Ultimate Work From Home Franchise Guide

work from home franchise guide
Home-based franchise businesses offer excellent opportunities for anyone looking to achieve more freedom than their current job can offer. Owning a franchise is the same as owning your own business, but has some additional benefits you won’t find in traditional business ownership. One important reason to consider owning a franchise over starting your own business from scratch is the opportunity to set yourself up for a greater chance at success.
Starting your own business might seem difficult or overwhelming, but with the right research and preparation, you will soon find your schedule freer, your wallet thicker, and your satisfaction in life increasing as a franchise owner.
Franchises offer tried and true business models that have been proven to work. When working with a flexible, scalable model, many franchises see as much ongoing growth year after year, with owners earning a substantial residual income. By choosing a franchise, you also become a part of a larger entrepreneurial community, with an extensive network of support and resources to help you with every challenge that comes your way– from tailoring your sales strategy to improving  customer satisfaction.
This guide will explain what franchising is, outline what it takes to own a franchise, and help you develop your own plan for business growth. It will focus mainly on home-based franchises for individuals who find they are much more productive not in the office, but in the living room and desire the flexibility and lifestyle of a successful business, but want to operate that business from a home office.
This is a VERY comprehensive guide on home-based franchising. It’s not meant to be a quick read. We packed a lot of information in here, and we have created this quick links section so you can easily skip ahead to the information you’d like to read.

Quick Links

[column-group]
[column]Who Is This Guide For?
5 Ideal Characteristics For A Work From Home Franchise
Anatomy Of Home-Based Franchise Businesses
What is a franchise?
How Does a Home-Based Franchise Work?
Advantages of Operating a Franchise from Home
Challenges to Home-Based Business Opportunities
Starting Your home-based Franchise
List of Must-Haves for Starting a business
Start Your Work From Home Franchise Strong[/column]
[column]Costs, Control, and Contractual obligations of home-based franchises
Expected Costs
Franchisor’s Controls
Contractual Obligations
Is a home-based Franchise Right For You?
An Overview of the Franchise Disclosure Document (FDD)
If Things Change During Negotiations
Finding Work From Home Franchise Opportunities
Key Factors to consider when Selecting a Home-Based Franchise
Researching The Potential Earnings of Your Work From Home Franchise
Ways to Finance Your home-based Franchise[/column]
[/column-group]

Who Is This Guide For?

While there are many different types of people who can succeed in home-based franchises, there are a few who we’ve seen thrive–and succeed– at especially high rates with the help of our support structure and business model:

  • Female Entrepreneurs
  • First-Time Business Owners
  • Mid-Career Transitioning Professionals
  • Millennials
  • Minorities
  • People in Small and Mid-Sized Markets
  • People who Love Sales
  • Veterans

5 Ideal Characteristics For A Work From Home Franchise

To succeed with a work from home franchise, you not only need to be an ideal candidate for the business, you want the goals and model of the business to be a good match for your strengths. Not every franchise is created equal; and not just any franchise will work for a hopeful entrepreneur. Finding the perfect home-based franchise is a lot like finding a soulmate. You will want to consider the values of the company, the sense of community and support they offer, and how–specifically– you will be working together.
We believe the 5 key characteristics of any successful work from home franchise system are:

  • Excellent Communication
  • Low Entry Cost
  • Underserved Market
  • Experienced Leadership
  • Scalability
  • Flexibility


Chapter One: Anatomy Of Home-Based Franchise Businesses

Buying an existing business can be expensive, difficult, and frightening. Few business owners are looking to sell their business if it’s successful and purchasing an existing, failing business is extremely risky. It comes with a reputation [and probably not a great one!], possible repairs, advertising issues, and more. You could start from scratch, but you’d have to be prepared to build a brand, design your business, advertise, market, craft various work forms and protocols, and so much more.
Many prospective business owners wonder if their only options are to either start from scratch and struggle upward, purchase a failing business, or risk reaching out of budget for a relatively successful existing business that they can’t quite afford. Franchising offers a solution. By letting the entrepreneur work within an already successful system, the wheel doesn’t have to be reinvented, and the new franchise owner can tailor the day-to-day operations to meet their income and lifestyle goals.
In the next section we will discuss what a franchise is, how it works, and what makes it different from starting from scratch or purchasing an independent business.

