Despite the current economic unrest in the world in 2026 at global and local level, and with the Federal and State governments’ budgets all squeezing every cent out of taxpayers, investors and small business, the franchise sector is one sector that will benefit from all this upheaval.
Many companies are already downsizing their staff leading to a record number of redundancies in various business sectors, partly due to economic factors but also due to the advances in AI.
With so many people being made redundant they need to retrain and find an alternate career or option to earn an income, and this is where franchising becomes a very suitable and attractive option.
One of the franchise sectors undergoing growth in Australia is the Home Services sector which covers a huge range of services from trades, health and beauty services, home care and support to getting your car serviced while at home or at the office.
There are some things we all still like to go shopping for, spending time at Chadstone as an event, enjoying the crowds, sushi train lunch or going to the cinema, but the Home Services sector brings products and services to your door.
You can let your “fingers do the walking” and call the Grey Army to do some home maintenance, Swimart to clean the pool, Nurse Next Door to care for your loved one at home, Blue Wheelers to wash the dog and Coles to deliver your dinner, all while sitting on the couch watching Travel Guides!
The services are endless and extend to home beauty services such as Jim’s Beauty where you can “Get your hedge trimmed, your hair done and a nice facial” hopefully not by the same person!
This does remind me of the “Plumbing Song” by Weird Al Yankovic in 1992 (a Milli Vanilli parody) about a couple dealing with an overflowing toilet and broken plunger calling an emergency plumber. Check out the video it’s a hoot! Now that’s quality songwriting....not!
Putting Al Yankovic aside ( and never playing that again) there are excellent opportunities for a prospective franchisee who wants to run their own business with flexible work hours, not being tied down to a retail or office environment.
A great advantage in taking up a home and mobile service franchise is that the operational costs are generally low and therefore the business can be viable for an owner operator as there is no need to lease premises and you can reduce your other fixed costs such as staff and insurances.
Some statistics
The Tradesman and Handyman Franchise sector in Australia is worth around $174 billion in annual revenue and incorporates around 90,000 franchised businesses with around 1300 franchise networks operating around Australia.
The Trades and handyman sector includes all the major trades from painting to roofing and tiling, plumbing and electrical services, with the largest revenue being from gardening, lawn mowing and landscaping services.
Although past growth was slow at 0.7 % due to a slowdown in the construction market, cost of living pressures and high interest rates, the home services sector is expected to grow by around 2.3% to $1.4 billion up to 2028-29.
This is great news for franchisors, partly driven by the governments support for new residential and low-cost affordable housing initiatives and a rising population. It will be interesting to see if the recently announced CGT changes will affect investors and lead to increased new residential development as the Government suggests.
For every new estate or high-rise development this then generates the need for services such as cleaning and maintenance, landscape and gardening and other services.
Over 70% of the home services sector revenue is generated by three main franchise brands Jim’s Group, O’Briens and VIP Home Services with around 32% of the revenue being building installation services and 15% maintenance, gardening and other construction services (IBISWorld Report).
Franchising has remained the predominant business model delivering a wide range of trade and home services.
The rise in apartment construction, low-cost housing and the Government’s policy to increase affordable housing has helped to create market demand for the home maintenance franchise market. An example is that Owners Corporations prefer to deal with a franchise group to provide services, rather than smaller individual contractors.
It is generally accepted that a franchised business is more effective in marketing and promoting services than a smaller independent handyman or tradie and therefore franchisors are likely to pick up the major share of growth in a sector.
New Franchise Opportunities in Home services
Here are a few sectors that have become big business to consider if you are looking to retrain from being made redundant or to try your hand at running your own business:
Home Care and NDIS
With an ageing population and the Governments’ funding in the NDIS sector (although under review and some tightening by the Federal Govt) home care and NDIS support has really taken off.
Sanicki Lawyers act for several businesses in this sector that have successfully franchised, enabling carers to become business owners under a franchise system.
We have also advised many franchisees in the Nurse Next Door home care franchise which has proven to be a very successful franchise providing end-of-life care and support and helping clients stay at home longer.
There are several other well developed aged care and home care franchises offering opportunities in this sector.
As with any business, franchisees should do their homework and compare the models on offer and the fees required and seek specialist advice before taking up a franchise.
