Business Franchise Australia

FRANCHISED HOME SERVICE OPPORTUNITIES

The franchise sector generally continues to thrive and grow, despite challenges such as rising living costs and a fluctuating economic climate. Within this dynamic landscape, the home services sector stands out as a significant growth area, encompassing a wide range of offerings, including trade services and personal services such as home care and support.

 

We are seeing an increasing number of overseas franchisors entering the Australian market, alongside a growing trend of individuals turning to franchising as a pathway to business ownership, rather than traditional employment.

 

The way we consume products and services has transformed dramatically, driven by advancements in technology and the influence of social media. Businesses now face the dual challenge of addressing cyber security concerns while leveraging AI to be at the forefront of their business and competitors.

 

Franchisees are increasingly seeking franchisors who embrace technology, such as AI-powered chatbots for customer service, data management solutions, cloud-based platforms, and strategic use of social media and influencers to engage the next generation of consumers.

 

Of course, we still like to visit Chadstone for a retail splurge from time to time and to enjoy the sushi train lunch, but the convenience of online consumption has become a dominant trend. Consumers now prefer having goods and services delivered directly to their door, reflecting the shift towards digital convenience.

 

The Expanding Home Services Sector

 

The home services sector offers an endless array of options. From engaging the Grey Army to do some home maintenance, Swimart for pool cleaning, Complete Care to look after a loved one at home, Blue Wheelers for dog washing, to Coles delivering our dinner—all while sitting on the couch watching Travel Guides!

 

The services available are endless, in fact Jim’s Group is now offering Jim’s Beauty, home beauty services.  As their marketing says, you can now “Get your hedge trimmed, your hair done, and a nice facial”—but hopefully not by the same person!

 

This sector presents excellent opportunities for prospective franchisees seeking flexible working hours and freedom from the constraints of a retail or office setting.  The benefit for franchisors and the franchisee here is that they keep their overheads low without the need for costly leased premises and other fixed costs.

 

Some statistics

 

We all love a good statistic don’t we!

 

The Tradesman and Handyman Franchise sector in Australia is valued at approximately $1.3 billion in 2025, with modest revenue growth of 0.7% over the past five years due to a slowing construction market, cost of living pressures, and high interest rates.

 

The sector’s revenue is projected to grow by around 2.3% to $1.4 billion up to 2028-29. This is excellent news for the franchise sector, driven by residential building and low-cost affordable housing initiatives and a rising population.

 

Over 70% of the sector’s revenue is generated by three main franchise brands: Jim’s Group, O’Brien and VIP Home Services. Building installation services account for 32% of the revenue, while maintenance, gardening and other construction services contribute 15% (IBISWorld Report).

 

Despite these factors, franchising has remained the predominant business model delivering a wide range of home services.

 

Franchisors have also had to become more innovative to increase their revenue streams and are diversifying into the commercial sector, not just the residential market.  We have seen this with the building maintenance services sector with businesses such as MegaSealed, Fix N Chips Franchising and Magic Hand Car Wash catering to builders and automotive dealers to increase their revenue.

 

The rise in apartment construction, low-cost housing and the Government’s policy to increase affordable housing has also helped to create market demand for the home maintenance franchise market. For example, Owners Corporations increasingly prefer dealing with franchise groups and larger contractors to provide services, rather than smaller individual businesses.

 

It is generally accepted that franchised businesses are more effective in their marketing and promotion of services than the smaller independent handyman and tradie and therefore franchisors are likely to pick up the major share of growth in the sector.

 

The trades and handyman sector is very broad and includes all of the major trades from painting to roofing and tiling, plumbing and electrical services, with the largest revenue coming from gardening, lawn mowing and landscaping services.

 

New Franchise Opportunities in Home Services

 

There are a number of new sectors that have become big business – here are a few to consider.

 

Home Care and NDIS

 

With an ageing population and the Government’s funding in the NDIS sector, home care and NDIS support has really taken off.

