Not everyone has $2,000,000 to start up a new McDonald’s franchise. So, what do you do when you have less capital, but want to get into a good, successful franchise business? Lets look at some low cost franchises available. I did not limit this list to a specific industry or type. It is mostly based on cost, but also success. I don’t want to promote a franchise that is cheap but also a high failure rate. I will try to limit the list to franchise businesses with a total investment of under $100,000. The numbers are estimates and do vary depending on the current market status and demand. You will need to contact the individual businesses for further details and information. I am also not listing them in any particular order because of the varying industries.
Option 1: ServiceMaster Clean
Franchise type: residential/commercial cleaning and disaster restoration
Franchise fee: $17,000 to $54,000 and a total investment under $130,000. Royalty fees range from %4 to %7.
The reason I listed this franchise as a low cost franchise business is because of the companies background and growth.
Option 2: Quiznos Sub
Franchise type: fast-food restaurant
Franchise fee: $5,000 to $25,000 with total investment costs between $24,000 and $350,000. Royalty fees are %7.
This fast-food franchise is on my list because you can get into one for under $100,000. They have been franchising since 1983 and have over 5,000 franchises worldwide. Quiznos Subs is seeking franchisees throughout North America and worldwide.
Option 3: Jani-King
Franchise type: Commercial Cleaning
Franchise fee: $8,000 to $16,000 with only an investment of $12,000 to $35,000. Royalty fees are 10%.
The cleaning franchises tend to do very well and are great, profitable, low cost franchises to get into. Jani-King is a worldwide franchise company with over 10,000 franchises. This cleaning company has been in business since 1969 and franchising since 1974. With a well established history and success record, this low budget, low cost franchise business is a great way to into a business with little to now business or industry experience. Training and support is provided by the parent company and is one of the top ranked franchises to buy.
Option 4: Jan-Pro Cleaning
Franchise type: Commercial Cleaning
Franchise fee: $3,000 to $44,000 and initial investments ranging from under $4,000 and up to $55,000. Royalty fees are 10%.
This is yet another cleaning service company. I listed a few because this should demonstrate the solidity of these types of businesses. Jan-Pro is also another top rated business franchise, along with a few other cleaning service franchises. The investment on this franchise can be very, very low for a small operation. This is a great company, with a solid track record to get into on a small budget. This franchise is available to be run from your home.
Option 5: Instant Tax Service
Franchise type: Retail tax preparation
Franchise fee: $34,000. Royalty: 20% and a total initial investment of about $40,000 to $90,000.
This franchise is growing rapidly since it started franchising in 2004, now with over 1,000 location in the United States. This business is exclusive to the U.S. and offers a great, low cost franchise opportunity for anyone with a little general business experience and small capital to buy.
Option 6: Jazzercise Inc
Franchise type: Fitness classes
Franchise fee: $500 to $1,000. Total investment under $40,000 and royalties of 20%
This low cost franchise is a great business to get into for a fitness oriented entrepreneur. The owners are required to have fitness and health related experience and this ensures the success of the business. Now, with over 6,500 franchises worldwide since 1982, this low cost franchise is ideal for someone with minimal finances to own their own business. Jazzercise has seen steady increase of franchises in all countries and is rated one of the top fitness franchises to buy.
Option 7: RE/MAX Int’l Inc
Franchise type: Real Estate
Franchise fee: $12,000 to $25,000. Royalty fees vary and a total investment cost starts at $35,000 and goes up to approximately $200,000.
This business is a riskier franchise to buy, mostly because of the turbulent housing markets we have seen in recent years. It is not one of the best franchises to buy into, but when it comes to the real estate market, Re/max is the top rated franchise to buy in the industry. For someone with real estate experience and a desire to own their own business, a real estate franchise is a good bet and a good start. Why not start with the better one. They operate with a minimal royalty and focus on owner operated and maximum commission schedules.
Option 8: Kumon Math and Reading Centers
Franchise type: Supplemental Education
Franchise fee: $1,000. Royalty fees vary and the initial investment of less then $130,000
This is a franchise business that some people do not think of as a franchise. The Kumon Centers started over 50 years ago and now have over 25,000 locations around the world. For as little as $40,000 you can start this type of business. It is great for people with good communication and marketing skills and have a desire to teach.
There are many great low cost franchises you can get into, many require little to no experience or training. A high quality product and a good franchise plan can help you succeed with any franchise business you choose to buy. Of the top 20 low-cost franchises to buy, the commercial and residential cleaning services tend to be the most common. Mostly because they can be run from home and have a very low start-up cost. Many do revolve around particular skills, such as plumbing or real estate and home inspections, but generally offer great opportunities to use a well known company name and business plan to get started.
One Comment
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Lucy
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