Home and garden maintenance and cleaning
This sector is highly competitive and has grown post the pandemic, from when it was considered an essential service and includes all of the well-known systems such as Jim’s Group, O’Brien (Glass Plumbing and Electrical), V.I.P. Home Services, James Home Services and many others.
Other Services
Franchising offers excellent opportunities for individuals to run their own business as part of a franchise group with the support of a system, marketing and training with flexible work hours.
Home services are particularly attractive to people who have worked a trade or a husband-and-wife team who like to work together.
There are several newer service offerings such as Kitset Assembly (they can assemble your IKEA - 3 easy step sofa (that ends up being 33 difficult steps), Hang My TV who as the name suggests hang TV’s and set up your home entertainment system.
Once that’s all done, you can call Geek2U to sort out your iPad, laptop and tech issues and then sit back and order your home delivery pizza!
Other franchises that have grown are home school tutoring, health and wellbeing, dog walking and pet sitting.
Do what you love or do what you are good at!
Find the right franchise for you, one that you are interested in or have a passion for but make sure you can draw a reasonable salary for your effort after all the franchise fees are payable.
It is easier to do something you love than something you will hate after a few months as once you take up a franchise there is no easy way out without likely crystalising a loss.
You also need to consider if it is a mobile franchise the issues around fuel prices and the cost of travelling to your jobs and ensure that the business will continue to deliver a service or product that will not be taken over by AI.
Mobile Franchises
Mobile franchises are attractive due to their low cost of entry, low overheads and flexible work conditions and therefore a franchisee can earn a reasonably good wage for their effort and build their customer base using digital marketing and social media at low cost.
Like any business investment you should do your due diligence on the Franchisor to see if its right for you as no two franchise systems are alike.
So, compare a few in the same sector as their entry fees and ongoing royalties will differ, as will the transfer and exit costs, if you sell the business in the future.
Most franchisors still charge a royalty based on the gross revenue as well as a marketing levy or obligations to do local area marketing.
Seek advice from a Franchise Law Specialist and seek financial advice before you commit.
Once you have taken up a franchise there is no easy way out (I say that quite a lot in my articles!) so you do need to ensure the franchise model will allow you to take a reasonable salary for your efforts, as there may not be a capital gain at the end!
The average cost to set up a home services or mobile franchise may be between $20,000 to $100,000 so you need to make sure the financials work for you.
Seek independent financial advice and do your own modelling and projections before you commit… and talk to other franchisees in the system.
If the numbers don’t work, we suggest you walk away as there will be many other opportunities and franchises that may be better suited to you.
Take the Quiz - Key Questions to reduce your risk and make an informed decision:
- Is the franchise an established or new brand? A new franchise can be a great opportunity, but it can also be a higher risk.
- Is there a long-term market for the product or services offered or is it a passing fad - which means in 3 or 5 years there may be little demand for the product or service?
- Who is the franchisor and who are you dealing with? Is it the Founder or a sales representative or a large corporate group? All have pros and cons.
- What training and support is offered? What time and attention do you need to give to the business to take a reasonable salary?
- Talk to other franchisees in the system - get their feedback on the franchisor and system? You should contact at least 3 to gain different views.
- Is the Franchisor embracing the digital on-line environment and social media? If not, it may be vulnerable to competitors in the market.
- Are you simply buying yourself a job? That’s fine, but don’t be afraid to walk away before you sign up if the numbers don’t work or if you are unable to at least draw a basic salary.
- Will you be a “force for good “– that is work within the franchise system rather than trying to fight or change it? If you want to change the system, don’t be a franchisee as it will likely lead to dispute!
- Look ahead 3 to 5 years - can you see yourself still enjoying and operating the business in that time.
- Your exit plan - What is your exit plan and what are the costs to exit the franchise?
- Logistics - Will you need to drive long distances to see your customers? How will you cope with traffic and the operational costs.
There is a lot to consider but specialist legal and financial advice will help you make an informed decision.
Summary
As with any business investment it comes with risks so do your due diligence on the franchisor, just as they will do their due diligence on you and seek Specialist Franchise Legal and financial advice before you commit.
Contact: Robert Toth | Special Counsel | Accredited Commercial Law and Franchise Specialist | [email protected] | Mobile – 0412 673 757
