--- title: "What is a Service Franchise?" url: https://burnaze.com/article/1e44ae91-98b2-47f4-a4ec-547a1004d756 source: "1851 Franchise" original_url: https://1851franchise.com/what-is-a-service-franchise-2719381 category: "Franchise Industry" industry: "Franchise Industry" published: 2022-08-15T16:11:00.000Z modified: 2026-11-01T02:10:43.046Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/10c768578b77132013e778ccc86b219d9298.jpg --- # What is a Service Franchise? **TL;DR:** The service franchise sector is emerging as a dominant force in the post-pandemic landscape, with people increasingly moving away from brick-and-mortar retail shopping and the country shifting into a service economy. Service franchises have lower operating costs and are attracting qualified franchise owners due to their passion-driven opportunities and low break-even point. *originally published in 1851 Franchise on 2022-08-15. [Read the original](https://1851franchise.com/what-is-a-service-franchise-2719381).* ## Key facts - Service franchises have lower operating costs - The home services segment is worth $595 billion - The senior care industry is growing at a fast rate ## Story When choosing a franchise opportunity today, prospects will encounter one major choice early in the process: Should I invest in a “service franchise” or a “retail franchise”? The difference comes down to what is being sold. A retail franchise sells a physical product, and a service franchise sells, well, a service. Each category has its benefits, but in today’s post-peak-pandemic landscape, the services industry is undoubtedly emerging as a dominant force, with people increasingly moving away from brick-and-mortar retail shopping and the country itself shifting into a “service economy.” And for those entrepreneurs looking to take advantage of this shift, franchising encompasses nearly every service category imaginable — handyman, lawn maintenance, child care, travel agents, automotive-related services, interior design/decorating and many more. ## Service sector growth “We’ve been bullish on the service industry for 30 years,” said Chris Seman, president of Strategic Franchising Systems, a multi-brand franchisor behind several service-based brands. “Now, the service sector is emerging as a leading franchise sector for 2022. Throughout COVID-19, people were looking for meaningful opportunities and leaving their jobs to be more fulfilled. By joining a service franchise, prospects increasingly realize they can take greater control over their destiny and achieve their dreams of successful business ownership.” The service sector continues to attract qualified franchise owners for several reasons, Seman says. For example, most service brands are home-based, allowing owners to keep operating costs significantly lower than competitors. “There are none of the brick-and-mortar start-up costs that make franchising unrealistic for average Americans,” said Seman. “That opens up business ownership to so many more people. We have a low break-even point because we don’t have those upfront expenses.” Seman says the service sector also lends itself to passion-driven opportunities. “Pet care, senior care, home care — these are fulfilling endeavors that give you a higher rate of return on your emotional investment,” he said. “Work is giving back to you, fulfilling you, instead of taking from you. Plus, the service sector allows you to really create the environment and culture that may be lacking at your current position.” ## Consumer demand trends Additionally, consumer demand is growing across the board when it comes to services. For example, the $595 billion home services segment has grown significantly over the past two years, and the $97 billion senior care industry is growing just as fast. With over 28 million small businesses in the U. S., business coaching is an $11 billion industry growing at an average rate of 2.6% a year. Regarding the $95.7 billion pet products industry, Americans spend over $36.9 billion a year on pet food and treats alone — and that’s not even counting grooming. ## Recession proof segments As a result, several service concepts have proven to operate within recession-proof segments. “Our franchise service brands are perfectly positioned for both good times and bad,” Seman said. “No matter the economy, people need to always care for their homes, aging parents, pets, and small businesses. All of these segments lead back to the overall demand for services in general. With very low unemployment, people are busy, and all our businesses allow them to free up their personal time by hiring others to handle services.” Additionally, Seman says service concepts appeal to a broad demographic, which allows franchisees to tap into even more of this market share. “The baby boomers have always been a do-it-for-me generation, and now they need these services more than ever,” he said. “Millennials and Gen Z have also traditionally hired out for the services they don’t want to do.” Overall, service franchises can be an attractive choice for entrepreneurs looking to enter the franchise industry right now. “The beautiful thing about franchise ownership and the service sector is that you get to determine your own success,” said Seman. “No one can tell you otherwise. You can hire who you want and create your own culture, and there is so much room for you to grow with support all along the way. As the service industry continues to boom, the time has never been better to come aboard.” ## Entities - 1851 Franchise (publication) - Franchise Industry (sector) - franchise opportunities (topic) - Gen Z (person) - Strategic Franchising Systems (company) - Chris Seman (person) - retail franchise (topic) - service franchise (topic) - service sector growth (topic) - recession proof segments (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/what-is-a-service-franchise-2719381). Summarized by Burnaze (https://burnaze.com/article/1e44ae91-98b2-47f4-a4ec-547a1004d756).