Quick Guide to Drone Franchises

A drone franchise is much like any other franchising, but with a drone company instead of, say, a McDonald’s at the helm. You provide the service under the name of an already established business, meaning you get to avoid a lot of the initial startup work. Many entrepreneurs enjoy this perk and pursue franchising as opposed to starting their own company. 

But there’s a lot more that goes into establishing a franchise than you may think. Our quick guide will help you understand the basics of drone franchises and how to get started with yours.

What is a Franchise?

As defined by the International Franchise Association, franchising is an individual or business (that would be you) distributing products or services (in this case, drone services) under the name of an established brand and trademark (the already established drone business). As the franchisee, you pay royalties and other fees in exchange for the right to do business under the franchisor’s brand. 

So what do you get out of this relationship? When you franchise, you enter into a system under a business with brand recognition and loyalty. You get to skip the giant step that involves building a customer base. You already have your base, so your focus is to provide exceptional service and build from there.

Perks of Franchising

If you’re on the fence, here are a few pros about starting a franchise:

• Brand Recognition and Loyalty: As stated above, this is the number one reason to pursue a franchise. You skip all the first steps of creating and establishing a business by starting with a strong and loyal customer base.
  
  
• Headquarters Support: You’ll always have the backing and support of your brand’s headquarters, which can help with site location, building development, training resources for your employees, systems and product ordering, etc.
  
  
• Advertising: In the business world, advertising and marketing is an expensive component of starting a company. With a franchise, the brand does the work for you, and you just have to sell.

Challenges of Franchising

Along with any pros come cons, so here are a few challenges to keep in mind as you pursue your drone franchise:

• Initial Investment: Because you’re walking into a well-oiled machine, starting a franchise requires an initial investment — the fee ranges depending on the business and location. For example, franchising a Taco Bell requires anywhere from $525,100 to $2,622,400 to get started.
  
  
• Royalties & Taxes: Aside from initial costs and fees, you’ll also pay annual royalties to your headquarters in addition to taxes. These royalties also vary depending on the business, with Burger King, for example, charging 4.5% of sales across the board.

How to Choose the Right Franchise

The takeaways of franchising pros and cons are these:

1. Choose a brand with a strong customer base.
2. Research several brands and choose one with predicted growth.
3. Consider a brand with a lower initial investment.

It’s expensive to start a franchise, so focus on these three pieces of advice when deciding which business to pursue. You want your investment to succeed, so if you don’t have the financial backing, you should probably steer clear of the big names. 

However, you still need a good brand with a strong customer base and one with predicted growth. If needed, search around for businesses that require a smaller initial investment.

Why Drone Franchises?

Drone franchises are an excellent example of a smart franchise selection because they’re in high demand and can fit into multiple industries. The drone industry is worth over $14 billion and growing! Your opportunities for drone services are nearly endless. Here are just a few ideas of where you can use your drone services:

• Real Estate: More and more real estate companies use drone imagery and video footage to help sell homes. Drones offer a unique perspective that traditional photography misses and help potential homeowners better picture their future residence. Although drone photography initially supported multimillion-dollar homes with large acreage, agents now use it for any property type.
  
  
• Tourism: Drone services support tourism by producing unique and stunning footage of destinations from a bird’s eye view. You can provide drone services for tour companies, city tourism agencies, airlines, cruise ships, festivals, and more.
  
  
• Construction and Surveyors: Construction companies hire drone services for site reviews, aerial surveying, mapping, monitoring progress, inspecting work, etc. Compared to land surveying and reviewing, drones are much faster and can save a lot of time and money.
  
  
• Monitoring: Drones are an excellent tool for monitoring in numerous situations. For example, some wildlife organizations use drones to monitor elephant and rhino populations in African nations and to protect against poaching.
  
  
• Deliveries: Amazon isn’t the only company toying with the idea of drone delivery. Soon enough, this service will be in high demand across the country.
  
  
• Sales and Repairs: Maybe you don’t want to be in the pilot’s seat, but, instead, help others experience the joys of flying a drone. In that case, you can franchise in sales and repairs. There are over one million registered drones in the U.S., all possibly needing repairs or upgrades.
  
