Can I run a franchise from home?

There are a number of franchises which envisage franchisees operating from their own home.  Often these franchises are operated on a part time basis.

Even if you do work from home the franchise agreement may impose requirements for a separate office, secure storage and so on.

If you are considering operating anything but a retail franchise and you believe that it makes commercial sense for you to operate from home, in a situation where the agreement does not expressly provide for that, then you should raise this with the franchisor before you commit to the franchise and ensure that the franchisor has agreed to you working from home. In some franchises, for instance, franchisees are allowed to work from home for the first one or two years of the franchise and then are required to move to commercial premises.

Either way, it is important that you weigh up the convenience of working from home and the cost savings associated with it against negative issues such as the impact on any capital gains tax exemption when you come to sell your home, planning and whether working from home might have a negative impact on how “professional” your business appears to a potential or actual customer.