Therefore, the demand for professionals within the home improvement industry is consistently high. If you’re a trained and experienced handyperson capable of repair and maintenance, the idea of having your own business has likely crossed your mind. No more working long hours for minimum pay. Moreover, the ability to choose your own jobs and market yourself as a brand are attractive features of an entrepreneur. Not quite sure about starting your own appliance repair franchise from scratch? There is definitely a lot of work involved, but buying a franchise from an already reputable company is a definite possibility.
What is an appliance repair franchise, and who needs it?
An appliance repair franchise is a robust and well-known company such as Mr. Appliance that sells opportunities for eager entrepreneurs to start their own appliance repair business under a recognizable brand. Buying a Mr. Appliance franchisee, for example, means you own your business. Still, you can rely on the accounting and other business processes already tried and perfected by the more prominent brand and other franchise owners.
Typically you keep the logos, brand imagery, etc., and rely on similar services and prices, including partnered manufacturers and future sales. You keep all of the profits you receive, do your own marketing if necessary under the already established marketing from the appliance repair franchisor, and pay a small percentage of royalty fees back at the end of each accounting period.
Franchisees are usually business-savvy individuals who want to own and run a business but don’t want to spend years attempting to build their brand first. Franchise owners get the advantage of starting a business that customers will likely already be familiar with – and they get to spend less time struggling with the marketing/branding side of the appliance repair business and more on the work itself.
How to join or start an appliance repair franchise?
Most of the best and most well-known appliance repair franchises have sections within their website where interested franchisees can learn more about the franchise and apply. At this point, it’s important to apply only to those franchises you are interested in owning. Conduct enough research about each franchise to find the right brands that you want to partner with.
- How much are the franchise’s royalty fees?
- Do you have enough total investment to match the franchise requirements?
- What kind of support will the franchise provide?
All these and more are critical questions to have answered before applying to a franchisor.
Once you’ve applied to a franchise, you will receive Franchise Disclosure Documents (FDDs) that will outline all of your responsibilities as a franchise owner. It’ll also provide you with relevant information about the franchise itself, such as previous finances and history. From there, you can schedule a meet and greet or discovery day with the head office of your preferred franchise. If everything sounds right and there are no red flags, you can then sign the franchise agreement and begin applying for financing and working with your lawyer to complete the purchase.
You can also start your own franchise if you prefer. Usually, in these situations, you have already built a small business with a strong reputation, and someone has approached you in hopes of becoming a franchisee. In that case, it’s essential to work with your lawyer to develop every document, record, etc. It would be best to build a strong appliance repair business capable of growing and expanding into multiple locations.
The advantages of becoming an appliance repair franchise
There are many advantages of becoming a franchisee of an appliance repair company.
- Franchises typically have a higher rate of success due to the fact that they have been started with the brand recognition already established. Your company comes with the many 5-star reviews and search engine keywords many potential customers want to see.
- Franchises have the support and backing of their larger franchise itself. If there are issues or disruptions, you can usually rely on sound business advice from a network of professionals.
- As a franchise owner, you are also more likely to be approved for financing from a bank, especially if this is your first business and your credit rating isn’t perfect. Because all of the history, proof of success, etc., already exists, banks will see that your business is far more likely to pay back any loans.
- Higher profits are also a strong possibility, right from the beginning. As a franchise owner, you will need to spend less time building your brand and attracting customers. The odds are that the hype of your opening will mean multiple customers waiting to work with you come launch day.
- You get to be your own boss without needing to build from the ground up. You still own your business, and you choose your employees and other important business aspects.
Here are the top 5 appliance repair franchise opportunities for sale
Suppose you’re about to start researching possible appliance repair franchise opportunities. In that case, multiple companies for sale are constantly seeking franchisees and come with substantial backing and a large customer base.
1. Mr. Appliance
Founded in 1996, The Mr. Appliance franchise has well over 200 franchise locations and is the largest appliance repair franchise in North America. Mr. Appliance is probably the most recognized name in appliance repair. Your initial investment for owning a Mr. Appliance franchise is a minimum investment of $61,000, which is relatively low compared to other franchise companies. About $50,000 of that amount should be liquid capital. You can also expect the royalty fees of a Mr. Appliance to be about 5%.
2. Jim’s Group
Jim’s Group is the biggest in-home repair franchise in the world. They are continuing to provide opportunities for franchise ownership internationally. An initial investment with Jim’s Group depends on the service franchise you choose and can be anywhere from $50,000 to $200,000. The company has dozens of franchises, from lawn mowing to appliance repairs.
3. Mr. Electric
Mr. Electric was named one of the Entrepreneur 500 by Entrepreneur Magazine. They provide electrical installations and repairs on almost anything in the home, including appliance repairs. With over 195 locations internationally, Mr. Electric is a recognized leader in appliance repairs and maintenance. The minimum cash liquidity requirement is about $50,000, with a total investment amount of $100,000 to $240,000. They provide training and support as well as financial assistance to interested franchise owners.
4. TruBlue Total House Care
TruBlue specializes in providing maintenance and repair services to families and seniors who can not keep up with the upkeep of their homes. Although they provide services for the entire home, appliance repair is a huge part of their offerings. As more people enter the senior generation and prefer to stay home, there will be a demand for in-home repair services catered to these customers. An initial cash investment should be around $50,000, with a total investment being up to approximately $81,000. Royalty fees of TruBlue are 6%, with a 2% advertising fee.
5. Handyman Connection
Handyman Connection was founded in 1992 and is a repair and maintenance franchise company specializing in small to medium repairs “around the house,” including appliance repairs. They are available across the United States. There is no need for inventory or even employees, so the startup costs are low. Your initial investment should be about $65,000 of liquid cash and a total investment of $99,000 to $150,000.
Buying a franchise can be an excellent option for potential business owners who want to start earning right away, don’t like the idea of building a brand from the ground up, and want to have a large, reputable company backing them up as they grow.
Remember that there is a lot of research involved when it comes to buying a franchise opportunity. Ask potential appliance repair franchise opportunities the right questions so you know whether they match both your budget and your own vision. Narrow down your options to one or two franchises and send the application documents with as much accuracy as possible. It may also be a good idea to work with a lawyer from the very beginning.
Once you’ve started your appliance repair franchise, you will have the backing of a larger and more reputable company. However, it will be up to you to bring in customers and keep them happy and likely refer you to their friends and family.
Setting up scheduling software is an effective way of managing all of your appointments, communication with clients, and invoices from the same easy-to-manage dashboard. And Workiz’s dashboard is the easiest to use as it can be.
Appliance repair teams that use Workiz increase their revenue by 22% on average. Learn more about how it can help you succeed with your appliance repair franchise by clicking here.