What is a franchise?

Franchises offer a mixture of a new business and an existing business. It permits hopeful entrepreneurs to own operate a fully-formed business. Generally, franchises are created from tried and true business models which is why franchisors are able to offer franchisees information, expertise, and a reputation they can trust.
One of the biggest differences between starting your own business and purchasing a franchise is that most franchisors offer franchisees some kind of support. They may provide assistance when searching for a business location, initial training, operating manuals, and even advice in running and managing your business, navigating the marketplace, and often provide advertising campaigns that have been tested and proven successful. Franchisors wants franchisees to succeed; a franchisee’s success means success to the business (and brand name) at large.
A franchisor is the individual (or group) from whom a franchisee [the entrepreneur]  purchases a business model. The perks and assistance they can offer varies from business to business and some franchises even offer different levels of assistance based on price. When you are shopping for the right franchise, keep in mind what you believe you need or want and check that the franchises you are investigating offer you the support you want.

How Does a Home-Based Franchise Work?

While you’re probably most familiar with  franchises that are traditional storefronts, “brick and mortar” isn’t the only option out there. A majority of U.S. entrepreneurs are now starting their businesses at home, and achieving true career freedom beyond the boardroom or cubicle. If you love the thrill of customized sales and marketing, and the satisfaction of offering unparalleled service–but are sick of commuting–there are franchise opportunities already waiting for you to bring your passion and expertise to the table.
The demands and advantages of home-based franchises are a little different from those of brick and mortar franchise models. Let’s look at a few of the most significant ways working from home as a franchisee is unique.

Demands of Home-Based Opportunities

Discipline: Because you are not required to ‘show up’ to work anywhere specific, home-based franchises often require more focus, motivation, and self-discipline [and a determination to step outside the comfort zone of being at home amidst its familiar array of distractions].
Adaptability: While your franchisor may offer their business model’s version of success, when you are making money from home, it will become crucial to know how to use their support (and their model) as a guide to creating and implementing your own scale and strategies for success [rather than a cookie-cutter approach].

Advantages of Operating a Franchise from Home

Low Cost
Because you do not have to build, remodel, or rent an office space–and can run your business without paying extra utilities or administrative costs–owning and operating your franchise from home allows you to decrease or eliminate many of the major costs that come with starting a brick and mortar business or franchise. [You may decide to purchase a desk, office supplies, or electronics for business purposes, but that– and many other expenditures a home-based entrepreneur can make are optional, and up to your discretion.]
Convenience
No more morning traffic jam or rush hour; no 9-5; no need to wake up or leave early. If you decide you want to start working at 10AM, you can sleep until 9:55am and just walk into the next room and get to work.
Flexibility
If you have a family, pets, emergency doctor appointment, your schedule can change as you need it to. You don’t need permissions from the boss, and you don’t need to factor in things like  time for traffic or distance from work.
Sense of Accomplishment
You’ll experience the growth of your company first hand. You’ll watch your profits grow, your energy turn into something tangible, and you’ll see direct changes to your life that you can be proud of. Work from home franchises, more than anything, are unique to the entrepreneur, so you can  take pride in the success that you cultivate.
Enjoying Work Again
Since buying and owning a home-based franchise is a big expenditure that requires time, effort, and commitment, franchise owners clearly  have a passion for the work they are doing. It’s not because they have to anymore, but it is something they have chosen to do. This satisfaction often improves overall quality of life,  which can motivate franchisees to work harder, and drive a larger profit margin year after year.

