Home-Based Franchise: 48 FDDs That Let You Work From Home, and the Rules That Follow

A home-based franchise is one whose Franchise Disclosure Document lets you run the business, or at least its office, from your residence: 48 of 259 FDDs we read say so in writing.

Key takeaways

• 48 of 259 FDDs filed with Minnesota CARDS (18.5%), issued from January 2025 to August 2026, state that the business or its office may run from a home or residence; 4 more bar it or withdrew it.
• Home-based is not the same as part-time: 17 of those 48 FDDs (35.4%) require an owner to work full time under Item 15, against 60 of all 259 (23.2%) in our Item 15 index.
• The median Item 7 high end for the 48 is $132,745, against $573,000 across all 259; 15 of the 48 top out below $100,000 (Item 7 dataset).
• City rules can be tighter than the franchise agreement: Sugar Land, Texas caps a home occupation at 300 square feet with no nonresident employee and no outdoor storage.
• IRS Publication 587 limits the simplified home office deduction to $5 per square foot on up to 300 square feet, a $1,500 ceiling.
• An offer that collects less than $735 from you before and within 6 months of opening falls outside the FTC Franchise Rule under 16 CFR 436.8(a)(1).

Which franchise systems say in their FDD that you can work from home?

Forty-eight systems in our sample of 259 put it in writing. Their FDDs, issued between January 2025 and August 2026 and filed in Minnesota, say the business, or its administrative office, may run from your home or residence. The table lists each one alphabetically with its Item 7 total, the Item 7 premises row, the Item 15 participation rule and the FDD’s own words.

Home services (11 systems) and business services (10) lead the count, followed by cleaning and restoration (8), pet services (6) and senior and in-home care (6). Business services here means coaching, brokerage, insurance, barter and CFO practices. No food, lodging or fitness FDD among the 259 allows home operation.

Alphabetical order is not a ranking or an endorsement. These are the franchise opportunities from home that the filings themselves support; marketing pages can describe a wider set. Item 7 totals come from the first or standard table in each FDD; several systems print more than one, and Alloy Wheel Repair Specialists prints 3 (trailer, box truck and Express van). Item 15 labels follow the 5 categories of our Item 15 index, except Proforma, whose Item 15 says “You must initially operate and manage the Franchised Business yourself.”

How do you confirm in Item 7 that a franchise really runs from home?

Start with the real estate line. The FTC Franchise Rule, 16 CFR 436.5(g), tells franchisors to list “Real property, whether purchased or leased” in the Item 7 table. A home-based system either leaves that row out, prints it at $0 on the low end, or explains in a note that the estimate assumes you work from home. Read the note as well as the row.

Hole in the Wall shows why. Its FDD issued February 24, 2026 prints a row reading “Rent, Utilities, and Leasehold Improvements (see Note 2) $200 – $4,100”, yet Note 2 says “We estimate real property, leasehold improvements, and utilities at zero because we expect you will open as a home-based business.” The $87,000 to $132,800 total therefore assumes no commercial lease, and the $200 to $4,100 row covers small costs around the home setup.

Across the 48 systems, 12 FDDs have no rent, real estate or storage row at all, 31 start that row at $0 and 5 start it above $0. The highest premises figure is $24,500 (JunkCo+, which allows a home or a space of about 500 square feet), and the median high end of the row is $1,750. A 6-step check confirms the permission:

1. Item 7 table: find the rent, real estate or office row and note its low and high figures.
2. Item 7 notes: look for the words home, residence or home-based in the note tied to that row.
3. Item 11: read the site selection paragraph; Aussie Pet Mobile says no site approval is required for a home base.
4. Item 12: check whether your home must sit inside the territory, as Dryer Vent Wizard requires.
5. Franchise agreement site clause: confirm the home office permission survives in the contract you sign, not only in the FDD summary.
6. Item 15: confirm how many hours the home office arrangement still expects from you.

Our guide to the Franchise Disclosure Document and its 23 Items explains where each of these sits in the document.

Is a mobile franchise the same thing as a home-based one?

