subject: Home Inspection Franchise – What Makes a Great Franchise? [print this page] Home Inspection Franchise What Makes a Great Franchise?
Home inspection franchise opportunities have become increasingly popular, as a result of their significant growth prospects.
That's due to the fact that home inspections - once rare - take place in increasing numbers of home purchases every year. Believe it or not, an alarming majority of real estate agents (99% according to a National Realtor Association Study) push their buyers to get one! US GEO estimates that, "94% of buyers are likely to get a home inspection for future purchases."
That's a lot of home inspections! Also, that's a lot of potential forpeople pondering buying into a home inspection franchise.
What is also exciting is that, nowadays, home buyers AND sellers understand the tremendous value of a home inspection. Home buyers know it provides protection for their investment. Home sellers are aware of the fact that pre-listing inspections drastically reduce surprises and re-negotiations, and are proven to sell homes quicker and for higher prices. Without the need to convince customers to get a home inspection, many certified inspectors are more successful than ever.
So, what makes a great home inspection franchise opportunity? Here are a few vital things to look for.
A Powerful Competitive Advantage:
In some towns, home inspectors are everywhere, so to be very successful, a home inspector needs to have a competitive advantage over their competition. A great home inspection franchise will provide this competitive advantage right off the bat. Advanced certifications, the comprehensiveness of the service, and powerful, marketable guarantees can really drive customers to your door. Some inspections sell themselves over the competition - many don't.
A Step by Step Marketing Plan:
When you choose your franchise, make sure that they provide their franchisees with a stey by step marketing plan. There's nothing worse than purchasing a franchise and finding out that there is little support, marketing collateral, or a proven plan to generate new and repeat clients. The franchise YOU select should provide this step by step plan to you, including proven marketing pieces, sales campaigns, websites, and much more.
Reputation & Experience
Just because a home inspection company has a franchise to sell you, doesn't mean their reputation is any good. Be sure the company you choose has withstood the test of time and has a great reputation in the industry. Be mindful of who owns the company and their experience in the industry.
Realtor Focus
Realtors are in a unique position to bring home inspectors a TON of clients. Is this franchise you're considering taking this into consideration? Do they have a marketing plan for generating consistent referrals from real estate agents in your area? You'll have a much easier time if they do.
Rights to an Exclusive Territory
There's nothing worse than buying a franchise and finding out that there is another business owner going after clients in your area! A franchise that truly values its business owners will grant you an exclusive territory in which to grow. This is vital to your success!
Quotas
A lot of franchises charge what's called a "sliding scale royalty fee" charged on their franchisees' weekly revenues, generally between 6 and 9 percent (this is pretty much "taxing" success) plus co-op ad fees of 1 to 3 percent. In additionto that, quite a few franchises demand a monthly minimum or "quota" that needs to be reached.
These fees bring undue stress on the franchisee -- and besides, it's hard to figure out how penalizing your business owners (by making them give up more of their profits as their businesses grow) is fair. Be sure that you understand and agree with the fees your home inspection franchise expects to charge you. Or better yet, go with a company that has no quotas at all and charges just a flat fee!
