Assessing market potential before investing
Choosing the right market is the first step, and an important one, when evaluating a restoration franchise. Demand for restoration services exists in communities across the country, but local property characteristics, competition, and territory availability can influence an entrepreneur’s decision to invest.
Before exploring specific restoration franchise opportunities, prospective owners should look closely at the market they plan to serve.
Assess property and population density
Population size provides an initial outlook of a market's potential customer base. The number and concentration of homes, businesses, and other properties offer additional context. Housing stock is particularly relevant. Older homes tend to have aging infrastructure, like plumbing and electrical systems, that contribute to property damage. Prospective owners should also consider community growth and development patterns. A market adding housing and commercial space may create a different operating environment than one with little new construction.
Evaluate your area’s commercial property base
Residential properties are only part of the picture. ServiceMaster Restore® owners serve both residential and commercial customers, so consider the businesses and commercial facilities located within your target territory. A solid commercial base can also help owners develop relationships with industry professionals before restoration services are needed.
Research your competition
Part of the process is identifying the restoration businesses already operating in the area. Look at independent operators as well as regional and national brands. Consider how established they are and which services they provide. This will help you understand where the market may have room for another operator and what it may take to build a local presence. Competition can also signal existing demand. Your goal should be to understand the market well enough to know how your business will fit within it.
Consider your community’s exposure to severe weather
Restoration demand increases after hurricanes, flooding, wildfires, or other major weather events. Local climate history can help you understand the types of losses your team may respond to, but weather is only one source of demand. ServiceMaster Restore® owners also assist with everyday property losses including water, fire, smoke, and mold, with opportunities to expand into construction services in the future.
Review available territories
The last step is to confirm which markets are available. Territory structure is a key part of evaluating restoration franchise opportunities. During our discovery process, we work with candidates to review their target market and discuss available locations before they make a decision. A market should make sense for your goals as well as the business model you plan to build.
Ready to evaluate the opportunity in your market? Connect with one of our development experts to discuss available territories and learn what ownership could look like in your community.