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As an entrepreneur, there are many factors to consider when choosing a franchise opportunity.
Two of the most important factors are the initial investment cost and the potential return on investment (ROI).
In this article, we will list 10 low-cost franchise opportunities that offer a high ROI while requiring a relatively low initial investment.
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QC Kinetix is a concierge medicine that offers tailored treatment plans for things like arthritis or injury. Certainly one of today's most profitable franchises. The Item 19 in their FDD shows a net income of $150,000 to $800,000 for a single location open 1 day per week. We consider this to be an excellent franchise for an investor looking for more freedom and lifestyle control while having the ability to make more than they did in corporate America. There is nothing in the franchise industry like QC Kinetix. Total Investment starts at $250,000
The Patch Boys® is a very low cost drywall repair franchise. We consider this to be an excellent low-cost franchise option for younger entrepreneurs just starting out. Total Investment: $50,000 - $75,000 Total Investment starts at $50,000
Zoom Room is a venture-backed indoor dog training gym with an emphasis on socialization. The majority of their clients come to their franchise owners for basic obedience or puppy training, but end up coming back for workshops, agility class and delicious treats. (hello recurring revenue!) Minimal payroll - only 2 employees per shift. Highly profitable: median profit = $283K+. Total Investment starts at $206,070
360° Painting delivers professional painting services using premium materials and proven painting methods to ensure picture-perfect results. Low start-up costs, high demand service, and a business model proven to generate consistent profits make 360° Painting an attractive opportunity with top returns. We think this is an excellent franchise for someone wanting more freedom and lifestyle control while still earning more than they would in a corporate environment. Total Investment starts at $101,350
American Business Systems is one of the nation's top medical billing franchises. With a low investment and the ability to work from home, ABS is perfect for entrepreneurs looking for a flexible low-cost franchise opportunity with high returns. Also included are over 2,000 marketing pieces, a semi-custom website, Live Online Training, and unlimited, lifetime support. They offer an unconditional 100% Money Back Guarantee (within 30 days of investment). Total Investment starts at $28,990
Furry Land Pet Grooming is a full-service mobile pet grooming franchise that offers a low initial investment, high return on investment, and the ability to work from home or you can even have them run the franchise for you 100% absentee for a 5% fee. Item 19 shows a very strong net return making this franchise a must for anyone seeking passive income. Total Investment starts at $100,000
Hello Garage franchise focuses on concrete floor coatings, storage cabinets and accessories like slat wall and lighting. Let’s face it; for most people, the garage is the home’s true front door. So, at Hello Garage, their mission is to transform garages and create remarkable customer experiences — they elevate the garage from a cluttered junk drawer to America’s true front door. Home Based: Yes. Absentee ownership available: Yes. Very strong earning potential. Item 19 data shows gross revenue of $1m+ Total Investment starts at $128,278
Junk King is the second largest national junk removal franchise providing exceptional customer service through over 150+ locations. Junk King’s rapid growth is fueled by its recycling-based junk removal model and world class customer service. Junk King has developed a technology driven business management franchise in a traditionally low-tech sector. Despite the focus on junk removal we consider Junk King a white collar business system in a blue collar industry. Item 19 shows a solid opportunity to gross $1m+ and net $200k+ while having a GM run day to day operations for the owner. Total Investment starts at $88,000
Dog Training Elite is America’s fastest growing dog training franchise! Low Cost. Home based and strong semi absentee business model. Dog Training Elite Franchise Owners do not need to take on the role of dog training! With a Lead Trainer in place, franchise owners can run the business semi-absentee, focusing their efforts on scaling and overseeing high-level operations. Average gross revenues in 2020 were $786,059, and their top performer brought in $1,484,943! Total Investment starts at $82,800
Door Renew focuses on refinishing wood and fiberglass doors with a focus on the Front Entry Doors. Their process will make your door look brand new and is done at a fraction of what it costs for a brand new front door. At Door Renew, door and wood refinishing is their specialty; it’s all they do. Door Renew features a 100% absentee business model and very strong net profit margins of near 50%. Total Investment starts at $90,000
These are just a few examples of top low cost/high return franchises to get you started on your franchise journey in 2022! There are many other great franchise opportunities out there, so make sure to do your research before investing. Working with a franchise consultant like The Franchise Insiders is a great way to quickly identify your best franchise fit. Visit our website or give us a call today at 800-445-6382 to learn more about how we can help you find your perfect franchise!
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Low-cost franchise opportunities: What to expect?
When considering a low-cost franchise, it's important to remember that you get what you pay for. A lower initial investment doesn't always mean a better deal – in fact, it could mean the franchisor is cutting corners to keep their costs down. As with any business decision, be sure to do your research before investing in any franchise.
That said, we've listed 10 excellent low cost franchises above that are proven, have great support staff and systems you can count on and are quickly selling out across the country.
These are all great businesses with proven models, and we expect them to continue growing in popularity with franchisees and consumers alike in the coming years.
If you're looking for a top franchise opportunity with a low initial investment, we highly recommend checking out some of the options in the list above. For more information on any of these franchises, or to learn about other great opportunities in the franchise world contact The Franchise Insiders for a free franchise consultation.
