fbpx

Finding The Best Franchise To Own

A 10 Question Survey To Help Walk You Through The Process Of Choosing A Franchise That Is Perfect For YOU!

man highlighting pages trying to find who has the best franchise to own

Finding the best franchise to own for you is NOT necessarily the best franchise for someone else.  However, after answering these nine questions, you will begin to synthesize the right industry.  Question 10 will answer how to find the best franchise inside that industry.

Question #1 What role do you want to play in your business?

When buying a franchise, your role could be hands-on, passive or CEO style.

Let’s explore each of these options.

Scenario #1 Hands-On

As an example, a home inspection franchise or a blind installation franchise will most likely require the franchisee to inspect or install the product initially.  This type of franchise typically will have higher margins but it is slower to grow. 

Why? 

Because when you are working in the field, you are doing little to grow the business.

Scenario #2 Passive 

Do you prefer a passive role in the business?  These franchise models are not the norm.  Some fast food and convenient franchises like Coffee Service Franchise offer this type of  opportunity. 

Passive income is a great option, but it comes with limitations.  For example, a typical Subway costs about $250,000 and brings in around $40,000 – $60,000 in net income per year.  

Scenario #3 CEO 

A third option is operating a business as the CEO.  You wear many hats in the beginning stages, but none of them require you to do the physical work.  The involvement of the CEO-style franchisee is to grow the business through leadership.   

In your opinion, which one of these do you feel is the best franchise to own?

Question #2  Are you looking to scale the franchise?

Storefront franchises, like restaurants and beauty salons, have limited seating capacity.

If you want to scale a storefront business, it will require you to buy additional storefronts. 

On the other hand, home-based franchises give you a specific territory.  In this scenario, you or your staff is going to the customer.  This gives you control over deciding if a job is worth the drive. 

FYI – Home service businesses have widely different territory sizes, even in the same industry.  For example, most painting franchises, such as CertaPro, have territories under 250,000 people.  Klappenberger & Son franchises are typically between 500,000 and 800,000 people. 

On an aside, if scalability is vital for you, look for franchises that offer multiple services.  For instance, some franchises only patch drywall.  While others, like Klappenberger & Son, offer drywall patching, painting, and remodeling.  The more services you can offer, the more opportunities there are to grow.

How Important is scalability to you? 

Question #3  How Much Time Do You Want To Devote To Your Franchise?

Some franchises are seasonal, such as Liberty Tax or Mosquito Joe.  These franchises are great for someone who wants seasonal work.  Other franchises are part-time endeavors.  They will give you the flexibility to focus on other things in life besides work. 

Most home-based franchises come with no initial customers.  Getting these franchises up and running takes time and commitment.  Therefore, a  part-time approach will not be sufficient.  Even if the franchisor has a robust marketing plan, it still takes time to develop a solid customer base.  

I am willing to invest ________ amount of time per week.

This clock represents that finding the best franchise for you depends on how much time you want to invest

Question #4 To Find The Best Franchise For You, What Is Your Budget?

I wouldn’t go shopping for a house without getting pre-approved for a loan.  The same logic is valid for buying a franchise. 

Franchises cost anywhere from a few thousand dollars to millions.  Check with your financial advisor, bank, or SBA to find out what your options are. I recommend that you invest no more than 50-70% of what you are capable of investing. 

Why?

First, not maxing out your credit will give you peace of mind.

Secondly, it is crucial to have a reserve for emergencies.

Finally, you will sleep better and focus on growing your franchise.

If I invest no more than 50-70% of what I can currently support, I can afford to invest ____.

Question #5 Do You Prefer A Storefront or Home-Based Franchise?

people at a coffee house inn US
If you are comfortable with the additional expenses, a storefront franchise might make sense. 

Storefront franchises where customers gather are undoubtedly an attractive lure for franchisees.   

Why?

It’s fun to see people socializing at a Starbucks, especially if you own it!

But many times, the actual properties are leased and not owned. 

In addition to a $5,000 per month lease (which adds up to over $600,000 over ten years), annual remodeling fees can reach six figures.  

Secondly, a competitor (or two) can easily move across the street.  If you have a great location, why wouldn’t a competitor want to be right next to where customers are already heading? 

If I were to choose between a storefront or a home-based business, I would select ____________. 

Question #6 Who Is Doing The Driving?

Having customers come to you sounds excellent for so many reasons.

First, it saves you time.  

Secondly, it’s exciting to have people who want to come to your place.  They can eat, drink, and socialize for business and pleasure.

However, as with all good things, there is a downside.  People will only travel so far for your service.  If you own a Minute Man Press, at some point, the customer is going to say,

“That’s too far to drive. I’ll go to Office Depot because it is so much closer.” 

Most storefront businesses have geographic limitations.  

Territory restriction aside, if you drive to the customer’s house, it is up to you to consider what is too far.  When you or your team go to the customer, you have more control of the growth. 

An acceptable radius to drive for work is ________ miles.

Klappenberger & Son Franchisee

Question #7 Do You Want Employees or Not?

Responsibilites of starting a painting business

Having employees is a big important question.  If you want a scalable and valuable franchise, you will need bodies to get there.  

I understand that you are looking to buy and not sell a franchise; however, one day down the road, you will be thinking of an exit strategy.  It is therefore important to purchase a franchise that increases in value and is sellable. 

