While purchasing a franchise can typically be a profitable investment opportunity, the price to actually start up a popular franchise is generally quite steep. You will easily invest $2–$3 million to spread out a Wendy's or Wendy’s, with the latter fast food chain also requiring you to definitely have liquid assets of $2 million and a net worth of at least $5 million. These requirements put many popular restaurant franchises unrealistic for most aspiring franchise owners. However, simply because you need to be a multimillionaire to open a McDonald’s doesn’t imply that there aren’t much lower-cost franchise opportunities. You'll have to look outside of junk food typically, though there are a few fast food and restaurant franchises that you can open for under $100K.
Some kinds of low-cost franchises you are able to (usually) buy into having to break the bank include travel agencies, commercial cleaning companies, sports/fitness instructor franchises, education/tutoring franchises, windshield repair, and others. Obviously, must be franchise is inexpensive doesn’t mean it’s smart to buy into it—some franchises are cheap for a reason: they’re a bad value. To help you find a quality, low-cost opportunity, I’ve compiled this list of franchises that does not have only a minimal cost, but also have the possibility for top profits.
All from the top franchises on this list could possibly be purchased into to have an initial franchise fee of less than $50K, however, many you can buy into for under $1,000. I’ve divided them into categories to make it easier for you to navigate depending on which kind of franchise interests you most.
Travel Agency Franchises
Starting your personal travel agency could be a wise decision for organized, self-motivated those who love travel and like the idea of helping people score great deals by themselves dream getaways. Travel agent franchises are often home-based, meaning there is very low overhead and minimal startup costs.
1. Dream Vacations
- Initial franchise fee: $495-$9,800
- Total energy production: $1,795-$20,300
- Franchise description: Home-based travel franchise
- Awards & distinctions: Entrepreneur Best Home-Based Franchise (2022), USA Today Top 50 Franchises for Minorities (2022), IFA 5-Star Franchise (2022–2022), #101 in Entrepreneur Franchise 500 (2022)
If you’ve ever imagined starting your own travel agency, Dream Vacations can allow you to do this for any 4-figure initial investment– and straight from your own home. Dream Vacations has collected a lot of accolades over the years (see Awards & distinctions above) and current franchisees rate it highly on sites like Glassdoor and Indeed.com. DV enables you to market your business under Dream Vacations or its sister company CruiseOne, and is currently looking for new franchisees through the U.S.
A major advantage of owning a home-based travel agent franchise like Dream Vacations is its low overhead. DV is another veteran-friendly business in that it provides a 20% discount on the franchise fee to veterans. The organization offers in-house financing if you can’t afford the franchise fee, or you might also get a franchise loan from the bank or online lender.
2. Cruise Planners
- Initial franchise fee: $695-$10,995
- Total energy production: $2,295-$23,367
- Franchise description: Home-based travel franchise
- Awards & distinctions: #60 in Entrepreneur Franchise 500 and #1 in Travel Agencies category (2022), American Express Travel Representative Excellence Award (2022), Inc. 5000 List (since 2012)
Cruise Planners, a united states Express Travel Representative, is yet another low-cost, work-from-home tour operator opportunity. Don’t allow the name fool you; as a Cruise Planners tour operator, you are able to book a lot more more than just cruises—you may also connect your customers with bargains on airfare, car rentals tours, hotels, etc. Cruise Planners claims they offer the highest commissions in the market, plus they do not require any travel experience.
When evaluating this franchise, I found the website to be very friendly and informative, though I couldn’t find a figure for the energy production, apart from the $10,995 franchise fee (with no discounts). However, as with other work-from-home, service-based franchises, I expect a home-based business like Cruise Planners would require few startup expenses apart from the franchise fee (based on the official franchise disclosure document, the entire energy production to open a Cruise Planners franchise ranges from $2,295 to $23,367). Cruise Planners offers in-house financing if you can’t pay the franchise fee, in addition to a deep discount for veterans, first responders, and travel industry professionals. While Cruise Planners includes a larger initial franchise fee than some other home-based travel agency franchises, a large perk you get with Cruise Planners may be the American Express network affiliation.
