Why Service-Based Franchises Are Trending in 2024

A service-based franchise is exactly what it sounds like – it’s a franchised business that provides a service to its customers. The type of service will vary, but it generally offers a convenience to customers, saving them time and sometimes money. Several examples of service franchise opportunities include: 

  • Cleaning Services
  • Home Improvement Services 
  • Fitness and Wellness Centers 
  • Education and Tutoring Services
  • Automotive Services
  • Healthcare Services
  • Pet Care Services
  • Food and Beverage Services
  • Real Estate Services
  • Travel and Hospitality Services 

5 Reasons Why Service-Based Franchises Are Growing 

#1 – Consumer Preferences

It probably doesn’t come as a surprise that we live in a service-based economy. In fact, in 2017, the service-based sector “accounted for 67 percent of GDP in the United States” (The Atlantic). Consumer preferences is one factor that has influenced this, and they include:  

  • Shift towards convenience and time-saving solutions
  • Increasing demand for specialized services
  • Emphasis on personalized experiences

These consumer preferences have contributed to an increased demand for service-based businesses.  

#2 – Flexibility and Scalability

Service-based franchises are also an attractive opportunity for entrepreneurs as they generally come with the following benefits: 

  • Low initial investment & overhead costs – A few reasons why a service-based franchise has lower costs than a product-based business include: minimal inventory required, reduced equipment costs, lower real estate expenses, fewer staffing requirements, and more.
  • Ability to adapt to changing market trends – Characteristics of a service-based franchise that allows them to adapt more easily include: flexibility to adjust service offerings, ability to customize and personalize services, more frequent direct interaction with customers, option to diversify revenue streams, and more. 
  • Potential for rapid expansion & growth – Service-based franchises are easier to scale since the services can be delivered without constraints of physical inventory or production facilities. Other factors that help service-based businesses grow more quickly include: lower capital requirements, flexible business models, recurring revenue streams, and more.

#3 – Technology Integration

While technology integration is important for all types of businesses, it certainly contributes to the growth in service-based franchises. Digital solutions both enhance customer experience and help streamline operations, maximizing profitability. Several ways a service-based franchise can leverage technology for efficiency and optimization include: 

  • Field Service Management Software
  • Inventory Management Systems
  • Automated Billing and Invoicing
  • Online Booking Platforms
  • Customer Relationship Management (CRM) Systems
  • Mobile Applications
  • Data Analytics Tools
  • Predictive Maintenance Systems
  • Remote Monitoring and Control Systems

#4 – Rising Demand for Home Services  

Service-based franchises are also able to take advantage of the rising demand for services in sectors such as cleaning, maintenance, and repair services. A couple of factors driving this demand include: 

  • Busy lifestyles leaving little time for individuals to take care of home-related projects 
  • An aging population requiring assistance with home maintenance 

#5 – Sustainability and Social Responsibility

Many service-based franchises have also appealed to the growing emphasis on sustainability and social responsibility. A few ways they do this include: 

  • Offering eco-friendly practices throughout their operations such as energy-efficient technologies, minimizing waste generation, etc. 
  • Demonstrating a commitment to the local community by participating in community events, sponsorship of local initiatives, and support for charitable organizations and nonprofits
  • Actively promoting sustainability, ethical business practices, and community involvement in order to attract socially conscious customers 

Considering Buying a Service-Based Franchise?

If you’re thinking about purchasing a service-based franchise, then FranNet can help you find the perfect opportunity. Our expert franchise consultants will match you with a franchise that fits your skills and goals, answer your questions, and walk you through the process of buying the franchise from start to finish. All of this will come at no cost to you. Schedule your free consultation today! 

May 2, 2024