Many people dream of owning a business but aren’t sure how to start. If you’re interested in entrepreneurship but don’t want to build a business from the ground up, looking into affordable franchises could be a great option. Franchising can be one of the easiest ways to become a business owner, providing an opportunity to make your dream a reality without starting from scratch.
While some franchises require significant upfront costs, others are much more affordable and accessible to those with limited funds.
To help you take the first step toward franchise ownership, we’ve created a list of 12 great low-cost franchises. All of these have a franchise fee of $50,000 or less, and a total initial investment of $110,000 or under.
What to Expect with Low-Cost Franchise Opportunities
Franchising isn’t for everyone, but it offers some advantages over starting a business from scratch. For example, a franchise comes with an already established brand and customer base. The parent company, known as the franchisor, has already done some of the work, such as developing the business model, creating the logo, and producing marketing materials. As a franchisee, you’ll handle the day-to-day responsibilities of running the business.
However, like any business, you’ll need capital to purchase a franchise. There are four main costs to consider when buying one:
Franchise Fee: This is a one-time, upfront fee that every franchise requires.
Initial Investment: This covers the materials, labor, and other resources you’ll need to get started, including the franchise fee.
Ongoing Investment: These are the costs needed to keep the business running over time.
Personal Finances: Some franchises may require a minimum net worth or liquidity to be eligible for ownership.
The franchise fee, initial investment, and financial requirements are the biggest barriers to entry for most people. While large franchises like McDonald’s can cost over $1 million, there are plenty of lower-cost options in various industries like fitness, cleaning, and travel. Some can even be run from home without needing a physical location.
Though affordable franchises can be a great option, they tend to be less well-known, meaning the potential profit might be lower. It’s important to thoroughly research and evaluate a franchise before committing to it.
Now, let’s dive into our list of the top 12 affordable franchises for aspiring business owners. Following this, we’ll discuss financing options that can help make your dream of business ownership a reality.
12 Affordable Franchises for Aspiring Business Owners
1. Cruise Planners
– Franchise Fee: $10,995
– Initial Investment: $2,095 to $23,367
– Cruise Planners, associated with American Express, offers a home-based travel business
opportunity with a low initial investment.
2. Fit4Mom
– Franchise Fee: $5,495 to $10,495
– Initial Investment: $6,205 to $24,285
– Fit4Mom allows franchisees to run fitness classes for mothers, with flexible scheduling
and a low startup cost.
3. Chem-Dry
– Franchise Fee: $23,500
– Initial Investment: $56,495 to $162,457
– Chem-Dry specializes in carpet cleaning and offers internal financing options to help with
the startup investment.
4. Jazzercise
– Franchise Fee: $1,250
– Initial Investment: $2,500 to $38,000
– Jazzercise provides dance and exercise classes, offering a low-cost entry into the fitness
industry.
5. Stratus Building Solutions
– Franchise Fee: $2,700 to $100,000
– Initial Investment: $3,450 to $100,000
– Stratus focuses on eco-friendly janitorial services for commercial properties and offers
financing options.
6. SuperGlass Windshield Repair
– Franchise Fee: $5,000 to $17,500
– Initial Investment: $18,685 to $84,205
– With training included, SuperGlass offers a low-cost entry into the mobile windshield
repair business.
7. Mosquito Squad
– Franchise Fee: $15,000 to $32,500
– Initial Investment: $17,050 to $79,425
– Mosquito Squad helps control mosquitoes and offers financing through third-party
lenders.
8. Pillar to Post Home Inspectors
– Franchise Fee: $21,900
– Initial Investment: $36,350
– Pillar to Post provides home inspection services, with more than 500 franchises across
the U.S. and Canada.
9. Property Management Inc.
– Franchise Fee: $15,000 to $45,000
– Initial Investment: $21,250 to $106,800
– Property Management Inc. provides training and technology to help franchisees manage
rental properties.
10. Soccer Shots
– Franchise Fee: $34,500
– Initial Investment: $41,034 to $53,950
– Soccer Shots runs youth soccer programs, with in-house financing options available.
11. Dream Vacations
– Franchise Fee: $495 to $9,800
– Initial Investment: $3,245 to $21,850
– Dream Vacations offers home-based travel agency franchises with award-winning training
and support.
12. Lil’ Kickers
– Franchise Fee: $15,000
– Initial Investment: $25,000 to $35,000
– Lil’ Kickers focuses on soccer programs for kids and offers a rewarding,
community-focused business.
Financing Options for Low-Cost Franchises
Even affordable franchises require some initial investment, but there are several financing options to help make franchise ownership possible.
Friends and Family Loan: If available, borrowing from friends or family can come with flexible terms, but make sure to document everything.
Franchisor Financing: Some franchises offer internal financing options to help with startup costs.
Traditional Term Loan: This common loan option provides capital upfront, but be sure to check if there are restrictions on franchise purchases.
SBA 7(a) Loan: This government-backed loan is a great option for franchise purchases, offering long repayment terms and low interest rates.
Equipment Financing: If your franchise requires costly equipment, you may qualify for an equipment loan, which ties the loan amount to the value of the equipment.
Conclusion
Starting a new business can be overwhelming, but franchising offers a more accessible way for many people to become business owners. By exploring affordable franchise options and financing solutions, you can take the first step toward making your business dreams come true.