Franchise Canada March/April 2023 Supplement

is pleased to present a Special Franchise Focus on

HOME SERVICES

Home, Sweet Home Services

New developments in technology are revamping the home services sector

Just when it seemed like contractors could take a breather, another wave of reno-ready Canadians has cropped up. Home renovation services were booked and busy through the COVID-19 pandemic, as people noticed that their interiors could use some sprucing up.

While that pandemic effect has worn off, rising housing costs and inflationary pressures are causing homeowners to find housing affordability by moving to coastal and rural regions, or to stay in place and make updates around the house to create additional value and extend the enjoyment of their existing spaces.

As such, home service businesses are expected to grow through 2023. Prospective franchisees can find a range of opportunities in industries aligned with their

interests, from providing inspections and upgrade jobs like painting, to full-fledged home makeovers through deckbuilding and flooring upgrades.

Meanwhile, eco-minded consumers’ desire for sustainability has led to an influx of smart home devices and the growth of renewable energy usage.

When fixing up existing housing isn’t an option, Canadians are moving away from cities and toward coastal regions, with StatsCan data revealing net migration losses in three major census areas.

From maintenance issues to moving services and efficiency upgrades, there’s a lot required to meet homeowners’ needs, and a lot of opportunity for prospective franchisees. Read on for statistics and information highlighting the growth of the home services industry.

Moving up and moving out

Canadians looking for better value for their money are relocating. Recent relocation statistics show that Canadians are on the move from census metropolitan areas (CMAs) to smaller locales.

The most recent census data shows that 325,000 people moved out of Toronto, with 93 per cent moving to smaller towns and cities in Ontario.

The Vancouver CMA lost

65,000 internal migrants to BC cities like Chilliwack, Kelowna, and Courtenay.

Similarly, Montreal’s CMA lost

145,000 internal migrants, with 83 per cent moving elsewhere in Quebec.

As for reasons why Canadians are moving, survey respondents do so for work or lifestyle changes:

Provincially, most movement has been out of

Ontario,

with the majority going to BC and Quebec.

50 per cent of Canadian survey respondents say that 100 kilometers is the maximum range for relocation:

56 per cent say that moving to a different neighbourhood would be one of the top three sacrifices made for more affordable housing.

38 per cent would move to a different province or region regardless of distance.

Moving services franchisees can take advantage of this movement by positioning themselves in territories beyond major cities and offering quick solutions for downsizing individuals and families.

Marriage or kids: 42%

Relocation for work: 3%

Family downsizing: 20%

Retirement: 18%

Income increase/

inheritance: 14%

Franchise in a sustainable future

Great unit economics

Highly scalable model with no revenue limit

Strong sales and marketing package

Make a meaningful difference in your community

Growing Solar the Local Way

When’s the last time you heard a news report about your electricity provider reducing the cost of electricity or giving you a discount?

Better question: when’s the last time you heard a news report about your electricity provider applying to the government for a rate increase so they can charge you more?

As a society, we keep adding more and more demand for electricity. Heat pumps, electric vehicles, smart home gadgets, electric stoves, and other appliances keep on adding to that demand. Compounding that extra demand with continuously increasing prices means consumers are feeling it in their wallets even more.

You can help them!

With homeowners feeling the pinch, they’re looking into alternative options like adding solar panels to their homes. Solar panels can play a large role in reducing energy needs from the grid and help the consumer lock in a low fixed price of electricity (cost of the system) vs having to worry about when the next price increase is going to come from their electricity provider.

Solar is affordable

The sticker shock of solar is a thing of the past. Prices of full turnkey solutions for homeowners are typically no more than the price of a new car. Like new cars, they come with attractive financing options and rebates!

The federal government currently offers two attractive incentives to go solar. The Canada Greener Homes Grant offers a rebate of up to $5,000 off the price of a system and the Canada Greener Homes loan offers up to a $40,000 loan on a 10-year, zero per cent financing term. That’s like free money!

Provincial and local incentives exist in a lot of markets that your clients might benefit from as well. It’s important to do your research in your local area to find out exactly how many different opportunities exist that help homeowners.

So where is your client going to find the money to pay off the loan?

The savings on their electricity bill each month. The system is typically sized to offset your electricity bill, thus making it really easy for them to find the money to pay off the system.

The real benefit of the Canada Greener Homes Loan, from an installer’s standpoint, is you know

the homeowner is approved well before the system is installed, and you collect the money in lump sum payments when they get it deposited from the government. There’s no need to be concerned about collecting it in monthly payments over 10 years, or losing out on the whole cost of the system because they don’t have the money once it’s installed.