Challenges to Home-Based Business Opportunities

Hard Work
With home-based franchises, it is up to you to create profit, increase business, and make sure all of your deadlines are met. You are in charge of your own success, and it is up to you to find a system for coping with setbacks. Because the success or closing of the business is so personal–and involves such high stakes–home-based franchise opportunities are not for everyone.
Loneliness
If you enjoy office room banter or the regular ‘Good Morning” exchange with your coworkers, you might find that home-based franchises feel isolating and lonely until you find other places for positive social interactions after you’re done working for the day. But don’t be discouraged. Networking is a very important part owning a work from home franchise. You will utilize your network not only for business purposes, but for ongoing support and personal encouragement.
Marketing
Generally home-based business franchises rely on their owners to find and create new customers in their area. Depending on the franchise itself, your franchisor may offer some marketing support, but you will still be required to reach out to your community to increase business.
Public Perception
Telling people you own a home-based business is not always easy [some who have never worked from home may see it as unprofessional, or somehow easier than working in a traditional business]. The good news is, you get to be in charge of creating your own professional public image for not only yourself, but also for the franchise you are a part of. As a franchisee you represent yourself, and your entire brand.
Uncertainty of Income
Instead of having a predictable weekly paycheck, your sales, marketing, and customer service efforts are now the driving force that brings in customer, and creates a profit. But there’s definitely a silver lining, you have unlimited potential for continually growing income, which isn’t the case for hourly or salaried work.
You Must Check Your Own Work
Often, home-based franchises have a very small workforce. This means in most cases, you will be in charge of checking your own work: proofing contracts, client addresses, orders, emails, and so on. Since you’re likely the first and/or last person to see a product or correspondence before the customer, vigilance and attention to detail are key in making sure things go smoothly.

Chapter Two: Starting Your home-based Franchise

If your interest is piqued by home-based business opportunities, you’ve probably found yourself thinking “I know I want to start my own business, and that I want to own a franchise, but. .  .what next?” Before you choose a specific industry or business to purchase a franchise from, there are some crucial steps in the franchise-ownership process that could make starting your business much easier– and take away a massive amount of stress in the long run.

List of Must-Haves for Starting a business

Create A Business Plan
A business plan is always a helpful tool, no matter what your specific goals are. It will play a large role in the development of your business by serving as a map to help you set short and long-term goals, keep you moving forward, and have a plan in place in case of financial challenges, or other difficulties along the way. Any good business plan should contain:

  • An Executive Summary
  • A Company Overview
  • Products and Services You Will Offer
  • A Target Market
  • A Marketing and Sales Plan
  • Milestones and Metrics
  • Management Team Plans, If Any
  • A Financial Plan
  • An Appendix

Research Home-Based Franchise Taxes
Taxes are no joke, and the margin of error only grows when you open your own business. It will be important to fully understand taxes as they apply to home-based franchises, so you don’t forget something when submitting your taxes to the IRS. Their website should have all the information you need to correctly file your taxes, including lots of good information about how taxes apply to things like working from home, utility usage, and tax breaks for business-related expenditures. While researching tax requirements and rules, you should also look into the process of getting a Tax Identification Number [or Tax ID] for your franchise, as it may be slightly different from obtaining a Tax ID for a traditional business, or a brick and mortar franchise.
Research Business Insurance
You may not have thought about this as a necessity for opening a work from home business, but it’s a must-have, no matter how small your business is [even if it’s just you!], insurance is actually one of the most overlooked areas when it comes to home-based businesses. However, some kinds of insurance are required by law– depending on the type of work you do and the equipment you handle. While investigating prospective franchises, keep in mind the equipment or security necessary for the work, and make sure to ask whether you will need a special type of insurance, if you will have employees, and if you do: will you need to offer them health, liability, or any other kind of benefits/compensation?

Start Your Work From Home Franchise Strong

Along with your business plan, here are six more tips to get your home-based franchise off to a great start:
Keep your personal and business bank accounts separate. By mixing them together, you may accidentally end up stealing money from your own business, overspending personal funds on business, and/or making tax time a complete headache by trying to remember which purchases came from where and which money belongs to which part of your life.
Even if you’re running a single person work from home franchise, you still need a team. Think about hiring an accountant, insurance broker, business lawyer, and pulling together mentors or even a small group of business owners to bounce ideas off, cross-market with, or increase your network.
Set business hours to keep yourself on track. While work from home franchises do offer open, flexible schedules, most business owners find they maintain higher productivity by setting a schedule. Once you  try a few options, make it a point to stick to the schedule that allows you to be most productive.
Network with other entrepreneurs and business owners. There are many business conventions held throughout the year in the United States. Some are state-based, some nationwide. Look for the conventions that align with your interests, and your budget. Use your time at these events to meet mentors, find prospective business partners, and improve yourself professionally.
Market yourself and your business constantly. Work with your franchisor, if possible, to create a strong marketing plan for your business. Also be sure to do your own research and create marketing plans with the help of mentors, marketing professionals, or business partners. Keep a record of your past marketing plans and how well they worked,  in addition to ideas for developing and improving future marketing plans.
Keep your budget in mind at all times. Don’t overspend when you don’t need to. Even if you save some money from the previous month, don’t overspend in celebration. You never know when that money may be necessary for insurance, an office fix, a rush order, or some other unexpected expenditure.

