Why buy a Construction Franchise?

There is a multitude of reasons why an individual would want to start their own business or make a change in their professional career. Some of the more common reasons are investment opportunities, general career change, retirement planning, geographical relocation, increased flexibility, or a simple lifestyle change. For whatever the reason, buying a construction franchise or any franchise for that matter is a viable way to accomplish any of these items while owning your own business. Thousands of different franchises are sold annually in a wide array of markets that give a new business owner options of which franchise may suit them best to attain these goals.

Within my own experience, a balanced family and work life was always the most important factor for any change that I have made professionally. Just like most of us, having the time to expand a professional career while also tending to family needs can be challenging. Franchisee ownership can allow the flexibility to balance all personal and family requirements while sustaining a lucrative professional career. Flexibility in a work environment can be hard to come by and owning your own business can accommodate a more balanced work and family atmosphere.


The reasons that one would want to buy a franchise may vary from person to person. However, there are always general aspects that should always be considered. Buying a franchise comes down to a few key factors; Investment, ROI, personal goals and abilities, and choosing the right franchise option.

What Does Investment Look Like

Investing in a new business, whether a construction franchise or similar, always have associated costs to get the establishment up and running. An investor is not only investing monetarily, but also the time it takes to research, train, and support personnel. If not familiar with these processes, a new business owner can find that the start of a business can be very cumbersome and intimidating when considering the time accompanied by the upfront financial costs.

When it comes to finances, the capital needed to invest in a new company will be allocated towards numerous different aspects of the business. Some, but not all, may include; product test and development, marketing, sales systems, operations, equipment, personnel, location, office space, etc., etc.. Depending on the type of business, assets can weigh heavily on any investment decision and whether or not to proceed with an investment. In terms of franchise purchases, you may find it easier to secure finance through a developed franchise. One may find that purchasing a franchise can cost less than starting your own business. Many factors can play into this scenario. However, a positive consideration when purchasing a franchise is that you are also purchasing a proven operating system that encompasses not only personnel training, but also marketing, sales, operation processes, associated technology, accounting procedures, necessary equipment, and much more. For a small business owner, having the business processes outlined and proven should be a very important consideration when investing in any type of business.

Other financial considerations when buying a franchise include the costs associated with the right to use the franchisors name and benefit from the franchisor’s assistance. These include costs such as:

Initial Franchise Fee and Other Expenses

Your initial franchise fee will typically range from tens of thousands of dollars to several hundred thousand dollars depending on the type of franchise that you are looking to purchase. This would be typical for any start-up business, whether franchise associated or not, depending on the type of business that interests you. You may face costs to rent, build, and equip all necessary equipment assets, and to buy initial inventory if required. Operating licenses and insurance are always crucial purchases no matter the industry that the business is being started in. The upside to buying a franchise is that these costs are already determined, lined out, and integrated into the purchase of your franchise. Depending on the number of assets a franchise is requiring, it can be beneficial to invest and research into those franchises that have a more “asset light” model to lessen initial investment costs.

Continuing Royalty Payments

One may also need to pay the franchisor royalties based on a percentage of your weekly or monthly gross income. Typically, you must pay royalties for the right to use the franchisor’s name and the system that has been set forth for the franchise. Royalties can encompass a wide array of requirements from franchise to franchise and should be a consideration when investing. The return on royalty payments compared to upfront costs to establish a recognizable business can outweigh the long-term effect of brand and business building.

Advertising Fees

You also may have to contribute to an advertising fund. Advertising can be an overlooked expense when starting a small business. Competition can be dense for certain markets and to elevate yourself from the surrounding competition can be difficult, especially for a new business owner. Established reputations are hard to surpass as a new business owner, and in turn, requires more advertising to promote your new business. Again, certain advertising costs are already allocated for each franchisee, by the franchise, to promote the business. Some of the costs are already accounted for with the Franchise controlling your marketing and advertising locally, but most importantly, on a national scale.


Above and beyond the financial investment, an individual looking to start their enterprise will no doubt spend countless hours making sure that the train does not leave the tracks. This includes all the time needed to train your employees to the standards that will ultimately decide the fate of the business. Developing and training processes can vary over time depending on trends, technology advancement, criteria changes, and overall adaptation within a particular field. Franchises offer an already developed system that has been proven over and over to be successful. This is important because the groundwork for a new franchise investor has been done for them. The worry of how to train personnel is already done for you by the proven process of a franchise. The question of how much, what kind, and where to purchase different assets will also be chosen and developed by the franchise. Buying a Franchise already has a proven system set in place to follow which will continue within your own franchise business, and best of all, the Franchise has already tested the incorrect processes and learned from past mistakes, so you don’t have to. Ultimately, a Franchise has already been through the trials and tribulations of business decisions and fought through the wrong decisions, which in turn means that you don’t have to.