Just think about this sales pitch: “Hi Jack and Dianne. Are you frustrated with your electricity bill? What if I told you that we have a solution to your problem that pays for itself through your savings and after it’s paid off, you won’t have to struggle with a large electricity bill.”

We now have a product that solves a homeowner’s problem, has a high ticket price of between $20,000 and $30,000+ with an affordable way to pay, which now makes it a smart purchase for a large proportion of homeowners.

Did you know there are 7,500,000 single detached houses in Canada?

In P.E.I., there are 41,000 single detached houses. Sunly opened its operations exclusively in P.E.I.

Local presence with national support is key to a solar business as hot as the sun

in August 2019. Since then, they’ve installed 1,570 systems (as of February 2023). That’s 3.8 per cent of ALL single detached houses in P.E.I. over just 3.5 years.

Let’s just assume one per cent of all single detached houses go solar in Canada. That’s 75,000 houses! With an average price of a solar system at $22,500, that means a low estimate of the market potential is $1.69 billion.

So why does the franchise model make the most sense?

Going local with national support is the hidden key to unlocking the true market potential of solar. There are currently two players in the solar market. The “mom and pop” shops that grow out of an idea by an electrician or roofer who decided to expand their business, or the large companies that try a one-size-fits-all approach.

Why don’t the “mom and pop” shops work?

Have you reached out to any home renovation service providers lately? How quickly did they follow up with you? Were you always the one calling them, trying to figure out if they were working for you at all? The challenge with smaller businesses is that they struggle to juggle lead management, sales, project management, handson installations, and afterservice.

Why doesn’t the one-size-fits-all corporate model work?

Every city has different permitting rules, every electricity company has their own processes around connecting to the grid, and every region in Canada has different demographics and ways to speak locally. All of those things pile up, inflating costs and increasing the difficulties of managing all that knowledge to truly be successful in all of the small

markets. So these companies tend to stay away from residential markets and focus on those big commercial opportunities instead.

Let’s supercharge the market by blending local passion with corporate experience

The Sunly franchise infrastructure was built to be robust enough to handle the scale of the demand with the ability to be agile enough to change to each local market as it evolves. By investing in a Sunly franchise, you get access to a recognizable brand, well established and effective processes, and support on best practices when installing.

There’s no worrying about delayed lead follow up, as the national call centre takes care of all the groundwork for the franchise. Sunly takes care of timely follow up with potential leads and proposal design built to be highly effective so you can focus on the selling! The project management infrastructure is designed to be modified for each market, and the installation process has been refined from the experience of thousands of installs.

The franchise couples these foundations with its local knowledge and relationships to be highly successful

in all small markets across Canada. Local franchises know the names of individuals at the permitting offices, the electricity companies, and all their passionate team members. Everyone involved becomes more invested and committed to success. Knowledge about and passion for your community make all the difference between doing just okay and truly becoming successful.

Build a community of solar!

There’s a huge upcoming demand for solar across Canada. Homeowners are looking for a way to reduce their electricity costs. Solar systems have affordable and realistic payment options for the everyday homeowner. There’s a great opportunity for an investor to build a long-term, sustainable, and profitable solar business.

With the support of a well-defined franchise process like Sunly’s, franchisees can take advantage of the Sunly way to grab that opportunity. Use the brand, call centre, processes, purchasing power, and installation experience to truly set yourself apart in the market.

Grow the solar community today. Become a part of every homeowner’s solution! n

INNOVATION & SUCCESS IN THE HOME INSPECTION INDUSTRY

Real estate has and will always be a crucial factor to the North American economy. Housing plays an essential role in building our vital communities. At Carson Dunlop, we help you build a lucrative and personally rewarding business in a $3 billion inspection industry, allowing you to play a distinctive and meaningful role in any real estate transaction.

When you partner with Carson Dunlop to grow your business, you instantly gain the prestige and expertise earned thanks to 40 years of industry experience. We were setting the gold standard for inspection practices long before it was an established part of the buying process, and now we’re here to partner with entrepreneurs across Canada to help them succeed.

Founded in 1978 by Alan Carson, Carson Dunlop is the leading inspection education and training provider for inspectors in North America, earning partnerships and endorsements from esteemed institutions. We’re also leaders in inspection report-writing solutions, our Horizon software being the preferred program for thousands of inspectors and real estate agents. Franchising was a natural next step for us, and joining Carson Dunlop just makes sense.

