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Home-Based Franchises
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Article 4: Play To Your Strengths
The franchising relationship is interdependent. The company succeeds if each side does what it does best.
The franchisor is responsible for creating a successful operating system, promoting brand recognition and developing distribution channels and helping franchisees.
Home-based franchisees provide several elements of company success in their local market. Among the franchisee’s strengths are:
Local details. Even if a franchisor advertises that its franchises can be run from home, the buyer must first check with his local government and/or homeowner’s association to make sure rules and ordinances permit home businesses.
Many cities that once prohibit all home businesses are easing their laws. But they still might prohibit customers or employees coming to the home business. Relationship building. Many franchisors provide marketing materials on which franchisees print their own contact information. However, the local franchisee must get out in the local community, initiate contacts at chamber of commerce mixers and make friends at youth sports games. People do business with people they know, even if the franchise has a national name. Customer service. One foundation for franchising success is for the franchisor to provide big-company efficiencies and group buying while the franchisee provides the small-business, individualized service.
“Customer interface is vital,” says Louise Heidenreich, who with husband Gary operates the Neshanic Station, N.J., Jet-Black International franchise, which can be run from home. “If anyone calls with an issue, we will go back and fix it. We let them know we do that.” Flexibility and adaptability. Dennis Crede has run a residential landscaping maintenance service for years in Scott Depot, W.Va. His business virtually dies between October and March, so he bought a Christmas Décor franchise, which can be home based, to fill the seasonal void. Many franchisors of seasonal home-based businesses encourage such adaptable solutions.
And the franchisee is best able to spot the niches that fit his local market but might not work in other communities.
David and Joanie Manes run a ColorGlo International franchise from their Niceville, Fla., home. While they could dye carpets and repair vinyl for homeowners, boat owners or retailers, they found their best customers are car dealers and focus all their attention on that market.
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