You see owning a disaster cleaning and restoration company as your next business venture. One of the most practical ways to proceed is securing a franchise. That begs the question: which cleaning and restoration franchise would be the best one? As you compare Servpro franchise opportunities with other well-known brands, keep the following in mind.
The Qualifications For Becoming a Franchise Owner
While you may be attracted to a particular franchise, it’s never a case of you being the only one who is selective. Franchisors also have specific qualifications that must be met before anyone becomes franchisees. It’s good to look closely at those qualifications before approaching any franchisor.
In general, you do need to have a certain amount of practical experience that relates to the business venture in some manner. It’s also good to have a decent credit rating and a solid business plan for making the franchise a success. Take a good look that’s required alongside how well the franchisor fits your criteria. If it looks good from both perspectives, the deal is worth investigating further.
Access to Funding That Keeps the Operation Afloat Early On
There’s the need for more financial resources than covering the initial franchise fee, the startup costs, and building an inventory of goods and equipment that will be used to take care of your customers. Since it will take time for the franchise to begin generating income, make sure there are reserves to cover all of your basic monthly expenses.
It’s not just a matter of paying utilities, meeting payroll, and paying the lease or rent on a facility. You also have to think about obligations to the franchisor. That includes royalties that must be paid according to a predetermined schedule. Have at least six months of resources on hand that you can fall back on, even if the company doesn’t generate a penny. By the time the money is exhausted, the franchise will be well on the way to profitability.
The Demand For Services in Your Area
You can choose the best among all of the Servpro franchise opportunities and the others, and still miss the boat. What’s the issue? You misjudged the demand for disaster and restoration services in your area.
The problem could be the market is already glutted. Companies already offering the same basic services may be handling the current demand well. In that scenario, you’ll find attracting attention away from the established companies difficult. If it’s true that the competition is having a hard time keeping up with the demand, you have a better chance of getting in the door and beginning to build a name for yourself as a franchisee.
Franchisor Support Available Now and In the Future
One other component to consider is the type of support you can expect from the franchisor in the future. It’s not just about being able to use the name and any marketing materials that are already available. You also want to know if there are resources you can draw on when and as the need arises.
Find out what sort of support with new employee training is available. Think about any type of volume purchasing arrangement that’s made available to the franchisees. It also helps if the franchisor provides access to help with human resource issues, and even support with setting up or updating accounting processes.
The goal is to establish a relationship that serves both parties well. Take your time, compare what different franchises have to offer, then make your choice. Doing so increases the odds of being just as happy with the selection ten years from now as you are today.