COMMON FranchisE QUESTIONS AND ANSWERS
Below are the answers to our top franchise FAQs, from general franchising questions to a few common queries about Neighborly.
If your questions are about becoming a Neighborly franchise owner, complete our form here or call (888) 387-8018 today.
What is Neighborly?
Neighborly is a family of home services franchises. To customers across the US and international markets, we’re known for providing high-quality services to repair, maintain, and improve entire homes. To our current and prospective franchisees, we’re known for our award-winning brands cultivated with top-notch support for all our local franchise owners. Learn more on our About Us page.
How does a franchise work?
A company (the franchisor) gives other parties (franchisees) the right to use its trademark and recognized brand to sell goods or services according to the company’s terms, and for a specific cost. The franchisee may benefit from the company’s established systems and other support. Visit our “What Is Franchising?” page for details.
What is a franchise fee?
A franchise fee is what a franchisee pays a franchisor as a licensing fee at the beginning of their agreement. Franchise fees vary drastically, but the average range is $10,000 to $50,000. The franchise fee is not the full up-front cost of the franchise. Check out how to finance a franchise business.
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How much does a franchise cost?
Franchise cost varies significantly depending on the brand, industry, and territory. A majority of franchises cost between $50,000 and $200,000 to get started. A franchise fee is usually part of the initial investment and fees, and franchisees may pay reoccurring royalties to the franchisor.
How do you franchise a business?
“Franchising a business” has two definitions. The first is turning your business into a franchise system (aka franchisor) under your own brand name and selling business units to franchisees. The second definition is converting your business through an existing franchisor to become a franchisee. Neighborly’s expertise is in the latter: helping home service business owners convert their small businesses to franchises.
What do you need to open a franchise?
To open a franchise, you need funds, dedication, and a full understanding of the franchise agreement. Plus, you need research to find the right industry, price point, and brand for you. Here’s a resource for evaluating franchise opportunities. Once you’ve narrowed it down, ask your top franchisors plenty of questions, and secure the proper funding for your chosen franchise.
When you buy a franchise, do you own it?
Yes. When you purchase a franchise as a franchisee, you do own it for as long as you comply with the franchise agreement. You can use the company name, trademarks, and network for training and marketing purposes. It’s your business, but you have a support system and resources for success.
Do you have to be rich to open a franchise?
No, you do not need to be rich to open a franchise. There are lower-cost franchises that people with average income may be able to purchase, especially with good credit and the right franchise funding. For example, some franchisors offer specialized financing plans for their franchisees.
How do you choose a franchise that is right for you?
Choosing a franchise that is right for you is simple! The first questions you need to ask yourself are, “Am I passionate about this opportunity?” and “Am I ready to dedicate the hard work necessary to run this franchise?” If you answer yes to both, you’re on the right track. Next, make sure the business plan, industry outlook, and franchise agreement all align positively with your expectations. Have you considered the home services industry?
Do you need a degree to own a franchise?
No, you do not need a degree to own a franchise (or a sole proprietorship). While a degree in business, an industry-relevant certificate, or a management course are all valuable assets to a franchisee, many owners rely on hard work and real-world experience to succeed. Check out the stories of two people with totally different backgrounds who became The Grounds Guys franchise owners!
Why should I invest in a franchise?
Reasons people choose to invest in a franchise include established business systems, buying power with top vendors, and instant brand recognition. Explore these resources to find out more: Are Franchises a Good Investment?, Franchise Statistics, Franchise vs. Independent Business.
What types of training and support are available to franchisees?
The answer to this question really depends on the franchisor you choose to partner with. Some franchisors only offer startup training, while others offer ongoing training and educational resources for owners and even their employees. Learn more about what is included in a high-quality franchise training program.
What qualities do good franchisee candidates possess?
While no two franchisees are alike, successful franchisees should have a strong desire to succeed by using established business systems. While franchising can ease common pain points of sole business owners, growing any business takes hard work. At Neighborly, we look for franchisees who are values-driven—respectful, motivated, and customer-focused—as well as people who are financially stable and like to have fun!
To find out how you can run your own home service franchise through Neighborly, contact us online or call (888) 387-8018 today.
