When researching franchise opportunities in the construction industry, your first decision is determining whether you want to be on the home-building side of the business, or on the home remodeling, refinishing, and renovating side of the business.
The National Association of Home Builders notes that builder confidence for newly built single-family homes posted its 11th straight monthly decline in November 2022 according to their housing market index. This is the lowest confidence reading since June 2012 โ except for the onset of the pandemic in early 2020. This is a sector where elevated interest rates and material costs have a more profound impact than the lower-cost remodeling segment.
While there are franchise options on the home building side, this sector is not as stable as the renovation side of the industry when people are being more careful about how they spend their money. The home building side will certainly recover, but if youโre looking to get into your own business soon, it would be better to pursue a remodeling franchise over a home builder franchise.
Remodeling Franchises Have More Stamina
Even with rising inflation costs, home remodeling and home repair projects are maintaining a steady level of interest from homeowners.
The Leading Indicator of Remodeling Activity (LIRA) report by Harvard University is issued at the end of every quarter as a short-term outlook of national home improvement and repair spending for owner-occupied homes. The 2022 third-quarter report predicts a 6.5% growth rate by the third quarter of 2023.
As a business opportunity, being in a construction franchise that focuses on remodeling, repair, or renovation is one of the most stable options available, even in times of economic uncertainty. Itโs often easier, more convenient and more affordable to renovate versus move, and even if someone is planning to move, it is possible that renovations will be part of the selling package for the home.
Residential Remodeling to Reach $450 Billion
The LIRA report also noted that homeowners who are pursuing remodeling projects have enough equity in their homes to support the financing of renovations which are estimated to reach $450 billion in 2023.
On the residential side, updating styles and replacing aging elements of the home are still in demand. On the commercial side of the industry, after people altered their homes for work or school arrangements during the start and height of the pandemic, many employees are choosing to return to the office, which is prompting some growth in renovations by the commercial sector.
With a solid foundation to enter the remodeling industry, there are several types of franchises available to launch your entrepreneurial career.
Home Remodeling Franchise Options
The options for a construction franchise in the home remodeling industry are vast and it can be challenging to know where to begin. One way of narrowing down opportunities starts with knowing the level of investment youโre looking to make.
For example, a granite franchise comes in at $325,000 to start while a kitchen and bath makeover franchise will run you around $200,000. Accessibility ramps, concrete foundations, roofing, and fencing franchises fall in the $120,000 range while siding, soffit, and fascia can be started for under $100,000. Many of these franchises are dependent on a single revenue stream to produce income.
Another option is an N-Hance Wood Refinishing franchise. Not only does our initial investment start below $100,000, but our business model also provides the ability to build multiple revenue streams. This not only appeals to a broader residential spectrum of clientele, but it also accommodates the growing commercial sector as well. In our most recent Franchise Disclosure Document, the top 25% of franchise owners experienced an average revenue of more than $1.3 million in 2022.
Get Started with N-Hance Wood Refinishing
An N-Hance wood refinishing franchise refinishes floors, cabinets, furniture, railings and doors. They offer floor sanding and cabinet door replacement. Our technique restores the natural beauty of cabinets, hardwood flooring and trims at 20% to 33% of traditional re-facing or replacing of cabinets. Weโre one of the most affordable construction franchise opportunities in the home remodeling industry and are part of the BELFOR Franchise Group.
With nearly 400 franchise locations as of yearend 2022, our wood refinishing franchise deserves your attention as a business opportunity. We provide an opportunity to join the industry with a business model that combines innovative practices with a more resilient product offering for challenging economic times. Download a free franchise information report today to learn more.
