challenging in a competitive labor market. Some services are seasonal, such as lawn care or power washing. To combat seasonality, some entrepreneurs will focus on vertical expansion by adding additional brands to their portfolios.
Spotlight on The Tailored Closet
The Tailored Closet is one of the best service franchises, providing organization and storage solutions for residential customers and area businesses. We design and install whole home organization systems, including, hobby rooms, laundry rooms, home offices, wall beds, entryways, mudrooms, and pantries.
The home organization industry is slated to generate $11.7 billion this year. The Tailored Closet is a turnkey franchise. We offer sliding-scale royalty fees and in-house financing to make this opportunity accessible to new entrepreneurs. You don’t need contracting experience to be successful. The Tailored Closet owners focus on customer service and hire contractors to handle installations. You’ll have minimal inventory and can rely on a proprietary, 3D software program to create visual designs for customers.
Steps to Become a Franchisee
If you’re interested in partnering with The Tailored Closet to launch a home organization business in your community, we’ve honed our step-by-step process over the years as we’ve grown. The Tailored Closet launched in 2006 and now has 162 locations across the U.S.
- Connect with our franchise advisors: Complete the online form to connect with one of our franchise advisors to learn more about the brand. We’ll discuss your interests and tell you more about our business model to determine if it’s a good fit.
- Review the FDD: After your call, we will send you our franchise disclosure document (FDD), which contains essential information about costs and fees, legal issues, turnover rates, and other information about our franchise offering.
- Determine your territory: Next, we’ll work with you to determine territory availability in your area, and you can start the validation process by chatting with existing franchisees to learn about the business.
- Meet our support team: During a virtual meeting, you’ll learn more about training and support, marketing, franchise relations, our CRM system, proprietary 3D design software, product strategy, and more.
- Become a franchisee: After you sign the franchise agreement, you’ll attend training at our headquarters and open for business.
Inquire now to learn more about one of the best franchises to own. Get started building a future in the home services industry with The Tailored Closet!