3. Travel Leaders
- Initial franchise fee: $1,500
- Total initial investment: $2,270-$16,910
- Franchise description: Travel agent franchise (storefront preferred)
- Awards & distinctions: Largest network of travel agencies in The united states, highest-ranked travel management company in Business Travel News’ annual survey (2022), Top United states travel companies in Travel Weekly 2022 Power List
Travel Leaders is really a quality, yet inexpensive franchise ownership opportunity if you’re a skilled travel agent who is interested in managing a storefront travel agent. Based on information in their FDD (Franchise Disclosure Document), it requires up to 10 employees to run a Travel Leaders agency, and also the initial franchise fee is only $1,500. To be honest, I couldn’t find that many details online by what it’s prefer to work with Travel Leaders, but the brand has accumulated a number of industry accolades over the years—to be precise, in the last 131 years the company has been around business (Travel Leaders has been franchising for 35 years). Travel Leaders offers several different tiers of franchise ownership, with no long-term commitment.
Travel Leaders happens to be seeking experienced travel specialists worldwide.
Commercial Cleaning Franchises
If you're a dedicated hard worker but don’t necessarily have a specific skill-set, starting a own cleaning business can really repay. Commercial cleaning is a fast-growing industry, and most from the top commercial cleaning franchises are flexible and scaleable, having a low initial investment and part-time options.
4. BuildingStars
- Initial franchise fee: $795 (for initial unit option)
- Total initial investment: $2,245-$53,200
- Franchise description: Commercial cleaning for offices with part-time option
- Awards & distinctions: #199 in Entrepreneur Franchise 500, Inc. 5000 List (2022)
BuildingStars is among the largest, fastest-growing franchises available cleaning industry, with a sole concentrate on solutions for offices. Services include nightly cleaning, green cleaning and consulting, and carpet and floor care. Based on BuildingStars, this franchise provides the highest average gross revenue associated with a cleaning franchise. BuildingStars also has the advantage of allowing you to start small, working part-time to start your cleaning business while you keep your income and security of your current job. The franchise offers three levels of franchise ownership: part-time technician, full-time onsite manager, and corporate manager. Based on your goals, you can start as a part-time technician, then come as much as onsite manager and corporate manager while you build experience managing larger-tenant offices.
BuildingStars has mostly positive reviews on sites like Glassdoor and Indeed (with average respective ratings of 3.6/5 and three.9/5 stars on those sites). The organization happens to be searching for new franchisees worldwide, and can offer in-house financing to pay for not just the franchise fee, but additionally equipment along with other startup costs.
5. JAN-PRO
- Initial franchise fee: $2,520-$44,000
- Total initial investment: $4,170-$54,700
- Franchise description: Commercial cleaning franchise with multiple tiers of ownership
- Awards & distinctions: #1 Commercial Cleaning Franchise and Top Franchise For Veterans in Entrepreneur Magazine (2022), Top 200 Franchise in Franchise business Review (2022), Top 50 Franchise for Minorities in USA Today (since 2012)
JAN-PRO is yet another fast-growing commercial cleaning franchise with multiple tiers of investment, including a home-based option. This company’s network of 10,000+ franchisees concentrates on business cleaning, healthcare cleaning, and green cleaning. JAN-PRO franchisees offer cleaning services to businesses such as car dealerships, restaurants, banks, gyms, schools, churches, medical centers, and offices. JAN-PRO’s VetConnectionSM program was the first franchise commercial cleaning program created just for veterans—veterans receive a 15–20% discount around the franchise fee.
JAN-PRO can be a great place to start out with commercial cleaning, as no prior experience is required plus they provide you with your personal accounts so you don’t need to find customers. You can begin a JAN-PRO franchise for less than $5,000, including initial cleaning equipment, cleaning accounts, education on JAN-PRO cleaning standards, and continuing support. The franchisee testimonials I discovered online say JAN-PRO has flexible hours and good compensation, and like the fact that franchise owners can transfer ownership; however, they are convinced that JAN-PRO could be demanding work until you have well-trained employees.
6. Stratus Building Solutions
- Initial franchise fee: $3,600-$62,100
- Total initial investment: $4,450-$72,850
- Franchise description: Commercial cleaning franchise with multiple tiers of ownership
- Awards & distinctions: #42 in Entrepreneur Franchise 500 (overall) and #2 by Entrepreneur – Top Budget-Friendly (2022), “Franchise Rankings” Winner – Janitorial (2022), Franchise Direct Top 100 Global Franchises Award (2022)
Stratus Building Solutions is really a general commercial cleaning franchise that are experts in eco-friendly cleaning solutions, with branded Green Seal Certified chemicals and equipment. From schools and malls to gyms and warehouses, Stratus’s 1,400+ janitorial franchises have customers in only about every industry. This flexible cleaning franchise boasts 16 different amounts of ownership, from home-based to master franchise.
