A home franchise or an agreement on the use of a certain business idea, implemented in fact in one's own house (apartment, utility room, etc.), has both its advantages and certain disadvantages associated with various organizational and legislative risks. By itself, any franchise, even a home franchise, according to several reputable international organizations, is a kind of way to expand a business. Indeed, if the creators of a profitable and promising entrepreneurial project want to enter new markets and do not make special organizational efforts or waste resources at the same time, they may well do this by concluding franchise agreements with local entrepreneurs. This is beneficial for franchisors since they not only do not bear the costs of developing new markets but also receive an initial payment and monthly royalties from using the trademark franchisee. Those who buy a franchise actually get at their disposal already promoted goods and services known to many customers include tea recipes, production technologies, logistics, and sales models, promotional materials, and even, if necessary, assistance in the selection and training of personnel.
However, in the case of so-called home franchises, additional complications can arise. On the one hand, such franchise agreements, designed for small, sometimes artisanal, businesses, as a rule, involve a small down payment and insignificant monthly royalties. This can be home mini-bakeries, beauty and care services, repair of various equipment, clothing or leather goods, consulting, etc. At the same time, the franchisee needs to know exactly the legislative field in which he is going to work. This issue should not be neglected. Unfortunately, many aspiring home entrepreneurs forget about this and they are forced to scale back their undertakings, for example, because of the protest of neighbors who are hindered by this business from living in peace. It would also not hurt to calculate the tax burden in advance.
Even if you plan to handle the case only by the efforts of their family members, taxes still have to be paid. It is also worthwhile to study the market at least superficially. Of course, baked goods (specially made at home) are a product with a fairly low elasticity of demand. It is always in demand and, it seems, the bakery should just be profitable (especially in a residential area). However, if there are three more similar ones within the next few quarters, fourth prospects are already dubious. But in general, the home franchise is very attractive, given the low costs of acquiring them and setting up a business. With sufficient activity and entrepreneurship of the franchisee, they can cease to be small enterprises and turn into a large business project.