Serving up Success with Service Business Franchises

Trends in Franchising

By AMY COVINGTON

The service business franchise sector is infinite. Essentially, if a business sells services and not products, then it falls under the service business umbrella. Then there are those that fall into a gray area of selling both services and products, such as tanning salons. Service business franchises offer almost limitless options in terms of concepts to match a variety of interests, skills and experience. From printing and cleaning services to automotive and computer repair, there is a service franchise for just about anyone with the right set of skills and experience for that particular industry.

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If you are considering a service business franchise, all the same rules apply as for any other franchise concept. Before you begin the lengthy process of researching every franchise of interest, it is important to take personal stock and figure out what you really want out of a business opportunity-is it simply to make money or do you have a passion you want to pursue? Are you financially positioned to own your own business? When you apply for financing you'll be asked to present personal balance sheets, so getting this out of the way at the outset can save a lot of time in the long run. Doing so also will enable you to know which franchise offerings you can entertain.

Take inventory of what interests you and the amount of time you're willing to dedicate to your business and how much work you are willing to take on yourself. Owning a service franchise often requires franchise owners to pitch in if an employee fails to show for work, so if you have no idea how or have no desire to learn how to operate an embroidery machine or clean a house or groom a lawn, you may want to consider another industry.

The Right Formula

Another consideration during the franchise selection process is how long the franchisor has been in business. One of the main reasons to buy a franchise is to gain the benefit of using a recognized brand name, in addition to a proven system of operations. Is the concept so new that you would have to educate consumers about the merits of your service?

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One of the challenges in the beginning for Jenny Craig, now one of the leaders in weight loss services, was educating people about their services, as well as dispelling the stigma that particular industry carried due to unscrupulous weight loss companies, which produced ineffective products and services. "It was a challenge when Jenny Craig opened in the US (Jenny Craig first opened in Australia). It was not a recognized brand name," said Doug Fisher, Vice President, Franchise & Jenny Direct. "Weight Watchers was the biggest name in the industry but we are different than Weight Watchers. Our approach of one-on-one counseling was different. We also had to deal with the public perception that pre-packaged foods are t.v. dinners. There were a lot of companies selling products that didn't work."

Some franchise concepts start out with demand for the product but run up against supply shortages. "When we started there were much fewer choices on the supply side," said Instant Imprints' co-founder and president, Leo Kats. "There were a few basic t-shirts, jackets and hats but that was it. Today, suppliers have grown to meet demand." Now the print advertising industry commands $50 billion and a large portion of that is comprised of sales resulting from promotional items like pens, magnets, mugs, and promotional apparel. "There are a lot of small businesses now trying to look like the big guys," Kats said. "They're giving away promotional materials such as mugs, and it's inexpensive to have jackets and t-shirts with company logos on them."

Certain franchise concepts by nature enjoy the positive perceived value of being worthwhile, such as residential and commercial cleaning services and landscaping. Jan-Pro Franchising International, Jani-King and Lawn Doctor are among the highest performing maintenance and lawncare franchises. Other industries have struggled with negative public perception but still are viewed as necessary services, for example automotive repair, however some franchise such as Precision Tune are implementing plans to change the perception of their locations through remodeling efforts and diversifying their service offerings.

Fortunately for Jenny Craig and Instant Imprints they were able to secure a solid grasp on their niche markets, so that franchisees that buy in now benefit from established systems and recognizable brand names, without having to first educate their client base or worry about supply shortages. When you are looking for a franchise, closely examine the demand for a particular service-does it exist or are there strong indicators that the trend will continue or disappear into thin air? So what is the formula for success? Every situation should be uniquely judged but overall a franchise should be established, with a recognizable brand name, a service viewed as necessary or valuable, demand for that service, and an industry in which you have interest.

Do you have what it takes?

Whether you're selling pet grooming or accounting services, the edict that business know-how is the top quality sought by franchisors rings true for almost all service business franchise concepts. Having people skills also ranks high among desirable qualities in a successful candidate.

While silk screening and embroidering are specialized skills, Instant Imprints franchisees need not have previous graphic design and/or marketing skills. In fact, outstanding people skills and the want to "sell" a quality product are the two most important factors for success for the business owner, added Kats. Similarly for Jenny Craig franchisees. In fact, they prefer their franchisees to be past clients. "We like our candidates to have a small business management background, preferably a service background. We've had a lot of success with past clients as franchisees."

One main difference between service franchises and franchises that focus on selling products is the franchise owner's motivation. Many franchisees who get involved with a service-oriented franchise have a passion for that line of work. For Doug Fisher, working for Jenny Craig is rewarding because he helps change people's lives, which echoes the sentiments of many Jenny Craig franchisees. If you have a particular passion, it doesn't hurt to pursue franchise concepts that align with your interest. If you aren't sure where to start or where to look, franchise consultations like FranChoice offer free services, which help match you with the most appropriate franchise opportunity. If you have ambition and strong business acumen, and are in the right place financially, there undoubtedly is a service business franchise right for you.

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