What is Franchising?
It’s a relationship and an opportunity
A franchise is a business model in which a company (the franchisor) gives other parties (franchisees) the right to use its trademark to sell goods or services according to its terms. (The legal contract for this arrangement is usually called a franchise agreement.)
The franchisee may benefit from the company’s established business systems, recognized brand, training programs, and other support. These benefits are typically given in exchange for an initial investment, a franchise fee, and a set percentage of sales revenue (royalties).
A Genuine Win-Win
The success of the franchise model comes down to one simple thing: an agreement between the franchisee or owner (that’s you) and the franchisor (that’s us). You agree to make an initial investment and pay regular fees, and we agree to share the benefits of our established brand and proven system with you.
The Mutual Benefits Of Franchising
Our Role
- Established Business Model
- Recognized Brand
- Established Systems
- Ongoing Training & Support
Your Role
- Ownership & Operation
- Technical or Business Expertise
- Franchise Fees
What Franchising IS
- An Investment: An opportunity for your money to grow through your own hard work.
- An Established Business Model: Our franchise brand model has been proven hundreds of times nationwide.
- Your Independent Business: Be in business for yourself without having to be by yourself.
What Franchising IS NOT
- Employment: You own the business, you make the schedule, you run the show.
- Out Of Reach: Lower-cost opportunities like many of the Neighborly® brands make franchise ownership accessible.
- A Guarantee Of Success: Success is determined by countless factors, but primarily depends on your leadership.
Do you dream of starting your own business — or growing your existing one — but aren’t sure where to begin? By choosing the right franchise opportunity, you can set out on a new, more rewarding career path.
Franchise Examples
Think food chains like McDonald’s® fast food restaurants, fitness outfits like Anytime Fitness® centers, and home service opportunities within our Neighborly® brands. These reputable companies are powered by the many business owners in the franchise system.
A franchise is a unique opportunity to grow a business — your individual business as well as the larger corporate business. It’s a relationship that varies from company to company, so if you want to join in, read up on the details of the franchise model, and engage with a franchisor that offers the right benefits.
Business Ownership Made Easier
Franchising is designed to make business ownership more accessible because the initial investment of time, money, and effort are generally less than starting a business from scratch. However, franchising isn’t for everyone. Some entrepreneurs don’t like the structure that a franchise provides, while others thrive because of it.
The decision to become a franchise or an independent business owner all on your own is a personal one. Neighborly provides the information to make the right move for your professional and personal goals.
Home Service Franchise Opportunities
When you find an opportunity and industry that really suits you, franchising can be rewarding in both the short and long term. If you’re interested in the home services industry — from house cleaning to HVAC to landscaping—connect with us at Neighborly. As a franchise business owner of one of our national award-winning brands, you’ll maintain independence and flexibility while having access to ongoing training and support.
Neighborly is proud to give aspiring and existing business owners the chance to stand out in competitive industries and build the lives— and the legacies —they’ve always wanted.
Being your own boss
Research has also shown that people who work for themselves are often happier. As your own boss, you’re able to manage your own time, express yourself creatively, and make money doing what you love. But not everyone fits the mold. For some, being the boss can lead to isolation or an uncomfortable lack of structure.
You know yourself better than anyone, so take the time to consider the pros and cons of being the boss. If you decide that being your own boss is your next career step, then you have plenty of career options, including:
- Contract or freelance work (copywriting, furniture building)
- Owning a franchise (an established regional or national brand)
- Owning a product-based business (restaurant, brewery, fashion, commercial retail)
- Owning a service-based business (tech support, fitness, graphic design, house cleaning)
The Security and Structure of an Established Brand
Out of the many possibilities for being your own boss, franchise business ownership is the most structured option. Typically, the franchisor (parent company) provides established business systems that you can follow to mitigate risk. In addition, franchise ownership provides: the following:
Name recognition
Franchising with a well-known company that has positive brand recognition can lead to an increased customer base and faster sales. This helps mitigate startup risks.
Training and business development support
Franchisees can reach out to the franchisor’s network for support, which may include ongoing business training and consultation as well as employee training and retention strategies, proprietary technologies, and more.
Marketing and advertising support
Many franchisors offer marketing tactics or plans, including branded materials that franchisees can use. Some franchisors run national campaigns for brand awareness, which benefits franchise owners at the local level.
Guidance for financing
Lenders are often more likely to finance reputable franchises instead of brand-new businesses that carry more risk. Plus, a good franchisor will guide franchisees through the financing process.
Independence, not isolation
Even if you know how to be your own boss successfully, you don’t have to go at it alone. The right franchisor provides the support system to tap into, while you run your business independently.
The Neighborly® Difference
When you find an opportunity and an industry that really suits you, franchising can be rewarding. If you’re interested in a home services industry — from house cleaning to HVAC to landscaping — connect with us at Neighborly.
