Franchise or not to Franchise

Originally Posted By: kpapp
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Starting up a business is like looking into a box that contains an unsolved jig-saw puzzle.

Can anyone give me the pros and cons of having a Franchise and would it be better to go on my own v/s franchise? All opinions will be taken…even smart a** ones icon_lol.gif Any thing that can help me get started in the right direction Ken

Originally Posted By: jrooff
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Personally I choose to start my own, I have a number of years as a General Contractor and when I decided to become an H.I. I set a number of $$ aside to start and still run my construction outfit. It’s not a jumpin here I am business I’m makin bucks today. It takes time and if any knows a fast track they ain’t tellin. I looked in to franchise but thats a lot of money up front and I have a problem with someone telling me how to run my business. I feel I can take that money I would be spending for the franchise and fit my needs and structure and still be able to eat lunch, only time will tell. I’ve had my shingle out for 4 months and had 4 inspections and part of it is the lack of effort and time on my part, summer is my money making time in construction. Maybe some people need the structure or the name of a franchise. I’m sure there will be other H.I. sending there thoughts and I hope they do.

James J. Rooff
Milestone Home Inspection LLC

Originally Posted By: ecrofutt
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Use the search term “franchise”.

There's several message threads about it previously with some good information in them.

Erby Crofutt
B4U Close Home Inspections
Georgetown, Kentucky

Originally Posted By: Phillip Stojanik
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To franchise or not to franchise?that is a decision that must be made by you alone. What you decide will, in large part, be based on your particular personality and personal tolerance for business risk. When you hook up with a franchise you do gain some ?comfort features? such as a potentially coherent advertising campaign, someone to call on for advice if you get into a jamb, impressive looking paper products with which to surround your written reports and so on. Basically; a helpful big brother to lean on while you find your business feet in the home inspection world.

Big brother will however have his fingers in your wallet all the while. That is not necessarily a bad thing because (early on) he may well be the reason your wallet has anything in it to finger! At some point however, you will outgrow the need for such help and you will tire of the financial drain that ?big brother? imposes. At this point the balance will have tipped in your favor and your own personal ?sweat equity? and acquired knowledge of the inspection industry will outweigh the contributions that the franchise has to offer.

Here is my personal advice for what its worth?

If you are accustomed to self employment, are good at what you do, and can weather one or two really lean years; forget the franchise thing and hang out your shingle on your own. If you are good at what you do but are not accustomed to self employment and are not in a position to weather a couple of lean years, then find a franchise to hook up with to help get you off and running quickly. BUT?Set out from day one with the personal commitment that the franchise arrangement is nothing more than a temporary crutch to get you going. Use it only for the crutch that it is but don?t allow yourself to become forever dependant upon it. Toward that end, seek out a franchise from which you can get away with little or no penalty at some future date.

Keep in mind that franchises in the home inspection business have their rightful place but it is the individual inspector who shows up at the property that will ultimately make or break a given inspection company.

Originally Posted By: gbeaumont
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Hi Phillip and welcome to the forum,

Good post on the franchise issue. I looked at the franchise market 2 years ago, but personally felt that the set up costs (upto $25k) were fairly steep and that I got achieve more for alot less locally.
However I know several of our members are franchise owners and have done well with them. I would be interested to know from one or 2 of them how mch they atribute their success to the franchise and whether 2 or 3 years in whether they still gt value from their franchise fees.



Gerry Beaumont
NACHI Education Committee
e-mail :
NACHI phone 484-429-5466

Inspection Depot Education

"Education is a journey, not a destination"

Originally Posted By: jhagarty
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Joseph Hagarty

HouseMaster / Main Line, PA

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.

Originally Posted By: Dan Harrid
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Hi Guys Great subject

Apx 4 years ago I looked into this business and at the franchise route.

Like the other responses it totally depends on past business experience

and knowledge.

After receiving info from 4 companies and I made calls to there inspectors

Of the 6 I called out of 10 there response was if I knew then what I know now I would not have done it

The bottom line was generally a Apx 80-90,000 contract, Payable regardless if you made it or not, for up to 10 years. {20-25,000 up front and monthly fees, equal to a nice Pickup payment.}

I found the best way was to get a [u]good education and subscribe to all the continued education you can. [/u]Despite all the ads you see, this business is no easier to start and often no more profitable than a lot of other business’s

I started with the attitude that all I need is 2 calls a day, No Sweat.

For The 1st couple of years after spending apx 20,000 on training, computer, inspection program, brochures cards etc… and advertising I got apx 60 inspections. less than 50% return on my investment

Now That I’m starting my fourth year I’m finally averaging Apx 2 calls a day. 35-40 inspections a month

Bottom line, regardless of which way you go, be financially prepared to spend $ on business start up and up to a year without income, and get all the training and continued education you can

Dan Harris

Inspect Az

Originally Posted By: kpapp
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Thank you all for the very informative points of view. Guess I will have to sit down and weigh all the pros and cons and see what will best work for me and my family. Ken