Franchise Spotlight: Low Cost
Franchises requiring no stock, premises, or employees usually have the lowest start-up costs.
Whether you have modest savings or want to minimize your financial risk, low-cost franchises offer an inexpensive path to business ownership, with extensive support and an established business model.
Franchise opportunities are generally available in a wide range of investment levels, from four-figure to six-figure sums. The financial requirements depend on if franchisees need expensive assets such as premises, employees, stock, and sophisticated equipment.
Some franchise sectors require few or none of these, particularly those delivering online, professional, or van-based services.
However, in some cases, franchisors might subsidize certain start-up costs, as franchisees will pay their way in the long run through ongoing royalties.
So, this flags other financial considerations for aspiring franchisees: ongoing royalties and overheads, supplier prices, and the business model’s profit-making potential.
Whatever the franchise fee, start-up costs or working capital required, you still need to do your market research, both into the franchise itself and the wider industry trends and statistics. Is the business model geared for success and will you receive all the training and support you need?
Franchise market analysis
Few franchise investments are as low as Milagro CBD Oil’s cheap ‘home seller’ tier, costing around $1,700 but including approximately $4,000 worth of stock for a hemp-derived product that is enjoying soaring global sales owing to its perceived health benefits.
On the other hand, digital agency franchise iOB Business offers a minimum investment of $7,000, while Children’s education franchises Young Engineers and Algorithmics come in atrespective minimums of $6,000 and $10,000.
For Speaking Roses, which prints personalized images and messages onto fresh flowers, the figure is $9,000.
Finally, concrete edging specialist Kwik Kerb, and Eazi-Apps and Eazi-Sites, which create mobile apps and websites respectively, have a minimum investment of $10,000.