Chapter Three: costs, control, and contractual obligations of home-based franchises

The main difference between owning an independent business and owning a franchise is that you surrender complete control of the business model in order to adopt the franchisor’s business model, style, and name. But in exchange you receive their structure, formulaic success, and reputation. In this chapter we will break down the different costs, controls, and contractual obligations that go along with taking advantage of work from home franchise opportunities.

Expected Costs

Initial Franchise Fee
Opening a business always costs something up front. Initial costs for a typical franchise include things like rent, renovation costs, and legal fees. When you purchase a work from home franchise, you will be required to pay the franchise fee. Fortunately most franchise fees cover basic training, supplies as they pertain directly to the business, and support from the franchisor. To find out exactly what you get from a franchisor when you purchase a franchise, check the information on their website or in a franchise informational handout. Good franchisors tell you what to expect from the start.
Office Setup Fee
If you plan to build an office for your work from home franchise, this cost must be taken into account. If you need to purchase a new computer, phone fax machine, scanner, or phone plan, you will need to consider these costs in your office setup fee, along with any special vehicles, licenses, or equipment you may need for your franchise.
Advertising Costs
Whether or not there are other franchisees from your business in the area, you will have to spend some money on advertising your business for several months before opening. (You do not want to open your work from home franchise to no clients!) Talk to your franchisor about how soon you should start advertising. And make sure to ask if they offer any ready-made advertising campaigns, or other resources to help lead your marketing efforts  in the right direction.
Ongoing Royalty Payments
Ongoing royalty fees will always accompany owning a franchise. These royalties do a couple of things: they pay for your ability to use the franchisor’s reputation, name, and brand; sometimes they assist in paying for national advertising campaigns. They also pay for the support, training, and future documentation you receive from the franchisor.

Franchisor’s Controls

Site Approval
Most franchisees have to worry about finding a physical location for their franchise that is approved by the franchisor. Fortunately, work from home franchises don’t usually need this. Though your franchisor may require you to purchase specific equipment in order to run your business.
Packaging and Design
One of the things you’re paying for when you buy a franchise is the look, design, and feel of a brand name. You will be required to follow the physical design, packaging, and branding protocols of your franchisor in order to maintain dependability, reliability, and reputation.
Services and Merchandise
When you take advantage of work from home franchise opportunities, you’re agreeing to only deal in the services and merchandise the franchisor currently offers. Unfortunately if you decide that perhaps you want to sell handbags in the future while your franchise now sells jewelry you will be unable to add handbags to your business underneath that franchise name. You cannot add or remove products or services as you see fit, but must submit to the will of your franchisor.
Methods of Operation
In traditional franchise opportunities, franchisors can dictate office hours. With work from home franchise opportunities, they most often don’t. However, they can still dictate other aspects of the business like advertisements, signs, commercials, uniforms, and bookkeeping procedures. They may also dictate any sales or discounts taking place on a local or national scale, or require you to purchase your equipment and supplies from an approved supplier.
Sales Area
In just about every franchise contract there is a “protected territory” section that states the radius of which other franchises are not allowed to open competing outlets or threaten your customer base with their own business. However, protected territory doesn’t always protect from every type of franchise placement if your franchisor owns multiple types of types of businesses such as an office supply store, a delivery service, and an electronics store. They may all be placed in the same ‘territory’ even if owned by the same franchisor, since  they do not threaten the customer base of the others.