When compared to starting a business from the ground up, owning a franchise has several big advantages. Established franchises already have a well thought out and proven brand. They know how to develop a successful franchise location and attract customers, and they'll show you how to do the same in your new franchise location.
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The franchisor has already created fundamental components for you, such as the business concept, competitive advantage, and proven marketing strategies and materials that work in attracting and keeping customers. These are all important factors in the success of your new business.
In addition, most franchisors will provide you with comprehensive training on how to operate your franchise successfully. They're also there to support you after you open for business, with ongoing guidance and assistance as needed.
All of these factors make owning a franchise a much less risky proposition than starting a business on your own.
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How to evaluate a franchise opportunity?
When considering any franchise opportunity, there are a few key factors you'll want to look at to ensure it's a good fit for you.
The first thing you'll want to do is examine the franchisor's track record. How long have they been in business? What kind of growth have they seen over the years? Are their franchisees happy and successful? These are all important factors to consider.
You'll also want to look at the initial investment required and the overall business model. Does it fit your budget and your skillset? Are you comfortable with the franchisor's requirements for royalty payments and other fees?
Finally, take a look at the territory that's available. Does the franchisor have a good reputation in the area where you want to open your franchise? Are there other successful franchises nearby? Or is the territory wide open for you to develop an empire?
These are all important factors to consider before investing in any franchise opportunity.
The Franchise Insiders is one of the leading franchise consulting firms in the industry, with over 20 years of experience helping entrepreneurs find their perfect franchise. Contact us today for a free consultation.
Learn the best franchises to buy. Discover what it takes to grow a successful franchise business. Get our advice on today's best low cost franchises.
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Click here for a similar article you may find helpful from Franchise Business Review.
Franchise Business Review is the leading market research firm in the franchise industry specializing in franchisee satisfaction and performance.
Franchise owners of affordable franchises and low cost franchises generally pay lower franchise fees and enjoy a lower overall initial franchise and cost to get to profitability.
Many potential franchise investors are curious about what the initial franchise fee covers.
Is it a profit center for the franchisor? The truth is is it's not.
The initial franchise fee basically covers the franchisor's cost to train you and prepare you to be a highly effective franchise owner. The royalty fees they collect from you are the true profit center. The beauty of this is... your goals are aligned. The more you make - the more they make. And they are motivated to support you and help you succeed. Everyone wins!
We talk a lot about "Dirty Businesses" on our podcast. It's truly one of the most predictable franchise investments. For example, a commercial cleaning franchise boasts an average gross revenue per location of $1.7M with the top performer grossing north of $4M. All with a total investment of $70,240 - $109,164 typically to fund the franchise to profitability. It's not sexy but it is very smart especially when you consider that the owner manages the business and never cleans and typically enjoys a Monday-Friday, 9-5 lifestyle. That's a heck of an ROI for a low investment business investment that can be run semi-absentee.
There are so many reasons to consider business ownership in 2022 with plenty of financing options, especially with a strong franchise opportunity with very low startup costs. From the list above it's clear there truly is something for everyone looking to become their own boss with a franchise with low initial investment costs.
Growing a profitable franchise is not difficult if you follow the proven system of the franchisor. Talk to any high performing franchisee and they will agree with this assessment.
What's the cheapest franchise to buy?
At a total investment of: $2,295 - $23,665 that honor goes to a top cruise planners franchise: Cruise Planners / American Express
Cruise Planners, an American Express Travel Representative, is the nation’s largest home-based travel franchise company with over 2,800 franchise locations in all 50 states. Cruise Planners has been named the # 1 home-based travel franchise by Entrepreneur every year since 2002.
As a Cruise Planners franchise owner, you run your own travel advisor business from anywhere while having the support and leverage of the nation’s largest travel franchise network behind you.
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Financing options to purchase low-cost franchises
It is much easier to get a loan for franchises to buy than it is to get money to start a new business. New franchises have a built-in customer base, recognizable brand, and an established business model to follow. These factors make it easier to get financing from traditional lenders like banks.
You can also finance your franchise through the Small Business Administration (SBA) or roll your 401k tax and penalty free to fund your franchise.
Here's a bit more on those programs. Our firm can put you in touch with a top lender to help you explore how your best franchise financing path.
401(k) ROBS Business Funding: Funding available in as little as 10 days with no taxes, penalties or debt.
SBA Loans: Over 97% approval, a national network of preferred lenders, and FREE pre-qualification for a better chance at success.
Learn your best franchise financing path! Try our free financing calculator. Click here!
Why you need to explore low cost franchises
Low cost franchises with high profit potential like the brands mentioned in this article are a very smart way to get started in the world of franchise ownership. Whether you are looking for a new career or to diversify your portfolio, these top franchise opportunities should be at the top of your list.
Jack Johnson
CEO - The Franchise Insiders
About the author:
Jack Johnson is a leading franchise consultant. Jack founded The Franchise Insiders in 2017, and together with his wife Jill, has assisted hundreds of individuals in realizing their goal of becoming a franchise owner over the last two decades by advising them on today's top franchises. The Franchise Insiders specializes in matching clients with the best franchise options across a variety of sectors, including low cost franchises, where they are regarded experts.
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