Not always. A mobile system has no storefront, but its FDD may still be silent on running the office from your house, or may only assume your van parks there. Eight FDDs in the sample sit at the edges: 4 vehicle or van models without a home statement, and 4 systems whose FDD says no to home operation or has withdrawn it.

The 4 refusals matter because their names suggest service work that could run from a garage. College Hunks and Renew Medic both print “You may not operate your Franchised Business from your home”, and Renew Medic’s Item 7 carries a premises row of $67,500 to $175,000. All Dogs Unleashed still describes a past home-based model in its FDD issued April 7, 2026 but now sells only commercial facilities.

Does a home-based franchise let you keep your day job?

Often not. Item 15, set by 16 CFR 436.5(o), must disclose whether you have to take part personally. Among the 48 home-allowed FDDs, 17 (35.4%) require an owner to work full time, a higher share than the 23.2% across all 259. Working from home changes where you sit, not how many hours the franchisor expects.

The wording is specific. Bark Busters requires you to “designate at least one individual who devotes at least five (5) days per week on average throughout the year”. Oasis Senior Advisors says “In the first two years of operating your Business, your Principal Owner must work full time”. Poop 911 asks owners who are still building a customer base to “dedicate no less than one full day for every 10 customers to the operation of the Business”.

Seasonal and solo formats add their own limits. Christmas Decor states: “This is a full-time business during the holiday decorating season, usually September through the following February each year.” House of Colour tells an Associate Franchisee that “you personally must provide all services required by and under the Franchise Agreement and Manual and are not permitted to hire employees or engage independent contractors to do so”. At the other end, 18 of the 48 let a hired manager run the business with no continuing owner duty, 17 of them with conditions such as franchisor training; only ITEX states no condition on the manager.

Our semi-absentee franchise index of 259 FDDs codes every brand’s Item 15 rule, including the manager training and equity conditions.

What strings come attached to the home office permission?

Nineteen of the 48 FDDs attach a condition quoted below. Some systems allow only the administrative office at home and send the work elsewhere; some allow home for a set period; some require the home to sit inside the territory; and several need storage or parking you may have to rent. Each condition below is quoted from the FDD, so you can check the same clause in the current filing before you sign.

Two clauses show the cost of these conditions. Painter Bros states: “If You do not work from a home office, or if You purchase a large investment franchise, You must have a site purchased or leased within three months of signing this Agreement.” The Growth Coach lets you work from a home outside your territory, but then “you may not use your home address on your business cards or stationery or in any advertisements”. Territory rules are covered in our study of franchise territory rights across FDDs.

Read every clause, not only Item 7. Bin Blasters allows a home-based office “provided that you lease a commercial storage unit”, yet its Item 7 note says “The low end of this estimate assumes you are not required to lease a storage unit”, and its storage row runs $0 to $1,200. Budget the high end if your city bars a trailer in the driveway.

Will your city’s zoning code allow a franchise in your house?

The franchisor’s permission does not override local zoning. Each of the 3 city codes we opened treats a home business as a “home occupation” and caps floor area, staff, visits, signs or storage. Proforma says it plainly: “If you intend to operate your business from your home, we suggest you determine whether any zoning laws may restrict your right to do so.” The three codes below show how far the limits differ.

These caps collide with common franchise equipment. A 300-square-foot limit fits a desk and files, not a stock room. A ban on outdoor storage affects trailer and van systems such as Bin Blasters and Hike Doggie, whose FDD says “You will be required to store the Bus at your Bus Stop.” A franchise that adds 3 technicians who start their day at your house would exceed Sugar Land’s zero-nonresident rule and Abilene’s 1-employee rule.

Check 5 items with the planning department before signing: the zoning district of your parcel, whether your use is a permitted home occupation or needs a permit, the employee and customer caps, vehicle and storage limits, and the sign rule. Renters and owners in associations should also read the lease or the recorded covenants, which may be stricter than the city code.

Can you deduct a franchise home office under IRS Publication 587?

