Independent or Franchise?

[rmccullough]

I am a new inspector trying to figure out whether to be an independent or go with a national franchise. I have heard “war” stories from both sides. I am leaning toward trying it on my own at least to start. Can anybody out there offer me some advice on how to make a good decision?? What to watch out for etc.

[Bob Moudree]

It certainly is a mixed bag. The main drawback to the franchise option is, of course, the costs / fees. It is not uncommon for inspectors to feel the franchise fees they end up paying are not justified in respect to the support and benefits they receive. My feeling is that if you are comfortable with your level of knowledge in the actual inspection process, I would lean towards going the independent route initially with the option of doing the franchise scene at a later date if you determine you need it.

[rmccullough]

Thanks Bob. I did notice the franchise fees were rather high when compared to the "support" they offered. I am sure I will be back on here as I start to go the independent route.

[hiessentials]

There are a few other things to consider when looking at franchising vs. starting as an independent.

The immediate drawbacks of franchising are the initial cost of buying a protected territory and of course the monthly royalty due to the franchisor.

That being said, as a business person, you must look beyond the initial costs and try to identify short and long term equalizers if you will.

As a sole proprietor, you are typically a one-man show responsible for marketing your new business, not to mention the fun stuff; answering the phones, designing a logo, printing business cards, and the list goes on and on. Can you effectively juggle these tasks? How long will it take you to start regularly booking inspections?

Many franchise systems such as HomeTeam, Housemaster, Pillar to Post, and WIN offer many such "equalizers". First and foremost, a recognizable name and an infrastructure which immediately legitimizes your operation. Some times, that itself is worth the price of a franchise.

Some of the aforementioned franchisors include business training as well as instruction on becoming the best inspector you can be. Others provide tool kits and apparel with their start-up programs; E & O discounts, phone support, report writing software, association memberships, and don't forget referrals from calls to the corporate office.

One franchisor, HomeSafe Inspection, even includes a high-resolution infrared camera and acoustic probes as part of their franchisee package.

Royalties paid to franchisors vary, but typically, costs don't exceed the proceeds earned on 2 or 3 inspections.

Like anything else, there are pros and cons to weigh before making your decision. Your best friend is research!

[Geksciels]

Hi

whats the difference between major and independent labels and how can labels go from being independent to major?

Keep sharing and reading

Thanks