Franchising Pest Control: Benefits, Costs, and Steps to Success

You’ve always dreamed of owning your own business. But stepping out alone into the corporate world can be scary. Almost half of all new businesses fail within the first five years of starting, and you’re not sure that you have what it takes to be one of the success stories.

Have you ever considered purchasing a franchise? Or more specifically, a pest control franchise?

Pest control is a booming business, and owning a franchise gives you the tools you need to experience prosperity by following a pre-set framework.

We’ll fill you in on all the pertinent information about franchising a pest control company, including why you should buy in, who makes the best franchisees, and factors that affect the cost of your purchase. We’ll also fill you in on a must-have product to help you grow once you establish your franchise branch.

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Why Buy a Pest Control Franchise

Buying a franchise can be an excellent option for would-be entrepreneurs who don't want to start their own businesses from scratch. Franchisees acquire a model that should work on every level, from branding to pricing to marketing. 

The franchisee has several advantages when it comes to buying a franchise, including:

• Business assistance  
• Brand recognition
• Buying power
• Profits; and
• Being their own boss

Brand recognition can be one of the top reasons to purchase a franchise. For example, what if you opened a franchise next to a company that offers the same service as yours? Despite the same amount of training and industry background, a customer is more likely to walk through your door if it boasts a well-known franchise name. 

Even though there are benefits to owning a franchise, it’s important to note that franchising involves a significant financial commitment. In addition to franchise fees, you will have to heavily invest in the business.

According to the International Franchise Association (IFA), the average franchise investment is $250,000 — excluding real estate — and royalties range from 3 to 6% of monthly gross sales.

Along with the monetary investment, you will be required to make legal and financial commitments outlined in the Franchise Disclosure Document (FDD) as a franchisee. 

The FDD is a legal document the Federal Trade Commission (FTC) requires franchisors to disclose to prospective franchisees before selling them a branch of the business. The FDD provides candidates with the information they need to make a wise investment decision.

Please note that before purchasing a pest control franchise, you will not receive any training on pest control. However, if you have pest control experience, you will be a notch above your fellow franchisees.

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Who Are the Ideal Candidates To Purchase a Pest Control Franchise?

Purchasing a franchise isn’t for everyone. For instance, if you’re a big idea person who wants to strike out and do your own thing, this may not be the right opportunity for you.

That’s because franchises are very structured. You get a corporate playbook and instructions on how to do everything, including:

• Branding
• Invoice collection
• Obtaining Google reviews
• Advertising
• Etc.

And it’s your job to follow it. If the structure and formula of this franchise have proven successful, then you’re buying into the whole thing. A great candidate for franchising pest control is anyone with the financial means who can follow the tried-and-true process and structure of the company.

Buying a franchise has been historically shown to work well for people in the following categories:

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Veterans

Military veterans have spent a large chunk of their lives following processes and being part of a team, so buying a franchise and being involved in that corporate structure seems like a natural transition.

Military lifers who have built up a good pension probably have the financial means to purchase a pest control business branch with no problems. There are even some pest control companies that offer a veteran discount to military franchisees.

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Industry Experts

Longtime pest control company employees are perfect candidates for a franchise. These people may have been in the industry for 15–20 years and have amassed a great deal of experience and knowledge about the business.

If they are tired of working for someone else and want to branch out on their own, a franchise is a perfect way for them to start a business without having to build it from scratch.

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Corporate Refugees

The term corporate refugees originally described people with long-term corporate careers who had been downsized or let go. These days, there is also a new kind of corporate refugee — one who opts to leave the corporate world and take control of his or her own fate.

Regardless of how one becomes a corporate refugee, choosing to become a pest control franchisee makes a lot of sense. That’s because these people are familiar with having processes in place and following procedures in the corporate world.

So owning a franchise feels like a familiar and safe opportunity, while at the same time giving corporate refugees a little more control over their futures.

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How Much Does a Pest Control Franchise Cost?

Starting a pest control franchise may cost anywhere from $60,000 to $150,000 or more for everything. This initial investment includes not only the franchise fee but also things like:

• Application/licensing costs
• Training
• Purchase of company vehicle(s)
• Wrapping those vehicles with the company logo
• Marketing materials
• Advertising
• Chemicals and equipment
• Customer management tools
• Etc.

