Why Choose a Low-Cost Franchise?

There’s a good reason franchising is so popular among new entrepreneurs: The risk that comes with starting any new venture is much lower when you have a proven business model and an in-demand product.

But there’s a caveat—many big-name franchises are notoriously expensive. Fortunately, there are options, and buying into a successful, established brand won’t break the bank. Though brands like McDonald’s or Pizza Hut may be out of reach, it’s possible to own a smaller—but just as lucrative—franchise for less than the cost of a sports car.

A low-cost franchise is a sound choice for a first-time franchisee. In general, it’s less-risky—you don’t need a fat savings account to get things moving. In return, you’re still getting the same kind of strong, time-tested model that’s sure to be worth the initial investment.

According to Franchise Business Review, low-cost franchises, such as AdvantaClean, Miracle Method and Best in Class, offer a variety of benefits: Faster potential profitability, the opportunity to work at a home-office base and increased flexibility, as many low-cost concepts don’t necessitate owners being present at a particular location for a set period of time.

“If you’ve already started researching franchises, then you already know how expensive it can be. Low-cost franchises, however, are a financially viable way for you to own your business. Less debt, combined with lower start-up costs, can result in faster profitability,” Emma Pearson said in the Franchise Business Review. “This is just one of the many added perks drawing entrepreneurs to this savvy business option.”

Mosquito Joe* allows its franchisees to succeed in business without a big investment. With costs significantly lower than most franchises, particularly due to low initial staffing needs and no necessity to build out a retail space, the company is a popular choice for budding entrepreneurs. With an initial investment of $83,000, franchisees get to license the company’s name for 10 years alongside comprehensive training and support, marketing supplies, equipment and a vehicle.

After spending three years full-time in the military, Benjamin Grace returned home to Flowery Branch, Georgia looking for a way to break into a new line of business without putting his family’s finances at risk. After spending an afternoon researching low-cost franchise opportunities, Mosquito Joe popped up on his computer screen.

“I immediately called up Mosquito Joe because they presented themselves exactly that way—as a low-cost franchise filled with immeasurable potential. I opened the business with little trouble on April 2015, and we’ve been busy every single day since then,” Grace said.

Kitchen Solvers is another company that offers one of the most competitive franchise and royalty fees on the market—and they’re successful at what they do. The brand believes that there is a fine balance between investing too much money at the start of a franchise, and getting something so cheap that a potential franchisee would have been better off starting a business from. Kitchen Solvers found that balance, offering low-cost kitchen franchises with a proven track record for success. With a fee of $35,000, Kitchen Solvers is $5,000 cheaper than other kitchen remodeling franchises on the market.

Showhomes was recently named one of the top 50 low-cost franchise opportunities in the marketplace based solely on assessments from actual franchise owners. The low-cost start up investment for Showhomes starts at only $45,300 and yields some of the highest revenues in the home staging sector. According to Matt Kelton, the COO of Showhomes, the company is a great opportunity for individuals looking for a flexible career path that is also fulfilling as well as cost-effective.

“Our sustained growth is a direct outcome of our passionate franchisees that see the value in a lucrative career with low start-up costs,” said Kelton.