The Home Services Industry is certainly on fire and has been booming since 2020. The segment includes different business types such as residential cleaning, roofing, painting, plumbing, home improvement, decorative finishes and everything in between. The home service industry is currently valued at $506 billion and is expected to see an overall growth of 53% by 2024. So why is this industry so hot right now? Well it’s because of very solid sales performances. That and along with the fact that these businesses were deemed to be essential during the COVID lockdowns has allowed them to continue to grow for sure for sure. “Coming out of COVID, people are continuing to spend a lot of time in their home and are realizing updates they want to need or need to make sure the home is clean comma safe and really comfortable”, as reported by 1851 author Katie Porter.
Let’s take a look at one of the verticals that is bolstering this industry. The Home Improvement segment has had a fabulous year. We see franchise brands such as Archadeck Outdoor Living booking in an impressive 35.7% sales growth increase followed by a whopping 28% and 26% increase for Screen Mobile and the Flying Locksmiths. Budget Blinds has the largest total number of units reporting 1,279 franchisees at the end of 2021, and still showed a 19.8% increase in their sales growth percentage. With newcomer DecoArmor Designs, who provides decorative finishes that are patented to look like stone, woodplanks, brick and stacked stones but are actually made out of polyurea which is lightweight and almost indestructible reporting their final “soft opening” type testing for over 200 units rolling out this year; the vertical does not show slowing any time soon.
Outdoor Services vertical saw similar incredible growth with mosquito joes booking a 34.1% sales growth with an amazing second place for Property Management Inc booking a 16.9% growth rate and a not-so-distant third also having an incredible year with a 14.2% sales growth for America’s Swimming Pool Company.
In most years a single digit sales growth rate was expected and certainly still applauded. This year these growth rates seem small compared to the other verticals when evaluating the Electrical / HVAC and Plumbing franchise systems. However we saw a 9.6 percent increase for Mr. Electric a 7.7% for Mr. Sparky, a 6.3% for Roto-Rooter, and a 6.1% for Mr. Rooter, which are all still incredible growth rates for franchise systems. Roto-Rooter made it up to the ranking of number 67 in the top 400, last year and had a total of 1.468 million in global sales.
Franchise consultants IFPG which stands for the International Franchise Professionals Group produces a weekly top report. For the current week IFPG uses its internal data collected from their portal to identify which home service franchises had the most activity in the past week. This ranking system does not base it’s top rankings on franchise sales, franchises success rates, or number of units open. They use the ranking system to help identify new and upcoming franchise systems. They showed top interest rankings going to: EverLine Coatings, followed by Koala Insulation, Superior Fence and Rail, Floor Coverings International, and All Dry to be in the top five this week.
Whether it’s a brand new rising franchise system or one that has over 1200 franchises across the globe you should always make sure to do your due diligence and how that brand specifically rates to what you want out of your franchise business.
Christina McAmis, Attorney at Shelton Law & Associates reports that FDD Reviews are up as well. “This is a good thing for the industry. Entrepreneurs are becoming smarter about protecting their investments Before they ever get started they are ensuring that their counsel and other trusted advisers are weighing in on protecting their futures. That is just smart business no matter what brand you are looking at.”
Ms. Shelton was the COO of a large franchise system and is currently the Senior Attorney for Shelton Law & Associates franchise law firm, as well as a franchisor owner in an international franchise system, and CEO of an International Non-profit company specializing in training entrepreneurship to young adults.
Shelton Law & Associates (“SLA”) Attorneys have 50+ years’ business consulting, franchise, and trademark experience. Their knowledge facilitates an understanding of a large variety of businesses, services, site selection, and technologies. They help businesses protect their Brands through Trademark, Copyright, and Business contractual transactions. These services allow SLA to “Expand their Brand®” through Franchising. For Franchisors, SLA provides full outsourced in-house counsel services for a flat monthly fee.
Shelton Law & Associates additionally works with entrepreneurs buying franchises by assisting with Business Creation, Industry Evaluations, Franchise Disclosure Document Review, Fairness Factors, Site Selection, Opinion Letters and Negotiations.
For more information or to schedule a customized consultation for your business, you can write to franchising@SLA.Law or call (866) 99-FRANCHISE.
To view the full article in Franchise Connect Magazine, please visit: https://issuu.com/franchiseconnectmag/docs/23-fcm-issuu
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