Why buy a Construction Franchise?

Why a Construction Franchise?

There are many reasons why someone wants 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, or increased flexibility. Not only those, but also just a simple lifestyle change. For whatever reason, buying a construction franchise, or any franchise, is a viable way to accomplish any of these items while owning your own business. Thousands of franchises sell every year in many markets. This gives new business owners options of which franchise may suit them best to achieve these goals.

Within my own experience, a balanced family and work life was always the most important factor for any change. 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 why someone would want to buy a franchise differ from person to person. However, there are always general aspects that should always be considered. Buying a franchise has key factors, such as: investment, ROI, personal goals and abilities, and choosing the right franchise option.

Birds eye view of people with TransBlue logo aboveWhat Does Investment Look Like?

Investing in a new business, whether a construction franchise or similar, always has associated costs to get the establishment running. An investor is not just 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 starting a business can be intimidating. This piles on when considering the time accompanied by the upfront financial costs.

For finances, the capital needed to invest in a new company will be allocated towards numerous 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 to proceed or not 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. A system that encompasses personnel training, 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 franchisor’s name and benefit from the franchisor’s assistance. These include costs such as:

Initial Franchise Fee and Other Expenses

Your initial construction franchise, or similar, fee could range from tens of thousands of dollars to several hundred thousand dollars. It all depends on the type of franchise you are looking to purchase. This is 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 buy initial inventory if required. Operating licenses and insurance remain crucial purchases, no matter the industry the business starts 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 requires, it can be beneficial to invest and research into franchises with 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 called royalties. Typically, you must pay royalties for the right to use the franchisor’s name and system, set forth for the franchise. Royalties can encompass a wide range of requirements, from franchise to franchise, and should be worth 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 may also 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 competition can be difficult, especially for a new business owner. Established reputations are hard to surpass as a new business owner, and in turn, require 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 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 the train does not leave the tracks. This includes all the time needed to train your employees to the standards that will decide the fate of the business. Developing and training processes can vary over time, depending on trends, technology advancement, criteria changes, and adaptation within a particular field. Franchises offer a developed system, proven to be successful. This is important, because the groundwork for a new construction or any franchise investor has been done for them.

The Franchise helps support the Franchisee

Don’t worry about how to train personnel. The franchise’s proven process will cover that for you. The franchise will answer how much, what kind, and where to purchase different assets. Buying a Franchise already has a proven system set in place to follow. This will continue within your own franchise business. Best of all, the Franchise has already tested the incorrect processes and learned from past mistakes. Franchises does this 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 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 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 a 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 are your own personal abilities and goals. Think of it this: an upscale chef with years of experience is likely not starting a small business in 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.

If someone is unfamiliar with a type of industry, it does not mean they cannot pursue that business and profit. 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. Franchises have the training needed to provide expertise to the owner, and all employees. All this 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?
  • Do you have an interest 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 supplementary?

Different business ventures may or may not 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 compared to a small business. Essentially, the “Be your Boss” is equivalent between the two endeavors. As mentioned throughout this article, owning a franchise can be more appealing than starting a business from scratch. This is 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.

If 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 error when building your systems. The benefit of owning a franchise, or a construction franchise, is that many errors are done ahead of time. So 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. So you can enjoy the perks of business ownership without the hardship that goes with it, especially in the beginning.

Franchises can also offer the independence of small business ownership. Franchises get support 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 success rate 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.

What else do franchises offer?

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 a traditional business. That means you’re able to get your franchise off the ground and generate 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 start, the faster the company can become successful. An ideal construction franchise, or any franchise purchase, would have all necessary processes set in place, a training program established, and ongoing support staff to guarantee your success.

Learn more about the construction franchise TransBlue, and our Franchise Opportunity

For in-depth details about the Transblue contracting franchise, download our Free Franchise Opportunity Report. You can also learn more by visiting our research pages.


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