So, you're thinking about diving into the world of franchising, and the water damage restoration industry has caught your eye? We get it – it's a smart move. With increasingly severe weather and unexpected leaks keeping homeowners on their toes, there's always a need for experts in the field. And if you're drawn to the idea of running your own show but with a bit of a safety net, franchising might just be your sweet spot. Before you jump in, it's important to know what you're getting into – and what questions you should have ready for franchisors.
This isn't just about putting your money on the line; it's about joining forces for the long haul. We're here to guide you through those essential questions for franchisors, making sure you're not just dipping a toe, but making a confident splash into your entrepreneurial journey.
Questions for Franchisors: What to Ask
There are any number of questions that will arise once you start down the franchise research rabbit hole, but there are five that many in franchising – on both the franchisor and franchisee sides – consider “must-know.”
- What are your startup costs? This isn’t just about the initial investment. Dive deep. Ask about ongoing fees, marketing costs, and any other expenses that you need to be aware of. Most franchises will ask for a franchise fee up front. At Lightspeed Restoration, our initial investment ranges from $154,980-$253,500, and our franchise fee is $49,000.
- What kind of support do you offer? Let's be real, you want to know they've got your back. Training programs, marketing help, tech support – the whole lot. It’s important to partner with a franchisor who not only guides you through training and grand opening, but is committed to providing support throughout the life of your franchise.
- How have other franchisees performed? You wouldn't buy a car without checking its history, right? So, ask for some success (and maybe even failure) stories. Reputable franchisors are very forthcoming. In addition, you can research some numbers yourself if the brand’s franchise disclosure document (FDD) includes an (optional) Item 19. That’s where the franchise discloses its financial performance for the past year in operation, based on numbers reported by franchisees in operation that year.
- Are you in a growing industry? It’s vital to understand the big picture when choosing a franchise. Investing in the disaster restoration industry means joining a $210 billion market that’s projected to continue growing over the next several years.
- How long will it take to break even or turn a profit? Money matters, and knowing when you'll start seeing some green can help set your expectations. During the discovery process, you’ll talk to franchisees in good standing with the brand. You can also find a list of all franchisees and their contact information in Item 20 of the FDD. Just keep in mind, no franchisor can make any guarantees or promises about your profitability. It’s your job to evaluate that potential.
Remember, this is your hard-earned money and time on the line. So don’t be shy. Ask away and make sure you're making an informed, confident decision.
Consider Water Damage Restoration
If you haven’t considered owning a water damage franchise before, now might be the right time. Lightspeed Restoration is an emerging brand in the $210 billion restoration industry. One of our benefits is that we’re part of the Home Franchise Concepts family of franchise brands, one of North America's largest franchise systems.
As a Lightspeed Restoration franchisee, you’ll have access to all the resources of the larger brand family – including marketing assistance, ongoing operational support and business coaches to help you run your franchise.
To learn more about the franchise opportunity with Lightspeed Restoration, please request franchise info today.