 

Sanicki Lawyers act for a number of businesses in this sector that have successfully franchised, enabling carers to become business owners under a franchise system – Nurse Next Door, which has proven to be a very successful franchise providing end-of-life care and support helping clients to remain at home longer.

 

We have also advised Complete Care & Nursing Franchising to establish their franchise system, which operates in the NDIS sector and utilises proprietary state-of-the-art software, developed to support patients, carers, and clients.

 

There are a number of other well developed aged care and home care franchises offering opportunities in this sector and as with any business, franchisees should do their homework and compare the models on offer, and fees and seek specialist advice before taking up a franchise.

 

Home and Garden Maintenance and Cleaning

 

This highly competitive sector has grown significantly post-pandemic, encompassing all of the well-known systems such as Jim’s Group, O’Brien (glass plumbing and electrical), VIP 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 and with flexible working hours.

 

Home services are particularly attractive to people who have worked in a trade or a husband and wife team who like to work together.

 

There are a number of newer service offerings such as Kitset Assembly (they can assemble your IKEA “3 easy step” sofa (that ends up being “33 difficult steps”) and 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 you can order a home-delivered pizza to complete the experience!

 

Other franchises are in the areas of child education and tutoring, health and wellbeing, dog walking and pet sitting – so its finding one that you are interested in, and which can, at the very least, enable you to earn a reasonable income.

 

Mobile Franchises

 

Mobile franchises are particularly attractive due to their low cost of entry, low overheads and flexible work conditions. Franchisees can build their customer base using digital marketing and social media at low cost, while earning a reasonably good income for their efforts.

 

As with any business investment, a franchisee should do their due diligence to see if it’s right for them.  No two franchise systems are alike, so compare a few in the same sector as entry fees and ongoing royalties will differ, as will exit costs, if you sell the business in the future.

 

Most franchisors still charge royalties based on gross revenue and impose marketing levies or local area marketing obligations.

 

Seek independent advice from a Franchise Law Specialist and financial advisor before you commit.

 

Key Considerations for Prospective Franchisees

 

Once you have taken up a franchise there is no easy way out! so you do need to ensure the franchise model will allow you to take a reasonable salary out of the business for your efforts, as there may not be a capital gain at the end!

 

Even though there may be a low entry cost, the average cost to set up a home services or mobile franchise may still 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 franchises in the system. If the numbers don’t work, we suggest you walk away as there will be many other opportunities and other franchises that may be better suited to you.

 

Summary

 

Franchising can be a rewarding business model, but like any investment, it comes with risks. Conduct thorough due diligence on the franchisor, just as they will on you, and seek specialist franchise legal and financial advice before committing. Ensure the franchise model allows you to earn a reasonable salary for your efforts, as there may not be a capital gain at the end. With careful planning and the right advice, franchising can offer a pathway to business ownership and flexibility, while leveraging the support of an established system.

 

 

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 need for the product or services offered or is it a

passing fad or trend 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?

How much time and attention do you need to give to the business to take a                 reasonable salary?

  • Talk to other franchisees in the system and get their feedback on the franchisor

and the 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 “and prepared to 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 a            dispute!

  • Can you see yourself still enjoying and operating the business in say 3 or 5 years? What is your exit plan and what are the costs to exit the franchise?
  • 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 this, along with professional advice will help you to make an informed decision going in.

 

 

Robert Toth is Special Counsel and Franchise Specialist at Sanicki Lawyers with over 35 years of experience in franchise, licensing and distribution law.

Robert is also an Accredited Commercial Law Specialist and regularly publishes articles on franchising in Australia and overseas journals and acts for a number of overseas, local and master franchisors and acts in dispute resolution and mediations.

Named by global law experts as Franchise Law Expert of the Year 2025 in Australia.

Contact Robert@sanickilawyers.com.au or call him on mobile 0412 67 37 57

www.sanickilawyers.com.au

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