Franchising is an appealing business ownership model for entrepreneurs. Not only are franchises responsible for a significant economic output to our overall economy (over $850 billion in 2023), but there has been a recent trend toward multi-unit franchises – adding one or more units to the same brand – which account for more than half of all franchises in the United States.
In addition to multi-unit franchise ownership, there is an additional option of adding different brands to your franchise portfolio that complement it. This multi-business approach may offer obvious cost, logistical, personnel, and profit benefits, while few businesses complement each other better than those in the home services industry.
Understanding Complementary Brands
A complementary brand offers products or services that align naturally with what you already provide. For instance, if your franchise focuses on plumbing, a complementary brand might offer HVAC repair or electrical services. Or if you specialize in home cleaning, a complementary brand could provide window and carpet cleaning. If you do restoration, a junk hauling franchise might pair well, or if you are in property management, several home service businesses might offer complementary revenue streams. The goal is to create a one-stop shop for your customers, providing multiple related services under one roof.
Why You Need a Multi-Brand Home Services Franchise
While some may feel adding other complementary businesses would multiply your costs, responsibilities, and headaches, the opposite is often the case as you can consolidate tasks and processes while opening the possibility of much higher economic returns. Consider these advantages of adding another brand to your current business operation:
Expand Your Service Offerings
Partnering with a complementary brand lets you broaden your service offerings without significant investment in new equipment or training. For example, if you run a pest control franchise, teaming up with a lawn care franchise could help you offer pest prevention and landscaping services as a bundled package. This cross-selling can increase your average transaction value and boost customer retention.
Increase Customer Loyalty
When satisfied customers can access multiple services from one trustworthy provider, they are likely to do so. Offering a broader range of services through a complementary brand partnership makes it easier for customers to choose you over competitors, leading to increased retention and repeat business. Why not trust a provider with whom you're already pleased with more home service opportunities?
Increased Revenue Potential
More service opportunities with a customer can mean more opportunities for profit. Expanding your services with a multi-brand approach can significantly boost your revenue potential.
With multiple brands, you can cross-sell to existing customers, upsell comprehensive packages, and attract new clients seeking bundled services. For example, a customer who contacts you for plumbing might also be interested in HVAC maintenance or pest control services. Tapping into these additional revenue streams can accelerate your franchise growth.
Cost Effective Marketing and Operations
Just as expenses and responsibilities can be optimized with a multi-brand franchise, the same typically holds true with your marketing and advertising efforts. By promoting multiple services together, you consolidate your marketing efforts, reducing costs while reaching a broader audience. A single advertising campaign can showcase all your services and maximize your ROI. Additionally, sharing resources like equipment, vehicles, and staff across brands can lower overhead costs and improve profitability.
Neighborly® Complementary Brands: A Closer Look at Specific Home Service Franchises
Neighborly operates over 30 home service brands, each specializing in different areas of home maintenance and repair. These brands cover everything from plumbing and electrical services to landscaping, pest control, and cleaning. As a franchisee, you can leverage these complementary services to enhance customer retention, create cross-sell opportunities, and increase profitability.
Expand Your Home Service Franchise Portfolio
When you’re looking for more home service franchise opportunities, you need the right guidance. The Neighborly family of home service brands has friendly, knowledgeable, multi-brand and multi-unit franchise experts who are experienced in supporting business owners like yourself.
Want to learn what type of home service franchise opportunity might be the perfect match? Take our Franchise Quiz today then contact our team and see how you can get started!
