Many people seeking financial freedom evaluate business ownership as an investment option and ask themselves, “is franchising a good investment?” It can be—but as with anything, it depends on the current market conditions and the investor’s goals. When it comes to owning a business in today’s diverse business landscape, franchise ownership typically performs better than independent businesses built from scratch. One of the main reasons being that a franchise lets entrepreneurs bypass some of the initial startup challenges by leveraging an established business model. However, it’s important to remember that not all industries are created equal in terms of franchise success.
According to the International Franchise Association, the franchise industry continues to grow, with more franchise owners finding success thanks to the built-in customer base and strong brand recognition that comes with owning a franchise. One great sector to consider owning a franchise in is the home service industry, but why? Let's explore the top advantages that home service franchise businesses have over other sectors.
Home Service Franchises Are Recession Resilient
During an economic recession, people often tighten their budgets and spend less money on “extras” like vacations and luxury items. However, homeowners will still need to maintain their homes, which means they'll often turn to a professional who can provide quality home services. This can make home service franchise opportunities a compelling investment option, even during difficult economic times!
It makes sense: home services encompass many things people can’t do without when it comes to their homes, such as improvement, repairs, and ongoing maintenance. Examples of these services include landscaping, plumbing, pest control, HVAC, electric, and cleaning services. Because people need these services in most economic environments, home service franchises are often considered recession resilient and some of the best franchise businesses to own.
Whether the economy is strong or struggling, things in the home will break down over time. Lawns still need to be maintained, AC units will still stop working in the middle of summer, pipes may burst in the winter, and pests may still wreak havoc in warm weather months. This often positions home service franchises well as opposed to businesses in other industries or other asset classes that may suffer during an economic downturn.
Read more about Neighborly’s home service franchise brands to view franchise opportunities available in your area.
Home Services Are Often in High Demand
Another benefit that makes buying a home service franchise worth it is that the home services industry is growing fast and is expected to keep on growing for years to come. Part of the fuel driving this growth is the state of the housing market.
The housing market continues to rebound and rebalance from the hit it took during the COVID-19 pandemic. Data from Realtor.com reports that housing inventory nationwide is climbing, which can mean more homes that require repairs and renovations before listing. In fact, in a 2025 survey, Realtor.com found that roughly 38% of potential home sellers have made renovations to their property to prepare it for sale.
Regardless of the state of the current housing market, homes will still be built, bought, flipped, sold, or rented, providing a steady demand for a wide range of home services.
Remote Work Means More Home Improvements
There is little doubt that remote work is here to stay. As more people spend increased time at home, many are choosing to invest in upgrades and improvements that make their spaces more comfortable, functional, and personalized. Working from home has encouraged many people to invest in making their homes a nicer place to spend time.
Spending more time at home makes it harder for remote workers to ignore home improvements or repairs that need to get done. Whether it’s a much-needed repair or a long-overdue upgrade, working from home often makes employees willing to spend on home improvement services. This, in turn, creates opportunities for contractors and home renovation professionals in a variety of specializations to build and own franchise businesses.
Franchises Typically Have Low Operating Costs: A Unique Benefit of Franchising
Among the best franchise investments are those that offer low barriers to entry but high potential for growth. And on both counts, home services franchises can fit the bill. Home service franchises typically have low operating costs relative to other industries because they often require only a small office and are even sometimes home-based. The choice of franchise location—whether home-based or brick-and-mortar—can significantly impact operational flexibility and costs. In addition to office space, it is important to consider ongoing operating expenses such as accounting, technology set-up, and other recurring costs when evaluating the overall financial structure. Many of these typical business start-up expenses are covered under your investment when you become a franchise owner.
The most common expenses for a home services franchise (after labor) are vehicle maintenance and equipment costs. By relying on skilled labor services rather than on tangible goods, home services franchises are positioned to weather an economic downturn.
Franchise Ownership Means Immediate Brand Recognition for Your Business
One of the most difficult parts of starting a new business is building brand recognition from the get go. Consumers are more likely to trust a well-known franchise brand that is familiar to them over an unknown, independent brand.
Established franchises come with a higher level of brand recognition, including recognized logos and registered trademarks. These features help franchises stand out in a competitive marketplace and attract customers who are looking for quality services.
In addition, many home service franchises have developed an efficient method of running the business, eliminating some of the guesswork, and costly mistakes, that often accompany the startup phase of a new business (for example, a franchisor like Neighborly® in your corner can help you answer questions like, “what is a Franchise Disclosure Document?”). In fact, one of the biggest pros of owning a franchise vs. an independent business is that franchises are able to leverage these established systems and tools, which can boost your potential and help prevent common business mistakes. Hear from one of Neighborly’s franchise owners, Dave Kirkwood, who owns Mr. Electric of Wichita. He highlighted some of the key aspects of how he has leveraged the established model.
Researching Franchises: What to Know Before You Invest
Before committing to any franchise business, thorough research is essential. Prospective franchise owners should start by carefully reviewing the Franchise Disclosure Document (FDD), which provides detailed information about the franchise opportunity, including the franchisor’s business experience, financial performance, and any business history. The Federal Trade Commission requires franchisors to provide these documents, ensuring transparency and helping you make an informed decision.
It’s also wise to explore resources like Franchise Business Review, which offers ratings and reviews of various franchise opportunities, giving you insight into the experiences of other franchise owners. Take the time to evaluate the franchisor’s reputation, financial stability, and the quality of their support services. Speaking directly with current franchise owners can provide valuable perspective on the day-to-day operations, management support, and ongoing support you can expect.
Additionally, review the franchisor’s marketing materials, advertising costs, and business development strategies to ensure they align with your vision for your business. Consider the level of management support and training programs offered, as these can make a significant difference in your success as a franchisee. By conducting thorough research and asking the right questions, you’ll be better prepared to choose a franchise that fits your goals and sets you up for long-term success.
Invest in a Nationally Trusted and Respected Franchise Brand
Owning a franchise can be a rewarding way to achieve your dream of running your own business, but it’s important to approach the process with careful consideration. To recap all of the benefits of starting a franchise business, it's important to first choose from the best franchisors who offer the support and proven model to succeed. With the right preparation, support, and mindset, you can enjoy the benefits of owning a franchise business, often with less uncertainty and greater support than starting an independent business from scratch.
Franchising with Neighborly can offer a unique opportunity to leverage an established brand and proven business model, helping you achieve your business goals and build a successful future as a franchise owner.
Neighborly has been a leader in the home service industry for more than 40 years. In fact, Neighborly’s brands have been recognized repeatedly in Entrepreneur’s Franchise 500 and Franchise Times’ Top 200. These honors are largely due to an extensive franchise owner support system and commitment to strong values, as well as the thousands of bright people who made the leap into franchise ownership.
Discover which franchise opportunities might be right for you and start your path to business ownership - Download the Franchise Ownership Guide and read more.
