The home services sector covers a lot of ground, from gutters to pest control to residential cleaning. The industry itself offers many strengths in terms of business ownership; the key is being able to recognize which franchise has the best potential and represents the strongest choice for your entrepreneurial goals.
Fastest-Growing Home Services Franchises
Determining which home service categories will make good franchise investments in the future can be aided by industry lists such as Entrepreneur’s Fastest-Growing Franchise Ranking. For 2023, this list identified franchise brands with the greatest unit growth in North America in the past year, based on data the franchisors submit for the most recent Franchise 500® ranking. Currently, the list includes the following service franchises that are experiencing three years of persistent growth:
- Pest Control
- Home Repairs and Improvements
- Insulation
- Handyman Services
- Restoration
- Residential Cleaning
- Lawn Care
- Appliance Repair
- Window Cleaning
- Outdoor Home Maintenance
Franchises in this ranking had substantial growth rates. This certainly seems like a significant variation, and it may seem even more difficult to decide on a home services franchise to explore. That’s when doing a deep dive into the specific home services franchise can be helpful.
Some Other Rankings to Consider
Merry Maids® did not rank on the Entrepreneur Fastest-Growing Franchise List for 2023. However, we ranked #119 on the Franchise 500® list and ahead of many of the fastest-growing franchises. We also earned the following additional Entrepreneur rankings this year:
- #9 as a Top Franchise for Less Than $100,000
- #127 for Top Brands for Multi-Unit Owners
- #172 as a Top Global Franchise
With 880 franchises, we are a leader in the home services market, and have been for decades. Our franchise was established in 1979, and we have been consistently ranked in the Entrepreneur lists, which shows that our franchise is a stable and sustainable investment.
The residential cleaning services industry has good predictability, supported by strong homeowner statistics. This positions us as a strong opportunity for new franchise owners and for current franchise owners looking to grow their portfolios with additional units or brands.
Why the Home Services Market is Always a Good Investment
According to The Economy of Everything Home report by Angi, the total addressable market for home services is more than $650 billion . Some of the reasons why the home services market is always in demand include:
- Older Homes. Older homes require more repair and maintenance, which leads to the contracting of services in this sector of the industry. Often, new homeowners who purchase older homes invest in updating those homes to suit their personal preferences, which supports the home improvement sector.
- Aging at Home. As people choose to age at home, they often seek home services that look after more labor-intensive jobs such as window cleaning, lawn maintenance, and residential cleaning.
- Income Stability. The Angi report noted that families earning more than $125,000 per year spend more on home services than those earning under $125,000. As incomes rise, so do expenditures in this industry.
Of course, service franchises also face some challenges that potential business owners need to be aware of in making an investment decision. Some of these that are relevant for 2024 include:
- Trades Training. If you are looking at a franchise in the trades — plumbing, electrical, etc. — and you are not licensed to perform these services, you need to hire trained professionals. That can be a challenge with such a demand for skilled trades across the industry. It may be dismal for a while as the application rate for people seeking technical jobs dropped by 49% in 2022 compared to 2020.
- Interest Rates. Choosing to renovate can be influenced by the borrowing costs necessary to complete a project. Larger projects may be deferred for smaller ones or even put off altogether. Even if homeowners have the cash to pay for the renovations, they may want to hold onto it a little longer until the economy stabilizes.
When you are exploring home services franchises, it is important to take industry and economic factors into account to make the best financial decision. Not all home service categories will offer their respective benefits at the same time.
Residential Cleaning: A Recession-Resistant Investment
While cleaning the house is something many people can do on their own, it is not often a service that is dropped even in a challenging economic time. The reason? Families feel it is a small price to pay to free up time to spend on leisure activities.
The Angi report referenced earlier specifically addressed the residential cleaning sector, noting that as families grow, so does the demand for home cleaning. For each additional person in a household, 1.3 cleaning jobs are created! Further, younger generations are high users of cleaning services because they just don’t have time to pursue their professional careers, care for their families, and clean the house.
In the next 10 years, these demographics will influence the residential cleaning industry:
- 43.5 million people will turn 30. Age 30 is commonly associated with the earlier forms of family formation and the beginning of early career growth.
- 45.2 million people will turn 40. Age 40 is commonly associated with peak earning power and trading up homes for more space.
- 28.9 million people will turn 80. Baby boomers are the largest cohort to reach stages of life commonly associated with downsizing, aging in place, in-law suites, and other age-associated home improvement and servicing needs.
Merry Maids is a Home Services Franchise to Explore
We have a blog on 21 reasons to open a residential cleaning franchise that’s worth a look as you consider home service franchise options. You can use the reasons we list as a guide when researching other franchise offerings and see how they compare.
The decision to become a business owner doesn’t come with a guarantee, but there are ways that risk can be managed when you choose the right opportunity.
An established franchise automatically reduces risk by providing a business model that has been working for hundreds of other franchise owners in the same line of business. This shows the sustainability of the franchise. Long-running franchises like Merry Maids also have a wealth of knowledge and expertise in their history, which helps provide a solid home service franchise investment. We have been through the boom and bust of the economy, and we’re still a thriving, top-ranked franchise opportunity.
Franchises with a strong past can often be indicators of opportunities with a strong future.
Contact Merry Maids Today
The residential cleaning service franchise market is a $1 billion industry. Collectively, more than 1,500 franchises employ nearly 20,000 people. Merry Maids has been a leader in this sector for decades and has grown as part of the ServiceMaster Brands company. We have invested in our future so you can feel confident investing in your future with us.
Request franchise information for Merry Maids today. Let’s start the conversation about how 2024 can be the year that changes your life.