Can I run a franchise from home?

For many prospective UK franchise owners, working from home is an appealing option. It offers flexibility, cost savings and the potential for a better work-life balance.

But is it legally possible, and what should you consider before committing to a work-from-home UK franchise? Here, experts in franchising provide guidance…

What determines whether I can run a franchise from home?

Vicky Wilkes, head of legal at Aston Villa Football Club, explains that the nature of the franchise is key. “Whether you can run a franchised business from home will very much depend on the nature of the franchise.

“In simple terms, if your franchise business does not need customers to visit the business premises – for example, a mobile franchise or driving school – the premises are not likely to be an important consideration. In this case, you can usually run the business from home.”

However, she cautions that if your UK franchise requires customer visits or large equipment, working from home may not be feasible.

Am I legally allowed to operate a franchise from home?

Shelley Nadler, legal director at Bird & Bird, emphasises that the franchise agreement is the first thing to check: “Your franchise agreement may permit you to operate your franchise business from home. In some cases, the franchisor will want to approve the premises from which you operate your franchise business.”

Wilkes adds that you may require other permissions too. “Even if your franchisor will allow you to operate from home, there are other issues to consider. For example, you may need consent from your local council or local authority to use your home, which will be registered for residential use, as a business.”

Planning permission can be a critical factor. Nadler explains: “You’ll require planning permission if the change to your home constitutes ‘development’ under section 55 Town and Country Planning Act 1990. If you cease to use your home mainly as a place to live, and the business involves activities that are unusual in a residential area, then you’re likely to require planning permission.”

John Pratt, senior partner at Hamilton Pratt, highlights that running a franchise from home could affect the capital gains tax exemption for your home. “This would be something that would be worth checking with your accountant,” he notes.

What are the practical considerations of running a franchise from home?

Pratt highlights practical requirements for home-based franchisees: “Inevitably, home-based franchises require franchisees to have a separate office area. They may require franchisees to have a separate secure lock-up where you can store products. You may also need secure parking for any vehicle.”

He also notes that franchisors often reserve the right to inspect records. “Because franchisors normally reserve the ability to enter franchisees’ premises to take samples of products and review records, the franchise agreement often states that you should keep financial records at a nominated address, such as your accountants. This means the franchisor can get access to them.

“Franchisors cannot oblige franchisees to give them access to their homes.”

What are the benefits of a work-from-home franchise?

Louise Harris, principal at Franchise Projects, highlights multiple advantages. “Providing there is a modicum of self-discipline and the space, running a home-based franchise is a more efficient, financially cost-effective and productive option for most people.”

Flexibility is a major benefit, particularly for franchisees with family commitments. “If [you have] a family or dependants, it’s far easier to manage time around these people if you’re based in the home.”

There are also financial benefits, as renting or buying separate premises can be costly. “Home-based franchises are typically lower cost. Starting from a home base allows [you] to scale into property when the time is right. Not commuting can have an impact on the environment too, since you’re not using transport.”

Which franchise industries work best from home?

Certain franchise opportunities are particularly well-suited to home-based operations. Consulting franchises, education franchises, web franchises (such as bestof.co.uk), recruitment franchises (such as Robocore Recruitment & Technology) and property franchises often allow you to manage your business primarily online or through remote client interactions. 

Some property management franchises (such as RAISON Home UK) and cleaning franchises can also be coordinated from home, with fieldwork conducted offsite.

Choosing a sector that aligns with your skills, schedule and space availability is key to successfully running a home-based franchise.

Case study

Mark Meyer, principal of Meyers Estate Agents, explains that the property sector has embraced home-based franchises. “A home-based property franchise begins without a high street location, but still has a local presence through connections and targeted local reputation marketing.

“You can see it as the ‘best of both worlds’. You can keep overheads low as there is no premises and franchised agents can work from home, taking advantage of tech to market properties widely to prospective buyers.”

He emphasises that home-based franchises can offer a good work-life balance: “For franchisees, becoming an estate agent can offer a great work-life balance. Although it’s important to be responsive to all enquiries, the job can easily fit around family commitments.”

Conclusion

Working from home when running a UK franchise is entirely possible, provided the franchise agreement allows it and you meet legal and planning requirements.

It can offer flexibility, lower costs and better work-life balance, particularly for those with family commitments.

However, due diligence is essential: check your franchise agreement, planning rules, lease terms and practical requirements before committing.