Lots of things in life come with risk, such as a weekend in Vegas, blind dates, and used cars. As the level of risk increases, you need to do all you can to mitigate loss when the stakes are high. Buying a franchise business without proper due diligence is not a gamble you should ever take. It’s vital to take the time to thoroughly research any franchise opportunity you may be considering.
Here are five important things to know before you buy into any franchise system:
- Company and its history
- Business model
- Franchisees’ success
- Industry accreditations
- Franchise Disclosure Document
A history of stability and growth
In 1992, five young entrepreneurs began what evolved into Home Franchise Concepts (HFC) when they started a company called Budget Blinds®. The dream of bringing homeowners high-quality custom window coverings for every style and every budget became a reality. Now, over 27 years later, HFC is the world’s best-selling family of direct-to-consumer franchise brands in the home improvement/home services industry, having acquired three additional franchise brands: Tailored Living®, Concrete Craft® and AdvantaClean®. And despite the challenges of doing business in current pandemic conditions, HFC continues to welcome new franchise owners every month.
- Budget Blinds is the undisputed leader in the industry for blinds, shutters, shades, and custom drapery with solutions-based products for homeowners and business owners alike.
- Tailored Living (2006) offers whole home organization solutions, including custom designs for closets, pantries, laundry rooms, home offices, garage storage, and more.
- Concrete Craft (2014) offers concrete transformations from repair and restoration to decorative concrete resurfacing for interior floors, exterior concrete surfaces, and vertical walls.
- AdvantaClean (2019) is a leader in light environmental services for residential and commercial clients when disaster strikes, as well as preventative services for mold, water damage, moisture control, and HVAC cleaning.
Time-tested and success-verified business models
All four HFC franchise brands have business models that are designed to ensure the greatest opportunity of business success for every franchise owner in the system. Entrepreneurs of all ages and backgrounds have built successful franchise businesses, encompassing 1,800 franchise territories in the U.S. and Canada:
- Home-based, low-cost franchises with low overhead.
- Exclusive protected territories; never any in-house competition.
- Be a sole proprietor, create a partnership, or build a family business.
- In-home consultative sales model with virtual consultation capability.
- No experience necessary, in-depth training in every facet of the business.
- No required operations schedule; set your own workdays and hire your own employees.
- Residential and commercial markets revenue streams.
- No limit on income; scale your business to the size you want with one or multiple territories.
- Coordinated national and local marketing efforts drive brand awareness.
- Home Office support teams in critical areas of business throughout the franchise contract.
- Franchise fee discounts for qualified Veterans.
Franchisee success has many faces
Success doesn’t necessarily look the same to everyone, but financial income is a critical goal when starting a business. No franchisor will guarantee what you can make, but with HFC there are no barriers to making as much money you’re willing to work for. A coveted income goal is the Million Dollar Club, and those who achieve that milestone based on the previous year’s sales figures are celebrated at the annual conventions every January.
- The 2018 Million Dollar Club was the largest to date, with 161 franchisees reaching at least $1 million in sales, representing 16% of the entire franchise family.
- At the 2020 annual convention, inductees exceeded that historic 2018 total, with 174 franchise owners welcomed into the Million Dollar Club based on 2019 sales.
- Women franchise owners generally account for approximately 10% of the Million Dollar Club.
Other gauges of success include a healthy work/life balance, personal satisfaction, and making a difference in people’s lives. Click here to listen to Pete Jarvis, owner of AdvantaClean of North Central Indiana, share how his franchise is an opportunity to serve people, an important element to his feeling of success.
Industry accolades identify the best
Recognition from peers is a vote of excellence, and HFC and its family of brands are consistently ranked as top franchises by trusted independent companies that monitor and “watch dog” the world of business and franchising, like Entrepreneur Magazine, Franchise Business Review, and Franchise Direct. No need to wade through thousands of franchise options when you can focus on identified leaders.
- In January, all four Home Franchise Concepts brands were in Entrepreneur Magazine’s Franchise 500 Ranking for 2020 as well as the recently released Hottest Industries Today mid-year update.
- Budget Blinds is #27 in Franchise Business Review’s Top 200 Best Franchises To Buy In 2020, and has ranked in the Top 200 Franchises since 2006.
- Budget Blinds is #88 in the Top 100 Global Franchises 2020 list from Franchise Direct.
Franchise Disclosure Document
One very important element of vetting a franchise business opportunity is the Franchise Disclosure Document (FDD). A requirement of the Federal Trade Commission, the FDD fully outlines the franchise opportunity, the costs to own and operate your business, plus much more. It’s required to be updated annually or in the event of any material change that could affect decisions about a purchase. Each HFC franchise brand recommends going through their FDD with your Financial Advisor or franchise attorney so you fully understand the provisions of the franchise opportunity.
Reduce risk and build confidence
If you’re looking for a franchise opportunity with a company that is dedicated to your success, you need look no further than HFC. With the required due diligence, there won’t be any surprises when you purchase your franchise, and transparency on both sides gives peace of mind that your chosen franchise opportunity is the right fit. Go online to Home Franchise Concepts or call 1-800-420-5374 to learn more about becoming an independent franchise business owner with HFC. Our franchise licensing advisors can help you navigate your discovery journey, so you’ll learn everything you need to know to make an informed decision.