  
• Flying Lessons: You can opt to teach others how to fly and operate a drone. Experts predict the drone market will reach $50 billion by 2050, so the interest and flying lesson needs are there for the long-haul.

When searching for a profitable franchise investment, drone franchises fit the bill. And if you enjoy flying your drone, it’s a win-win situation. Drone services take you outside in the fresh air and can provide a rewarding work experience.

How to Get Started with a Drone Franchise

For our quick guide to drone franchises, we’ve fit the process into a seven easy steps.

Step #1 — Evaluate Your Finances

The first step in the process is to evaluate your finances. As we mentioned above, franchising in particular industries (like the food industry) can be pricey. You have a lot to think about, including initial fees, opening costs, and annual royalties to pay. 

Some drone franchises are more affordable than others, but before you start, get a good sense of where you are with your finances to know what you can and cannot afford. In the end, you want your investment to be worth it.

Step #2 — Form an LLC or Corporation

​You won’t be able to move forward with drone franchising unless you’ve formed your own LLC or corporation. Although they do cost money, LLCs protect you from liability. This protection will be vital as you move forward with your business pursuits.

Step #3 — Choose a Franchise

Once you understand your budget and establish your LLC or corporation, you can start to look at which drone franchises suit you and your business ideas best. We broke down our top ten picks for drone companies in an older blog post and provided information on initial investments. But for this quick guide, we’ll simply summarize them here:

• Drone Nerds
  • Category: Drone sales, repairs, and flying lessons
  • Investment: $24,900 fee and 4% of sales​
• Hommati
  • Category: Real estate
  • Investment: $18,900 fee and 7% of sales
• BirdsiVideo
  • Category: Various commercial services
  • Investment: $45,000 fee and 10% of sales
    
• Expert Drones
  • Category: Sales
  • Investment: Varies
    
• Recon Aerial Media
  • Category: Various commercial services (photography, mapping, inspections, etc.)
  • Investment: $15,000 fee and 5% sales
    
• Measure
  • Category: Various commercial services
  • Investment: Varies
    
• Dronebase
  • Category: Freelance pilot network for various services
  • Investment: None
    
• FlyGuys
  • Category: Freelance pilot network for various services
  • Investment: None
    
• Drone Pilot Ground School
  • Category: Flying Lessons
  • Investment: None
    
• UAV Coach
  • Category: Flying Lessons
  • Investment: None

With the drone industry growing quickly, new drone franchise opportunities pop up every so often. Our list is not an exhaustive one, so feel free to do your research and find the franchise that makes the most sense for you and your business.

Step #4 —  Write a Business Plan & Get Financing if Needed

For some drone franchise opportunities, you’ll need a business plan. But even if your franchise doesn’t expect it, it’s still a practical step in the process, especially if you require financing. Banks will need a plan, so they know your business is worth their investment. A better business plan and proof of future profit will result in better financing terms.

Step #5 — Review and Sign Your Franchising Agreement

The franchise agreement you will sign is a contract between you and your franchisor. It’s best to use an attorney to help you with this step so they can thoroughly review the contract. You want to ensure that you fully understand the terms of the agreement, including your obligations to the franchisor and your rights.

Step #6 — Obtain a Space, Equipment, and Employees

For some drone franchises, you’ll need to acquire a physical workspace, update or purchase equipment, and hire and train your employees. If you plan to be a one-person show and already have all your gear, then you can skip this step.

Step #7 — Open for Business!

Once you’ve secured your LLC, financing, equipment, and signed the financing agreement, you’re ready to open your doors for business. ​

Find Your Niche and Pursue Your Business Goals

Drones are fun. You get to fly little machines up in the air with a remote, take photos, and record videos. It’s a pretty fantastic tool for many jobs, so just find your niche and go for it! Whether you love the idea of supporting real estate, want to work with surveyors, hope to open up a repair store, or aim to use your services to help monitor wildlife, the options for starting a drone franchise are nearly endless.

​Use this guide to get started. If you have any additional questions, check out our blog, read our FAQs, or send us a note!