For those looking to transition from a corporate career to business ownership, purchasing a franchise can be a great option. Franchise opportunities offer the potential for entrepreneurs to invest in an established brand with a track record of success. Those interested in owning a business in the pavement maintenance space should gain an understanding of the costs, requirements, and process for buying a franchise. The International Franchise Professionals Group (IFPG) has the experience and network of knowledgeable franchisors, franchise consultants, and vendor members to help potential business owners with this decision.
Overview of the Pavement Maintenance Industry
Pavement maintenance is the upkeep and repair of roads, driveways, parking lots, and pathways in both residential areas and commercial facilities. The industry is composed of services that prevent and repair damage done to pavement surfaces due to environmental factors, regular wear and tear, and vehicle traffic.
The industry size and scope are significant. An estimated 95% of the United States roads are surfaced with asphalt, and this accounts for an incredible 30 billion square yards that need to be regularly inspected and maintained. Pavement maintenance services also include resurfacing, re-striping, repairing potholes, seal-coating, and marking.
Advantages of Purchasing a Pavement Maintenance Franchise
The biggest advantage of buying a franchise is the support structure that comes with it. Franchisors provide their investors with the resources needed to become successful business owners without having to start from scratch.
Many prospective franchisees underestimate the amount of resources needed for successfully starting a new business. Having an established franchisor allows their franchisees to quickly get started, but also not have to worry about researching marketing strategies, coming up with a business plan, or having access to legal advice. The franchisor allows their franchisee to hit the ground running since the support framework is already in place.
The Cost of Owning a Pavement Maintenance Franchise
The cost of owning a pavement maintenance franchise varies drastically. Factors such as region, competition, type of services provided, population density, and the local economy all play a role in the cost of a franchise.
On average, the cost of purchasing a pavement maintenance franchise may range from $75,000 to $250,000. This amount takes into consideration the initial franchise fee (typically expect to pay $10,000 to $15,000) and the other capital investments needed to open the business.
Most franchisors offer single-unit and multi-unit opportunities. Buying multiple franchises introduces economies of scale and cost savings which can be passed down to the customers.
How to Evaluate Different Pavement Maintenance Franchises
To increase your chances of success, prospective franchisees should do their research and ensure that the chosen franchise is a fit for them.
Those looking to own a pavement maintenance franchise should evaluate the following:
- The franchise disclosure document (FDD) which provides the disclosure of the franchisor’s company and financial details.
- The franchisor’s track record and financial stability.
- The on-going support and operating system provided to franchisees.
- Assessment of the local market for similar services and competition.
- Review the background and experience of the franchisor.
- Evaluate the costs and the timeframe to get the business up and running, including the supply chain.
The IFPG connects prospective franchisees with knowledgeable franchisors and franchise consultants. Our franchise broker group members provide guidance and resources throughout the entire process of buying a franchise. We are committed to helping those looking to transition into business ownership purchase a franchise that meets their financial goals and personal objectives.