You don't need any prior janitorial experience to open a Stratus franchise. Actually, you just need $1,000. House in-house financing, Stratus says you can buy along with as little as $1,000 down (plus another 10% off the franchise fee if you’re an experienced).
Sports & Fitness Franchises
Fitness and sports coach franchises are another low-cost franchise idea if you are an aspiring fitness instructor who wants to benefit from the recognition of a name-brand sports/fitness franchise. In some instances, you may also use the facilities and gym equipment of the master franchise, while working as an independent instructor.
7. Jazzercise
- Initial franchise fee: $1,250
- Total energy production: $2,405-$17,155
- Franchise description: Global aerobics class brand with instructor and center owner options
- Awards & distinctions: #94 in Entrepreneur Franchise 500, #6 on Franchise Chatter’s 25 Best Gym and Fitness Franchises of 2022
Jazzercise might scream “80s party ideas” to the uninitiated, but the franchise has actually experienced a revival in demand recently (I think once people just realized it’s a simpler form of Zumba), and in fact, Jazzercise never even went of fashion in a few circles. Regardless, demand for Jazzercise aerobics classes goes strong in 2022.
Jazzercise offers several different tiers of ownership. If you just want to teach, it costs around $2,500, including a preliminary franchise fee of $1,250. If you want to own your personal Jazzercise center, it can vary from $9,000 to $38,000. Every instructor is technically a franchise owner, however (not an employee of Jazzercise). All new instructors are trained and authorized by Jazzercise before they start teaching, and also the training price is included in the initial fee.
Generally, Jazzercise franchise owners rate the franchise approvingly on sites like Indeed.com. But as for that cons, they say the job could be challenging and also the pay isn’t great. However, if you wish to get paid to workout and may get by on the part-time income, Jazzercise could be a good investment of your time and money, especially if you already enjoy Jazzercise-ing.
8. Baby Boot Camp
- Initial franchise fee: $5,000-$8,000
- Total initial investment: $6,120-$10,249
- Franchise description: Stroller-fitness courses of instruction for new moms, taught by “mompreneurs”
- Awards & distinctions: Franchise Business Review Franchise Satisfaction Awards (2022), Entrepreneur Franchise 500 (2022)
Baby Bootcamp offers several different types of fitness courses of instruction for moms, including popular outdoor fitness classes designed for new moms to bring their stroller-age kids to. The primary idea is for new mothers to obtain back into shape postpartum, though the franchise also provides fitness and nutrition courses of instruction for pregnant women as well. Baby Bootcamp participants cite the community aspect because the main reason they like these classes; they offer an environment for new moms to create friends with similar-age children within their area. When it comes to instructors, most of them are franchisees. The very reasonable franchise fee includes everything you need to get started, including your own territory. The organization website also lists existing franchise territories for sale, which you might have the ability to buy at a lower rate. You don't need any personal trainer experience to possess your personal Baby Bootcamp franchise.
There aren’t too many franchisee online reviews, but the ones I could find were positive and noted the company is incredibly family-friendly and enables you to bring your children along with you to work. You will find less than 150 Baby Bootcamp franchisees in the country, so this franchise could represent a chance to enter an industry that hasn’t become oversaturated yet.
9. Soccer Shots
- Initial franchise fee: $34,500
- Total energy production: $41,034-$53,950
- Franchise description: Youth soccer franchise for kids aged 2-8
- Awards & distinctions: #245 in Entrepreneur Franchise 500 (2022), Forbes “Best Franchises to Buy” (2022)
Soccer is really a sport that many of today’s parents would like to get their kids involved in, not necessarily because they want their children to attempt a significant soccer career, but more regularly to simply teach their children the fundamentals of sportsmanship and teamwork at a young age. And if your preschooler has experience with soccer, there's a pretty good possibility they took part in Soccer Shots, because it is typically the most popular soccer franchise within the U.S. aimed at young kids. Soccer Shots instructors/franchisees teach children basic soccer skills, via 30–40 min weekly classes that take place in their preschool, elementary school, or neighborhood park.
