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Ask the Experts

 

QIs it possible to run a franchise from home?

SHELLEY NADLER WRITES:

It is possible to run a franchise from home if your franchise agreement allows it and there are no legal issues. However, there are some things you will need to check beforehand. The first is your franchise agreement. Check whether it permits you to operate from home or if the franchisor requires you to operate from business premises. If you are in doubt, speak to the franchisor.

Next, unless you own your home outright, check your lease. This may have restrictions on using your home for business. The key consideration is planning permission, which may be needed for any proposed building works. However, household development often benefits from permitted development rights, which, depending on the extent of the works, mean you may not need express planning permission. Beware though, these rights may not apply in a conservation area or national park. If your home is listed, you will also need listed building consent for any internal or external works.

Planning permission is also needed if operating your business makes a material change in the use of your home. This depends on the circumstances, but relevant considerations include your particular business activity and whether your home remains mainly residential in character and use, or becomes primarily business premises. As a guide, if your home is no longer mainly a living place, or the business involves activities that are unusual in a residential area, planning permission for change of use is likely to be required.

You can ask the local council for an informal opinion on whether you need permission. Alternatively, you can apply for a formal decision in a Certificate of Lawfulness of Proposed Use or Development. If granted, this would establish that using your home for your franchise business does not require planning permission.
 
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