Finding the cheapest franchises is not an easy task if you don’t know what to look for. Before franchises were created, you would have to build a business from nothing. A lot of time and hard work goes into naming the business, creating the business plan, building name recognition, hiring the right personnel, and promoting your brand.
Franchises fast-track those steps saving you a lot of time, energy, and preparations. However, there are various types of franchises, and they also vary in price. If you’re looking to buy a KFC franchise, you should get ready to invest mid-six figures. Luckily, some franchises are relatively less expensive than others and are equally profitable.
What to Look for When Searching for Cheapest Franchises
There are two main things to look for before you make that decision to purchase a franchise:
- Profitability: Be sure to read the Franchise Disclosure Document (FDD) and analyze sales and profit numbers from existing locations in similar markets to yours. Look for industries that can withstand any economic climate. For instance, the food and travel industries are struggling, but adapting, as a result of the pandemic. But, the cleaning and senior care industries are expanding. See what we mean? A given franchise business’s profitability profile these days has more to do with how they’ve pivoted to survive – or thrive – during the pandemic, and how they’re positioned to sustain that performance.
- Fees: With few exceptions, franchises require you to pay both upfront and ongoing fees in return for your license to use the brand and operating systems in your local market. Be sure to research and understand these fees, which typically include a one-time franchise fee upon signing your franchise agreement and then ongoing royalty payments as a percentage of your sales and also advertising fund contributions as well to support local, regional, and national advertising.
Top 5 Cheapest Franchises
1. Frost Shades
Frost Shades is the nation’s only franchise brand providing both residential and commercial window tinting solutions. And, you can operate this business out of your home. You do not need experience but it’s helpful that you have good leadership skills, enjoy building a team, and love talking to people.
You will invest between $55,550 to $89,200 to become a Frost Shades franchise owner and the minimum cash requirement is only $20,000.
2. GoTelecare
With remote working in full swing, this telemedicine and billing platform is timely and necessary. Making physicians accessible to patients is more essential than ever. GoTelecare provides telehealth video consultation and medical billing services.
The GoTelecare franchise asks you to acquire the clients, and they take care of everything else. You simply collect the on-going residual income. This can be a full-time or part-time endeavor and there are no monthly royalty fees!
The GoTelecare total investment is $35,000 – $45,000 and requires $40,000 in liquid assets.
3. Expense Reduction Analysts
Do you have a knack for consulting? Become a cost management consultant and help businesses improve their bottom line by helping them reduce expenses. The cost to become an Expense Reduction Analysts franchise owner ranges between $66,100 and $88,250 and requires $50,000 in liquid capital.
4. Chem-Dry
Carpet cleaning is experiencing consistent growth of approximately 5% annually and is expected to exceed $5.5 billion this year. Chem-Dry was founded in 1977 and, with over 3,000 units in more than 55 countries, is the world’s largest carpet and upholstery cleaning franchise. The total investment ranges between $67,645 and $185,757. And, they require $50,000 in liquid capital.
5. Senior Care Authority
Meeting the demands of senior care services is of greater need today than ever before. Senior Care Authority is a rewarding, recession-resistant business that provides placement assistance, eldercare consulting and advocacy services. You can operate this business from home with little overhead and no employees.
The total investment for a Senior Care Authority franchise is $52,500 – $87,500 and requires a minimum of $50,000 in liquid capital.
The Cheapest Franchises Aren’t Always the Best
Startups are one of the hardest things to build. Many people fail at it, no matter how prepared they are, and this is due to the ever-changing factors that influence the market. While focusing on the cheapest franchises can be the most affordable way for you to become a business owner, it’s not always the best move. Doing business with an already established company means reducing your risk and earning money faster. Just like many other things in life, when it comes to franchises, you get what you pay for. You’ll see the amount of service and support you receive is relative to the size and experience of the brand.
There are a lot of reasons why so many people seek franchise ownership. Some want to provide backing to their existing brands while others want to follow and manage a well-known franchise. Some entrepreneurs want to purchase multiple franchises as a business strategy. Whatever reason you have for purchasing a franchise, the franchises we mentioned above are companies experiencing growth that you should consider in your search for the right business for you.