The pest control industry is booming. Revenue for 2023 is expected to reach $26.2 billion, and the industry has grown by 7% on average every year for the past five years.
But the bulk of those billions isn’t going to small local businesses. It’s the pest control franchises like Mosquito Squad, Critter Control, and Lawn Doctor that are raking in the big bucks.
These companies have evolved from small local businesses to industry leaders. Some even made this leap in only a couple of years.
Franchising might be a profitable next move if your pest control company is thriving and you want to grow beyond your current region. But creating a franchise isn’t always smooth sailing.
Here are the benefits (and challenges!) of scaling your business into a pest control franchise. Plus, we’ll teach you how to get started and franchise your business.
What Are Pest Control Franchises?
Pest control franchises are the heart of the industry. They are a network of businesses that:
- Operate under one brand name
- Have a central business model
- Offer the same pest control services
As the owner of the entire pest control franchise, you provide the individual franchisees with support. This includes your business model as well as sales and marketing guidance. A lot of the best pest control franchises also offer special training to help their franchisees succeed.
In exchange, each franchisee puts down an initial investment and pays royalty fees for the right to operate under a well-known industry name. They also benefit from the franchise’s training and support.
For entrepreneurs, a franchise is basically a business in a box. All the branding, processes, and business strategies are polished and ready to go.
What Makes a Pest Control Franchise Successful?
Some of the most popular pest control franchises focus on a specific niche.
For example, Mosquito Shield provides mosquito and tick control services to customers nationwide. This brand has grown rapidly since it started offering pest control franchise opportunities in 2013. Today, there are more than 125 locations nationwide.
Other successful pest control franchises include:
- Superior Mosquito Defense: another mosquito control company
- Bedbug Chasers: a bed bug-specific franchise
- Skedaddle: a humane wildlife control franchise.
The type of pest control franchise you build depends on the services you’re already offering. Whatever makes your local business successful now—whether it’s specialization, eco-friendly services, or something else—should be the unique selling points for your potential franchise, too.
This helps your pest control brand stand out and compete with local pest control companies in your franchisees’ locations.
RELATED ARTICLE: Pest Control Branding
What Are the Benefits of Franchising Your Pest Control Business?
Pest control franchises can grow fast—something your business can’t do on its own. This rapid growth leads to more profits and more jobs, helping you become a juggernaut in the industry.
But there are other benefits to franchising, too, such as:
By adding new franchises within your distribution system, your pest control company can expand beyond your local area. With work, it can become a regional or national brand.
Long-Term Success Potential
Franchise businesses have a higher success rate than independent businesses. This is because it’s a more stable entry point into the market. So, there will always be an interest in pest control franchise opportunities.
Combine that with the low revenue volatility inherent in the industry, and you have a recipe for sustainable success.
FROM ONE OF OUR PARTNERS: Pest Control Industry Trends & Statistics
Better Work-Life Balance
When you’re a franchisor, you create a new revenue stream with each new franchisee. You could potentially multiply your income as a business owner and scale back your work hours at the same time.
Economies of Scale
You can use the same marketing strategies, brand value, and successful processes across dozens of businesses. This lets your franchisees and your franchise business earn healthy profits through the economies of scale. You’re basically squeezing more value out of the same inputs.
Strength in Numbers
Franchising brings in another source of capital: the initial investment. In the pest control industry, investment costs for franchisees range from under $10,000 to $100,000.
Not only is this capital for your pest control franchise, but it also acts as a guarantee that your franchisees will work just as hard as you will to achieve success. As a result, you build a network of pest control businesses with shared goals.
What Are the Challenges of Franchising Your Pest Control Business?
While the growth potential is enormous, becoming a franchise comes with challenges.
Growing Before You Have a Solid Infrastructure
You need a successful business model in place before you can replicate success and scale. Otherwise, your pest control franchise could struggle.
Before turning your business into a franchise, make sure your company has mastered your business model basics. This includes:
- Pricing strategy
- Employee training programs
- Marketing and sales strategies
- Service selection
If any of these areas could be refined, address it before franchising.