Possibly, if the space passes the tests in IRS Publication 587 (2025). You must use a specific area exclusively and regularly as your principal place of business, as a place to meet clients, or as a separate structure; storage of inventory and daycare have their own exceptions. The simplified method allows $5 per square foot on up to 300 square feet.

The administrative-office clauses in many home-based FDDs line up with the IRS principal place of business rule. Publication 587 says a home office qualifies if you use it exclusively and regularly for administrative or management activities and have no other fixed location where you conduct substantial administrative or management activities. Its examples include billing customers, keeping books and records, ordering supplies and setting up appointments.

Three limits apply. Under the simplified method you cannot also deduct actual home expenses or depreciation for that space. The deduction cannot exceed the gross income from the business use of the home minus unrelated business deductions. A den that the family also uses fails the exclusive use test, an example Publication 587 gives itself. Actual-expense filers use Form 8829 with Schedule C.

This is general information for 2025 returns, not legal, financial or investment advice. Ask your tax preparer 2 questions: does the franchise agreement’s office clause make your home the only fixed location for administration, and does the 300-square-foot simplified cap or Form 8829 give the larger result in your case.

What does a home-based franchise cost to open next to storefront systems?

Less, on the filed numbers. Across the 48 home-allowed FDDs the median Item 7 range runs from $74,414 to $132,745, against $265,372 to $573,000 for all 259. Fifteen of the 48 have an Item 7 high end under $100,000, while 188 of all 259 FDDs reach $250,000 or more. Hole in the Wall shows the shift inside one table: its vehicle row runs $2,000 to $10,000 while its rent row runs $200 to $4,100.

The lowest Item 7 low ends in the group belong to Poop 911 ($3,620), OpenWorks ($4,250), Proforma ($7,030) and ITEX ($9,700); the highest high end is Steamatic at $444,690. Low ends can assume a home office and a leased vehicle, as Hole in the Wall’s does, so plan on the high end. Our list of franchises under $100k and what that budget covers sets out what fits a fixed budget.

Royalties do not fall because you work from home. Bark Busters charges 10% of Gross Revenues and Poop 911 charges 25% of Gross Revenues in Item 6 of their FDDs. Thirty-six of the 48 FDDs include an Item 19 financial performance representation; read it in the brand’s current FDD, and see our Item 19 study of how often franchisors disclose performance.

Is a $149 “work from home franchise” a franchise at all?

Sometimes it is not. A widely read list of home-based franchises, updated in 2024, places website and social media reseller offers priced from $149 beside FDD-registered systems. Under 16 CFR 436.8(a)(1), the FTC Franchise Rule does not apply when required payments before and within 6 months of opening total less than $735, so such a seller owes you no FDD.

A different rule may apply instead. The FTC Business Opportunity Rule, 16 CFR 437.1(c), covers sellers who promise locations, outlets, accounts or customers, or who promise to buy back what you produce, and it names “stuffing envelopes from the purchaser’s home” as an example. Those sellers owe a one-page disclosure at least 7 calendar days before you sign or pay, under 16 CFR 437.2.

Which home-based setup fits your situation?

Match the constraint you cannot change to the FDD item that tests it. Time is tested in Item 15, money in Item 7 high ends, your street in the home occupation code, and the offer itself in the $735 threshold. The table and the flowchart hold the same logic; each row names the threshold to check before you request a franchise agreement.

1. Does the FDD say you may run it from home? Check the Item 7 note, Item 11 or Item 12 wording. No: treat it as storefront or mobile and budget the premises row.
2. Does Item 15 fit the hours you can give? 17 of 48 need an owner full time. No: look at the 18 FDDs that allow a manager.
3. Does your city’s home occupation code fit? Check 300 sq ft caps, employee caps and outdoor storage. No: price a storage unit or office at the Item 7 high end.
4. Do payments in the first 6 months reach $735 (16 CFR 436.8(a)(1))? No: ask for the business opportunity disclosure (16 CFR 437.2).
5. Shortlist it: request the current FDD and franchise agreement.

A franchise consultant can shortlist systems against these filters, and our guide to what a franchise consultant does and how they are paid explains the referral model before you rely on one.

