Interesting opportunities of home-based franchises

Every day thousands of Americans decide that it is time to start their own business. The reasons can vary: an unexpected redundancy, the need for a stable source of income, a desire to be their own boss and spend more time with family. 

If you want to start a business that has already proven to be successful, then home-based franchising can be a good choice for you. It combines the convenience of working from home with the benefit of low start-up costs. Well established brand franchises generate steady cash flow, so your business has good opportunities for growth.

The basic features of home-based franchises

A franchise is a type of operation where a successful business allows another person to copy their business model. You can start a business with a famous brand, popular products or services and fully developed operational system. Typically, the license extends to a limited territory, so you won’t compete with other franchise owners. 

A franchise doesn't have to be a restaurant or retail location. Actually, there is a growing market of franchises that can be operated from home. They have lower start-up costs compared to traditional franchises. In addition, you will have an established business plan specifically designed for entrepreneurs who work at home. 

By purchasing a franchise, you will reduce your expenses in the areas such as marketing and advertising. The brand is already built, so you will just plug in to its customer base. Some part of your franchise fee will be spent for advertisements and promotional campaigns across the country. 

What about the disadvantages? First of all, franchisees may sometimes feel that they are working for somebody else. You can’t choose the name, brand colors, logo, products or services. It's their system, and you are just part of it. 

Even if you buy into a proven system for operating the business and generating profits, success is not guaranteed. For example, if any other franchisee ruins the reputation of the brand, it can hurt all the others. 

A home-based franchise fee 

Do you want to calculate the costs of purchasing and operating a home-based franchise? Make sure that you have noted all the costs involved. The initial investment that the parent companies always mention in their advertisements is known as the franchise fee. Some franchises require a small investment of about $5,000 while others can charge from $75,000 to $100,000.

The franchise fee includes the cost of the license, training and certification, and ongoing support. Depending on the parent company, there may be other services included in the franchise fee. You will also need to pay the ongoing fee. It can be either a fixed amount or a small percentage of your profit. Some franchises may charge a mix of both types of fees. 

Don’t forget to take into account additional investment needed to run your business. Any company will require some funds to operate. You may think that if you are going to start one-to-one tutoring business you don’t need any initial capital, but how will you pay for gas, car repairs, and supplies to run your business? 
In addition, very few businesses can generate returns immediately. It can take from one to three years before you will start making money. Don’t forget about your personal living expenses during that period of time. You will need to add them when you are deciding how much money you need to finance your new business.

What franchises are available?

The popularity of home-based franchises is constantly growing, so you can find a lot of interesting opportunities that fit your interests, style of life, business skills, and available start-up investment. We have browsed various home-based franchise offers available on the market and categorized them by sector:

•    Automotive franchises (mobile wheel repair, restoration of leather and plastics, automotive paint and surface restoration, auto reconditioning, automobile appraisal, interior restoration, auto windshield replacement and repair, etc.). Minimum investment: $10,000.
•    Business consulting franchises (marketing consulting, financial consulting, business and commercial brokerage, mergers and acquisitions, franchise advisory, coaching and development, corporate cost-reduction service, etc.). Minimum investment: $20,000.
•    Business and professional franchises (retirement and estate planning, bookeeping, tax preparation and electronic filing, business brokerage, creation of a professional business plan, printer services, replacement of toners, virtual office assistants, event photography, private investigations, etc.). Minimum investment: $3,000.
•    Children’s franchises (children's ID and school safety programs, portrait photography, science activities for schools or children's parties, computer technology education, after-school drama programs, mobile video game theaters, children's gymnastics and motor skills development, math and chess learning programs, preschool sports and fitness program, etc.). Minimum investment: $2,100.
•    Cleaning and maintenance franchises (odor control and commercial hygiene, janitorial services, home cleaning, junk removal, pet waste removal, carpet and upholstery cleaning, dry cleaning and pickup/delivery services, hard surface restoration, window cleaning, etc.). Minimal investment: $2,500.  
•    Computer and Internet franchises (computer support for small businesses, mobile computer repair, technology consulting, Internet marketing, upgrading computers, web design, etc.). Minimum investment: $18,000.
•    Food and restaurant franchises (frozen fruit drinks, frozen fruit bars, cappuccino catering, candy bouquets and gourmet confections, fine food catering, chocolography, creation of personalized chocolates, etc.). Minimum investment: $9,200.
•    Healthcare and senior care franchises (assisted living in your own home, non-medical home care to people of all ages, in-home care for seniors, linen and laundry service for medical facilities, etc.). Minimum investment: $37,000.
•    Home services franchises (outside flower garden installation, landscape edging, lawn care, interior foliage and plant maintenance, landscape and architectural lighting, in-home design, window restoration and defogging, window cleaning, interior and exterior painting, furniture repair and restoration, consumer residential flooring replacement, bathtub repair and refinishing, kitchen redesign, stone restoration and maintenance, permanent color coatings to concrete decks, frameless shower enclosure, exterior wood care, pool maintenance and repairs, etc.). Minimum investment: $2,500.
•    Pet franchises (mobile pet grooming, pet-sitting and dog-walking, in-home pet care, pet bathing, pet photography, etc.). Minimum investment: $5,000.
•    Real estate franchises (advertising solutions to real estate agents, coaching and consulting services, etc.). Minimum investment: $3,000.
•    Service franchises (wedding and special-occasion videos, nanny referral service, one-to-one tutoring, expense reduction consulting, building inspections and environmental testing, water, gas and sewer leak detection, etc.). Minimum investment: $8,500.

Of course, there are very important considerations and market researches that must be taken into account before operating a home-based franchise business. For example, if you are a stay-at-home mom caring for an infant, it is better to purchase a medical billing franchise than a dry cleaning business franchise.