The Right Franchise For You
It goes without saying but opening a business can be risky. That goes for starting your own business or opening a franchise location.
Statistics indicate that franchise based businesses offer the investor a higher success rate than starting your own business due to higher brand awareness, economies of scale associated with being part of a national network, access to high quality marketing materials, proven operational systems and on-going support programs.
Furthermore, as a result of corporate downsizing, the franchise concept is very attractive to educated professionals who can combine their corporate business experience with the desire to own their own business. This results in a highly qualified, highly motivated, business owner who in our case at OpenWorks is out-producing traditional janitorial cleaning companies at a consistent rate.
However, this varies depending on the franchise you choose. You, like most people, are probably wondering how you can select the right franchise brand that fits your financial realities, your skill set and your interests. Let’s break it down.
The rate of success of any given franchise depends on the current and future economic factors at play. The biggest factors to consider include whether the concept is a “fad” idea without longevity, positive market trends and trusted analyst projections of the market moving forward. For example, in OpenWorks case, most economists and analysts agree that commercial cleaning is a recession-resistant business, with the demand now in excess of $160 billion annually and expectations to grow to $175 billion over the next three years.
It’s more than just the initial franchise fee. The decision to become an OpenWorks franchisee is a life changing event – and the fee to secure the license is just the tip of the iceberg. Family, friends and trusted advisors are actively consulted and heavily influence the decision. In addition, validation by current franchisees plays a very important role in the decision making process.
The satisfaction level within the current franchise system is a critical factor to determine. Unhappy franchisees can be an indicator of bad management, poor sales, or insufficient marketing and brand awareness. When you pick a franchise system be sure to talk to a franchisee or two to get an in-depth look at the brand. Here at OpenWorks, we have a franchisee retention rate of 98% because we value relationships, with franchisees and clients, above all else.
A healthy and successful company keeps one eye on the future to make sure they are evolving and staying relevant with the times. This is critically important in today’s business world where customer expectations can dictate new service offerings based on competitive forces. Rest assured, that we are fine-tuning our practices every day to prepare for what’s next, including expanding our services to corporate clients to provide a more one stop solution for all maintenance needs.
It’s important to not only conduct due diligence on the brand you are considering, but also the competitive factors at play. In our case commercial cleaning is a fragmented industry with no one company owning more than 6 percent of any given market.
Franchise cleaning companies account for 10 percent of the total market while conventional and private companies account for 90 percent. The franchise commercial cleaning industry is valued at nearly $50 billion and has grown by more than 66% in the past ten years.
Therefore, the market, while large and lucrative, is still underdeveloped on a national scale.
It’s the classic American Dream – become successful and self-reliant by working hard, delivering extraordinary quality and responsive service at a fair price.
Are you ready to be your own boss in a stable, successful franchise? Check out what we can offer you as a franchise partner.