It used to be that franchises were born in a brick-and-mortar establishment, with historical examples that include McDonald’s, Dunkin Donuts and KFC. Now, home-based franchises are becoming more popular – and more successful. As of 2007, more than half of U.S. businesses were home-based and some franchise segments like home improvement and maintenance services are almost entirely dominated by home-based business franchises. Lower start-up costs, lower overhead and more advanced technology have helped attract more entrepreneurs to the market of home-based franchises. For more on this continue reading the following article from Blue MauMau.
The number of home based franchises continues to grow and in some franchise segments the home based feature exists in the majority of the franchise companies. Looking back into franchise history the typical franchise was a bricks and mortar franchise whether it was a KFC, Dunkin Donuts or McDonalds. It wasn’t that long ago that a home based franchise was considered an anomaly or an exception to what we typically consider a franchise. In recent years however, things have changed as the number of home based franchises have continued to grow in numbers and popularity. If the franchise customers are not required to go to a specific location then chances are that particular franchise can be home based.
Consider the following franchise categories and the percent of franchisors that are based upon a home based operation…