Some pest control companies may offer franchisees financing opportunities. Otherwise, people who want to open a franchise will need cash in hand at the outset or the ability to secure a loan through a financial institution.

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Factors that Affect the Cost of Franchising Pest Control

If $60,000 to $150,000 seems like a big range, that’s because there are various factors that can affect how much money is required to open a specific pest control franchise.

Let’s look at some of the biggest ones.

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Geography/Industry Density

The location of a pest control franchise can affect how much you’ll have to pay to procure it. Some parts of the country have a higher cost of living and businesses are generally more expensive to run there.

Also, a business in an urban setting typically costs more than a rural one.

Another important factor that affects the cost of franchising pest control is how many other similar businesses are in the area. If there are already a lot of other pest control companies, the market is more competitive and you may have to pay more to access it.

On the other hand, an open market with many opportunities to gain people’s pest control business could have a lower start-up cost.

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Owner Involvement

Another factor in how much the pest control franchise costs overall is how involved the owner plans to be throughout the process. Franchises usually follow one of two models:

1. Owner/operator — This is when the owner is actively involved in the business, learning the ropes and doing some (or all) of the work.
2. Absentee owner — In this model, the owner is not involved in the day-to-day operations of the company. Employees run the daily business and work in the field.

The absentee owner model costs more because the franchisee has to hire people to do all the work. When the owner/operator is more involved in the process, he or she is able to build sweat equity into the company.
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Steps to Success When Buying a Pest Control Franchise

Being successful at buying a franchise isn’t just as easy as pulling out your wallet. There are lots of details to learn and a great deal of information to decipher.

Buying a pest control franchise will require professional legal help and some research on the buyers’ parts to set themselves up for success.

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Hire a Franchise Lawyer

The first thing you need to do when considering becoming a pest control franchisee is to hire a franchising lawyer that specializes in this type of business. 

There are many incredibly detailed documents full of lots of legal lingo involved in purchasing a franchise. You’ll need someone with experience in this specific area to help you.

Franchise lawyers are able to:

• Provide legal advice
• Interpret state and federal franchise law
• Negotiate franchise deals
• Prepare franchise agreements
• Ensure clients comply with the terms
• And more

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Obtain Full Disclosure

Legally, franchisors have to disclose certain financial information. They must provide details about every current and former franchisee.

Of course, the franchisor will give some names and emails of the franchisees that have had positive experiences. But you should try to talk to as many others as possible to get an accurate picture of how the franchise has done in the past (or is currently doing).

As a buyer, you want to make sure the business you’re purchasing a franchise of is viable and sound. It’s usually not a good idea to put your own money into a company that is already struggling.

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Considerations When Choosing the Best Pest Control Franchise To Buy

Pest control is a thriving industry and can provide a big opportunity for you to run a successful business. But not all franchises are equal. Here are some things to consider when choosing the best pest control franchise to buy.

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Location

Location is key when considering your franchise purchase. If the market is saturated with pest control businesses or there is already a franchise of the business you’re considering in your area, then you should look somewhere else.

Decide if you want to live where you work or if you’re okay commuting. If you have to look far outside your region to find a city that needs more pest control service options, you’ll probably want to move there to build a successful endeavor.

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Disclosure Results

Use the information you found when researching the current and former franchisees to help you decide if this is the right company for you. Not every former owner of a business branch will have a positive experience to discuss — but if you’re finding more bad than good, you probably shouldn’t choose to go down that road.

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Size and Brand Recognition

Opening a franchise of a bigger company may help you find success because of the name recognition and backing resources a business with a quality reputation can provide.

Larger franchises usually already have good reviews and high grades with the Better Business Bureau that you can piggyback off of.

That’s not to say that you won’t be just as successful in franchising a smaller company. You just may have to put in more work to get those results.

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Set Your New Pest Control Franchise Up for Success With Cedar Pest Software

Cedar Pest offers the best pest control software available for pest control franchisees. 

Our features include tools to help franchise owners with:

• Scheduling and routing
• Payment processing
• Customer management
• Reporting
• Mobile functions
• Sales; and
• Automated notifications

Cedar Pest Software is the modern solution for managers who want to serve more customers with better results. Contact us today to request a demo.

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