Comparison between a home based franchise and office based franchise

People often enter franchising with dreams in their eyes. But franchising as a business has many aspects to it as there are many types of franchising, for example, an office based franchise, master franchise, pilot franchise, and home based franchise

Each of the above mentioned formats has its own advantages and disadvantages, the formats by themselves are not the only determinants of success, the format should suit the needs of the franchisee. Today, we compare two of the most successful franchise formats which are Home Based and office Based franchise

Office Based franchise

Investment The initial investment in an office based franchise is quite substantial because one has to purchase commercial space, which by itself is a huge investment. In addition to this one needs to hire staff, buy office furniture and office equipment. Hence the initial investment in an office based franchise is quite high.

Overhead costs Due to various factors like staff salary, electricity bills, office rent etc the overheads in case of an office based franchise are comparatively higher that in a home based franchise.

Focus An office helps in maintaining a professional atmosphere around the business. Also in an office there aren’t any distractions and hence it is easier to maintain focus.

Convenience At times, the work hours and the commuting time can cause inconvenience in case of an office based franchise. Unless the office is close to ones residence then this problem may not arise at all.

Home Based Franchise

Investment The investment in an office based franchise is considerably lower because of no need for office space, office furniture etc. Usually home based franchisees don’t hire a huge staff and this also helps in reducing cost. Hence when compared to an office based franchise, this format needs considerably lower investment.

Over Head costs Since a home based franchise can be run from home without any need for elaborate office furniture and a separate electricity bill, the overhead costs are comparatively lower.

Focus At times it can be difficult to maintain professionalism in a home based franchise because one constantly works from the comforts of his house. In such a case it is easy to lose focus because the line blurs between work and personal life.

Convenience Out of all the formats, home based franchise offers maximum convenience with respect to time and space. Since one works from home, one can work at whatever time is convenient.