Franchise Business With Low Investment – Many future entrepreneurs dream of opening a franchise business, but are often hindered by high investment costs and stories about large-scale development. If this describes you, we have good news: you can invest in low-cost franchise opportunities.
In fact, many quality franchises offer low-cost models that make it easy to become an entrepreneur in the franchise industry. In this article, we’ll look at the benefits of investing in a low-cost franchise, as well as some of the most common questions many people have, including:
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You will learn about investing in a franchise with a flexible and actionable passive model, and you will also learn about five low-cost franchises that are good investments. So let’s get started!
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A low franchise offers countless benefits to investors. This includes affordability to have a smaller business footprint than their larger counterparts, allowing investors the flexibility to launch and expand their business. Below are some of the key benefits of investing in a low-cost franchise.
Affordability: Initial investments for most franchise opportunities start at $100,000 and north of $1 million – creating a difficult barrier to entry for many first-time investors. Low-cost alternatives offer an easy entry into the world of franchising and are a great way to get started.
Flexibility: Inexpensive franchises often have business models that offer flexibility. They have fewer employees and less overhead than larger operations. Therefore, it is easier for first-time entrepreneurs to get off the ground. They can also be easier to scale and manage as a semi-passive business option.
Low debt: With a small investment, entrepreneurs are able to finance themselves to purchase a franchise license and build a facility. This allows some investors to enter the franchise debt-free. Most large franchise businesses require at least some financing to get started.
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Inexpensive franchises have many characteristics that require a high investment. Conduct the same due diligence process with each potential franchise partner, including reviewing the Franchise Disclosure Document (FDD), interviewing current franchisees, and conducting research with the help of knowledgeable franchise representatives such as brokers or franchise attorneys.
ROI: A solid franchise opportunity should give you more than you need. Look for healthy returns on your investments and enough time to make a profit. Income disclosures are often found in FDDs.
Growth: Learn how your franchise network has grown over time. While you may not want to partner with a saturated franchisor, healthy network growth, low location closures, and franchisee turnover rates are indicators of solid business processes and support structures.
Leadership: Understanding the personalities that open a franchise brand. As with any business, leadership is a critical pillar of success. Do research on previous business ventures and the reputation of key players in franchising.
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Sustainability: Sustainable business practices generally lead to better results. Review the sustainability commitments and supply chain information available to you and make sure you are comfortable with the sustainability commitments your franchise partners have made.
Recession and Pandemic Resilience: Franchise businesses thrive because their business models offer goods and services that customers need and value. Take the time to assess the pandemic and recession resilience of the franchise business you are considering.
Management: Each franchise brand has different expectations and requirements for franchisees. Know your preferred (or contractually required) brand management style. If you are considering a semi-passive approach to franchising, make sure the franchise brand allows and supports this management structure.
There are many low-cost franchise opportunities to choose from, and we’ve picked five that we think are the best. They share the common characteristics of successful franchise opportunities: low start-up costs, efficient business models, solid systems and support, and desirable products and services. These five low-cost franchises belong to high-profit industries with excellent investment records.
Food Cart Franchisee
Jan-Pro Cleaning and Disinfecting is a commercial cleaning company located in Alpharetta, Georgia. Founded in 1992, Jan-Pro specializes in cleaning commercial spaces such as daycares, dealerships, offices, schools and healthcare facilities. They have over 8,250 locations in the United States and over 2,000 more internationally. Jan-Pro Cleaning offers training and support to help franchisees develop a professional and trained crew.
Founded in 2004, Stratus Building Solutions is a commercial cleaning company headquartered in Hollywood, California. The company began franchising in 2006 and currently has more than 2,900 franchise locations in the US and Canada. Stratus is distinguished by environmentally responsible cleaning methods such as UVC lamps and HEPA filters, as well as Green Seal certified products. The company has won many industry awards and honors, including various appearances
This Florida-based travel agency franchise offers turnkey solutions for entrepreneurs interested in home businesses. With more than 1,600 self-employed franchisees in the U.S. today, this franchise provides the systems and support new entrepreneurs need to get up and running quickly. Dream Vacations offers 1,000+ on-demand training modules through its web-based Virtual Training Center. The company also provides support staff available via phone, email or chat to assist with questions or concerns. As a home business with a 100% commission structure and no overhead, the investment and risk is lower than other types of franchise opportunities.
Incentive: 30% of franchise fee; tuition waived for business partners and first veteran/military spouse, 50% reduction for additional veteran/military partners.
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Sylvan Learning is a leading brand in tutoring and continuing education, as well as the nation’s largest provider of STEM education. Founded in 1979 and franchised since 1980, the brand now has over 750 locations and a leading industry reputation in the education space. Sylvan offers turnkey systems and name recognition that make opening a location easy and efficient.
Founded in 2014, this real estate franchise is changing the way real estate buyers interact with realtors by leveraging industry-disrupting marketing and systems. The company strives to provide a more streamlined experience that enables a deeper understanding of the market and a higher volume of transaction flows. NextHome currently has 570+ franchise locations in the US. This brand partner is a good choice for entrepreneurs who want to enter into franchising through the real estate market.
If you are an investor looking to combine franchises into diversified assets, investing in a franchise portfolio offers high income potential and diversification in a passive investment model.
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However, the dream of starting a business cannot be realized due to lack of funds. Now we have a solution for you!
Here is a list of low investment business ideas that can generate good profits. Now you can start your own business and turn your passion into a business. Let’s take a look at some of the small investment businesses in India.
Low Cost Franchises With High Profit To Buy For $20,000 Or Less
Here are some practical ideas to get high profits without burning a hole in your pocket. Watch this video and get started:
Dropshipping is one of the most profitable business ideas today. This is a retail method where you can run an online store without keeping inventory. Thus, you do not invest in funds and can start a business with limited funds.
Every time a store makes a sale, the product is purchased from a third party and shipped directly to the customer. Simply put, you make the sale, send the order to the supplier, and ship it to the customer for you. Thus, there is no need to store or handle inventory. This saves both time and money.
You can choose products from several suppliers. However, we recommend that you order a sample product from the supplier first to make sure that they are reliable and that the quality of the product matches that of the online store.
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With a dropshipping model, you don’t have to worry about buying or keeping inventory. You can fully focus on online store marketing and customer service. In particular, the trust of your store depends on the quality you offer and the order fulfillment strategy you employ. So this is one of the small investment business in India. A double check is necessary for business success.
This is a low investment business idea where you can test the market and know the best before investing in your product and launching it.
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