Franchise Success: What It Takes to Be a Successful Franchise Owner

Dec 15, 2023

Franchise success requires choosing a respected franchisor, like Premium Service Brands (PSB), and putting in the effort to follow the system, manage the business effectively, and provide outstanding service. Learn what makes a franchise successful and how to set yourself up for franchise success from the very beginning.

Understanding Franchise Success

Franchising is a two-way street. The franchisor provides the framework, but your drive, commitment, and execution truly bring success. A good franchisor will offer a proven business model, comprehensive training, ongoing support, and a strong brand reputation.

At the same time, the franchisee must be committed to following the system, maintaining brand standards, and putting in the necessary effort to grow the business. It's a partnership where both parties must actively participate and contribute.

Signs of Success

Financial performance is usually the primary indicator of success in franchising. It involves achieving profitability, maintaining healthy cash flow, managing expenses effectively, and seeing a good return on investment.

For many franchisees, satisfied customers are a sign that the franchise delivers on its promise of quality and service. High levels of customer satisfaction lead to repeat business and referrals, which are vital for the growth and sustainability of the franchise.

Growth is another indicator of success. Whether you’re adding locations of the same brand to increase market share or brand stacking to diversify your services, scaling your business is the key to longevity.

Having the ability to adapt to market changes, embrace new technologies, and innovate within the framework of the franchise system is crucial. Establishing a strong presence in the community and understanding local market dynamics can significantly contribute to a franchise's success.

Beyond financial metrics, success in franchising is also about personal satisfaction, work-life balance, and creating a positive work environment for employees. At least 64% of franchisees are at least “somewhat happy” they decided to pursue entrepreneurship through franchising, according to a survey conducted by Guidant Financial.

Key Steps toward Franchise Success

Follow the franchise system: Follow the franchise playbook. The system, with its set procedures and guidelines, is a culmination of what has worked (and what hasn't) over the years. It's a blueprint for success refined through trial and error. By following the system, franchisees can avoid common mistakes that new business owners might make. This adherence includes everything from operational processes and marketing strategies to customer service protocols and branding guidelines. It's about trusting the system and understanding that it's designed to maximize efficiency, profitability, and brand consistency.
Focus on local marketing: While franchisors provide overarching marketing strategies and brand-level advertising, understanding and capitalizing on local market dynamics is important. Tailor your marketing efforts to the specific needs, preferences, and characteristics of the local community. It could mean engaging in local events, utilizing local media channels, or creating promotions that resonate with the local audience. Successful franchisees often find innovative ways to connect with their community, building a loyal customer base through targeted local marketing efforts.
Provide high-quality customer service: In the home services industry, customer service is not just a part of the business — it's the heart of the business. Exceptional customer service leads to customer satisfaction, repeat business, and referrals, which are necessary for growth and sustainability. It goes beyond meeting customer expectations to truly excel by being professional, punctual, and delivering quality work with a personal touch.
Conduct proper financial management: Effective financial management is the backbone of any successful business, and franchises are no exception. It involves prudent budgeting, monitoring operational costs, and understanding financial statements to make informed decisions. Financial management helps maintain a healthy cash flow, which is essential for the smooth operation and growth of the franchise. It also involves setting long-term financial goals and preparing for market fluctuations or unexpected expenses.
Participate in ongoing education: You may need to adapt to new technologies, changing consumer trends, or shifts in the industry. Successful franchisees are proactive in learning and adapting. They seek knowledge, whether it’s through franchisor-provided training, industry seminars, or self-driven learning. It also involves being open to change and willing to innovate or pivot when necessary to stay relevant and competitive.

Why Premium Service Brands Stands Out

According to a report by KPMG, the home services industry is experiencing significant growth, driven by trends in home ownership and consumer preferences for professional services. The Federal Reserve Economic Data shows a relatively steady increase in median sales prices of houses sold in the U.S., indicating a growing market for home services. Historically, homeowners should anticipate spending 1% to 4% of their home’s value on maintenance costs annually. Based on the median home price in the U.S., the median homeowner should anticipate spending $4,368 to $17,472 per year for maintenance costs.

Premium Service Brands offers a competitive advantage for entrepreneurs in the home services industry. With a range of services under its umbrella, PSB provides multiple avenues for business growth and cross-promotion opportunities, and each brand has a tested and proven business model, reducing the risk for new franchisees. We’re the franchisor of 360° Painting, ProLift Garage Doors, Maid Right, Kitchen Wise & Closet Wise, Window Gang, Rubbish Works Junk Removal, The Grout Medic, House Doctors, and RooterMan. Being part of a recognized brand can significantly boost a franchise's credibility and customer trust.

We offer extensive training programs and ongoing support, ensuring franchisees are well-equipped to succeed. We also invest in cutting-edge marketing strategies to keep our franchises at the forefront of the industry.

Learn More About PSB

If you’re interested in exploring franchise opportunities with Premium Service Brands, a leader in the home services industry, get started to learn more about how we can help you achieve your business goals.