Contractual Obligations

Franchise Renewals
Purchasing a work from home franchise isn’t forever. It actually comes with a franchise agreement,  and those do not automatically renew. Franchise contract periods range from 5 to 20 years at a time and after the initial contract is over, you have the option to sign the contract again for another set of years or to end the contract with your franchisor. Your franchisor also has the option to decline renewal at the end of the contract term depending on how you were as a franchisee. There are many reasons that you may decide to decline, such as increased royalties, higher costs, reduced protected territory, new designs or services, the business not growing as fast as you’d like, or you are completely satisfied and ready to retire.
Termination of Agreement
Franchisors have the ability to end a franchise agreement at any time during the agreement period if one of the initial rules are not followed. Some reasons a franchisor may terminate the franchise agreement include: failure to pay royalties, failure to meet performance standards and sales restrictions, or completely disregarding franchise design, procedures, and brand. A franchisor cannot end a franchise agreement in the middle of the term because they feel like it. A franchise agreement is a legally binding document and unless one of the very clear rules have been purposefully and continually broken, a franchisor cannot initiate a termination. However, if a franchisor should terminate your work from home franchise agreement, it is likely that you will lose your entire investment. So it’s important to follow your end of the agreement to the letter.

Is a home-based Franchise Right For You?

Before accepting any work from home franchise opportunities, consider the following questions (and be honest):
About Your Abilities

  • Do you have experience managing, doing administrative work, or working independently?
  • Do you have the motivation, focus, and self-discipline to successfully operate a work from home franchise?
  • Do you have the special skills or knowledge required to run this particular business? If you don’t have the right skill set, are you willing to learn– including any training programs the franchisor may have?

About Your Finances

  • Can you afford the franchise fee and setup costs?
  • Can you afford to lose money? If so, how much?
  • Do you have at enough money in savings to live off of for at least six months?
  • How do you plan to invest in your home-based franchise?
    • If you need financing, where do you plan to get it from?

About Your Goals

  • Are you okay with relinquishing some design/operation requirements to the franchisor in order to take advantage of their reputation, training, and support?
  • Do you have a passion or desire for a specific field or business type?
  • Do you wish to work by yourself or with a team?
  • How much are you willing to work?
  • Is opening a business a long-term or short-term goal?
  • What minimum income do you need in order to continue to live at your current economic level?
  • Which do you prefer: performing a task or retail sales?
  • Do you enjoy interacting with and serving customers (and potential clients)?
  • Why do you want to buy a work from home franchise?
  • Will your work from home business be your main source of income?
  • Would you like to operate multiple businesses or outlets?

Chapter Four: An Overview of the Franchise Disclosure Document (FDD)

Under US Law, every franchisor is required to provide potential franchisees with a copy of the Franchise Disclosure Document (FDD) before purchasing a franchise. This allows potential franchisees to learn everything they need to about a work from home franchise business before they make a purchase. After receiving the document, by law, franchisors or their associates are not allowed to contact the individual for at least 14 days. This is to prevent any type of pressure or distraction of the individual while they are reading the documents. This does not mean the potential franchisee cannot call the business to ask questions, but the franchisor is not allowed to harass, pressure, or otherwise distract potential franchisees from reading the FDD.
By law, the FDD is required to contain 23 specific, numbered items. When you receive the FDD, be sure that it is in a format you can read, is easily accessible, and that you can mark up (either physically or digitally) as needed with notes or questions you’d like to ask later. In this section we will briefly run through what you should expect to find in the FDD.
Item 1: Franchisor’s Background
In this item, the franchisor is required to tell you how long they have been in business and who their competition is. At this point they will also inform you of any legal requirements, such as permits or licenses, to operate their work from home franchise.
Item 2: Business Background
This item will list any and all executive members of the franchise system and their credentials or experience. This will give you a good idea of who will be supporting you on your business journey and whether they are good leaders to help you succeed.
Item 3: Litigation History
This item is required to show any potential franchisees of any legal issues the franchise has had as a whole. It will tell you whether any of the executive staff have ever been convicted of felonies and what the felonies are. It will also list any liability issues, class action lawsuits, and problems involving franchisor-franchisee relationships that had to be taken to court.
Item 4: Bankruptcies
This item will tell you whether the franchisor or any member of his management or executive team have gone through bankruptcies. If any of them have, it will list when the bankruptcy was claimed. This item is helpful in providing incite to patterns of poor management staff or finance handling.
Item 5: Initial Franchise Fee
This item should lay out all the initial costs of opening a specific work from home franchise. Many franchises offer multiple options, the more expensive options usually offering more services, products, and a larger work space. The FDD should always disclose a complete list of franchise fees, and, prior to signing any contract, you should know exactly what you are getting and how much it will cost.
Item 6: Other Fees
Outside of the franchise fee, there are a handful of other fees potential franchisees should know about when it comes to home-based franchises. These fees include:

