Franchise options can be as low as $2,000.
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Franchising a business may be the right way for you to realize your dream of becoming a business owner without a startup’s inherent risk. According to data from the Bureau of Labor Statistics, as reported by Fundera, about 50 percent of businesses fail by the end of the fifth year. By the end of the decade, that number rises to 70 percent. In contrast, a study of 2019 U.S. Census data suggests two-year franchise survival rates being around seven percent higher than that of independent businesses. Part of the franchising model’s success is that it allows you to profit from a franchisor’s proven business model and brand power while owning your own business.
Franchises today have evolved from expensive bricks-and-mortar companies to innovative businesses in almost every industry. If you prefer a more traditional route, a well-known brand costs upwards of $50,000, but recently there has been an emergence of less expensive franchising options. If you’re looking to purchase a franchise at a lower price point, you have options in various industries. Whether you have a year’s worth of extra savings set aside, severance from a previous employer, access to startup capital or the opportunity to leverage government funding, you don’t need to break the bank to get started.
These six emerging low-cost franchise areas have many great business opportunities to explore:
Many people dream of opening a restaurant, but that can be risky and extremely expensive. Today we see new franchisees gravitate towards food trucks, food stands and even food delivery. One particularly appealing option for many is franchising vending machines, which can require an investment as low as $2,000.
Related: 5 Affordable Restaurant Franchises You Can Start for 5 Figures
2. Home improvement and maintenance
If you have skills around the home, home improvement and maintenance franchises may be the right fit for you. These franchise businesses have come a long way from the stereotypical college painters. Pool services, landscaping, repairs and upgrades, cleaning and even blinds and flooring are among the more popular options available.
3. Pet care
If you have a passion for our furry friends, pet care franchises are booming. According to U.S Census Bureau data from 2017, sales of pet care services have doubled over the past decade. You can explore franchises for pet sitting, grooming, training, and even pet food and nutrition in the area.
4. Educational services and children
Suppose you have a strong background in education or a passion for working with children. In that case, you can explore tutoring, babysitting, nannies or enrichment activities like piano, STEM education or art programs delivered to the client’s home or a third-party facility.
Related: What is the Future of Online Education?
5. Business advisory
People who leave the corporate world often would still like to use their business acumen and continue working in the setting — but on their own terms. Many franchises deliver business coaching, leadership development or even enable you to open your own professional services firm for recruitment or staffing. Depending on the franchise model you pursue, startup costs can range from $25,000-$50,000.
6. Fashion and beauty
If you prefer to completely depart from the corporate world and enjoy fashion and beauty, there are a growing number of franchise businesses that may interest you. Some ever-increasing areas are large consignment events, eyelash extensions, blow dry and makeup artist at-home services and even portable spray tans.
As with all investments, franchise opportunities can be inspiring and very profitable — but do your homework first. Talk to existing franchisees, run the numbers and do a gut check to ensure you are up for the challenge. Also, be sure to always have a plan. Giving up a 9-5 job doesn’t mean less hard work, as working for yourself usually means more hours. However, there is something rewarding about being your own boss that makes the hours go quickly and the hard work worthwhile.
If you’re interested in exploring more low-cost franchise ideas, check out this comprehensive list based on Entrepreneur’s Franchise 500.
Related: 5 Brand-New Food Franchises That Started Franchising in 2020