I have a female Thai friend who speaks good English. She is a qualified teacher but not longer teaches.

She would like to teach Thai to Farangs but I've warned her about the practical risks of location etc. (hotel rooms, people's homes)

We're still trying to find a way round that but does anyone have any opinions as to whether there's going to be enough custom out there to make it worthwhile?

Where is she located? Would it be possible for her to rent a small room just for this or would that be out of her budget?

There was a Thai woman who used to come to the teachers' accomodation where I used to work and teach people Thai. She was really busy even though she charged quite a hefty fee. As opposed to charging by the hour she charged a lump sum for a 6 week course and demanded payment up front. She just taught out of people's rooms (if they were female) and the shared public areas (if they were male). I'd say there is more a market for this outside of Bangkok where fewer people speak English and falangs need learn Thai quite quickly and to a reasonable degree. Mind you the place I'm talking about was a village only about an hour outside of the city.

I have a female Thai friend who speaks good English. She is a qualified teacher but not longer teaches. 

She would like to teach Thai to Farangs but I've warned her about the practical risks of location etc. (hotel rooms, people's homes)

We're still trying to find a way round that but does anyone have any opinions as to whether there's going to be enough custom out there to make it worthwhile?

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There is a massive gap in the market for really good Thai lessons with proper materials and books. The standard of teaching Thai to foreigners is distinctly average and very overpriced. If a Thai teacher could learn some decent teaching methods, like the communicative approach as opposed to rote learning, I think a lot of people would be interested.