  • Audit Fees
  • Contributions for Advertisements
  • End-of-Term Fees
  • Future Advertisement Campaign Fees
  • Renewal Fees
  • Royalties
  • Service or Benefit Fees
  • Training Fees
  • Transfer Fees

Item 7: Initial Investment
Item 7 is different from item 5 because the franchise fee is not necessarily asked or paid for upfront from the very beginning. Usually when opening a work from home franchise, only a partial initial investment must be made and the rest is paid overtime. This section also usually includes a table that shows all expenditures that a franchisee may incur while establishing their business.
Item 8: Restrictions on Source Products and Service
This section will state pre-approved suppliers that you are allowed to purchase your office or work supplies from. Depending on the franchisor, they may not have required suppliers.
Item 9: Franchisee’s Obligations
This section will tell you everything that will be expected of you. As mentioned before your franchisor can terminate your agreement if your obligations are not met. This section should outline all expectations the franchisor has when you begin construction on your home-based franchise.
Item 10: Financing Available
This item will show any and all available financing assistance options the franchisor is aware of. Some may include a loan from the franchisor themselves while it also may allude to awards, assistance programs, and organizations who offer loans or award funds for opening a work from home business.  Some companies offer counseling and coaching to help you find the right type of financing/investment for your budget and goals.
Item 11: Franchisor’s Obligations
This item will let you know everything the franchisor is obligated to do for you. This way down the line you are not surprised if they don’t do something you expected or thought they would or if you need a reference to their promises to you.
Item 12: Territory
This item will lay out the protected territory rules within the home-based franchise, including protected area radius, if the area is protected, how marketing is affected in the area, and descriptions of your exclusive area.
Item 13: Trademarks
This item will detail any and all specific trademarks of the franchise. These trademarks the franchisee will be required to use on all packing, services, advertisements, and signs.
Item 14: Patents, Copyrights, and Proprietary Information
This item will discuss any patents or copyrights the company holds on specific products or services.
Item 15: Obligations of Operation for the Work From Home Franchise
This item will detail any special terms or restrictions as pertaining to your home-based franchise business.
16: Restrictions on What the Franchise May Sell
The franchisor cannot really surprise you later as you build your home-based franchise. Here is where they will lay out all the service and products that you may offer in your business (and also what you are not allowed to offer).
Item 17: Renewals, Terminations, Transfers, and Dispute Resolutions
This item will tell you everything you need to know about the legal process that follows renewals, terminations, transfers, and dispute resolutions within the home-based franchise.
Item 18: Public Figures
This item will list any celebrity or public figure endorsements the franchise has received and whether or not you are allowed to use their name and image in your advertisements.
Item 20: List of Franchise Outlets
This item will provide a list of all current locations of work from home franchises that are part of the franchise system.
Item 21: Financial Statements
This item must include financial statements from the last three years (or from however long the franchise has been operating if years of operation equal less than three). The documents must be prepared in a specific way as according to Generally Accepted Accounting Principles (GAAP) standards.
Item 22: Contracts
This item should contain all the contracts and agreements that you will be required to sign in order to accept and produce your own work from home franchise.
Item 23: Receipt
The final item of the FDD is your receipt for the FDD. You will be required to sign it in order to legally say you were given and have received the FDD for review. It should state your name, the franchisor’s name, and any other personnel involved in the business deal.