While this isn’t the least expensive franchise opportunity you’ll find, it is still possible to begin a franchise for less than $50K, and the pay is better than a number of other franchises—according to the Soccer Shots website, the brand’s franchise-wide top earner makes $3,093,392 in annual revenue, as the top first-year owner made $248,240. Soccer Shots Franchising LLC offers in-house financing to pay for the franchise fee, and veterans get a 15% discount around the fee.
Soccer Shots owners also report a high level of satisfaction: 93.5% of Soccer Shots franchisees would recommend the franchise, according to the Franchisee Satisfaction Index by Franchise Business Review.
Fast Food Franchises
Fast food franchises are usually big earners and therefore, they frequently carry large energy production. However, frequently it's possible to start a fast-food franchise for under $100K, particularly if it has a non-traditional setup.
10. Chester’s Chicken
- Initial franchise fee: $3,500
- Total energy production: $12,385-$286,817
- Franchise description: Fried chicken QSR (quick-service restaurant)
- Awards & distinctions: #110 in Entrepreneur’s Franchise 500 (2022), Forbes’ “The 10 Best Food Franchises For Your Buck” (2022), largest Alabama-based franchise
Chester’s Chicken is really a low-cost fast-food franchise, and it is, in fact, one of the most affordable fast-food franchises out there. Based on your setup, you can begin your own Chester’s to have an initial investment of under $15K. The franchise fee itself is amazingly low, only $3,500. For the right person and location, becoming a Chester’s franchisee could be the perfect opportunity.
A popular southern fried chicken franchise, Chester’s is exclusive in that it provides flexible franchise options, including store-in-store options. For instance, should you already own a grocery store or convenience store, you are able to be a Chester’s franchisee to begin selling Chester’s Chicken in your existing store. Along with store-in-store locations, many Chester’s locations can be found within malls, food courts, airports, college campuses, and truck stops. Chester’s began in 1965, only started franchising in 2004.
11. Checkers & Rally’s
- Initial franchise fee: $30,000
- Total energy production: $203,600-$945,000
- Franchise description: Double drive-through burger chain
- Awards & distinctions: Best Franchise Deal by QSR Magazine (2022), Franchise Satisfaction Awards Top 50 Franchises (2022), #88 in Entrepreneur Franchise 500 (2022), Franchise Times Top 200 (2022)
Another Alabama-based fast-food chain, Checkers Drive-In Restaurants merged with Rally’s Drive-In in 1999 to create a double drive-thru fast-food chain, Checkers & Rally’s. Besides burgers, the chain’s varied offering also includes hotdogs, chicken, fish, and desserts. The initial investment may be the highest one on this list, but is still quite low compared with most competing fast-food franchises.
Versatile and eye-catching modular buildings, multiple financing options, and high ROI (28.7% according to the FDD) make Checkers & Rally’s a great bet to have an aspiring fast-food franchisee on a tight budget. This franchise is an especially good deal for veterans, as the company will waive the $30,000 franchise fee entirely for those who have served within the military.
12. Baskin Robbins
- Initial franchise fee: $25,000
- Initial investment: $93,550-$401,800
- Franchise description: Global ice cream brand
- Awards & distinctions: Largest frozen treats chain in the world, QSR Top 50 (2022), Entrepreneur Franchise 500 (2022), Franchise Times Top 200 (2022)
Becoming a Baskin Robbins franchisee means joining the world’s largest chain of frozen treats stores, for potentially under $100K. With more than 8,000 locations across 54 countries, Baskin’s offering includes not just its beloved rotating 31-flavors of frozen treats, but also its popular ice cream cakes and frozen drinks. Though Baskin has been available since 1945, the brand is still growing and changing using the times to stay in front of competitors. Baskin has presented dairy-free and gluten-free options recently, as well as a mobile app that enables customers to make an online purchase and collect points. In 2022, Baskin teamed up with DoorDash to offer home deliveries.
Baskin offers franchise financing to add mass to new units, as well as a waiver from the $25K franchise fee and reduced royalty rates for vets. Conveniently, Baskin lists possibilities to purchase existing Baskin Robbins locations on its website. In addition to traditional establishments, Baskin is also currently interested in non-traditional locations, for example airports, college campuses, transit terminals, and other places with a captive audience and foot-traffic.
