The most profitable home service franchises of 2024
Startup costs are among the highest barriers to entry for new franchisees – but this is where home-based franchises have a distinct advantage. Their flexibility and relative accessibility, along with the sheer variety of what a home-based franchise can be, make them among the top picks for potential franchisees.
In this article, we’ll cover:
- What makes a great home-based franchise
- Reasons to consider investing in home-based franchises
- The best home-based franchises of 2024
Let’s start with understanding what makes these franchises successful.
Home service is an essential and growing sector with niches for many different types of business models.
While it’s true that interest rates are high right now, the U.S. Census Bureau reports that homeownership rates are higher than they were before the COVID-19 pandemic – a strong indication that the home service sector is well-positioned for growth.
In this article, we cover:
- What makes a great home service franchise?
- Where you might want to invest in a home service franchise
- Our picks for the most profitable home service franchises for 2024
What makes a great home service franchise?
The best home service franchises have a combination of selling points: low operating costs, a strong geographic presence (whether that’s global or hyper-local), and systems that enable expansion. Let’s take a look at each.
Strong systems
As important as strong systems are for any business, having these systems in place is essential for a franchise. When evaluating a home service franchise’s systems, look at both the corporate systems and the efficiency of how franchisees remain profitable.
For corporate systems, you want to investigate financials and their ability to onboard and set up new franchisees for success. A franchise that can complete both of these tasks is well-positioned to grow. A franchise without strong profit margins might not be the best choice for an investor.
Sound geographic/customer base
Where does this franchise operate, and where are its customers located? While some cities have a higher density of homeowners, other cities are flush with rental markets. Also, some suburbs or bedroom communities are building investment housing that might be taking away potential market opportunities from home-based franchises.
Suburban areas, however, could provide the right mix of home ownership and population density for a home-based franchise to take off. Again, this depends on the locality chosen, so mileage may vary.
This concern can be entirely mitigated by the presence of a strong customer base. This may be based on demographics, such as the success of cleaning franchises in areas populated with younger, high-income renters. Location can also play a major role, such as storm preparedness franchises that often succeed in regions where there are frequent hurricanes, like areas bordering the Gulf of Mexico or the southern Atlantic Coast.
Technology (scheduling, marketing, etc.)
Technology helps franchisees keep operating costs low, which increases their overall profitability. Smart franchise headquarters use technology to help franchisees with the necessary aspects of running a business beyond providing the contracted service: marketing, operations, scheduling, invoicing, payment processing, and so on. The more a franchise has invested in its franchisees’ success, the better a signal that sends to a would-be investor.
This is just as true for franchises that recommend or mandate the purchase of specific, higher-quality tools that make a meaningful difference in the franchisee’s ability to fulfill their contracted services. Home service franchises that are known for providing quality service – and for being easy to work with – will do well.
Low headcount models
The combination of headcount and payroll is one of the most expensive parts of running a business. To remain profitable, a home service franchise should endeavor to keep a low headcount model – which is easier said than done, as it increases the burden on the individual franchisee to perform more tasks.
This is where investing in technology can help. The franchise headquarters should endeavor to assist its franchisees in keeping their costs down. For the headquarters, it makes more sense to centralize many tasks, especially those related to operations.
Expansion availability
As an investor, be sure to evaluate a franchise’s expansion availability. What does the current market look like for this service? Is this a service that has historically been in demand, and should you expect demand to increase? This may be difficult to gauge for newer franchises and newer types of services, but you can always look to older models to estimate.
More importantly, you’ll want to keep an eye on this franchise’s expansion plans and how those plans are going. How many locations were opened in the previous three years? Did any locations close? If so, why? What is the franchise headquarters doing to mitigate poor closures or to open more successful locations?
Benefits of a home service business
There are plenty of reasons to invest in a home service franchise. From the massive total addressable market, to various business models, to networking potential, there is no shortage of ways for this sector to grow and diversify.
Broad market requiring essential services
Essentially, the home service addressable market includes anybody with a home. While some households will be necessarily excluded due to geographic or socioeconomic factors – households looking to cut costs won’t be spending on what they view as luxury or optional services – that still leaves a huge market.
Moreover, some home services, like pest control, are not exactly optional. So in addition to a large potential market, there’s a high resilience to economic headwinds. As an investor, you can diversify your portfolio to include these more stable franchises as well as riskier companies.
Multiple business models to choose from
Home service businesses are certainly not stale, at least in terms of how they do business. Some, like a franchise that sells DIY products such as wood or paint, will primarily operate a brick-and-mortar store, but might optionally offer a home visit done-for-you service. Others will be exclusively home visit operations, such as a specialty home repair franchise. This business model diversification means greater potential for growth and resilience to a changing environment.
Complementary networks with franchise partners in different niches
A franchise that niches down can network with other franchises or local businesses that offer complementary services. A pest removal franchise, for instance, might get referrals from a local landscaping company. Successful franchisees will be able to spot these networking opportunities in their communities and build valuable relationships.
Top home service franchises of 2024
Considering all the factors covered here, what are some top home service franchises of 2024? Following are our picks for five of the most profitable.
All Dry
All Dry is a water and mold remediation and restoration home service franchise that began franchising in 2020 – and they’ve already opened more than 100 locations. This is a fast-growing franchise with excellent gross revenue.
Fast facts
- Locations: 111
- Founded: 2014
- Franchised: 2020
- EBITDA: $764,438
- Start-up cost: $87,749–$275,300
- Franchise fee: $49,500
Blingle!
Blingle! refers to itself as a stand-alone premiere lighting solutions franchise. The company offers a mix of services, including lighting solution designs, commercial and residential installation, and maintenance and storage of holiday lighting. Blingle! only began franchising a couple of years ago, but has been growing quickly and strategically.
Fast facts
- Locations: 36
- Founded: 2015
- Franchised: 2021
- EBITDA: $490,322
- Start-up cost: $280,966–$419,001
- Franchise fee: $59,500
Koala Insulation
Koala Insulation is an insulation service franchise for home and business owners. It helps home and building owners save money on heating and electricity costs by tapping into the $500 million home improvement market. Koala has seen great demand from franchisees and has onboarded a new franchisee, on average, every three to four days since 2020, when the company began franchising.
Fast facts
- Locations: 325
- Founded: 2018
- Franchised: 2020
- EBITDA: $341,607
- Start-up cost: $182,558–$210,507
- Franchise fee: $49,500
CertaPro Painters
CertaPro Painters offers residential and commercial painting services. Offering both interior and exterior painting services, the company has built an impressive network, with over 300 locations since its founding in 1992.
Fast facts
- Locations: 331
- Founded: 1992
- Franchised: 1992
- EBITDA: $337,434
- Start-up cost: $155,750–$216,000
- Franchise fee: $65,000
Storm Guard
The largest residential and roofing construction franchise in the United States, Fort Worth-founded Storm Guard has offered its services in 16 U.S. states for two decades. Storm Guard is an attractive option for investors due to its high average gross revenue and large market share.
Fast facts
- Locations: 39
- Founded: 2003
- Franchised: 2011
- EBITDA: $281,347
- Start-up cost: $185,400–$221,600
- Franchise fee: $65,000
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