How Threshold Brands’ Recurring Revenue Models Set Franchises Up For Success

Boston-based Threshold Brands, the multi-brand franchisor behind thriving home-service brands MaidPro, Men in Kilts, FlyFoe, Pestmaster Services, USA Insulation, Plumbing Paramedics, Heating + Air Paramedics, Sir Grout and Granite Garage Floors has quickly established itself as a powerhouse in the booming home-services industry.

Founded in 2021, Threshold Brands is led by a savvy team of corporate experts helping turn these emerging and longstanding brands into national success stories. In addition to basic services, Threshold Brands companies can generate multiple revenue streams by offering an array of additional services and products.

The company’s rapid success has also been bolstered by the $506 billion home-services industry, which shows no signs of slowing down in the post-COVID world.

Long term focus

While the industry-wide boom has certainly helped Threshold Brands' bottom line, the company is looking far beyond the short term. Instead, company leaders are thinking more big-picture and focusing on setting franchises up for future success.

That long-term focus begins with Threshold Brands' emphasis on recurring revenue streams. Threshold Brand's focus on recurring revenue models ultimately led several franchisees to go all-in with the business. Among them is Dayne Shuda, who opened a MaidPro franchise in Eau Claire, Wisconsin.

"I considered a lot of service-industry brands when I was looking into franchising," he said. "But I kept coming back to MaidPro. More people than ever are seeking home-cleaning services, and MaidPro is filling that need. And with MaidPro's recurring revenue model, your business is always making money. Regular cleanings mean repeat business."

MaidPro is one of nine brands under the Threshold Brands umbrella, and all of them have a recurring revenue model in place that’s specific to their industry. This typically means customers sign up for regularly scheduled services over a set period of time.

For instance, Pestmaster, one of the company's pest-control brands, doesn't only offer a one-time service to its customers. They also offer to establish a regular spray routine, returning every few weeks to spray for mosquitos, ticks and other pests.

Other recurring services include Sir Grout's maintenance programs, Heating + Air Paramedics biannual HVAC tune-ups and MaidPro's signature 49-Point Checklist™ bimonthly cleaning services.

Recurring revenue benefits

So, why is Threshold Brands so focused on instilling recurring revenue streams? There are several factors.

Businesses using recurring revenue can rely on consistent monthly billing cycles to help keep things afloat, even when times are tough. Subscription services also lead to high customer retention and, in turn, more predictable profits.

While the recurring revenue offers myriad benefits to franchise owners, it's become increasingly appealing to consumers also. From their perspective, it takes the hassle out of having to look for and pay for services regularly. It can also lead to significant savings in the long run, as regular customers are often offered special pricing and perks as incentives for sticking with the business.

“Our recurring revenue models are really what differentiates our brands from many others,” said R. Scott Sutton, Threshold Brands’ chief growth officer. “It sets our companies up for more immediate success and greater ROI in the long run. Maybe more importantly, it creates tighter relationships between our franchise owners, their team members and their local customers. It’s really a win-win across the board.”