Budget Businesses: The Value of Low-Cost Franchises The benefits of affordable business opportunities that don't break the bank.
This story appears in the September 2022 issue of Start Up.
One of the biggest myths about franchises is that they're prohibitively expensive. In fact, the reality is quite the opposite: Franchises are available at every price point. Yes, big-name legacy brands like KFC, 7-Eleven and Planet Fitness can require initial investments above $1 million. However, many valuable concepts cost considerably less to own and operate. Indeed, low-cost franchise brands are a wise option for entrepreneurs looking to get into the franchising industry — and there are several advantages to going the budget route.
Related: The 25 Best Franchises You Can Buy for $25,000 or Less
Newcomer nirvana
If you don't have millions in the bank, or maybe even a half-decent nest egg, you can still find many franchise concepts that command a lower investment level — and that could be a wise and practical way to get started. These franchises typically have operational requirements that are far less labor- and resource-intensive than high-profile brands. As a result, running a low-cost franchise gives owners the chance to be a big fish in a small pond — which isn't a bad place to begin building an enterprise.
Related: 24 Top-Ranked, Affordable Franchises You Can Buy for $25,000 or Less
Smaller size, same benefits
As opposed to starting a business from the ground up or buying an existing company in a resale opportunity, franchises offer entrepreneurs the ability to start with established and proven business models that offer owners a roadmap to success — that is, provided they follow through. But regardless of whether you invest in a big-name brand or a low-cost budget franchise, the operating systems provided to owners are essentially the same. Even the most affordable concepts offer proven systems, tools, and resources. In fact, for the most part, even with a lower-cost franchise, you can expect the same level of training and ongoing support that a more expensive franchise offers — and possibly even more.
Less hassle equals less risk
Many low-cost, affordable franchise concepts aren't exactly complex operations. Many don't require an established brick-and-mortar location, a massive inventory of supplies or even a large staff. Some low-cost franchise concepts are home-based; others are mobile operations. Together, these factors help lower overhead operating costs. Not only does this reduce the number of obstacles to franchisees, but it also significantly decreases the overall risk of time, money, and resources put into the venture.
Related: 5 Ways to Build a Business Budget for Maximum Success
No matter the cost of the business, finding the right franchise opportunity still requires due diligence. Franchisees should search for a concept that matches their goals, lifestyle requirements, and desired income-generating potential. But as you search, don't forget that entrepreneurs can easily find viable opportunities in low-cost franchises — ones that require less capital, fewer resources, and a reduced amount of risk to your investment, while still letting you be your own boss.
