Service Franchise vs. Product Franchise: What’s Best?

January 15, 2022

If you are contemplating entrepreneurship, take charge of your future with a service franchise to generate profits and build a legacy for your family.

There are more than 780,188 franchises in the United States, covering a wide variety of industries and investment levels. Low-investment opportunities are available for as little as $10,000 for fledgling entrepreneurs who are pinching pennies, while big-box franchises, like gyms or hotels, can cost more than $2 million. Franchising gives business owners the opportunity to take charge of their career with a game plan and proven business model to ensure success. Yet, with so many available opportunities, selecting the right one can be a challenge.

To help narrow your choices, lay out your goals and expectations. Are you searching for a franchise that allows you to be an owner-operator, or do you want a business that will run itself and let you reap the rewards? Having a true understanding of your income and lifestyle goals will help you make an informed decision. Franchise businesses can be divided into two major categories — a service franchise and a product franchise. If you are wondering which type of franchise is best for you, Creative Colors International can help you understand how service-based franchises and product franchises differ, as well as the pros and cons of each model.

What Is A Product Franchise?

A product franchise specializes in offering a tangible item for sale, such as a fast-food franchise or a retail store.


Product franchises typically have a leg up when it comes to brand recognition. People take notice of large footprint gyms or new restaurants. Having a visible storefront makes it easier to market your business and can lead to high sales. Product franchises also have the ability to quickly become a focal point in the community. Their locations can be a place where community members gather on a daily basis. As a result, many product franchises promote their businesses by making community service a priority.


High Barrier to Entry. Most product franchises require a brick-and-mortar location to sell their wares. Leasing real estate is costly, and picking the right location can be a challenge.

Set Schedule. Owning a product franchise requires owners to keep regular hours to generate the necessary foot traffic, which leaves little room for flexibility. Hiring reliable staff members can help alleviate some of this burden.

Subject to Consumer Trends. Many product franchises are subject to current consumer trends. While the brand may be booming today, it has the potential to go out of style and put you out of business.

What Is a Service Franchise?

Service franchises offer a service to customers, such as window blind installation or home painting. An owner of a service-based franchise needs to be comfortable providing reliable customer service, understand how to attract talent and manage a team, and have the organizational skills to juggle all of the different responsibilities involved in running a business.

Creative Colors International is a service franchise specializing in mobile leather and vinyl repair. Our skilled technicians travel in our custom vans to residential and business customers. They are trained to repair rips, tears, cuts, and burns in leather and vinyl at your home or business.


High Growth Potential. Service franchises offer unlimited earnings potential. Your success hinges on the time and effort you put into the business. For people accustomed to working a corporate job, having the option to generate a higher income is rewarding. CCI franchisees can opt to sign a single or multiple territory agreement. By investing in a territory, they are able to expand gradually as they generate sales.

Low Barrier to Entry. Service franchises will not break the bank. Many service franchises can be operated from a home office, allowing owners to avoid costly storefront rental fees. The total initial investment for a CCI franchise starts at $86,980. It includes the down payment cost and setup of your van, pre-opening travel, insurance, home office supplies, working capital, and other expenses.

Flexible Schedule. Many potential entrepreneurs considering an exit from the corporate world are searching for work-life balance, a flexible schedule, and a shorter commute. Service-based franchises give owners the opportunity to unchain themselves from their desks and create their own schedule. CCI’s mobile vans let owners schedule service visits that fit their family’s lifestyle.

B2B Franchise. Some service franchises have multiple revenue streams to help increase profitability. Having multiple revenue streams allows franchisees to pivot their customer base during lean times to keep profits up. CCI offers a robust B2C business as well as a B2B business. Franchisees can opt to focus on consumer services or the auto industry.


While the pros certainly outweigh the cons when it comes to choosing a service franchise, there are still some things to make sure to be prepared to handle effectively. Owning a service franchise will likely require you to learn an unfamiliar trade. Picking a franchise that offers ample training, support, and a strong network of franchises helps ensure the transition is seamless. Many service franchises are subject to the highs and lows of the economy. During lean times, people may tighten their purse strings and put off scheduling a service until the economy improves. Careful planning and effective marketing can help maximize profits.

Learn More About Owning a CCI Franchise

If you are considering investing in a service franchise, visit CCI to request franchise information and learn more about business ownership.