Succeeding Year-Round With a Seasonal Franchise

Whoever said that you have to work 9 to 5, five days a week, or only have two weeks of vacation per year? What about opening a business that only operates at certain times of the year, like selling Italian ice during the summer, painting houses during the dry season, or putting up lights for the Christmas holidays?

For Annette Holman and her husband, Marshall, tax season equals the busy season. As owners of four Liberty Tax Service offices and franchise area developers for Medford, Oregon, the couple is able to make enough money during the high season to live comfortably during the low season. “It is great owning a seasonal business,” says Annette who opened the first office in 2004. “It gives us a lot of extra time to do things we love to do, like play golf and travel.”

Sound like the kind of life you would like? Here are some key factors to consider before you take the plunge with a seasonal business.

What to consider before buying a seasonal franchise

1. The franchise may be seasonal in operation only

Don’t assume that by investing in a seasonal brand, you’ll only have to work during the high season. “While many seasonal franchises such as tax preparers, holiday stores, and others may only operate for a few months, it is important that a potential buyer understand the marketing requirements of the brand,” says Lonnie Helgerson, former CEO of a seasonal franchise system, Ident-A-Kid, and author of Buying a Franchise - Is It Right for Me? “Some companies require significant marketing to be done in the off season.”

2. Knowing how to budget will be fundamental to your success

“While revenue is realized only during the season, many expenses, such as rent, occupancy costs, and key employees may continue year-round, which can result in significant cash-flow shortages,” says Charles McCabe, a former H&R Block franchisee and the founder of The Income Tax School, a tax education and tax business support company. “Seasonal cash shortages constitute the greatest negative.”

3. Certain costs may be lower, but certain fees may be higher

“The startup and operating costs are often significantly lower than those of a year-round franchise,” says McCabe. “[However,] the initial franchise fee and ongoing royalties may be expensive relative to the business opportunity.”

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4. Set your expectations straight

The Holmans might have your dream lifestyle, but don’t assume that by simply investing in a seasonal franchise, you can immediately adopt it as your own. “Don't expect full-time revenues from a part-time business,” says Helgerson. “While some seasonal franchises can earn a year’s worth of revenue, others do not.”

5. Want money? Think big

The Holmans could have made a good living off of one location, but Annette admits that you have to be really good to accomplish that. More likely, you may have to expand your franchise to encompass several locations or purchase a large territory in order to get to the point where you can live well off of your seasonal franchise.

6. Or use your spare time wisely

One major advantage of a seasonal franchise is that you have a significant amount of downtime to either work on your franchise or earn some extra money outside of the franchise. For example, a lawn care franchisee can shovel snow in the winter, suggests Helgerson. Or a tax preparation business can offer year-round services such as bookkeeping, payroll, and financial services, says McCabe.

7. Don’t think that a seasonal business is all play and no work

“It is a great way of life,” says Annette. “Just prepare to work hard when it's necessary.” For the Holmans, the busy season is three-and-a-half months during which they put in nearly 12-hour days.

A seasonal franchise may give you the lifestyle you want

A seasonal franchise isn’t like a standard franchise and shouldn’t be treated as such, but play your cards right and you might be able to combine the high season with the low season to create the kind of life you want year round.

About the Author

Sara Wilson is a freelance writer who specializes in issues related to small businesses. Contact her at wilson.sara@gmail.com.