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Low Cost Franchises
Our franchise directory features the best low-cost franchises for aspiring entrepreneurs. Our most popular franchises are cheap franchises you can operate from home with few employees and low overhead. Cheap franchises start as low as $20,000.
The idea of a low-cost franchise opportunity seems attractive, especially for a first-time business owner. But what constitutes a low-cost franchise opportunity? Several factors contribute to making a franchise opportunity low-cost: minimal overhead, no employees, little-to-no inventory and a low initial investment.
Low-Cost Franchise Factor #1: Minimal Overhead
By keeping rent, administrative and other operations costs low, you are able to put more focus on the other aspects of your business. Many franchises can be operated from home, meaning you won’t pay to lease a space. As long as you have internet and phone access, you’re open for business! Mobile franchises also minimize overhead costs by having a franchise unit that has everything you need on wheels. Instead of leasing a store front, you can own your entire unit and move it wherever you see fit. Plus, it allows you to bring your product or service directly to customers, instead of waiting for them to come to you.
Other franchise systems help keep overhead costs low for franchisees by handling many administrative tasks. When you’re researching the right franchise opportunity for you, be sure to ask what kind of back office support is provided. If the franchisor provides IT or accounting support, you may not have to hire additional outside help for those functions. Plus, that leaves you more time to enjoy the perks of business ownership – like schedule flexibility and being your own boss – with fewer hassles.
Low-Cost Franchise Factor #2: Small Staff
Being a one- or two-man operation is another way to keep franchise costs low. Many low-cost franchises are simple operations that can easily be operated by a small team. And if you, the franchisee, want to be hands-on there is even less necessity to hire a large staff. Simply, maintaining a slim staff keeps the payroll budget low. This gives you more financial resources to invest in product, marketing or ways to grow your business.
Low-Cost Franchise Factor #3: Little-to-No Inventory
Many of our cheap franchises don’t require franchisees to maintain an inventory. Or, if inventory is required, it is minimal. Specialized restaurant franchises require a very small inventory of ingredients, meaning there are less products to buy and manage. Travel franchises don’t have an inventory to manage at all. This plays a large role in keeping these types of franchises low-cost and more financially manageable. Plus, franchisees with a small inventory have to spend less time ordering, counting, and replacing stock. They get to spend more time interacting with customers and enjoying a work-life balance.
Low-Cost Franchise Factor #4: Low Initial Investment
The initial investment for any franchise includes the franchise fee and any start-up costs (like lease deposit, equipment, any required licenses, and perhaps your first batch of inventory). The franchise fee often covers the rights to use the franchisor’s brand, trademarks and business operations, training, equipment, marketing and more. Because low-cost franchises have minimal overhead costs, fewer staff members and less inventory, start-up costs are generally lower, too. The amount of the initial investment varies by system. You can use our investment search filter to find a franchise opportunity that fits your finances.
Thanks to low operating costs and low initial investments, low-cost franchises make financial sense for any entrepreneur looking for the support of a franchise system with the autonomy of any other business owner, all without breaking the bank.
Cheap Franchises Related Articles
11 of the Best Low Cost Franchises You Can Start for $25,000 or Less
It’s a common misconception that buying a franchise costs a fortune. Many people with dreams of business ownership can get started without having to pay an extraordinary price tag. If you’re looking for an affordable way to get started, here are 11 of the best low cost franchises available.
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