Starting a business can be stressful in terms of upfront costs. Any new business owner is looking to start a business and has ascending growth occur as fast as possible — both recognition and profit sustainability. When considering a franchise purchase, always remember the amount of preset assistance that is being included. This includes training costs, advertising, marketing, operational processes, assets, logos, etc., that are required for any successful business. The big difference with a franchise purchase compared to small business startup is that mostly all processes are established the first day your franchise opens.

Personal Abilities and Goals

Other than money, the most important considerations when buying a business is your own personal abilities and goals. Think of it this way, more than likely a person who has years of experience as an upscale chef is probably not going to start a small business specializing in roof repairs. A certain self-reflection should occur to place yourself in a profitable business, but also one that a person can be proud of and comfortable performing for the rest of their career.


With that said, just because someone is unfamiliar with a certain type of industry, does not mean that they cannot pursue that business and make it profitable. When buying a franchise, the investor does not have to train everyone solely, nor be the expert. Franchises offer an already established training program, or they should, that will provide you with the skills needed to operate the business effectively and efficiently. A franchise will have the training needed to provide a level of expertise to the owner, and subsequent employees, despite background experience. The sole question is if the industry fits the individual.

Outside of ability and personal preference on the type of business, we should always consider the personal goals that we are trying to achieve.

  • What are your reasons for investing in a small business or franchise?
  • Do you have a minimum annual income requirement?
  • Are you interested in retail sales or performing a service?
  • How many hours a day/week are you willing to invest?
  • Will the business or franchise be your main source of income or be supplementary?

Different business ventures may or may not be able to accommodate personal goals. If someone wants to start a subsequent business for supplementary income but does not have the time or resources to start a business from the ground up, then this should be an important variable to consider. Weekly and daily work hour goals can be a major factor when making a startup successful. The more personal time needed can outweigh a potentially lucrative investment.

Continued Advantages of Owning a Franchise Summary

There are multiple advantages of owning a franchise in comparison to a small business. Essentially the “Be your Boss” is equivalent between the two endeavors. As mentioned, off and on throughout this article, owning a franchise can be more appealing than starting a business from scratch due to the “all inclusive” purchase that should accompany a franchise investment. This would entail an already developed marketing system, training system, operational system, Human Resources system, accounting system, etc., etc. Regardless of whether you own a franchise or start from the ground level when you own your own business, it’s inevitable that you’ll go through numerous trial and errors when building your systems. The benefit to owning a franchise is many of these errors are done ahead of time, and you don’t have to bear the burden of figuring them out on your own. You’re buying into a system that’s established and proven to work, which means you get to enjoy the perks of business ownership without all of the hardship that goes along with it, especially in the beginning.


Franchises can also offer the independence of small business ownership supported by the benefits of a big business network and system. You don’t necessarily need years of business experience to run a franchise. Franchisors usually provide the training you need to operate their business model. Franchises tend to have a higher rate of success than start-up businesses due to the pre-set models that have ben established through reputation, proven management, and work practices, and access to national advertising with continued ongoing support. Traditionally, business owners have to forge their pathways when setting up logistics and processes. This work can be treacherous in the beginning and may cause you to waste valuable capital.


Most franchisors have established relationships with vendors and have worked out the kinks to logistically get you everything you need to run your business. In many cases, the franchisor will have established a rate with preferred vendors, so you can even get a discount on certain supplies. You’ll start your path to business ownership with a tailwind from a healthy network of proven logistical partners. This exacerbates the speed at which you start generating revenue. Since the groundwork has been laid for you, establishing your roots is a faster process than it would be with a traditional business. That means you’re able to get your franchise off the ground and generating revenue faster than if you started from scratch.


To Conclude, starting a new business can be overwhelming. From training and operations to marketing and advertising, these costs are essential to any business generating positive revenue. The faster these processes are established, the faster the company can become successful. An ideal franchise purchase would have all necessary processes set in place, training program established, and on-going support staff to guarantee your success.

Share on twitter
Share on linkedin
Share on facebook


This field is for validation purposes and should be left unchanged.