What is Franchising?
A franchise is a business model in which a company, referred to as a franchisor, gives other parties, franchise owners, the right to use its trademark to sell goods or services according to its terms. The legal contract for this arrangement is usually called a franchise agreement.
The franchise owner may benefit from the company’s established business systems, recognized brand, training programs, and other support. These benefits are typically given in exchange for an initial investment, a franchise fee, and a set percentage of ongoing sales revenue often called royalties.
The Neighborly family of brands is positioned in the growing and lucrative home services industry. Our brands carry recognition across the U.S. and many have home-based options. When compared to other franchise options, our franchise brands generally require relatively low franchise fees and minimal equipment needed to get started. However, the overall cost of start-up can vary by brand and industry.
If you’ve ever thought about working for yourself, owning a business, or scaling your current home services business, you should consider Neighborly. With 19 North American franchise brands, you have options to find the home services brand that’s right for your lifestyle and professional goals.
Find Out If Business Ownership Is Right For You
Watch NowThe Benefits of Owning a Franchise
When considering owning a franchise, it's important to learn about the benefits. From the support you receive to the work-life balance gained, these benefits can impact your professional and personal life.
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Lower Business Risk
Franchise ownership can reduce startup risk by offering a proven business model, established brand recognition, and ongoing support, providing entrepreneurs with a reliable path to success.
Achieve Work-Life Balance
Franchise ownership offers the flexibility to design your own schedule which supports a healthier lifestyle. If you’re seeking the same, you’re not alone: 52% of U.S. workers prefer remote work precisely due to work-life balance.
May Offer Stability During Economic Shifts
Home service franchises offer recession resilience by providing essential services that homeowners continue to need, even when cutting back on non-essentials.
Expert Training Fills Knowledge Gaps
Franchise owners obtain essential training, expert coaching, and ongoing support that empowers smarter financial decision-making, helps to overcome early challenges, and facilitates long-term growth.
Instant Credibility With a Trusted Brand
Established brand recognition attracts customers more quickly by leveraging a familiar name, trusted reputation, and proven market presence.
Marketing Resources
Franchise owners benefit from localized marketing strategies — including SEO, social media, and cross-brand referrals — backed by expert guidance to increase leads and strengthen visibility.
Ongoing Operational Support
Franchise owners receive continuous support across all areas of business — from marketing and hiring to daily operations — enabling them to focus on growth with confidence. Access to proprietary technologies can streamline administrative tasks, simplify appointment booking, and enhance overall business efficiency.
Stronger Buying Power, Greater Savings
Franchise ownership can reduce startup risk by offering a proven business model, established brand recognition, and ongoing support, providing entrepreneurs with a reliable path to success.
Explore our brands to take the first step toward owning your own Neighborly franchise!
What Are the Risks Involved With Franchising?
While there are many benefits to starting a franchise, nothing worth pursuing is without risk and business ownership is no different. But owning a business that can give you flexibility and financial freedom may be worth that risk.
Many common pitfalls of small business ownership, think poor planning, not conducting market research, underestimating capital needs, lack of support, are significantly reduced in a franchise model. With established systems, ongoing training, and brand recognition, franchise models offer a structured, more predictable path to long-term success.
On your path to franchise ownership, you might worry about choosing the right brand for you. Those with poor support, low demand, or weak reputations can limit your growth, but thorough research assures that your brand aligns with both your goals and your market. To help make your decision, see why Neighborly franchise owners choose to work with Neighborly.
What Are the Financing Options for Owning a Franchise?
Being your own boss is possible with the right planning. Here are common
financing options, though specific choices may vary by franchisor.
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Self-Capitalization
Some franchise owners choose to launch their business from existing funds they’ve accumulated in a savings or money market account, inheritance, or from the sale of another business.
Commercial Bank Loans
Term loans provide upfront capital that are repaid monthly with interest. Because franchises come with proven models and brand recognition, lenders are often more willing to approve loans compared to independent startups.
Franchisor Financing
Check with your franchisor to see if they offer financing options for new owners. Some provide funding directly or through lender partnerships, often covering key startup costs like the franchise fee and equipment, making it easier to get up and running. Schedule a call with Neighborly to learn more about our franchisor financing options.
Friends and Family Loans
Borrowing from someone you trust, like a friend or family member, can be a flexible way to fund your franchise. Just be sure to put the terms in writing, ideally with a lower interest rate and a more generous repayment timeline than a traditional loan.
Alternative Lenders
Alternative lenders offer loans similar to traditional banks but often with higher costs, smaller amounts, and shorter repayment terms. They're a common option for those who don’t qualify for standard loans. You can explore trusted providers through resources like Business News Daily.
401(k) Investment Account Rollovers
Rollovers as Business Startups (ROBS) is an often overlooked option for franchise funding. If you have an inactive IRA or 401(k), you could roll it over to fund your business. This option for financing a franchise is typically used in conjunction with an SBA loan.
Small Business Administration (SBA) Loans
SBA loans operate similarly to commercial bank loans but with lower interest rates and longer repayment timelines because the U.S. Small Business Administration guarantees a portion of the loan amount.
Financing a Franchise: What You Need to Know
Curious about owning a franchise but unsure how to fund it? Franchising finance experts from three top firms share smart, practical ways to fund your franchise journey.
3 Ways To Open Your Own Franchise
Take the next step in your entrepreneurial journey. Whether you're starting fresh, expanding an existing business, or stepping into a ready-made opportunity, Neighborly offers flexible paths to franchise ownership designed to fit your goals and desired lifestyle.
Choose a New Location
Dreaming of launching a business in your hometown or somewhere you’d love to live? Open a brand-new Neighborly franchise in an available territory and build your customer base from the ground up, backed by a trusted brand and proven support system.
Convert a Current Business Into a Franchise
Already own a home services business? Amplify your success by converting to a Neighborly brand.
You’ll keep your independence while gaining national recognition, access to marketing resources, streamlined operations, and a powerful support network.
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Take Over an Established Franchise
Interested in a ready-to-go opportunity? Taking over an existing Neighborly franchise means stepping into a fully operational business with an established customer base, a trusted local reputation, and an experienced team already in place.
Explore available brands by location with our Territory Finder and choose your path to franchise ownership.
Why Own a Neighborly Brand?
With countless franchise options available, Neighborly stands out by offering a clear roadmap to success. From day one, you'll have access to a proven business model, powerful marketing tools, and a dedicated Franchise Business Coach with you every step of the way.
As a leader in home services franchising, Neighborly is committed to helping driven individuals like you build businesses that make a real impact, both personally and in the communities we serve.
Take control of your future with the backing of a trusted family of brands, Neighborly is the partner that helps you grow with purpose. Explore more about why you should work with Neighborly today.
