Franklin, TN Home Business: Home Occupation Permits (2026)

Unlike many Middle Tennessee cities (Nashville Metro, Brentwood) that require a Home Occupation Permit application reviewed by zoning staff, the Franklin Zoning Ordinance § 5.2.7.G treats compliant home occupations as a permitted accessory use 'by right' in all residential districts (R1, R2, R3, R4, R6, MR, ER). No zoning permit, conditional use permit, or board review is required so long as the operator stays inside the operational standards: resident-owner conducts the business, ≤25 percent of the principal building floor area, ≤1 non-resident employee, no signs, no exterior change, no detectable off-premises impacts, on-site customer limits (typically 2 people or one family) by use type, no on-site retail sales, no personal services beyond those expressly listed, and no more than one non-residential vehicle parked overnight. Operators must, however, obtain a City of Franklin / Williamson County standard business license through the Franklin Revenue & Tax Office under T.C.A. § 67-4-704 (the minimum activity license at $15/year for gross receipts under $3,000; standard business license at $15 application + business tax for $100,000+ gross receipts). A separate state Department of Revenue business tax registration is also required. Trade-specific state licenses (cosmetology, child care, contractor, real estate, insurance) remain mandatory. The City of Franklin Business Tax Office cross-checks zoning compliance with Building & Neighborhood Services before issuing a business license, so a planned home business that exceeds § 5.2.7.G standards (group classes, on-site retail, more than one employee) will be flagged at the licensing stage.