What Are The Pros & Cons Of Having A Staff?

Having a staff operating different responsibilities allows you the freedom you ultimately wanted from the start.  However, you need to consider the tasks that come with a staff.  In addition to kissing many frogs, you have to take time to hire, train, replace, and repeat.

People are messy, and you will need a great deal of patience and leadership.  If you are up to the task, there is potentially a big pot of gold, a lot of stories, and battle scars in store for you.

When it comes to my franchise, I would ultimately like to have ____ employees.

Question #8 Is The Best Franchise For You Recession Resistant?

Grocery Stores, liquor stores, cosmetics, and home services are among the most effective franchises during a recession. 

Retail, Restaurants, entertainment and hospitality suffer much higher losses.

Moreover, the businesses that are hardest hit during a recession all have storefronts.  

A franchise industry that will do well during a recession (and that I am interested in) is ______.

Starting a painting company without training can cost youu a bag sack of money as this picture shows

Question #9 Is the Industry Pandemic Resistant?

Announcement on window sating that a reastuarant is closing due to CPVID after being open for 83 years.

Who would have thought to ask this question before COVID?  Not me.  However, we are now in different times.  

I can tell you firsthand that painting and remodeling were affected negatively for about two months.  The remainder of the year was quite strong.  

Bloomberg has an article entitled

Restaurant Closings Top 110,000 With Industry in ‘Free Fall’

Whatever industry you are looking into, please do your due diligence.

A franchise industry that will do well during a pandemic (and that I am interested in) is ______.

Question #10 When I Find The Right Industry, How Do I Find The Best Franchise In That Industry?

Great question.  So far, the first 9 questions have given answers to which industry might be worth exploring or avoiding.  

Regardless of how you answered the questions, you should be pointed in a particular direction.

So, how do we find the best franchise in a particular industry?  My franchise, Klappenberger & Son, is in the painting and handyman industry.  The evaluation process I am going to show you applies to any industry

Every franchise has a document called a Franchise, Disclosure Document, or FDD for short.  The FDD is divided up into 23 Sections called Items.  Every franchise has the same information in each section (Item).  For example, if you want to compare franchises’ royalties and other fees, you will find it in Item 6 in the FDD.

In finding the best franchise, you must compare Item 6!

Consider this: if a franchisor charges 1 to 2% more than another franchise, it will likely add up to over $100,000 during the contract’s life.

In other words, if your gross sales are $1,000,000 per year, each percent is $10,000 out of YOUR NET PROFIT. 

Chart showing fees of Klappenberger & Son
Over a ten-year period the difference can add up to over $100,000 in out of pocket expenses.

As you take a close look at these comparisons, it is easy to see that there are vast differences in:

  • Start-up costs
  • Ongoing fees
  • Territory size 
  • Training
Klappenberger & Son is a substantially better opportunity in every category than CertaPro and Wow-1-Day painting with only one exception. 

!Shocking! 

How does Klappenberger & Son compare to other painting franchises?

Moreover, how does Klappenberger & Son compare to other handyman franchises?

Give us a call to discuss all this and more!

Klappenberger & Son’s Benefits Are Over The Top 

Guarantee:  No one else offers a Franchise Guarantee, and ours is a doozie!

If you follow our system and fail to gross $500,000 in your first 20 months, we will refund your franchise fee in full.

Training:  In addition to our 4 weeks of training, we offer 2 additional weeks of training in your territory.  This shows a commitment to you that no other painting or handyman franchise offers.

Decreasing Royalties:  Klappenberger & Son’s royalties drop to 5% after the franchise reaches $700,000 in gross sales.  Furthermore, it decreases to 4% after $1,000,000 gross sales per calendar year.  

An Often-Overlooked Industry Is "Painting & Handyman"

Let’s Be Honest:  What Is Your First Reaction To Considering This Industry?  

  • It is not a sexy industry.
  • I hate to do painting and handyman.
  • Where will I find people to do the work?
  • I don’t know anything about this industry.

Yes, and this is a common reaction.  That is why it’s a great industry!!

It is not a sexy industry.  Telling your friends that you own an Acme Burger Joint sounds so much cooler than a painting and handyman company; however, it costs $500,000 and generates $115,000.

“I hate to paint, and I am not handy!”

Exactly, and you are not alone.  More than ever, fewer people can make repairs and are willing to tackle painting projects.  It makes the industry recession-resistant. 

“I don’t know anything about the handyman or painting business!”

Most of our franchisees had no previous knowledge before owning a franchise. In addition, all of our franchisees came from white-collar jobs.

“If I buy a franchise, do I get leads or estimates provided to me?”

Our website provides our franchisees with leads.  Many of our franchisees get multiple leads every day.  Typically organic lead generation takes a few months.

To have a successful and robust business, additional marketing systems will be necessary.

Get started today with Klappenberger & Son by requesting a Franchise Kit.

The Best Handyman Franchise

Evaluating 4 Handyman Franchises Mr. Handyman Handyman Matters Klappenberger & Son Handyman Connection If you are looking to invest in a handyman franchise, you have

Read More »

Finding the Right Customers

You Maybe 5 Great Customers From Growing Your Business Here’s a question for you:  How many companies could survive with just 5 great customers?   Not many,

Read More »