All About Franchising: Types of Business Services Franchise

One of the profitable types of franchise you can choose is rendering a service. In this type of franchise, you don’t have to worry about manufacturing and marketing a product. What you have to focus on is the service that you must provide for the customers using the methods provided by the franchisor. There are different types of business services franchise available nowadays, namely: direct mail, cleaning, shipping, printing, staffing, and financing.

Direct Mail

Simply put this type of business services franchise refers to the delivery of advertising materials through mail. Direct mail began in the 1950s and has survived the recession pretty well. Compared to other forms of advertising, direct mail is relatively more affordable. E-mail advertising can also be considered as direct mail which has lower costs than print advertisement. Franchisers of direct mail can make their business more cost effective by using recycled paper and employing cheap printing technology.

Cleaning

This type of business services franchise is considered labor-intensive, because it relies on the work of employees for success. Although you won’t be doing the mopping yourself, you have to supervise a team that will do the job. You have to train them according to the methodologies provided by the franchisor. As of July 2011, cleaning services franchisors can earn as much as $36,000 per year.

Shipping

Businesses who require shipping of products are the usual clients of a shipping franchise. This type of business services franchise uses carriers for picking up the goods and bringing it to its destination. Shipping franchisers may negotiate with existing carriers to give their customers better rates on shipping.

Printing

Also known as commercial printing or quick printing, this type of franchise became popular since the introduction of quick printers in 1960. Printing franchises use large printing technology to print commercial photos and graphics mostly used for advertisement. As of 2010, there are 6,640 quick printing franchises in the United States, generating annual revenue of $2.9 billion.

Staffing

Considered as the largest sector in business services franchising in the United States, staffing generates $170 billion as its total annual revenue. It usually comes in three types, namely: temporary help services, professional employer organizations, and placement agencies. Among the types of staffing franchise, temporary help services account for 40% of the total revenue.

Financing

Also known as cost reduction franchise, financial service franchise may cater to individuals, small businesses, or large corporations. One of the services offered by a financial service franchise is financial planning for retirees. The franchise employs a team of financial advisors who will provide financial information to customers regarding different types of investments.