Home services franchises are proving to be a solid choice for those seeking a recession-resistant business with long-term growth potential. As the global economy shifts, more people are opting to remodel their existing homes rather than buy new ones. That’s where home service franchises come in, taking on the tasks that many people don’t have the time, energy, or expertise to handle. From essential home improvements to complementary services like security upgrades, the demand for these services is set to grow in the coming years, especially with more people working from home.
In this article, we’ll walk you through the pros and cons of diving into the world of home services franchise opportunities.
4 Pros of Home Improvement Franchises
A Steadily Growing Market
According to some analysts, the residential remodeling market size was valued at an impressive $527.36 billion in the U.S. in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.6% from 2024 to 2030, which is no small feat. This growth isn’t surprising, as property owners look for safer, more functional, comfortable, stylish, and “smarter” spaces —especially as working from home becomes more common.
High ROI potential
The home services franchise industry shows strong returns, with an estimated ROI of around 69%. More than half of homes in the U.S. are over 20 years old, and many homeowners are choosing to remodel, redecorate, or renovate rather than move. Kitchen and bath renovations, in particular, are incredibly popular and are projected to yield an ROI of around 50%. In fact, the kitchen and bath market hit $173 billion in 2024—one of the highest peaks for this industry in the last 40 years.
Scalability and brand recognition
One of the best parts of joining a franchise is the brand recognition you gain right from the start. You’re buying into a business model that’s been tested and proven. Franchises also offer flexibility, allowing you to scale at your own pace, balancing resources and time to suit your business goals.
Wide Variety Of Diverse Services And Complementary Businesses
Home services franchises cover much more than just a fresh coat of paint or yard cleanup. They span industries like insulation, roofing, landscaping, window cleaning, interior design, and even smart home security installation. This wide range of services allows you to tailor your offerings to meet local demand and provides opportunities to network within a diverse community of franchisees.
The Cons of Home Improvement Franchises
Highly Competitive Market
Home services are an attractive, fast-growing market, which means competition can be fierce. The industry is also sensitive to economic shifts that affect costs, from material prices to labor rates.
High Initial Investment
Starting a home services franchise isn’t always cheap. Compared to other franchise types, the upfront costs here can be higher. However, some franchisors offer financing options to qualified candidates, which can help business owners mitigate start-up costs.
Customer Service
Every home improvement project is unique, shaped by the individual needs and expectations of the homeowner. Managing these expectations can be challenging, and home service franchises require a particular set of people skills. If you’re interested in exploring whether you’d be a good fit to own a franchise, take our free Franchise Aptitude Assessment to learn more.
The Bottom Line
The home services franchise market is booming, with no signs of slowing down. As American households increasingly turn to remodeling rather than buying, there’s a growing demand for personalized and functional spaces.
While not without challenges, home service franchises offer an exciting opportunity in a fast-expanding industry.
Curious if this path is right for you? At New Ground Consulting, we’re here to help you make the right decision. Start with our free Franchise Aptitude Assessment to discover if franchise ownership is your ideal fit.