Tweet

Are Home Based Franchises For Real? Get the Facts Before You Close the Deal

Written by: Candice Clem

Article Overview: With so many work at home based business franchises available today, you have to wonder how many of them are really legitimate. Some of them sound amazing and promise astounding sales and profit with little effort or upfront investment.

Are Home Based Franchises For Real? Get the Facts Before You Close the Deal

With so many work at home based business franchises available today, you have to wonder how many of them are really legitimate. Some of them sound amazing and promise astounding sales and profit with little effort or upfront investment.

A wise investor will do the homework before purchasing a home based franchise so that there are no surprises after the deal is done. Careful consideration must be given to the kind of franchise that would be most suitable for your situation and work with your long term goals and business plan.

What is a home-based franchise anyway?

A home based franchise is a business that you purchase from a franchisor that you can operate from home. In many cases, this is the most cost effective way to start a business because there is much less overhead and start up cost when you already have the location and space right within your own home.

After you decide to purchase a home based franchise, you become the franchisee and the company that sells you the franchise is the franchisor. As part of the business agreement, you are required to make an initial investment which is usually lower when you are operating a small franchise from your own home.

Once established, you must pay franchise fees and/or royalties to the franchisor depending on the amount of business and sales each month.

How do you know the home-based franchise is legitimate?


First, get as much information about the franchise that you possibly can. Ensure that you understand exactly how the home-based franchise works and research the franchisor’s performance and reputation.

Ask the franchisor for this information and check out independent reviews as well. It is all useful as you consider the legitimacy of the franchise, the franchisor and in some cases, the opinions of other franchisees that have already purchased their own franchise.

Don’t ignore the red flags!

Find out what the initial start-up cost is and what other financial obligations and requirements must be met before a franchise may be purchased. A legitimate franchisor will be able to provide full details and will be willing to give you all the requirements in writing before you decide to go through with the purchase. If a franchisor demands an unusually high initial investment, find out what is included in the fee and what you can expect to receive as part of your start-up package. Go into detail and discuss anything that is not clear or that you do not understand. A reputable franchisor should have no problem providing a clear explanation for every one of your investment dollars.

Beware of franchisors that promise you immediate wealth and huge success in a very short time frame with very little investment. An honest franchisor will tell you that starting a franchise, even home-based, is not an overnight success. It takes hard work and planning plus plenty of time and effort to build a home-based franchise. Although a franchise does provide the framework as well as ongoing support and training, you must build your profits over time.

No high-pressure sales tactics

A reputable franchisor with good business practices will not make you feel as if you must make your decision immediately. If your prospective franchisor is pressuring you to pay the initial investment costs without giving you sufficient time to make an informed decision to purchase the home-based franchise, be wary. It may not be a legitimate franchisor you are dealing with and you should be careful.

Most franchisors are able to provide plenty of information and proven business plans that they are familiar with and are not in a rush to have you sign the dotted line.

Turn a profit in a home-based franchise

There are many home-based franchises available depending on your interests, experience, and passion or investment choices. Franchises vary from home inspection to photography and even pet training. Take a look at some of these home-based franchises.

Pillar to Post provides superior home inspection services for any prospective home buyer. They have been ranked #1 in the home inspection category for the past 5 consecutive years by Entrepreneur Magazine. And franchise operations can be home-based.

Vendstar allows you to use your home as your franchise location. You make your money by distributing and servicing vending machines in various locations. The number of machines is up to you!

Molly Maid is undoubtedly a brand name you are familiar with in household cleaning services. With a low start-up investment, you hire and train a team of cleaning experts and use your own home as your franchise base.

Bark Busters offers a specially developed dog training service that allows you to work in a wide variety of settings and provides extensive training and support for all franchisees. Enjoy your job every day while you make the profit in your own home-based franchise.

PortraitEFX is just as the brand name implies. It is a professional portrait photography franchise where your franchise is home-based but you go to various locations to complete photography projects for your customers. From little league games to weddings, the opportunities are ready and waiting for you to get started!

An informed decision is the best decision

When you are considering purchasing your own home-based franchise, there are many things to research, investigate and decide. Make sure you leave no stone unturned as you make one of the biggest decisions of your life. Starting a business franchise offers no guarantee of fast money and wealth. Take your time to think about the opportunity and whether it works with your goals and plans for the future.

Think about the time, money and effort required for the home-based franchise you are considering. Think about the franchise requirements and operating details as you ponder your next move.

Above all, do your homework

Before committing to any home-based franchise, research the franchisor. Check into the company’s reputation and business performance reviews.

Related Articles
  Low Cost Franchises Offer Way to Own Your Own Business
  You Can Juggle a Franchise and a Family
  Home Based Business Franchises On The Rise
  Home Based Franchises and Flexible Business Opportunities
  Why Now is an Ideal Time to Own a Home-Based Business

Article Tags:



Related Forum Posts
Re: Trade Shows - Are They Worth It? - HI, I have used trade shows (not participated) to collect potential clients. For example, the Home & Garden Industry is extremely behind the time in regards to their websites. I attended an Home & Garden Expo in Denver and collected all the companies contact information. I plan on cold calling & mailing information to each business. It also gave me time to research the industry more, talk directly to the owners in many cases, and learn more about what they need. Jeff
franchisebrief.com good clean design - I actually really like the design - it's clean and not busy. The information is easy to find. You mentioned you didn't want to monetize from the site thru the use of adwords but what about JV'ing with all or most of the Franchises you are referring people to. Is that possible in the Franchise industry?
Re: Franchise Support. What is it to you? - To be honest I have never been a big believer in Franchises. Which of them did you have the best and worst experience with, when you called in as an "interested buyer"?
Re: First roadblock or finding the right market... - I love it Tom... Quitting... tuck tail and run... bury your head in the sand... write a letter!!! I've been accused by my wife of being a "Serial Entrepreneur"... In other words someone that is not satisfied with just one successful business idea and I'm always looking for others. I think that describes most members to this forum! That being said, I'm always finding myself being challenged by new business ideas and then searching for whether they are viable. The most important aspect of deciding whether it is viable is not always the competition in the first analysis. For me, it's more important to research how many people are actually searching for what you're looking for and there are a number of sites out there that can show you search information for specific keywords. If there is a strong demand for your idea (Based on search volumes), then you look at who is actually servicing the market, how big they are and if they have a national or regional presence. (PM me and I'll pass along a great link to work from). Most importantly, your idea needs to offer something different to what the existing suppliers are offering and that uniqueness, combined with a large enough demand, will allow for some room in the market for you. The worst case scenario would be lots of competition and no demand for the product or service. You got everyone fighting over a select group of customers and the big boys will always win with there unlimited marketing cash... (Real life experience and loses to prove this!!!)...
Who inspired you to start? - When I was a teenager I read "The Art of the Deal" by Donald Trump while on a road trip to New York City. It helped inspire me to want to start my own business and is also one of the reasons why I have created so many famous entrepreneur profiles. I believe that by modeling the success of other entrepreneurs you too can become successful. Who was it that inspired you to start your business?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Starting a Business a Brave Move or a NoBrainer

Work at Home Moms and Their Bad Rap?

Selling What Sizzles vs. Delivering Real Value

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.