How to Set Up a Home-Based Franchise

🕒: Four minutes

Though most people think of franchises in terms of stores and restaurants, there are plenty of home-based franchiseopportunities available too, such as computer consulting, pet care, financial services, cleaning etc. Some may require specialised equipment, like a van with the company logo.

Franchising offers multiple benefits to entrepreneurs including the opportunity to become your own boss and to develop your business ideas under the security net of a franchisor's support.

Working from home can also afford you incredible benefits, including:

Flexible working hours
Reduced travel time and costs
Higher productivity
A better work/life balance

There is currently a wide range of franchise opportunities which will allow you to work from home.

If the benefits listed above and the prospect of creating your own work environment are encouraging you to consider a home-based franchise, you should find out all the relevant information before undertaking this exciting lifestyle change. This will help ensure that you start this opportunity with every possible advantage.

There are Pros and Cons to Running a Business From Home

An obvious advantage of a home office is the possibility of tax deductions -- your accountant can determine what is applicable to your situation. One sensitive issue is whether you can separate your business life from your personal/family life. It’s easy to fall into a routine of never being “off work” when you’re based at home, so to maintain a healthy lifestyle, you should draw boundaries between work and home.

Set up your office where it is separate from the distractions of children, pets, television screens etc. Let family members know that you are working when in your office and that you should not be disturbed unless it is urgent. Establish a regular schedule for yourself, with breaks to stretch, eat lunch, exercise or attend to domestic tasks. You’ll be more productive if you stick to an established work schedule.

Since working from home can be isolating, reach out to other franchisees and home-based business operators in your area. It’s a great way to network -- you’ll get useful tips and maybe even some new customers.

The first thing you must find out before buying a home-based franchise is whether your town permits a business to be run out of a home. Make sure your business operation will be in compliance with any applicable zoning/planning laws, and be sure to get whatever permits are required.

Next, you’ll have to think about the equipment you’ll need. Some franchisors provide the equipment, which might be specialised tools, such as those used for home repair or landscaping maintenance. The franchisor may also provide a computer with customised software for the business. But you may have to outfit your own office from scratch, and it’s probably helpful to talk with other franchisees in the business to find out what items are essential and most practical – notebooks, a pager, stationery, business cards, multiple phone lines, broadband Internet, etc.

Working from home has its rewards as well as drawbacks. If you can stay focused, ignore distractions, and keep to a schedule, it could be the right option for you.

For more inspiration on investing in a franchise opportunity, take a look at our success stories.

Choosing a Home-Based Franchise

The possibilities for home-based franchises are vast but before you decide which franchise you would like to set up, think about your home environment, and the type of business to which it is best suited. Here are some popular home-based franchise options to consider:

Office Based Franchises

These will require an office space which is equipped with all required equipment such as a PC, phone, desk, etc. Opportunities include:

Van and Car-Based Franchises

These franchises can be based at home but will also require a considerable amount of travel. If you enjoy travelling for work, these opportunities may be ideal for you and include:

The Practicalities of Running a Franchise From Your Home

Once you’ve decided which franchise opportunity will work best for you, there are some practical matters to which you should attend:

Planning Permission for your Franchise

If your new home-based franchise requires making major changes to the structure of your home, e.g. if you are adding an extension to allow for office space or if you plan to build a separate workspace in your garden, then you may need to apply for planning permission. To find out more, speak to your local authorities to see if your particular home-based franchise applies.

Tax Considerations for Home-Based Franchises

Working from home may mean changes to certain taxes you pay, for example:

You could potentially claim tax relief for your utility bills, for the area of your house which you use for work.
You may be able to claim back some VAT on certain items you purchase for business use.
You may be liable to pay Capital Gains Tax if you sell your house and there is a room you use for work purposes only
Commercial tax rates apply to any non-domestic properties, such as shops, offices, warehouses and factories. If you are converting part of your home to be used exclusively for a business, then these tax rates might be applied to your situation. If so, your local authority will calculate how much you will need to pay and will usually send you a commercial rates bill at the same time each year, for the upcoming fiscal year. The ISME (Irish Small to Medium Enterprise Association) has more details on this process if you are interested in finding out more.

To be sure these matters are dealt with correctly, it is a good idea to enlist the services of an accountant early on in the process.

<h4>If you are thinking about starting a franchise then check out our A-Z directory of franchises now and find your perfect opportunity today.</h4>

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