Franchise Spotlight: Low Cost
Some franchises can be launched for an outlay much smaller than the cost of buying a used car.
Whether they lack funds or simply want to minimize their financial risk, franchise seekers on a tight budget have plenty of options.
The low cost franchise category shines a spotlight on business opportunities with minimum investments, ranging from 5%-50% of the average price of a used car.
In return, you get the right to trade under a well-established brand, following a tried-and-tested formula and backed by the resources and purchasing power of a multi-unit network.
So, what variables influence the investment level required to buy and launch a franchise?
It depends on the value of the assets needed to get the business up and running – chiefly whether premises, inventory, expensive equipment, and additional employees are required.
Low cost franchises often provide online, van-based or professional services.
However, franchisors might also subsidize franchisees’ start-up costs because they’re confident that they’ll build a profitable business that generates recurring royalties.
Franchise market analysis
For a minimum investment of around $1,000, Milagro CBD Oil offers a super-cheap chance to distribute a product with a burgeoning industry growth rate due to its perceived health benefits.
Costing at least $5,000 initially, The Savvy Owner, is a digital marketing franchise that promises flexible working hours in a recession-proof field, and Healthy Break Systems, which installs vending machines containing healthy snacks in high-footfall sites like shopping malls, office buildings and universities.
Young Engineers ($6,000) teaches STEM subjects to children through the inventive use of LEGO bricks and similarly creative toys, Speaking Roses ($9,000) inscribes flowers and edible products with personalized messages, and SuperGlass ($9,500) provides a windshield repair service in several countries.
Finally, pitched at a minimum investment of circa $10,000, are carpet cleaning franchise Kwik Dry Total Cleaning, and digital sector franchises iOB Business (digital agency), Eazi-Apps (app development) and Eazi-Sites (website development).