How we compiled this

We searched the text of 259 Franchise Disclosure Documents filed with Minnesota CARDS and issued from January 24, 2025 to August 18, 2026 for home, home-based and residence language, read every hit by hand, and kept 48 FDDs whose text permits home operation. Every quote and every Item 7 total in the tables was matched against the FDD text in October 2026. Item 15 categories come from our Item 15 index. Zoning examples come from 3 city codes and the tax rules from IRS Publication 587 (2025); we excluded brands outside the sample and any figure we could not open.

Frequently asked questions

What is the cheapest home-based franchise in your FDD sample?

By Item 7 low end, Poop 911 starts at $3,620 (range $3,620 to $25,970, FDD issued May 21, 2025), OpenWorks at $4,250, Proforma at $7,030 and ITEX at $9,700. Low ends usually assume a home office and minimal equipment, so compare high ends: Poop 911 tops out at $25,970 and OpenWorks at $134,480.

Can I run a home-based franchise part time?

Check Item 15 before anything else. Of the 48 FDDs in our sample that allow home operation, 17 require an owner to work full time, and Bark Busters requires one designated individual to devote at least 5 days per week. Eighteen let a hired manager run it with no continuing owner duty, usually after franchisor training, the closest filed route to part-time ownership.

Do I need a permit to run a franchise from home?

It depends on your city code, not the franchise. Portland, Oregon needs no permit for a Type A home occupation with no employees or customers on site, but requires a 2-year Type B permit for 1 employee per shift and up to 15 customers a day. Sugar Land, Texas allows home occupations under 300 square feet with no nonresident employee.

Can employees work at my house if I own a home-based franchise?

Only within the home occupation limits. Sugar Land, Texas allows no employee who lives elsewhere, Abilene, Texas allows 1 nonresident employee, and Portland, Oregon allows 1 employee per shift under a Type B permit. Systems that dispatch crews, such as cleaning or junk removal, may need a storage unit or office once staff report each morning.

Is there a home-based travel agent franchise in your data?

No. None of the 259 FDDs in our Minnesota sample, issued 2025 to 2026, is a travel agency system. If you are weighing a home-based travel franchise, request its current FDD and read the Item 7 premises row, the Item 15 participation rule and Item 12 territory before paying, the same 3 checks used for the 48 systems here.

Does working from home lower franchise royalties?

Not in the FDDs we read. Royalties are set in Item 6 as a share of sales, whatever the premises. Bark Busters charges 10% of Gross Revenues and Poop 911 charges 25% of Gross Revenues. Home operation lowers the Item 7 premises row, which starts at $0 in 31 of the 48 home-allowed FDDs.

Sources

• Minnesota CARDS franchise registrations (259 FDDs, individual links in the tables), Minnesota Department of Commerce, accessed October 27, 2026.
• 16 CFR 436.5 Disclosure items (Items 7 and 15), eCFR, National Archives, accessed October 27, 2026.
• 16 CFR 436.8 Exemptions, eCFR, National Archives, accessed October 27, 2026.
• 16 CFR 436.1 Definitions, eCFR, National Archives, accessed October 27, 2026.
• 16 CFR 436.2 Obligation to furnish documents, eCFR, National Archives, accessed October 27, 2026.
• 16 CFR 437.1 Definitions (Business Opportunity Rule), Legal Information Institute, accessed October 27, 2026.
• 16 CFR 437.2 The obligation to furnish written documents, Legal Information Institute, accessed October 27, 2026.
• Publication 587 (2025), Business Use of Your Home, Internal Revenue Service, accessed October 27, 2026.
• Home Occupation Permits: Running a business out of your home, City of Portland, Oregon, accessed October 27, 2026.
• Key Excerpts for Home Occupations, City of Sugar Land, Texas, accessed October 27, 2026.
• Home Occupations, City of Abilene, Texas, accessed October 27, 2026.
• Hole in the Wall Franchise Disclosure Document, issued 2026-02-24, Item 7, Minnesota CARDS, accessed October 27, 2026.