How To Find A Quality Pest Control Franchise
Today’s post reviews business valuation best practices to help entrepreneurs find quality (and low cost) pest control franchises in their area.
Most pest control franchise sales are not open market transactions, which means you cannot study past filings to find objective data points and fair market pricing. Without this information, it can be tough to determine whether the pest control franchise in question is fairly priced.
So what are we to do?
New York firm Franchise Valuations Limited recommends three basic valuation approaches: cost, income, and market (Schaeffer & Levitt, 2012). Intangible assets and intellectual properties (“IP”) must also be factored into the equation, especially for franchise companies where the “franchise operating system, goodwill, and know-how are generally the most valuable assets owned” (Schaeffer & Levitt, 2012, p. 11). Indeed, according to Schaeffer & Levitt (2012), intangible assets often account for more than 70% of the total enterprise value!
We know that the market is good wherever you look–that’s just the nature of the pest control industry, as you can see on our Industry Facts and Figures page.
But that leaves cost, income, intangible assets, and intellectual properties to consider. Let’s briefly review each of these valuation factors to give you an idea of how quality pest control franchises look.
How Much Do Quality Pest Control Franchises Cost?
The total initial investment for Pestmaster franchise owners ranges between $30,000 and $85,000. This includes the franchise fee, along with a $20,000 to $30,000 liquid cash requirement to retain in case of shortfalls or emergencies.
It does not cost much to start a quality pest control company. There’s minimal equipment needed, no inventory, and no brick-and-mortar office. You can run the business on your own, out of your home, using your existing vehicle. Most owners build and expand their businesses from there, but that’s entirely up to you. Our low-cost pest control franchise is even more affordable for veterans and existing owners wishing to convert their pest control companies into Pestmaster units.
How Much Do Quality Pest Control Franchises Make?
Quality pest control franchise income varies from territory to territory. Entrepreneur magazine writes that “overall, a pest control service can be a very profitable business venture and can easily generate profits in excess of $75,000 per year.” That is a reasonable figure, but it’s nowhere near the ceiling. Get in touch with our team to access the Franchise Disclosure Document and learn more about income specifics.
Quality Pest Control Franchise Assets And IP
Make sure your chosen company gives you access to worthwhile IP and other intangible assets–most pest companies use similar “hard assets” (i.e. equipment), so these intangibles are what truly separate one brand from another.
Here is a few examples from the Pestmaster model:
- GSA contract support–we help you get high-value federal contracts
- Streamlined start-up–most franchises open within 3 to 6 weeks.
- Flexible, scalable business model–from one-person home-based business to multi-unit pest market mogul
- Quality pest control franchise business equity model–retire with a self-built 401k and government contracts that can sell for 1-3 times annual revenue
Learn More About The Pestmaster Franchise
Call 800-525-8866 or visit the Pestmaster franchise website to book a free consultation with one of our representatives.
Schaeffer, B., and Levitt, E. (2012). Valuations in franchising. Franchise Valuations Limited. Retrieved from https://www.dickinson-wright.com/-/media/documents/documents-linked-to-attorney-bios/levitt-ned/21valuations-in-franchising.pdf?la=en&hash=73B3604303B7AD604FB1D3B72E6A574275837CF4