Home Performance Franchise vs Affiliate Business
There are several key differences between a home performance franchise and an affiliate licensing agreement like Home Energy Team. The main differences are in the areas of cost, time and control and adaptability.
There is generally a very high cost of entry to purchase a franchise. This is partly due to the high legal cost to the franchisor of creating the franchise agreement, as well as commissions that are often paid to franchise salespersons. Affiliate licensing agreements are much simpler than franchise agreements, therefore the cost of creating a affiliate agreement is much lower. Unlike the franchisor, the licensor doesn’t have to recoup the extensive legal fees.
As a franchise owner, you are required to surrender a percentage of your earnings to the franchisor. There is no such requirement for affiliate license agreements. With Home Energy Team, your earnings are yours!
Because affiliate licensing agreements are much less complex and have much fewer government regulations than franchise agreements, acquiring an affiliate license is much quicker (a matter of days) than acquiring a franchise (a matter of months). With Home Energy Team, your business can be up and running in a matter of days.
Franchise purchases tend to be long-term agreements, over several years. Affiliate licensing agreements can vary greatly and the minimum duration of the agreement is often much shorter than franchise agreements. With Home Energy Team, the agreement is for 12 months.
With home performance franchises, like all franchises, you are required to run your business exactly as the franchisor dictates. You must use the franchisor’s marketing plans, operations manuals, personnel policies, co-op advertising, operations or marketing training, etc. With affiliate licensing agreements, you are free to run your business as you choose, according to your local market conditions, your expertise or personal preferences. If you have an existing contracting business, you are free to integrate the new affiliate licensing agreement into your existing business.
The home performance industry is still in its infancy and constantly evolving. Companies need to be versatile and adaptable to the rapid changes. With an affiliate licensing agreement, you have the support you need to run a successful business, with the flexibility to adapt to changing market and legislative conditions. By contrast, a home performance franchise with mandatory operating procedures for all franchisees cannot be as responsive to changes as you can be running your own local affiliate business. A home performance franchise also cannot know that their formula will work in your specific location, with varying state and municipal regulations and programs. With Home Energy Team, we provide years of experience to help guide you in setting up and running your business the best way possible for your unique market, talents and other considerations.
Affiliate Business vs. Home Performance Franchise
|Comparison ||Affiliate Business |
(Home Energy Team)
|Home Performance Franchise
|Startup Cost||Low||Very High|
|% of Revenue to Licensor/Franchisor||No||Yes|
|Startup Time||Days||Several Months|
|Length of Contract||12 Months||
Long Term (Several Years)
|Local Control of Business||Full Control||Very Little|
|Integrate Into Existing Business||Yes||No|