You may find starting your own franchise business daunting, especially when considering the associated costs and risks. Franchises, however, offer a proven model with established brand recognition, which makes them attractive options for aspiring entrepreneurs. But what if you’re on a tight budget? In this guide, we’ll show you how to find cheap franchises to open, which low-cost franchises are worth your investment, and what benefits they can bring to your entrepreneurial journey.
When evaluating franchise opportunities, affordability is key, but “cheap” can be a relative term. For this article, we consider “cheapest” to be franchises with an initial investment under $50,000. These franchises typically have lower franchise fees and minimal startup costs. Several of these companies are mobile, home-based, or franchise business without physical storefronts.
Low-cost franchises are ideal for:
First-time entrepreneurs looking for an affordable entry into business ownership.
Investors want a side hustle with flexible hours.
People seeking a business model with lower risk and simpler operations.
You can open some of the cheapest franchise business in 2024 by following the steps below. The following table outlines franchise fees, capital investment costs, and unique selling points so you can decide which one is right for you.
Franchise Fee: $3,600 - $69,000
Initial Investment: $4,450 - $79,750
Royalty Fee: 1% – 3% of gross sales
Type of Franchise: Commercial Cleaning
Start-up Costs: $15,000
Franchise Units: 1,440+ (U.S. and International)
Financing Available: Yes
Employee Requirements: Owner-operator or hire staff
Franchising Funding Assistance: Available
The Stratus Building Solutions business model is an excellent choice for entrepreneurs seeking to enter the commercial cleaning industry at a low cost. The start-up costs are flexible and there are a number of franchise models available, so you can scale your investment according to your budget. Due to the brand's reputation for eco-friendly cleaning solutions, this franchise offers both profitability and growth potential.
Franchise Fee: $695
Initial Investment: $2,095 - $23,367
Royalty Fee: 3% of sales
Type of Franchise: Travel Agency
Start-up Costs: $10,000
Franchise Units: 2,500+
Financing Available: Yes
Work Type: Home-Based
Support Provided: Extensive training, marketing support
Cruise Planners is one of the most affordable franchise opportunities to buy, with a low franchise fee and initial investment. Businesses run from home don't have overhead costs. Earn commissions on travel bookings and enjoy a flexible schedule with this franchise.
Franchise Fee: $495 - $9,800
Initial Investment: $3,245 - $21,850
Royalty Fee: 3% - 6% of sales
Type of Franchise: Travel Agency
Start-up Costs: $5,000
Franchise Units: 1,500+
Financing Available: Yes
Work Type: Home-Based
Dream Vacations is great as a home-based travel agency franchise. Dream Vacations operates just like Cruise Planners. Dream Vacations offers low franchise fees, flexible work hours and high commission potential for travel enthusiasts.
4. Jazzercise – A Fitness Franchise That Won’t Break the Bank
Franchise Fee: $1,250
Initial Investment: $2,500 - $30,500
Royalty Fee: 20% of gross revenue
Type of Franchise: Fitness
Start-up Costs: $10,000
Franchise Units: 8,300+ globally
Space Needed: Minimal space (could be your own home or a shared gym facility)
Franchisee Support: Business training, marketing materials
Jazzercise offers a fun and affordable fee to enter the health and wellness franchise industry. The company is well known for its innovative fitness programs and low initial investment. Jazzercise offers flexibility and low overhead costs so you can plan to conduct classes at home or at a local gym regardless.
Franchise Fee: $2,245
Initial Investment: $2,245 - $53,200
Royalty Fee: 10% of gross revenue
Type of Franchise: Commercial Cleaning
Start-up Costs: $15,000
Financing Available: Yes
Franchisee Support: Training, business development
Buildingstars is at the forefront of the commercial cleaning industry. Their franchise fee is low so you can easily enter their franchise. It offers flexible investment options, strong support and scalability. Cleaning services are always in demand. It is a reliable and economical choice for budget-conscious entrepreneurs.
Franchise Fee: $5,000
Initial Investment: $9,910 - $31,000
Royalty Fee: 8% of gross revenue
Type of Franchise: Auto Repair
Start-up Costs: $15,000
Franchise Units: 300+ globally
Work Type: Mobile business – no office space needed
Support Provided: Business training, ongoing support
If you are looking for a low startup cost franchise, then Superglass Windshield Repair is a great franchise for you among mobile business franchises. Specialists in glass and windshield repair. This franchise can be run as a one-person operation, or scaled with a team. With no need for a physical location, you can keep costs low while tapping into high-demand services.
