Home-based Franchises:
The companies represented in this report are a small sample of the different home-based franchises that are available.
Table 1.A
| Name of franchise | Total Initial Investment Low |
Total Initial Investment High |
Industry |
|---|---|---|---|
| 1-800-Dryclean | $41,400 | $66,400 | Commercial Cleaning |
| Air Serve Heating and Air Conditioning | $57,195 | $170,400+ any additional franchise fee + any real estate costs | Heating, ventilation & air conditioning services |
| All about Honeymoons | $11,350 | $17,500 | Travel Agent |
| Always Best | $41,900 | $63,200 | In-home Senior Care |
| American Poolplayers Association. | $11,920 | $14,740 | Recreational billiard league |
| Biker Information Guides franchising | $36,850 | $164,825 | |
| Billboard Connection | $17,807 | $36,412 | Ad agency specializing in outdoor media |
| Christmas Décor inc | $18,650 | $60,350 | Holiday & event decorating services |
| City Publications franchise group | $92,650 | $267,850 | Publication for affluent homeowners |
| CleanNet | $5,825 | $91,150 | |
| Club Z! | $27,500 | $56,450 | In-home tutoring services |
| College Nannies & Tutors | $60,000 | $164,000 | Nanny & tutoring services |
| College Hunks Hauling Junk | $75,600 | $120,600 | Junk removal services |
| Color-Glo | $31,000 | $34,800 | color restoration |
| Digicom | $71,670 | $125,770 | On-site ultrasound services |
| Drama kids | $5,450 | $38,000 | Drama-related educational programs |
| Fast-Teks | $34,500 | $60,450 | On-site computer repair services |
| Geeks on Call | $59,150 | $90,450 | Computer support and training |
| Glass Guru | $22,450 | $89,750 | Glass, window and door replacement |
| HouseMaster | $37,500 | $61,450 | Home inspections |
| Images 4 Kids | $46,200 | $78,700 | "School picture day" photography services |
| Interface Financial Corp | $88,300 | $139,300 | Invoice discounting |
| Kitchen Tune-Up | $83,050 | $91,100 | Residential & commercial remodeling |
| My Gym | $158,950 | $228,750 | Children's early learning/fitness program & facility |
| OpenWorks | $16,200 | $106,450 | Commercial cleaning |
| OxiFresh | $31,945 | $56,305 | Carpet cleaning |
| Pet Butler | $39,450 | $64,850 | Pet waste cleanup and removal services |
| Ram Jack | $125,300 | $241,100 | Foundation repair and support business |
| Reliant Home Care | $30,000 | $55,000 | In-home Senior Care |
| Rich Dad's Cashflow | $44,510 | $134,050 | Financial education services |
| Senior Choice | $34,000 | $51,000 | In-home senior care |
| Winzer | $5,900 | $13,600 | Sells quality packages tools |
| Wirth Business Credit | $39,630 | $74,510 | Equipment leasing & financing |
Practically any franchise can be run just as well from a home office as from an external office or store. It can be a more convenient and cheaper option than a rented office space. The most popular home-based franchises at the moment are in commercial cleaning. For example CleanNet is commercial cleaning business that specializes in janitorial services and offers regular cleaning services, such as dusting, sanitization, cleaning and buffing floors, to commercial 
offices and buildings and other industrial facilities. The initial franchise fee ranges from $2,950 to $83,000.
Restrictions, permits and insurance:
Any potential franchisees that are considering starting up a home-based franchise will need to check with their local authority to see if there are any rules restricting the commercial use of their property and what, if any, insurance they will need. The standard homeowner’s insurance policy does not cover losses of business equipment, technology, income, liability exposure, medical costs and other risks faced by home-based business owners. Therefore a potential franchisee will need to make enquiries about their home and the franchise they select. If you have people coming into your home, you will need liability insurance to cover you if a customer or employee is injured.
Under Item 7 in the Franchise Disclosure Document (FDD) the franchisor gives an outline of the costs for insurance and permits. The average insurance cost for a home-based business can range from $1,917 to $4,046*. For example, insurance and permits for City Publications franchise, a high quality direct mail advertising franchise, ranges from $600 - $1,050 whereas the insurance and permits for Rich Dad’s Cashflow, a business that provides financial education services, ranges from $2,500 - $14,500.
*This average was calculated using the information from the FDD of the 33 companies selected for this report.
This estimate does not include the cost of health insurance for your employees.
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