If Things Change During Negotiations

The FDD is a pretty standard, solid document. By the time you receive it, it should not change. If your franchisor changes the document at any point after you’ve received it, there are a set number of days that must be waited before you can sign any agreement. This is done as a protective precaution for potential franchisees so that a bait and switch cannot legally happen.
If after reading the FDD you find that your franchisor is saying something different than what you read, make sure to ask questions. If it is said the rules have changed, ask for a newer copy of the FDD and explain that you will be back in 14 days after you have reviewed the new information. This is your legal right as a potential franchisee.

Chapter Five: Finding Work From Home Franchise Opportunities

In order to open your home-based franchise you must find the right home-based franchise opportunities. InXpress is honored to be considered. However, if you’d still like to shop around, here are a couple places to keep your eyes peeled for potential work from home franchise opportunities:

  • Franchise Brokers
  • Franchise Conventions or Expositions
  • Franchise Opportunity Handbooks
  • Franchise Opportunity Websites
  • Local Home Businesses
  • Local Outlet Stores

Key Factors to consider when Selecting a Home-Based Franchise

There are a ton of home-based franchise opportunities on the market, though, upon doing research you will find that they are not all equal. When considering franchises, take note of these key areas of interest:

When you buy a franchise, your investment and your reputation are at stake. Ideally, you want to align yourself with an industry leader, in a growing field, who can offer you their stellar reputation of competitive growth,  a strong network of support, and top-notch service to franchisees, customers, and partners.

Researching The Potential Earnings of Your Work From Home Franchise

When researching work from home franchises, “What’s my income potential?” is one of the first things most prospective franchisees ask. It makes sense. If you’re spending your time, money, and effort to start a franchise, you need to know you are making a good investment, with high return; not just money, but true financial freedom, success, and growth. It can be difficult to tell how well a business is doing and if it can keep the promises it makes to prospects just by looking at the outside. Visuals can be deceptive. As you consider a franchise for your potential work from home opportunity, think about:
The Average Income
The franchisor may give you some random number for the average income, but without information on how individual franchises performed that information is useless. Ask around, talk to current franchisees [especially in areas, industries or markets similar to yours], and learn about the average income on a macro and micro scale.
The Gross Sales
This is same as the post point. Ask the franchisor and current franchisees for specifics because a general figure given by the franchisor doesn’t typically represent how individual businesses do in costs versus profits.
Net Profits
Most franchisors don’t actually have information on the net profits of their franchisees. If they do have information, ask where it’s based from. If it comes from a company-owned location, or if they have contact information for franchisees who would be willing to talk to you.
Consider Geographical Relevance
Where your business is placed and what services you offer will create a huge difference in earning potential. A work from home franchise in pool cleaning would do much better in Florida than New York.
Read the FDD Financial Pages Carefully
By law, franchisors are required to put a lot of financial information into the FDD. When you receive it, use it as a starting point for potential earning estimates. Look into the backgrounds of the executive board members, bankruptcies, and litigations.
Always Remember the Marketplace Can be Fickle and Assumptions Are Just That

Ways to Finance Your home-based Franchise

As you begin moving forward, selecting your potential franchises, and talking to franchisors, don’t forget to keep in mind the financial side of everything. It’s always one of the most stressful parts of opening a home-based franchise. To procure funds, consider looking at:

  • 401k
  • Alternative Lenders
  • Consider Leasing Equipment
  • Credit Cards
  • Family and Friend Loans
  • Franchise Initiative Opportunities
  • Franchisor Sponsored Financing Programs
  • Home Equity Loan or Line of Credit
  • Marketplace/P2P Lenders
  • Personal Assets
  • Retirement Funds
  • Savings Account

In Closing

Opening a work from home franchise is a big move with a big payoff when done right. With diligent preparations, you can succeed in taking control of your finances, schedule, and running your own business. As you take the next step forward, remember these four solid pieces of advice:

  • Make Sure You can Financially Support Yourself As You Open Your Work From Home Franchise
  • Watch the Details
  • Continue Communication With Other Franchisees and Your Franchisor
  • Follow the System

 
We hope the steps, systems, and strategies outlined in this guide help you examine how good of a fit home-based franchising is for you. Though it has unique challenges and demands, owning and operating a franchise from home can be a liberating step for many entrepreneurs;  especially if you have a trusted network of guides and experts to help and support you at every step of the way.
Best of luck!
The InXpress Team

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