Franchise Fee: $1,250
Initial Investment: $1,250 - $50,000
Royalty Fee: 10% of gross revenue
Type of Franchise: Commercial Cleaning
Start-up Costs: $15,000
Franchise Units: 9,000+
Work Type: Home-Based or physical location
Support Provided: Initial training, marketing support, business development assistance
Jan-Pro is one of the fastest growing cleaning franchises, as they are one of the low cost franchises. Their fees are extremely low, plus they offer extensive support and a proven business model. They take the job seriously with a focus on cleaning and sanitizing. This is a stable and reliable franchise opportunity, especially in a post-pandemic world.
Franchise Fee: $15,000
Initial Investment: $98,350 - $293,500
Royalty Fee: 7% of gross revenue
Type of Franchise: Electronics Repair
Start-up Costs: $30,000
Franchise Units: 600+
Space Needed: Small retail space (1,000 – 2,000 sq. ft.)
Support Provided: Business training, technical support, marketing
As technology becomes more integrated into everyday life, technology repair services are in high demand. The uBreakiFix franchise is for you if you want to run this kind of business. uBreakiFix repairs phones, tablets, and other electronics. Franchisors can profit from their high growth potential.
Franchise Fee: $49,000
Initial Investment: $112,750 - $149,110
Royalty Fee: 10% of gross revenue
Type of Franchise: Education and Tutoring
Start-up Costs: $60,000
Franchise Units: 1,000+ globally
Support Provided: Business training, education support, marketing
Mathnasium is a great franchising business opportunity for those who are passionate about education and helping students thrive. With over 1,000 locations worldwide, Mathnasium has a business model and provides extensive support to its franchisees.
Lower Initial Investment: Low-cost franchises typically require less capital.
Brand Recognition: Franchises have built-in brand recognition, making customer acquisition easier.
Proven Business Model: A proven business model reduces failure risks.
Ongoing Support: Franchises provide marketing, ongoing training, and operations support, making it easier to succeed.
Scalability: Low-cost franchises often offer the opportunity to expand.
Franchise opportunities go beyond their brand names and initial investments. Ensure that the opportunity aligns with your long-term business goals by understanding every aspect of the business model. Assessing the financial potential, and assessing the financial potential. Here are some tips for evaluating franchise opportunities effectively:
Understand the Franchise Disclosure Document (FDD)
The FDD provides a comprehensive view of the franchisor’s business, including initial and ongoing fees, legal obligations, and revenue projections. Focus on Item 7 for an estimated initial investment breakdown and Item 19 for financial performance representations, which show the average sales and profitability of existing franchise units.
Analyze Initial and Ongoing Costs
Consider more than just franchise fees. Confirm your account for all costs, including equipment, inventory, real estate and royalty fees. Get a clear picture of both the start-up costs and the ongoing costs.
Evaluate Brand Strength and Market Demand
Research the brand’s market position, reputation, and customer perception. Consider whether the brand has a competitive edge and strong consumer loyalty in your target area.
Assess the Franchisor’s Support and Training
Franchisor support can significantly impact your success. Check what type of initial training, ongoing support, and marketing assistance the franchisor provides. A strong support system can help bridge gaps in experience or knowledge.
Speak with Existing Franchisees
Current franchise owners can provide valuable, real-world insights. Ask about their experiences, satisfaction with the franchisor’s support, and profitability. This step helps validate the franchise’s promises and gives you a clearer idea of potential challenges.
Research Competition and Market Saturation
Investigate the competitive landscape at the location of your choice. It is possible to limit your growth potential if your market is saturated or too competitive. Identify underserved markets or niches.
Calculate the Potential Return on Investment (ROI)
Determine how long it will take to break even and start generating profit. Evaluate the average revenue, profit margins, and estimated payback period based on data from existing franchises.
By following these steps, you can thoroughly evaluate a cheap franchise opportunity and make a more informed decision on whether it’s the right investment for you.
Cheap franchise selection depends on your budget, interest, and goals. You should carefully evaluate each low-cost franchise opportunity, since there are so many to choose from Find a franchise that aligns with your expertise and provides strong support.