I’ll try to keep it brief and I’m hoping I can count on the breadth of experience here.
I’m a newb. Matter of fact, I’m not even a newbie yet. I’m not an inspector at all(yet) and I’m hopeful you all can help me change that. I’m recently retired from the service and I’m weighing the pro and cons of franchise vs sole ownership? I’ve done a lot of “reading research,” but I’m looking for practical and recent experiences from the experts before I decide which route to go. Again, I have no certs etc.
My previous field was in aviation maintenance. I know I have a lot to learn, but I feel I have skills that will translate well to this new and exciting field.
Is there anyone out there that would want to provide some mentorship or help answer some questions?
I am in a franchise and would be happy to talk to you about the pros and cons of it.
I would recommend it to some people and not to others for different reasons.
I chose franchising because I didn’t want to do any marketing design, website’s, figuring out systems, softwares etc. This was based upon my previous business experiences in other industries and my personal situation at the time.
I don’t understand the whole home inspection franchise. ITs not like buying a McDonald’s franchise where the entire world already knows what those Golden Arches are. You will still have to market yourself and business to become known so why pay someone else?
I have an A&P as well, IMO if you’re able to pass all the tests to obtain an A&P license, you should have the mechanical ability and skill to learn and do home inspections.
I did get good practical experience working for a friend of mine for a number of years remodeling homes and condo’s that were bank repo’s back in the 90s, people would blame the bank for kicking them out of their house for not making payments and in many cases stole everything they could and what they couldn’t steal they destroyed.
I took a home inspection course when I got into this business back in 2003, it not only covered all aspects of a home and it’s systems, but also about starting a business, marketing, report writing, record keeping, etc. as there is much more to becoming a successful inspector than meets the eye.
I’m working with an ex-inspector who was the owner of a franchise who, like many franchises, limited his ability to expand, since they assign territory. He’s an intelligent guy and had a very successful business, wanted to expand into surrounding areas, but was denied. He didn’t like the way they controlled his business.
With franchises you get a head start, since they provide training, marketing materials, and software. But in many ways, it’s their way or the highway.
Home inspection is two-part; technical and business. This industry has a 30% turnover, mostly due to failure on the part of new inspectors to be competent in one or the other, more often business.
My suggestion is to monitor the InterNACHI message boards and the various Facebook groups and see what kinds of questions are asked and answered. Over time, you’ll develop a pretty good feeling for the challenges involved in entering this industry.
Patrick, how has it worked out for you. How long have you been in business and what do you gross or net (depending on what you’re willing to disclose)?
My experience has been good in terms of operating a business and having success, how much I attribute to the franchise is debatable.
At this point the business does ~1500 inspections per year (over 1000 per year for the last 3 years)
3 full time inspectors, including me, 1 part time 1099 inspector, 1 full time operations manager, 3 radon people
Our gross last year was around $700K. A loose figure for net income is around 10% although I’ve always spent more than needed on equipment, vehicles, employee pay and benefits in lieu of big “profits”.
My personal income is really based upon my own inspection production (over 400 inspections per year every year with an average ticket over $500)
The franchise fee is 10%, 3% of that goes to a marketing fund (they basically force you to spend money on marketing which isn’t a bad idea if you want to continuously grow).
I don’t think I would have gone as fast or as far without them, this is also the 6th business I’ve owned, and I just didn’t want to wear as many hats as I had in the past (working for yourself), so having a lot of things done for you allowed me to focus on growing the business.
As others have said though, I don’t get inspections because of my brand name, I get inspections because I spend time and money marketing.
There is no secret to success in any business, the franchise is just a head start IMHO.