Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!

Low Cost Franchising - Options for Affordable Franchising

While they may not household names, there are many outstanding low-cost franchises for sale that potential franchise owners with limited capital should consider. Though they may lack some of the brand awareness of the better-known franchise concepts that one tends to see on every street corner or advertised on a daily basis on TV, print, and radio, affordable franchises can present an excellent opportunity to get into business for yourself with the support of a proven business model while not taking on the risks involved in investing hundreds of thousands or even millions to invest in a more expensive (and well known) franchise system.

Expensive Franchises - Not Necessarily your Best Option

Often when people are just starting to think about investing in a franchise business, they gravitate immediately toward big, well-known brands like the AAMCO Transmissions franchise, Dollar Store Services franchise, Little Caesars Pizza franchise, Kumon Math & Reading Centers tutoring franchise, and other giant franchises they or their friends may have encountered in their daily lives.

While these major franchises enjoy incredible brand recognition among the general population (and for good reason),their popularity and national footprint can actually make them so expensive that buying into one of these franchise opportunities will be too difficult for someone with only modest savings, unless that person has access to many hundreds of thousands in investment funds from friends and family or their bank.

Fortunately, there are numerous excellent low-cost franchise options available, and those options span nearly every industry an entrepreneur could imagine.

Why Are Some Franchises Much Cheaper than Others?

With more companies trying to further their brand name yet lacking in the resources to open newer branches on their own, franchising seems a very suitable option to them. It is these growing companies which offer lower start-up costs to their prospective franchisees with other liberties such as more flexibility managing their franchises.

Each industry has its own start-up capital requirement ranges, depending on the nature of the business: is the franchise run from an office (or, even more expensive, a customer-facing retail location that requires a store build-out) or is it a home-based / online operation? Is there equipment to be purchased? What are the average number of employees a new franchise owner would expect to hire to operate the business? What are the typical overhead costs, cost of initial supplies, and so forth?

Low Cost Franchises - What are the Typical Investment Costs?

Factoring all these considerations, the cost of a new franchise could range anywhere from under $25,000 for a home based franchise to over $150,000 (or more) for many automotive franchises and retail franchises. Then there are even franchises costing over $1,000,000 (such as many fast food franchises), which could be considered cheap relative to restaurant franchises in general (many of which could cost in excess of $5 million). Therefore, every franchise should be considered in the context of its particular category.

Luckily, franchises exist in almost every industry. Besides fast food, the franchise model is gaining popularity in areas such as Advertising & Promotion, Real Estate Brokerage, Packing & Shipping and Financial Services. So the potential franchisee is not bound by a certain industry but can actually pursue categories about which they have some passion.

For current business owners, conversion franchise businesses, where a going concern converts and joins a franchise system, are a potentially attractive option, typically offering lower start-up costs as the capital for equipment, store build-out, staff recruiting, and so on has already been invested.

What Industries Have Affordable Franchises?

There are literally hundreds of business categories which a prospective franchise owner could consider, almost all of which offer surprisingly affordable franchise options. Below is a list of franchise categories offering franchise opportunities with liquid capital requirements at $50,000 or less:

Feel free to search by our list of the best franchises and you'll discover cheap franchises crossing almost every industry - you're bound to find one that matches your available capital and your interests.

Best Practices in Protecting and Enforcing Trademarks, Copyrights and other IP

Trademarks, copyrighted works, trade secrets and proprietary business information form the core of any franchise system, and are frequently a company’s most valuable assets. Trademarks, including service marks, logos, slogans and trade dress, define the brand identity as presented to the public. The “behind the scenes” business know-how on which the system is built and implemented by franchisees is embodied in a variety of copyrighted and proprietary works – operations manuals, proprietary processes, recipes and formulas, custom software, advertising copy to name a few.

Cottage Inn Gourmet Pizza Expands Midwest and Offers New Franchise Opportunities

Famed Ann Arbor pizza brand, Cottage Inn Gourmet Pizza, a family brand founded in 1948, recently announced its plans to expand in to the Midwest and offer new franchising opportunities, as it enters a new phase of aggressive growth. By the end of this year, Cottage Inn Gourmet Pizza hopes to launch 10 new locations in Ohio, Illinois and Indiana. The group also has international ambitions, with plans to open up to 200 new shops in China within the next 15 years. The company currently operates over 50 establishments in Ohio, Florida and Michigan.

Meeting the Franchisor - Maximize Your Benefits From Discovery Day

Whether it is a “Discovery Day” or other term that the franchisor uses, most franchisors require prospective franchisees to visit their corporate headquarters as a pre-requisite to buying a franchise.