Although construction franchises are appealing for entrepreneurs with construction or building experience, high demand and the potential for high profits also attract small business owners with little or no prior experience.

Due to the highly competitive nature of the construction industry, specialization is an important consideration. You’ll achieve more success doing one thing really well rather than trying to do everything with mediocre results. Specialization makes construction and building-related franchises more marketable – and more profitable as well.

A perfect example of this can be found in the cabinet-making franchise industry. Cabinet makers have achieved profitability by capitalizing on the demand for high-quality, custom-installed cabinetry that puts the finishing touch on homes and businesses. By only focusing on cabinets, these franchises have realized the dividends of expertise and in some cases, cost efficiencies.

N-Hance Floor & Cabinet Restoration has further specialized to focus on the restoration of existing cabinetry and hardwood flooring. By restoring both floors and cabinets, they have been able to offer their customers complete makeover services for kitchens and other wood-intensive remodeling projects. The company is currently in the midst of an ongoing process of growth through franchising, offering new opportunities in almost all 50 states.

Points to Consider

• Specialization can be a huge benefit for franchisees. However, it also entails risk. If consumer trends move away from your area of specialization, you could find yourself facing the dilemma of trying to sell your product to a shrinking or even nonexistent market. Make sure your franchise specializes in an area that has long-term viability.
• Depending on the business, construction and building franchises can require significant space for material storage and assembly. Be prepared to ask your franchisor about space requirements and survey the local real estate market to accurately factor the cost of space in your business plan.
• Construction businesses present some unique challenges, one of arises around the issue of code compliance. Building codes vary by municipality, so you’ll need to do some upfront work to discern the compliance requirements in your community.

Franchise Opportunities

• N-Hance. Although N-Hance is a relatively young franchise (less than 5 years), it has achieved steady growth in a short period of time. They currently have close to 70 franchises in 10 states, and they are eager to build on that number by partnering with new franchisees.
• DreamMaker Bath & Kitchen by Worldwide. DreamMaker is one of many businesses who have chosen to focus on kitchens and bathrooms. Started in 1987, DreamMaker offers a full range of remodeling and refinishing services. In 2005, they had 110 franchises in the U.S. in addition to 70 franchises in other parts of the world.
• ABC Inc. Despite its simple name, ABC has achieved success in the field of siding sales and installation. Originally a home remodeling company, ABC soon realized the additional profits they could earn by focusing on siding and gutters. The company currently has almost 125 franchises in the U.S.
• Handyman Matters. Handyman Matters and a few other companies have seemingly bucked the trend by offering businesses and homeowners general construction and remodeling projects. In truth, these franchises specialize in small repair and remodeling projects, and are unlikely to take on jobs that are larger in scope. At the present time, the company has 84 franchises, almost all of which are in the U.S.

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