Neighborly offers unique opportunities to be your own boss and reach your full potential. In addition to the standard benefits offered by any reputable franchisor, we provide our franchisees with networking and cross-promotion opportunities, vendor discounts, and lead generation support.
When you choose a home service franchise opportunity with Neighborly, you’ll have the independence of being your own boss while receiving unbeatable support from a large network and nationally recognized organization. Every step of the way, Neighborly is committed to your success.
To find out which of our home services brands is right for you, fill out our form below to connect with a franchise advisor.
Why Invest in a Franchise?
Franchise ownership offers freedom, flexibility, and the opportunity to control your financial destiny. And, unlike independent entrepreneurs and standalone business owners, franchisees have the benefit of backing and support from a proven, national brand.
When you’re in charge of your own business, you can set your schedule, make staffing decisions, advertise and market to your specific community, and run day-to-day operations on your terms. Leave behind the guesswork and uncertainty that comes with standalone business ownership. As the world’s largest franchisor of home services brands, Neighborly has more than {Franchise Owners} franchise owners who have realized great success from being a part of our growing organization.
Financing your franchise
Being your own boss and securing the funding to do so isn’t as far out of reach as you may think. Here are some options for financing a franchise, but keep in mind that each franchisor may have a more specific list of acceptable financing options.
- Pay in Full (self-capitalized)
- Commercial bank loans
- SBA loans
- Alternative lenders
- Investment Account rollovers (401K)
- Franchisor financing
- Friends-and-family loans
Yes, there’s more than one way to buy a franchise! Get the details below.
7 Ways To Fund Your Franchise
- Self Capitalized
Some franchisees choose to launch their business from existing funds they accumulated from a savings account, money market account, or from the sale of another business. - Commercial Bank Loans
This type of loan gives you the money up front, and you pay it back monthly (with interest) over time. Talk to your personal financial institution about this option. Lenders are more likely to approve loans for franchises than for new, independent small businesses. This is because franchises usually carry less risk, as they likely have a proven business model and brand recognition. - Small Business Administration (SBA) Loans
SBA loans operate similarly to commercial bank loans but with lower interest rates and longer repayment timelines because the U.S. Small Business Administration (SBA) guarantees a portion of the loan amount. - Alternative Lenders
Loans from alternative lenders operate like commercial bank loans, but they include some additional terms that will cost you. These loans may be smaller and have shorter repayment periods. Many small business owners pursue alternative franchise funding if they’re unable to secure a traditional loan. Check out this list of reputable alternative lenders at Business News Daily. - Investment Account Rollovers
Rollovers as Business Startups (ROBS) is an often overlooked option for franchise funding. If you have an inactive IRA or 401K that isn’t growing as you’d like it to, you could roll it over to fund your business . This option for financing a franchise is typically used in conjunction with an SBA loan. - Franchisor Financing
Ask your prospective franchisor if they offer tailored financing plans for new franchisees. A franchisor might do this through a lender partnership or with capital from the company itself. This can make the startup process smoother for a franchisee because financing plans from the franchisor will account for the franchise fee and accurate funds for items like equipment. - Friends-and-Family Loans
You and your lender (a family member or friend you know and trust) can decide on the loan terms. Just make sure you create a contract. The terms should ideally include a lower interest rate and longer payback period than a commercial bank loan.
Tips for Securing the Right Amount of Funding
Once you’ve picked a franchise brand and understand your options for financing, it’s time to secure the money you need to buy. Here are some helpful tips:
- Find out how much money you need to borrow.
- Calculate the entire initial investment, including the franchise fee.
- Account for any advertising fees, royalties, or other fees.
- Account for other associated costs like business insurance.
- Create a detailed business plan based on market research.
- Print your official credit history.
- Compile your personal financial information (income, assets, bills, and debts).
- Research lending and financing options.
- Schedule an appointment with a loan officer at your financial institution.
- Seek alternative franchise funding if a commercial bank loan or SBA loan is not possible.
- Carefully review documents before signing.
Franchise Training
Franchise training and support are often the main reasons that entrepreneurs choose franchising instead of traditional, independent ownership. However, not all franchisors offer first-rate franchise training. Even if a corporate franchise claims to have an excellent system, their business training for franchisees may not last more than a couple of months. Neighborly and its franchise brands are with you every step of the way.
A quality franchise training program may include the following 10 items:
- Ongoing business training for the franchisee throughout the life of the contract
- Individualized advice from a dedicated business consultant
- A deep dive into your business plan
- Dynamic franchise training that deals with the latest industry and market innovations
- Technology training (bonus points if key technologies are provided)
- Marketing training based on established systems
- Franchise management training and leadership guidance
- One-on-one access to industry mentors
- Regional training events and conferences
- Recruiting and onboarding training materials and guidance
Neighborly offers an array of franchise opportunities with well-known, trusted, and proven home service brands, and supports each franchise owner with comprehensive training and support. With Neighborly franchise ownership, your professional and personal dreams can come true.
CREDIT: Neighborly