Choosing Growth: Why One Company Opted for Dealers Over Franchises

Expanding a business is exciting, but it's not always straightforward. Franchising might seem like a quick way to grow, but it's not the best fit for every industry. Take Roof Maxx, for example. They chose a different path and built a dealer network instead. Here's why. Franchising can be tempting because it brings in money from selling territories and charging fees. But this model can lead to complacency. If franchisees aren't successful, it doesn't always affect the franchisor's income. This can be fine for simple businesses like fast food chains, but it's risky for more complex industries. In home services, for instance, franchisees have many responsibilities. They need to prospect, sell, visit sites, apply products, and issue warranties. Without proper training and support, they might struggle to deliver consistent results. A dealer model works differently. Here, the money comes from the success of the dealers. Instead of selling territories, you sell a proven product. The more they sell, the more you distribute. This model benefits everyone. Dealers get to build a local brand, which is crucial in home services. Customers trust local contractors more than big companies. Plus, it motivates the company to support dealers with training and resources. Roof Maxx chose this model because they believed in their product and wanted a hands-on approach. They focused on creating resources to make their dealers successful. Today, they're one of the largest virtual home services businesses in the world. So, when choosing between franchising and a dealer network, consider this: Would you rather grow by selling opportunity or by sharing it?