This is the third installment in a four-part series on the most popular franchise types: quick-service restaurants, retail and automotive franchises, personal services, and professional services. Although the franchise world is full of options for just about every interest and background, these four types of franchises are the heavy hitters when it comes to industry share. This continuing series breaks down the advantages and disadvantages of each type, so you can make an informed decision about whether one of these options is right for you.
Personal Service Franchises: Reaching Your Goals While Helping Others
Personal service franchises are the second-biggest franchise sector by number of employees, with almost 550,000 people employed in 2019. Economic output, at $41.1 billion so far in 2020, is considerable but lower than other top categories. This may reflect the fact that personal service franchises tend to average about five employees per business (vs. 10-20 employees per business for the other big franchise categories).
As a group, personal service franchises have a unique characteristic. Among franchise types, they provide the greatest opportunity to achieve your personal goals while also helping others. This franchise category includes options such as gyms and salons, tutoring, health care and wellness, and veterinary care. In other words, services that truly serve customers and their families.
Personal Service Franchises: The Advantages
One of the biggest advantages to personal service franchises? Compared to other types of franchises, they often cost less to set up and operate. While some options, such as salons or gyms, require a brick-and-mortar location, many allow you either to serve your clients entirely from home or to base yourself at home and travel to your clients to provide services. And unlike food or retail/automotive franchises, most don’t require you to purchase a lot of specialized equipment or maintain an inventory.
Personal service franchises can also be a good choice because they often fly under the radar. When people think of franchises, they usually think of food service. Many don’t realize that franchising is available for services such as home health care, tutoring, child care, or veterinary care. That means these types of franchises are often more affordable to purchase, and the competition for spots is often lighter.
Personal Service Franchises: The Disadvantages
On the flip side, many of these franchises offer services that people consider luxuries. Your business may therefore be more vulnerable to economic downturn, or you’ll have to cater to affluent clients (who are harder to find). You can mitigate your risk by choosing a franchise that focuses on essential services, such as health care, or that requires clients to sign six- or 12-month contracts. Also consider opening multiple locations or expanding your territory. Then, if one location or area takes a hit, the others will continue to provide revenue.
Some personal service franchises also have specialized requirements that raise the barrier to entry. Many–such as child care, veterinary care, or home health care franchises–are heavily regulated. They may also require highly skilled labor. A tutoring franchisor, for instance, may require you to employ people with college degrees and teaching certifications. If you prefer not to deal with such requirements, consider a franchise in a less-regulated industry such as travel planning, salon services, or fitness.
The Inside Tip
Personal service franchises are perfect for people who want the support provided by franchising but still want to put their personal stamp on a business. You aren’t selling a prepackaged product or preparing food according to a rigid recipe. Even if you’re offering a set menu of services, or following a specific methodology set by the franchisor, there’s still a lot of room to bring your personality into how you help your clients. Your interactions will be less transactional and more relational.
Feeling like a personal service franchise might be the right choice for you? Don’t try to sift through the thousands of options on your own. Schedule a call with me, and I can help you find the perfect fit for your particular skills and goals!
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