Are you curious about what is the cheapest franchise to start? Franchising is a thriving industry in the United States. It has an average revenue of over $2.1 trillion. Moreover, it employs 18 million Americans since it nearly accounts for 4% of all small businesses. Overall, this sector is ripe with opportunities.
However, for many aspiring entrepreneurs, the question remains: what is the cheapest franchise to start? To answer this question, we will explore 8 options that offer low-cost entry into the franchising business.
What Are the Benefits of Opening a Business Franchise?
Many of us plan to start a business. While some can bear the initial costs of starting a business, others can’t. Additionally, there are lots of challenges to keep a business running. For the following reasons, opening a franchise will be better than starting a new company from scratch,
Capital
Starting a business can be costly and time-consuming. With a franchise, you will know what equipment to get. This can save you time and effort. Plus, some franchises help you connect with lenders. So, it will be easier to get funding.
Low Risk
Worried about making a profit? With a well-known franchise, customers already trust the brand. Therefore, you can effortlessly attract and keep them. More customers mean more money for you.
Branding
It is not easy to make logos and marketing materials. It can be complex and sometimes expensive. However, with a franchise, you can use the organization’s established branding. So, you can get rid of the hassle.
Assistance in Management and Marketing
Often, franchises have a corporate office. It handles things like marketing, management, and training. So, if you need assistance, you will have built-in support. This is one of the main reasons to open a franchise.
Discounts for Purchasing
Most of the time, franchises often get discounts on inventory and supplies. That is because they buy in bulk. Usually, these savings are passed on to franchisees. Hence, it will be cheaper for you to run your business.
What Is the Cheapest Franchise to Start - Let’s Start With These 8 Options
There are thousands of franchise options for you. It is not easy to pick the right one since it depends on various factors. You have to think about your preferences and skills. But if budget is your biggest concern, then you can choose any of the following franchises.
01. Techy - A Budget-Friendly Franchise for Tech Entrepreneurs
- Franchise Fee: Depends
- Initial Investment: Around $15,000
- Royalty Fee: 7%
- Franchise Type: Tech Business
Starting a Techy franchise is a smart move if you want to get into the tech business without breaking the bank. Techy is there to support you every step of the way. And because they know that every entrepreneur is different, they offer different franchise packages to fit your preferences.
- The TechHub Store Package: You get $10,000 worth of accessories and parts.
- The TechHub Device Package: Comes with $20,000 for product displays and $30,000 for parts and mobile devices.
- The TechHub Cafe Package: Gives you $30,000 worth of gadgets and parts, plus an extra $50,000 for furniture if you need it.
- The Wrapped TechHub Van: This one’s for those who want to run a mobile franchise.
When you partner with Techy, you will receive the following benefits,
- You will learn everything from scratch; no experience is required.
- Learn how to grow your business using the internet and other digital ways from a skilled marketing team.
- They have a huge warehouse packed with devices, tools, parts, and more. So, you will never run out of stuff to sell.
But wait, there’s more! Techy doesn’t just hand you the keys and wish you good luck. They give you a thorough training program. You will spend two weeks at Techy HQ, followed by a week of on-the-ground training. By the end of it, you will know everything to make your business a success.
02. Proforma - An Affordable Franchise with Promotional Products
- Franchise Fee: $0 (Depends)
- Initial Investment: Around $35,000
- Royalty Fee: 5% to 8% of Gross Volume
- Franchise Type: Promotion and Printing Products
Proforma has a net worth of around $150 billion in print and promotional products. It stands out in the B2B market for numerous reasons. Unlike other franchises aimed at consumers, Proforma’s startup costs are notably lower.
Another perk is that you don’t need a fancy storefront; you can run the business from home. Moreover, veterans get a 10% discount on franchise fees, which is a nice touch. And don’t worry if you are not an expert yet. The franchise training covers everything you need to know about the industry and its products.
03. Town Money Saver - A Reputed Advertising Company (+ Cheap for Franchising)
- Franchise Fee: $0
- Initial Investment: From $5,700 to $17,000
- Royalty Fee: Depends
- Franchise Type: B2B Advertising
Town Money Saver started small in 1992. Since then, it has been helping local businesses advertise in their community. Now, it has grown a lot, reaching millions of homes every month. Still, the goal remains the same: offering affordable advertising that gives local businesses a bang for their buck.