With a Carson Dunlop franchise, you’re never on your own. We provide the tools to keep you on track with running any aspect of your business. Our professional staff is always available to help you with

general business topics, inspection questions, marketing projects, and more. Carson Dunlop has the most accessible corporate staff of any inspection franchise, and we’re available to help seven days a week. Our full-time, dedicated marketing team of copywriters, graphic and web designers, social media specialists, and certified business coaches is here to help develop custom marketing materials and strategize to help you reach your goals. Collaborating with us means landing clients based on brand recognition and consistent PR. As a franchisee, you’ll belong to an extended support network of inspectors in every stage of their career. In addition to ongoing staff support, you’ll benefit from the experience of your fellow inspectors, who help mentor you through the process of building your business.

Diversification is our top priority. While most franchisors focus on residential inspections, at Carson Dunlop, we encourage you to broaden your efforts with commercial inspections. We also train you in more than 20 types of inspections, including an array of residential services, field service inspections, and more. With our low-cost, nobrick-and-mortar-required business model, you’ll be learning new skills and turning a profit quickly.

The current housing market has created a tremendous opportunity for those with long-term perspective. Home inspection and the knowledge the profession provides to homeowners is an essential ingredient to maximizing a home’s value. Carson Dunlop has persevered through countless real estate cycles over the years. We help you develop the skills and relationships that will set you up for the coming rebound in real estate. In fact, many of our top-producing businesses were founded during the 2008 housing market downturn. Carson Dunlop businesses are resilient, diversified, and designed to withstand any real estate climate.

Our inspectors come from diverse industries and career paths—from corporate executives to dentistry. No matter your background or professional experience, Carson Dunlop equips you with the knowledge, skills, and confidence you need to start your business. Our ideal candidate is simply someone who is community-driven, dedicated to education, communicative, and highly motivated to succeed. We’re proud to offer a 20 per cent discount for former military and first responders.

Rather than go it alone, join an existing inspection firm with a proven track record and help keep our communities safe—one home at a time. n

To learn more about your inspection career with Carson Dunlop, request your free information packet at www.carsondunlopfranchise.ca/cfa.

“THE REAL ESTATE WORLD CHANGES QUICKLY, AND CARSON DUNLOP FRANCHISING DEVOTES THE TIME AND RESOURCES TO STAY AT THE FOREFRONT.”

– Alan Carson

HANDLED WITH CARE

Let’s Get Moving is franchising its professional moving services model, providing peace of mind from point A to point B

When it comes to moving your prized possessions, leave it to the experts. Let’s Get Moving is a moving and packaging service company that specializes in transportation for commercial and residential moving. Best of all, we’re looking for new franchisees.

We have two components to our franchising business. The first is the back-end, which is for marketing and booking moving jobs, and the other is the front-end: executing the services. We introduce you to our marketing workflows with our thirdparty partners and book jobs for you, in addition to handling incoming calls at our call centre.

key team members, tour the facility, and are briefed on the standard operating procedures and the business model. After that, the franchisee trains at their location, becoming familiar with the tools and other areas of the daily business operations with members of the franchisor representative team. This ensures that the franchise is set up and running smoothly. Additional training includes certification and refreshers, and can help franchisees focus on the goal of franchising.

financial freedom after five years with our proven methods.

Prospective franchisees should be team players who have excellent time management and decisionmaking skills, and it doesn’t hurt to have some experience with financial and operational management.

Our sales department uses a proprietary lead-generation system to keep franchisees booked. This sets us apart from many moving companies. On the front-end, we provide training on job completion and providing the services properly. Training isn’t a one-off situation either. It starts with a week at the headquarters where new franchisees meet

We also provide training for hiring and labour retention, so franchisees can build their departments to their exact specifications. Continuous support is provided seven days a week and, for additional support, the head office team is always a call away.

Franchisees have an integral role in the success of the brand. Our franchisees are the face of the brand and they are vital to our growth from being a domestic company to an international giant. Plus, along with our seven-days support and hands-on training, franchisees get

Let’s Get Moving has an established growth plan for the next five years including ramping up to 100 locations across Canada and becoming an international presence by 2025. We need franchisees to help us achieve our goals on our path to get there. We measure success by evaluating franchise location’s finances on a quarterly basis, onboarding an in-house marketing team, and implementing new systems to create more efficient systems. n For more information about franchising with Let’s Get Moving, please visit LetsGetMovingCanada.com/Franchise

If you can’t relocate, renovate

But, between a hot real estate market, inflation, and economic uncertainty, many Canadians are putting their relocation plans on the backburner, preferring to renovate their existing homes instead.

Home improvement industry sales are projected to reach 65.1 billion in 2023 , according to Statista, up from 52.5 billion CAD in 2020.

But the increasing cost of materials and labour, which are forecast to increase through 2023, are impacting this.

