When the ad. gushing about how it could be your expressway to success to sign up for a home-based business franchise, it can sound tempting. You don’t need anything more than about $5000 to inject into it. Compare that to the $50,000 you must invest in starting up a proper high street franchise with a beautiful store at all, and it seems like it’s no contest. No matter what area of business interests you, there is bound to be an existing franchise system for it – you could be a tax accountant who just hates the grind at the office and wants to be his own boss, you could know a thing or two about dry cleaning, you could love doing IT consulting – it could be anything. You wear your pajamas, you do your work, you still get to call yourself the name of a huge company that’s famous the whole country over.
So is there anything to consider at all? A home-based business franchise seems to be a complete win-win proposition, doesn’t it? Well, not just yet. The thought of signing up does seem completely tempting, until you read their contract. It can often require so much complicated accounting and other obligations from you, it can easily overwhelm you. It’s a decision that’s probably going to change your life, not to mention your home. There’s nowhere to run away to anymore. When it’s something you’re bringing home, you had better carefully consider all the options you have before you choose one, if you choose one. But it doesn’t have to be all bad of course. The corporations that design these franchise systems do realize that they don’t want to make it sound like boot camp. These are designed from the get-go to be workable. If you choose well, this really could be for you.
The first thing people need to realize setting up a home-based business franchise is, it isn’t easy to be productive when you’re surrounded by your family, your comfy bed, and your La-Z Boy. It takes a very special kind of person to fire himself up even when there is no boss to answer to. If you can see yourself being that self-motivated person, and if you’re completely sure that you want to work yourself a really hard in pursuit of success, this could be for you. Before you actually settle on a franchise owner, the Federal Trade Commission asks that you demand to see their franchise disclosure document – their FDD. You are not their customer, you are their business partner. Business partners need to see absolutely everything about the company to be able to make an informed decision. This is where they admit to you exactly what is wrong with their business. Once you’ve been through that, you can ask the franchise owner a few more questions – what kind of startup tools do you get? What kind of training do you get and keep getting? Do you have access to their marketing team? How much travel will there be? If you want out, what are their rules?
It would be good idea to have a lawyer look at the FDD and tell you what you’re getting yourself into. He’ll tell you that you’ll need a business license from City Hall, perhaps even a state license. Once you’re ready, getting your business off the ground is a lot of hard work. You’ll be pounding the pavement, hosting business parties, atending trade shows, the works. It can be very satisfying, if you can live up to it.