In case you had been wondering, yes, Baskin Robbins’s sister franchise Dunkin’ Donuts is arguably an even hotter commodity at this time. However, it’s also a lot pricier, by having an initial investment that ranges from $395,500-$1,597,200, including a franchise fee of up to $90K.
Buying A Franchise: What you ought to Know
Even although it typically requires less leg-work than starting your own small business from scratch, purchasing a franchise is still a large endeavor. There are many essential things you need to understand before purchasing a franchise:
- Opening a brand new franchise is different from buying a current franchise (a franchise re-sale) and there will vary steps related to each type of transaction. You’ll probably need to hire an attorney that will help you perform pre-purchase research tasks like reviewing the FDD (Franchise Disclosure Document).
- Territory is everything within the franchise business. Before choosing into a franchise, you need to know how large your territory is and how many franchisees are nearby to make sure you’re not entering an oversaturated market. You'll find territory information within the FDD.
- Franchises don't run themselves. Most franchisees should be actively involved in managing their franchise in order for it to succeed. Having said that, once you are running a successful franchise, the franchise company will frequently give you the chance to start additional locations in your territory.
- Pay focus on the estimated initial investment (as disclosed within the FDD), not only the franchise fee. Oftentimes on the franchise’s promotional materials (including the company’s website), just the franchise fee shows up front and center, as if to suggest this figure is when much it costs to spread out a franchise. This really is, obviously, misleading, as the franchise fee doesn’t include the price of such things as inventory, labor, real estate, equipment, working capital, etc.
- Is it a franchise or a pyramid scheme? Plenty of multi-level marketing companies may seem like a franchise at the start, promising to let you “own your own company.” But if the “opportunity” focuses mostly on recruiting others to the company (rather than selling the actual product/service), then you’d probably be a good idea to run for the hills.
- Find out what other franchisees have to say. Check reviews on Indeed.com, Glassdoor.com, online forums, and anywhere else you can find info on a franchise you’re thinking about. By doing this you’ll know whether the franchise may be worth investing your time and money, and you'll be prepared for the possibility negatives related to owning that particular franchise.
Read my Step-By-Step Help guide to Buying A Franchise for more need-to-knows about how to buy a franchise.
How To Finance Your Franchise Startup Costs
There are various ways to finance a brand new franchise. Which one you choose depends upon the franchise’s policies regarding financing, and the kinds of financing available to you. Here are a few ways franchisees finance their startup costs.
- In-House Franchisor Financing: Many franchises have in-house financing programs that allow you to finance startup costs like the franchise fee, equipment, inventory, etc. It’s also common for franchises to partner with third-party financing sources to provide financing for his or her franchisees.
- Personal Or Business Loan: If your franchise doesn’t offer financing or you prefer not to use their financing program, you may also obtain a loan by yourself (depending on if your franchise allows this). It can be difficult for brand new businesses to obtain a business loan from a bank, however, you might be able to obtain a startup business loan or perhaps a personal loan online. To discover more on some good online loan options for new franchisees, make sure to read my post around the best loans for franchises.
- SBA Loan: If your franchise shows up within the SBA Franchise Directory, then you may be entitled to low-interest SBA franchise loan. Read our help guide to SBA franchise financing to understand how to get an SBA loan to invest in your franchise startup.
There will also be alternative financing options you might envisage to fund part or all of your franchise startup costs, for example crowdfunding, ROBS, or perhaps a business credit card.
It’s important too to note that most franchises have specific requirements regarding franchisees’ personal value and liquid cash. Some franchises won't even allow you to subscribe to the franchise should you don’t have deep enough pockets to cover your startup costs yourself (quite simply, they don’t allow any type of financing). Most of the franchises about this list do permit you to finance your franchise startup costs via a loan or other means.
Final Thoughts
Buying a franchise isn't cheap. In addition to the franchise fee, you spend for inventory, labor, a business space, and other costs. You’ll also need to have sufficient working capital to run your business and support yourself before your franchise makes a profit. However, there are plenty of low-overhead franchises that you can start having to break the financial institution. Particularly, home-based franchises for example travel agencies, commercial cleaning companies, and sports/fitness instructor franchises can be quite inexpensive to get going with. There are even low-cost fast-food franchises out there knowing where you can look. As long as you do your research before choosing into a franchise and secure adequate financing, you will be well-positioned for achievement as a franchisee.
