Entering the world of franchising is a smart move for an entrepreneur. For your investment fees, you partner with a recognizable brand, use their proven model and receive training and on-going support throughout your ownership. It is a popular option for investors. Proof of that is in the numbers. Currently, there are more than 750,000 franchise establishments in the United States, producing more than $787 billion in economic output. If you are looking for profitable business options as a franchisee, you will have to choose which type of franchise to invest in. Two popular choices to examine are retail franchises and service franchises. There are some distinct differences and similarities to both. To help with your decision-making, let’s look at the pros and cons of both, to determine which one is right for you.
Service franchises are businesses providing a service to customers or other businesses. Customers pay for conveniences, skill sets, and repairs that they don’t want to deal with and/or cannot handle due to lack of personal expertise, lack of time or lack of necessary equipment. Service franchises may require a brick-and-mortar location or can be home-based, requiring low overhead. Some examples of franchises in the service industry include: landscaping, financial assistance, tutoring, cleaning services, repair services, automotive, computer, childcare, hair salons, pet care, healthcare, massage/spas, and gyms, just to give you an idea of how diverse the industry is.
Pros and Cons of Service Franchises
Pro: If you are investing in a franchise that allows you to be home-based, it may grant you quicker profitability since start-up requires low overhead, no building leases or purchases, and less equipment. Working from home will enable you to work flexible hours which can very convenient for your schedule.
Con: On the flip side, if you do not manage your time well, working from your home may be tricky. It also means you may have lower overall earning potential.
Pro: You must enjoy serving the public, and depending on the business, you may need to hire a team. You’ll want to be certain your staff also enjoys being around people and helping them.
Con: You will have to handle many different personalities. Some customers may be displeased with your work or service and you will have to know how to manage those situations for the sake of your business. At the same time, you will need to train, manage and retain your staff to ensure they are representing the company properly and providing a good experience for customers.
Pro: For many service franchises, licensing and certifications are needed for employees. That creates a high demand opportunity and higher profitability possibilities for you. Repeat business is very common in professional service franchises. Examples include hair dressers, real estate agents, health care, building inspectors/contractors, and teachers.
Con: Staffing can be a huge challenge for a service franchise. At times finding qualified, licensed or certified employees can be difficult. And although professional services are typically more in demand, it may not mean your franchise is recession proof.
In comparison a retail franchise is one in which a product or products are sold. Historically, retail franchises require real estate to operate. However, with the onset of the Covid-19 pandemic, many retail outlets have enhanced or added to their brick-and-mortar locations through an ecommerce platform to increase customer touchpoints through online shopping. Retail franchises run the gamut from quick service restaurants to clothing stores, furniture stores, convenience stores, postal/shipping, and specialty- or hobby-related stores.
Pros and Cons of Retail Franchises
Pro: Shopping is always a good idea. People like to see, touch, feel products. Consumers will always need goods, so finding a retail franchise in a niche market or in high demand for consumers is advantageous.
Con: Your retail franchise is very reliant on the economic climate. It is important to look for a recession-proof franchise.
Pro: Retail franchises are very dependent on well-trained personnel. Employees with great customer service skills can make the shopping experience excellent and keep customers coming back.
Con: Employee hiring and retention is very challenging, especially in the covid-era, when workers are concerned about their safety. Plus, when employment opportunities in the market place are abundant, you will have to pay incentives or higher wages to employees to prevent turnover.
Pro: With a great location and brand name recognition, you have a built-in customer base as patrons have come to know and expect certain standards of the brand. Plus, purchasers become familiar with a franchise store’s layout, products and policies.
Con: The right location can be expensive. Not only is the real estate pricey, so too is the construction or remodeling and upkeep of your retail franchise shop. Capital investment and getting your location operational can be costly.
Wild Birds Unlimited Retail Franchise
That is why it’s important to understand all your franchise costs from the very beginning to ensure that this will be an affordable opportunity with great profit potential.
We here at Wild Birds Unlimited are very transparent about all of our costs. We want our franchisees to achieve great success. Wild Birds Unlimited is a retail franchise specializing in bird feeders, bird seed, bird houses and other supplies. Our goal is bringing people and nature together through the hobby of backyard bird feeding and nature products.
Franchisees know all their costs going into the investment. Our franchise costs include a franchise fee of $40,000 and total start-up costs ranging from $185,179 – $311,043.
Owning a Wild Birds Unlimited franchise is a good investment opportunity for those who are bird and nature hobbyists and enthusiasts. We are a niche retail franchise proven to be recession proof, with statists showing that $7.6 billion is spent annually on bird feeding and watching wildlife here in the U.S.
The backyard bird feeding and wild bird feeding industry is thriving, and WBU is the leading retail franchise serving the market. We have been in business for 40 years and have more than 350 franchisees who have helped build this brand, making us a leader in the wild bird feeding industry.
At Wild birds Unlimited, the “pros” far outweigh the “cons” when investing in our proven retail franchise model. We have created a culture committed to continuous growth and innovation. We have increased our online presence through ecommerce to better serve our customers. We are dedicated to producing a top-notch experience for our customers, thus generating a profitable business for our franchisees.
If you have always dreamed of owning your own business, doing something you love, while providing great products to serve your community, then come fly with us. Fill out this form to become a part of our flock.