Starting Your Own Home Based Franchise Opportunity Business

Home based franchise opportunity business is an exciting area to pursue if you want to strike out on your own and be your own boss.

With 40% of today’s retailing performed through franchising, it must have its benefits.

Franchising Explained

Before embarking on a franchise opportunity, you need to know the basics of franchising.

Essentially, the franchisee (you) pays a substantial investment to use the identity of an established business (franchisor). Some established franchises include the fast food chains McDonalds, Subway and Burger King.

Advantages

There are advantages as well as disadvantages to starting a home based franchise business.

Some of the advantages include:

• Selling goods or services that are already well known by the general public (established client base)
• Support from the parent company (franchisor) during initial start-up
• Free advertising
• Management training
• Occasional workshops and seminars

If you are considering pursuing a home based franchise opportunity, it would be prudent to also consider the disadvantages. As with any business endeavor, there is usually a “flip side”.

Reviewing the pros and cons of a home based franchise business will help to determine if this business would be the right fit for you.

Disadvantages

The ability to use an established company’s name does not come without a price. In fact, it is usually quite substantial.

“Out of pocket” expenses that you will accrue when starting your home based franchise opportunity business are:

• Initial franchise fee – This can be anywhere from several thousand to several hundred thousand dollars. This fee is usually non-refundable.
• Royalty payments – You are required to pay a percentage of your weekly or monthly profits. Royalty payments are often due even if you have not earned significant income during a certain time period. You are paying to use the franchisor’s “name”. Even if you do not receive the promised support, royalty payments are ongoing for the duration of the franchise agreement.
• Advertising fees – These are fees garnered for national advertising and to draw new franchise owners. The fees are not directed toward your franchise exclusively, but for the company as a whole.

There is also a significant loss of autonomy in a home based franchise opportunity business.

The down side of using a franchisor’s name and reputation requires that you relinquish a degree of control over your business.

Types of Home Based Franchise Opportunity Business

After mulling over the pros and cons, you might be asking, “what franchise opportunities can be home based”?

Searching the Internet, I found many franchise business opportunities that purported to be “home based”. That is, they did not require an establishment outside the home. Obviously, fast food franchises would be exempt from a home based enterprise.

Some of the home based business franchises I ran across were:

• Automotive – Included in these franchises are mobile body shops, glass repair, and tools.
• Computer and Internet – These franchises encompassed digital surveillance, distributors, and member management systems.
• Services – Some noted service franchises are delivering propane tanks, concrete landscape edging, hauling junk, and filtration and fryer cleaning businesses.
• Business – These franchises included direct sales, commercial loans, and selling eco-friendly water.
• Child Related – Mobile school bus fun and fitness centers, home based tutoring and digital portrait photography and imaging are just a few of these types of franchises.

This list is by no means exhaustive. With a little research, you would be able to find a franchise opportunity that would suite your unique personality and skills.

Conclusion

Do you possess an entrepreneurial spirit? Do you dream of working from home?

If you answered, “yes” to these questions, the first step to owning your own business is to review the different types of home based opportunities available.

One exciting and often profitable area to explore is a home based franchise opportunity business.

Only after reviewing its advantages and disadvantages can you determine if it is the best home based business for your unique personality, skills and life circumstances.