Discover how the business model called Home Based Franchising has grown. And how it can be an excellent opportunity for entrepreneurs looking for flexibility and low operating costs. In other words, the entrepreneur works remotely, being able to choose different operating environments. For example, a solar panel franchisee can work from home, anywhere office or serve customers directly in their homes. The main attraction is the lean operation. In other words, significantly optimizing fixed costs, such as physical space. Find out more information, possibilities to increase efficiency and results to scale.
What are Home Based Franchises?
Before we dive into the details about the economic impact of Home Based Franchises, it is important to understand the concept behind this business model. They are a type of franchise in which the entrepreneur can operate the business directly from their home. In other words, this means that there is no need for a physical commercial space. This way, depending on the area of activity, you can considerably reduce initial operating costs.
Growth of Home Based franchises in the market
In recent years, we have seen significant growth in the number of Home Based franchises on the market. This is mostly due to the search for flexibility and quality of life on the part of entrepreneurs. The Home Based model allows franchisees to have greater control over their working hours and to balance their professional activities with their personal lives.
Depending on the business, the initial investment for a Home Based Franchise varies between R$ 10 thousand and R$ 50 thousand – and could be even higher. In other words, the return on investment occurs over a period that varies between three and 24 months. According to information from Sebrae. With monthly revenue ranging between R$ 5 thousand and R$ 50 thousand – and may be higher in some cases.
This range of investment and return makes Home Based Franchises an attractive option for entrepreneurs looking to start their own business with limited resources. However, with substantial growth possibilities over time. Therefore, the flexibility of this business model also allows the franchisee to adapt to market demands. As well, make adjustments as needed to maximize strategic and financial results.
Latest data on the franchise system in Brazil
The franchise system in Brazil has recorded continuous growth, as Brazilian Franchising Association (ABF), which had revenues of more than R$ 211 billion in the last quarter of 2022. Therefore, for entrepreneurs who face obstacles in hiring employees, there are franchises that allow them to work alone, reducing costs and operating in a leaner way.
Therefore, this type of business offers a viable alternative for entrepreneurs looking to overcome challenges in hiring employees, enabling them to operate more efficiently and economically through franchises that allow them to work independently.
What is the low-cost franchise model called Pocket?
An example of a low-cost franchise is the pocket model, inspired by pocket books. This option is more compact than traditional stores and stands out for its “phygital” experience (physical and digital), increasingly a reality among us.
This practicality is achieved through technological solutions, meeting the demands of consumers who seek an integrated and convenient experience. In other words, adapting to the digital environment has become essential to keep up with changes in consumer behavior and increase the relevance of the business in the current scenario. In this way, the pocket franchise offers a promising opportunity for entrepreneurs who wish to invest in a low-cost business model aligned with the needs of modern customers.
According to ABF, in the coming years, the Brazilian franchise market will undergo “pocketization”. This is because 36% of the networks that have not yet adopted this format are interested in developing it, seeking to adapt to current trends.
Home Based Franchises and Pocket Franchises also comply with the legal requirements of franchise law
According to the CEO of Conex Negócios, Alessandra Tortelli, it is important to highlight that home-based or pocket franchises comply with the legal requirements of franchise law. In this sense, the franchisee acts as a business entrepreneur, regardless of the size of the franchise. Therefore, to expand and increase sales, the company should consider hiring salespeople as sales representatives. In other words, you can opt for CLT or PJ contracts. Therefore, it is essential to avoid confusion in the responsibilities and roles of those involved, thus ensuring compliance with applicable legislation.
Time to maximize results with our franchise formatting consultancy
Consulting focused on franchise formatting allows for rapid and decentralized business expansion with third-party capital. In this way, this expansion model authorizes the use of the brand and business model. As well as encouraging the exchange of knowledge and guaranteeing the franchisor full control of the supply chain for the franchise.
In the franchise system, there is a co-creation of ideas that unites all stakeholders in pursuit of the same objective: the success of everyone involved. Therefore, the parties work together, contributing to mutual growth and prosperity.
Access the page franchise formatting to find out more details.
Make operations more efficient and truly scale
Conex Negócios digital consultancy for franchise formatting is the most efficient alternative to expand the business, make operations more efficient and maximize results. It enables entrepreneurs to reach new markets and increase the presence of their brand in a lean, more sustainable and fully structured way. Being able to scale much more easily.
Our consultancy is 100% digitalized, which means that all aspects of the project are planned, organized and monitored through digital systems, offering greater agility and efficiency at each stage of the process. With Monday, the system chosen for project management, we clearly define the segments, stages, tasks and dates to be performed, allowing daily monitoring by the manager for quick adjustments and informed decisions.
Collaboration is optimized with documents created by hand in cloud systems, saving time and promoting synergy between our team and your company. This approach guarantees easy and secure access to relevant information for all interested parties, enabling agile and transparent communication, with updates and changes recorded in real time, avoiding loss of data and crucial information. With this complete digitalization, we seek to deliver excellent results and further strengthen the partnership with our customers.
See the page digital business consultancy for more information about how our work methodology works.
Franchises are the fastest growing type of business in Brazil
Finally, did you know that franchises are the fastest growing type of business in Brazil? And the development of more flexible and dynamic forms, such as home-based and pocket models, shows the great capacity for adaptation to contemporary socioeconomic transformations.
Contact us for more information:
📱 +55 48 99132 1934
✉️ contato@conexnegocios.com.br
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Alessandra Rech Tortelli is CEO of Conex Negócios, graduated in Administration and has an MBA in Retail Management, Franchise Management and Omnichannel Retail. She worked as an internal consultant and manager of large companies, such as: Tintas Renner, Arezzo, Portobello Shop, Mormaii, Confecções Brandili, etc., in 2010 she founded Conex Negócios, a consultancy company focused on Structuring and Expansion of Companies, she is also a speaker, teacher and creator of the startup ConexHub. Alessandra loves challenges and being connected with entrepreneurs, promoting exchanges, experiences and knowledge. She believes that we are all interconnected, that the challenge of one is the challenge of all!