More owners are renovating and reinvesting, rather than moving: As of June 2022, 84 per cent of homeowners plan to stay put, up from 56 per cent in March

A 2022 report says 53.6 per cent surveyed are still moving forward with home renovations, and they’re investing more cash in home renovations, a trend expected to increase over the next 12 months .

One-in-five Canadians visit home improvement and DIY stores monthly. When it comes to renovation spending, more investment goes toward indoor renovations: about $13,000 was spent in 2022 (up from $8,260 in the previous year)...

…with an average of $6,600 invested to enhance outdoor living (up by $2,000 over last year).

Looking ahead, homeowners who plan on upgrading will spend an average of $25,222 , nearly double the spending of the past 12 months.

Upgrades on both sides of the welcome mat

A survey of Canadian homeowners say these are the indoor renovations planned for 2023:

House painting: 25% Landscape design: 23%

Bathroom renovation: 20%

Patio/ deckbuilding: 20%

New or refinished flooring installation: 15% Fence installation: 13%

Kitchen renovation: 13%

...and these are the outdoor renovations planned for 2023: (HomeStars 2022 Reno Report)

Structural additions (garages, sheds, pergolas, and gazebos): 13%

New appliance installation: 11% Firepit installation: 7%

Unplanned and emergency repairs are also a lucrative asset in the home services sector, impacting 59 per cent of Canadians surveyed in 2022. Here’s what emergency repairs respondents have made in the past year:

Plumbing: 29%

Appliance repair: 16%

HVAC repairs (furnace, AC): 13%

Pest control: 10%

Roofing: 8%

Home is where the tech is

Meanwhile, smart-tech updates continue to take hold, with 67 per cent responding that at least one smart product has been used in renovations in the past year:

Strength in solar

In addition, Canadian homeowners tend to agree that sustainability is an important factor when choosing materials for renovations, with 78 per cent of homeowners reporting that sustainability was important to them when renovating. Renewable resources are also a hot topic in home services.

Renewable energy like wind, solar, and energy storage grew by 10.5 per cent in 2022, according to the Canadian Renewable Energy Association (CanREA)

Globally, solar energy costs have declined 90 per cent since 2009. In Canada, solar energy capacity grew by 25.8 per cent in 2022 and there are currently 196 major solar energy projects producing power. Along with Canada’s plan to achieve net-zero emissions, the market for renewable energy is growing.

CanREA is forecasting the addition of more than 2 gigawatts of new solar energy generation capacity through 2025, enough to power about 600,000 homes.

There are many advantages to consumers generating their own on-site solar energy, including:

Increased energy independence for individuals; Savings for households and businesses, because less electricity needs to be purchased.

Finding, funding, and finished basements

When it comes to seeking out professionals and finding rates, 81 per cent of homeowners respond that they usually research pricing before hiring a professional for major renovation projects, such as a kitchen remodel.

The top three methods of sourcing or researching professionals to hire are:

:

Used them previously :

The following home improvement upgrades create the most value: (Royal LePage Home Renovation ROI report)

Housing costs are leading homeowners to spend on renovations, rather than moving, and taking advantage of grants and tax credits to make upgrades to existing houses:

Natural Resources Canada offers a series of retrofits as part of the Canada Greener Homes Initiative, including grants of up to $5,000 and interest loans up to $40,000.

There’s more funding options, like the multi-generational home renovation tax credit which became available on Jan. 1, 2023, which provides a 15 per cent tax refund for renovation costs up to $50,000.

The subsidy allows clients to spend more on renovation jobs.

But cost concerns remain:

Rising costs of materials: 41 per cent chose to pause renovation plans; but 75 per cent intend to continue projects within the next year. 80 per cent of homeowners surveyed reported paying through cash on hand or from savings.

The home services sector has lots of potential for repeat customers: 75 per cent of homeowners surveyed who completed renovations in the past 12 months intend to do so again in the next year.

When it comes to funding home improvement projects: 63 per cent of homeowners who are going ahead with renovations say they would use savings for these projects . 21 per cent of homeowners would take loans from banks and other external lenders to pay for renovations and upgrades.

(Sources include: Home improvement industry sales in Canada from 2010 to 2020, with a forecast for 2021 to 2023 ; Jobber Home Service Report November 2022; HomeStars Reno Report 2022; Royal LePage's Home Renovation ROI Report; Royal LePage's Home Renovation ROI Report Data Chart; De-bug these data: the numbers on pest control in Canada’s buildings, Financeit consumer report 2022 results; Eligible retrofits and grant amounts; By the Numbers - Canadian Renewable Energy Association; Housing Affordability in Canada: 2022 RE/MAX Report)