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Home-Based Business Information - Part 2

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
Total Initial Investment
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 Pink slippers under deskoffices 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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