RELATED ARTICLE: How to Improve Your Pest Control Invoice Process
Underestimating Initial Capital Requirements
The sky’s the limit when it comes to franchise profits. But you must first build a mountain of thriving franchise units to generate enough revenue to support new locations and turn a profit.
Plan on not turning a profit until you reach 20 successful franchisees. Make sure you have enough capital to sustain your franchise until you reach this level.
Lacking the Manpower to Run a Franchise
As the franchisor, both you and your management team will have a completely different set of tasks on your plate.
Running a franchise is different than running a pest control business. You’re no longer focusing on attracting customers and offering exceptional pest control services. Instead, your goal is now to attract and support entrepreneurs.
You’ll need to hire a team that can run a franchise and ensure your leadership and management teams are able to help your franchisees succeed.
The 7 Initial Steps to Turning Your Pest Control Business Into a Franchise
Transitioning your pest control company from a small business to a franchise is a big deal. In fact, it’s just as huge as starting a new business in the first place. Not only are you embarking on a new journey, but you’re also on the road to higher profits and a bigger industry impact.
Franchising is an $826.6 billion-dollar industry in the US, and franchises as a whole make up about 3% of the US economy.
But because you have a huge leap ahead of you, start by taking small steps right away. Putting the wheels in motion will help you scale up from a local pest control business to a national brand.
Here are seven steps you can take now to turn your pest control business into a franchise.
1. Talk to a Lawyer About Safeguarding Your Intellectual Property (IP)
New franchisees will need to know your already-successful business model. But this is valuable IP.
An intellectual property lawyer can ensure you’re only granting limited rights. They will also protect your interests as a franchisor.
2. Create Your Franchise Agreement
Your lawyer can also help you draft a franchise agreement. They’ll know what questions to ask you and what to include in the agreement. In general, your agreement will include:
- Opening timeline
- Rules for transferring the franchise to a third party
- Terms for agreement renewal and termination
- Franchise fees
- Noncompete agreements
- Rules regarding equipment and service level
- Minimum sales requirements
3. Make Your Franchise Disclosure Document
A franchise disclosure document (FDD) is required by the Federal Trade Commission (FTC). It details the background of the franchise, including your business experience, any bankruptcies filed by franchise management, and any litigation. The FDD also outlines financing, trademark usage, and the legal obligations of the franchisee.
4. Put Together an Operations Manual
Your operations manual maps out everything a franchisee needs to know about day-to-day operations. For example:
- How many technicians they need to get started
- What equipment to use and how to use it
- How to interact with customers and deliver high-quality pest control services
5. Build Your Dream Team
If you’re ready to scale, you probably already have some incredible employees on your staff who understand the pest control business. Talk to your team about what role they could play in your franchise.
It’s also important to hire people with franchise experience. This helps you create a solid infrastructure and maintain relationships with your franchisees.
6. Devise a Foolproof Sales Strategy
You’re in the franchise business now, so you’re no longer trying to sell rodent-proofing services and termite control. Attracting franchisee applicants is your main priority, so you’ll need a new sales strategy.
To get started, set your sales goals. How many new franchisee applicants do you need to be successful in the next quarter? What about over the next 12 months?
Next, decide how you’re going to:
- Market your pest control franchise opportunity
- Attract qualified applicants
- Feed leads to your sales team
FROM ONE OF OUR PARTNERS: 5 Ways To Nail Your Franchise Development Strategy
7. Start Marketing Your Pest Control Franchise Opportunity
Use social media to advertise to your target audience. Also, use content marketing to attract people searching online for franchise opportunities.
Because a pest control franchise is such a promising proposition, you’ll start generating interest sooner than you realize. So be ready for them, build those franchisee relationships, and get ready for serious growth!
About the Author
Dan works with his family’s pest control companies in Kentucky. He’s involved in all aspects of operations, from hiring to servicing jobs. He also hosts a YouTube channel, Dan the Bug Man, where he explores a variety of pest control business topics.