Starting a Town Money Saver franchise is super affordable. Just like Proforma, you don’t need fancy stuff like a storefront, inventory, or even employees. And guess what? The company takes care of all the nitty-gritty stuff. As a franchisee, you don’t need to worry about accounting, design, printing, mailing, or digital services.
04. Stratus Building Solutions - A Profitable Franchise That Requires a Small Budget
- Franchise Fee: From $3,600 to $69,000
- Initial Investment: From $4,450 to $79,750
- Royalty Fee: 5%
- Franchise Type: Commercial Cleaning
Usually, starting a commercial cleaning company means buying lots of equipment, which can be pricey. But if you open a Stratus Building Solutions franchise, you don’t have to worry about that. They offer two types of franchises that fit different goals.
- Janitorial Unit Franchise: Perfect if you want to start small with low upfront costs and plenty of support.
- Master Franchise: Good if you are a business pro looking for a bigger opportunity to make a positive impact in your community.
Stratus Building Solutions is operating in 71 major cities. They are supporting over 3,400 unit franchisees. Plus, they have received awards and recognition from Entrepreneur Magazine. They are known for having the lowest investment costs in the commercial cleaning industry. You will probably spend between $4,450 and $79,750 to get started.
05. Anago Cleaning Systems - A Great Cleaning Franchise for Cheap Opening
- Franchise Fee: From $4,590 to $32,348
- Initial Investment: From $1,000 to $21,000
- Royalty Fee: 10%
- Franchise Type: Commercial Cleaning
Anago Cleaning Systems is another company, like Stratus Building Solutions, that does cleaning. But while Stratus usually does one-time cleaning jobs for businesses, Anago focuses more on keeping offices clean regularly. Franchising with them can be a great way to start a business without spending too much money upfront.
Anago has been around for a while. It has over 1,500 franchises, including more than 50 outside the United States. They offer different packages, so you can start small. With their unit franchise opportunity, you can run your own business from home without quitting your current job.
06. Dream Vacations - A Cheap Franchise for Travelers
- Franchise Fee: Less than $10,500
- Initial Investment: Around $9,800
- Royalty Fee: From 1.5% to 3%
- Franchise Type: Travel and Tourism
If you are passionate about traveling and want to turn it into a career, consider opening a Dream Vacations franchise. To start up, you will need to spend only $9,800. This includes six days of training at their headquarters in Florida. Plus, they will help you set up your website and give you software for booking and invoicing.
Dream Vacations has been around since 1991. Now, they have over 1,200 franchisees across the nation. One of the notable examples of a Dream Vacations franchise is Alex Greene. She started this franchise in 2017 without any previous experience. Now, she is on track to make over $1 million in sales this year.
07. United Country Real Estate - An Affordable Franchise to be Something Big
- Franchise Fee: $35,000
- Initial Investment: $15,000
- Royalty Fee: From $1,200 to $2,400 per month
- Franchise Type: Real Estate
United Country Real Estate is one of the oldest real estate franchises in the US. They are all about selling rural, country, and lifestyle properties. If you want to join them, it will cost you $15,000. After joining, you will get a year’s worth of training to help you get your office set up.
What’s more, there is a library of training tools you can access whenever you need them. Plus, you can learn from live webinars. Instead of just selling a place to live, they focus on selling a whole lifestyle. Thus, your knowledge will extend beyond real estate sales.
08. Complete Weddings + Events - Cheap Franchise with Essential Training
- Franchise Fee: $40,000
- Initial Investment: $10,000
- Royalty Fee: 8%
- Franchise Type: Event Planner
The company’s founder, Jerry Maas, started as a DJ at the first Complete Weddings + Events wedding in 1974. Eventually, he began franchising in 1983. Did you know weddings make up a huge $72 billion industry each year? With this franchise, you can be a part of it.
For just $10,000, you will get training and ongoing support to assist couples with everything they need for their big day. Complete Weddings + Events will teach you how to hire DJs, photographers, videographers, and other relevant professionals. You will learn how to set your prices and stay up-to-date with wedding costs in your area.
In Closing
It is a major decision for any aspiring entrepreneur to choose the right franchise to start. While cost is a crucial factor, it is also essential to consider brand reputation, support, and market potential. Now that you know the 8 affordable franchise options, you can take a step towards building your own successful business.
Remember to thoroughly research each opportunity. Also, you should weigh the pros and cons. Go with a cheap franchise that best suits your goals and values.
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