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The Truth About Home-based Franchises

By Sara Wilson

Does going to work in your pajamas, setting your own hours, and never getting stuck in traffic on your way to the office sound like a dream? Ranging from commercial cleaning to business coaching to pet waste cleanup, home-based franchises abound — and one of them might be just the solution to creating that lifestyle. But, before you get swept off your feet by all the advantages that working from home has to offer, let’s take a closer look at some of the often overlooked realities of operating a home-based franchise.

1. The initial and ongoing investment required for a home-based franchise may be significantly lower than the typical franchise investment — but not always. Running a franchise from home means that you don’t have to worry about leasing out a physical location and often allows you to invest your startup capital in more than just inventory. “Most, if not all, home-based franchise systems do not require franchisees to carry inventory, so you are not tying up capital that could be used for marketing initiatives and obtaining new clients,” says Paul Flick, CEO and founder of Home Service Franchising, parent company to three home-based franchises: 360° Painting, MonitorClosely.com, and Maintenance Made Simple. However, don’t assume that just because a franchise opportunity is home-based it automatically means a super-low investment, cautions Matt Boswell, CEO of Pet Butler, a pet waste cleanup franchise. Says Boswell, “The average Pet Butler franchise partner invests over $70,000 during their first year in business working from home.” (Read More)