The idea of franchising didn’t just spring up with the likes of fast food joints such as McDonald’s and KFC. No, the notion of established vendors selling licenses to entrepreneurs is one that has been around practically since the Middle Ages. Of course, society has evolved to the point that franchising is now very big business. This is evidenced by the fact that there are some 750,000 franchises in the United States alone. Technology has also evolved to the point that franchise leasing is no longer exclusive to brick-and-mortar establishments. The advent of the Internet and the advance in communications has allowed for a number of businesses to be run right from any ambitious entrepreneur’s own home.
So, since businesses can now be delivered right to a person’s doorstep, so to speak, here are just a few overall benefits to investing in a home-based franchise.
Lower costs/lower lease payments
With a home-based franchise, entrepreneurs don’t have to worry about things such as overhead, because that’s already taken care of in the form of the franchisee’s home or apartment. And since commercial lease agreements often come with many hidden fees, a home-based option is much easier on the pocketbook. Moreover, many home franchises can be had for $10,000-$20,000, which is a fraction of the cost of some of the major franchisers in the country, who often charge hundreds of thousands of dollars for a single store.
Savvy tip: these days, folks can bypass lease payments altogether by opting for one of the new mobile concepts on offer from franchisers.
It’s hardly a secret that one of the principal burdens of any business is meeting payroll requirements. Plus, meeting minimum wage standards can be tricky, as each state has a different set of criteria when it comes to compensation and labor laws. Most home franchises are small businesses that can be run with limited staff and, in many cases, solely by the person leasing the franchise. Operations that can typically operate with three or fewer employees include cleaning services, travel agents, hardware retailers and home inspection services.
Indeed, many who run home-based franchises do so while working another job in the process – sometimes a whole other career. This is possible with these kinds of operations, because running one out of the home allows a person to set their own hours and work whenever it is convenient for them. And should the franchise prove fruitful, the person can then ease into making it a full-time commitment.
These are just some of the benefits folks will want to bear in mind when considering home-based franchises. Of course, there are considerations to take into account as well. Despite the aforementioned flexibility of the hours, they are often long ones. That’s because there’s only the franchisee that is shouldering the burden. This person also has to be adept at multitasking, precisely because they are the sole proprietor of their home-based business. That means they are responsible for everything from payroll and hiring to marketing and supply costs.
Peter Bowman is a professional blogger that provides tips and information on franchise opportunities and investments. He writes for FranchiseExpo.com, the place to find the best franchise opportunities available.