Low Cost Franchise Opportunities

UPDATED VIDEO https://youtu.be/w4tgSZ2l4Ac

http://www.franchise.city/franchiseerecruiting/low-cost-franchise-opportunities/ As franchise brokers and consultants we are asked regularly which are the best “low cost” franchise opportunities. There are many, some better than others and I will explain why.

Lets first look at what “low cost” actually means in terms of your franchise investment. For example if you invest $12,000 in a franchise next week, and you close your doors in 5 months because you didn’t make any money how much did your franchise actually cost? Well it cost you $12K plus your working capital, your time and other costs associated to the venture.

So unless you actually make this franchise work, your costs will actually be quite high. Higher in fact than someone who purchased a McDonalds for a million dollars but is turning a profit. A low cost franchise has to turn a profit or it is no longer low cost. It may have been low initial investment but that’s another story.

Now why do I bring this up and why is this so important. Because all low cost franchises, almost every single one of them under $50,000 (unless it is a financially distressed retail sale) has a business model that is 100% dependent on the owner for success or failure. Now what do I mean by that. These businesses are not brick and mortar like your burger or sub franchises where people walk in off the street and buy. These franchises all require the owner to go out and either market, or sell, or service, or usually a combination of all of the above, to make the business work.

So by nature of these operational models the failure rates are higher with low cost franchise opportunities because some people are just not cut out for a particular business. In a retail situation where people walk in to your store your skills are not so important. Not so with a lower investment franchise. That’s why here at franchise city we like to get a good handle on the persons background first and than match them with the franchise to make sure its a good fit.

Most low cost franchises require selling, or business networking of some sort. Ask your self are you good with people? Are you willing to put in the hours to make your franchise succeed. Do you have the skills required to make it happen?

If you have the skills, the background and the motivation there are many low cost franchises that offer tremendous ROI. For example we work with a consulting firm that has top 25% of owners earning over $600K annually. There are many service based franchises under $50K that can generate a strong 6 figure income.

So what is the best low cost franchise opportunity? One that best suits your background and skills. If you are not good at selling or networking make sure you look at franchises that provide leads or at least some sort of lead generation support. If you are not good with people try and look into franchises that can be operated online. Talk with existing owners to see how their experiences have been, and pay attention to which types of people are failing and which are doing well.

If you do have a sales background there are dozens of options available, many of them very profitable and well established.

If you would like to discuss what franchises are available in your area give us a call. Our service is free and we work with over 600 of the Nations top national franchise brands. You can learn more about us at




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