5 Questions To Ask Before Buying a Home Based Franchise

If you’re ready to jump into the franchise world, congratulations! Starting a franchise is a great way to begin or continue your entrepreneurial career– and with so many franchise options available to you, there has never been a better time.

Unless you have already decided to buy into a store-front franchise, like a food chain or gas station, you are probably considering a home-based franchise– this is the type of franchise business that you can run from your home.

Home based franchises have a lot of advantages over store-front franchises: better working hours, reduced overhead and no commute! But before you decide to turn your home into your new company headquarters, here are 5 questions you need to ask before buying a home based franchise.

5 Questions To Ask Before Buying a Home Based Franchise
It is important to properly set up a dedicated home office for your home based franchise

1. Will you be able to work well from home?

Although many cubicle-dwelling folks think that working from home is the dream gig, working from home comes with its own challenges. Distractions, comfort level, isolation and other concerns can affect the amount of work you can get done in a day. Working from home also means that you’re always ‘at work.’

Some people are very good at separating their work lives and home lives, but it can be a challenge for some. As this helpful report from Inc. Magazine says, “working from home is still work, and it won’t instantly grant you the freedom you might expect.”

Inc. also cautions that as you start your business, you will likely be working long hours. If your ‘desk’ is the dinner table, it’s important to know how this will impact your work habits (and your dinnertime). Here are Inc. Magazine’s tips for starting a home office (hint: it’s not at your dinner table!)

2. Is your partner on board?

Even if you have a simple business model, if you work from home there is no question that work WILL spill over into your life. Work will come in the mail, will end up on the kitchen counter, or perhaps even take over part of the guest room or garage. Making sure that your husband, wife, partner, roommates and/or family know what to expect – and will grant you some leniency with shared space. Buy-in from partners and family is the key to a happy work-home balance.

5 Questions To Ask Before Buying a Home Based Franchise
Working from home can be wonderful, but comes with its own set of challenges.

3. Are you passionate about the business?

This is a question for all potential franchise owners, but especially important if you’re bringing your business home. If you are not passionate about the new business venture, it’s going to be hard to put in the long hours needed for starting a business. This is an especially large challenge since you’ll be working from home, and likely alone, in a home based franchise. Knowing what you’re getting into could save you time, money, and lots of stress.

{Take a quiz from Green Business Owner to determine if you have what it takes to be a successful franchise owner!} 

4. Know the Law and the Finances

Check with your local city and state government, and know what type of licenses and insurance you might need to run the business out of your home. Check with available resources like the Small Business Administration (SBA), The American Franchisee Association and with your franchisor directly to help you navigate the laws.

It’s also important to have a good idea about what your financial situation will be for the foreseeable future too. Do you have enough startup capitol to get the business off the ground? What is the financial situation of the franchisor– are they transparent with their financial model, and are you confident in their success? Business Opportunities has a list of over 100 questions to ask before buying a franchise that covers many of these legal and financial considerations.

5. Do you have all the tools you need for success?

In addition to setting up the office, making arrangements in the house, and getting all your legal and franchise documents ready, you need to make sure that your franchisor will be there when you need them. Starting a home based franchise can be challenging, as you’re learning to work independently (perhaps for the first time) and learning how to do a new business too. Ensuring that you have a franchisor on your side to answer questions big and small, to help with marketing, and to guide you though difficult decisions, is priceless.

Bonus Question: Will it make a difference?

This is a question for any new franchise owner– will your company make a difference in your neighborhood, your city, and the world? We strongly encourage you to look towards green franchise options, so that in addition to making a good business decision, you are also make a conscious, sustainable decision for your future and for the future of the planet.

Studies show that consumers are demanding more green options in all aspects of their life, and choosing a green franchise can help you get ahead of the curve, and align your own values with those of this growing segment of the consumer market.

 

 

 

 

Woman in home office image and home office image from Shutterstock

About the Author

A vegan chef, educator, blogger, and yogi based in San Francisco, Andrea is also the Accounts Manager for Important Media. Follow her foodie adventures at Vibrant Wellness Journal, Green Living Ideas and Eat Drink Better. Find more from Andrea on Facebook and Instagram and Twitter. Website: http://vibrantwellnessjournal.com