10 Cheapest Franchise Own & Best Way To Finance A Franchise

2) Cruise Planners

Initial investment: $2,095 to $23,367

Fee: $10,995

Cruise Planners is a vacation planning franchise targeting those who work from home but love to travel. The company sells full-service packages, including trip insurance and car rentals for land-based trips and cruises.

The cost is $10,995 to buy a franchise, but this includes an in-person training class for six days in Fort Lauderdale, Florida. Cruise Planners also provides franchisees with home office help and $1 million in insurance coverage. This franchise is hard to beat for hands-on entrepreneurs who love to travel.

3) Property Management Inc.

Initial Investment: $21,250 to $106,800

Fee: $15,000 to $45,000

For homeowners, renting has become both a trend and a reliable source of income, and over 35% of U.S. citizens rent out their homes. This rising trend creates an opportunity in the property management industry, where the Property Management Inc. franchise comes in. Property Management Inc. runs over 200 franchise locations across 40 states, and they offer marketing, technology, and training solutions to interested franchisees.

Entrepreneurs without experience in property management do not need to worry. Property Management Inc. provides full training as required.

Both existing property owners and those new to the industry find that Property Management Inc. presents an excellent example of how to build a lucrative property management business.

4) TSS Photography

Initial Investment: $10,500

Fee: Print production costs (costs vary)

TSS started in 1983 and franchised in 1984, meaning they have built an excellent reputation over time. The foundation of the business is school and sports team photos; for $10,500, franchisees receive training in photography, business and sales tips, and help with daily operations.

Additionally, TSS does not charge its franchises a standard royalty per month. Instead, TSS makes its profits on the markup of printing and products.

Entrepreneurs with a passion for photography who are looking for a professional franchise should look no further.

5) Mosquito Squad

Initial investment: $17,050 to $79,425

Fee: $15,000 to $32,500

Mosquitos are a pesky annoyance, and some even carry diseases. However, some companies, such as Mosquito Squad, are dedicated to controlling these insects and have succeeded in the industry.

Established in 2009, Mosquito Squad now has over 200 franchise locations, creating $50 million in sales. Plus, Mosquito Squad uses third-party lender relationships to help with financing, and their franchise fee is inexpensive.

6) Jazzercise

Initial investment: $2,500 to $38,000

Fee: $1,250

Jazzercise’s creation goes back to 1969, but it is one of the most affordable options on the list. Instead of featuring 80s music, Jazzercise follows the healthy trend of dance and exercise classes.

A leading fitness franchise opportunity, Jazzercise requires an initial investment and asks entrepreneurs to find their ideal location. However, the franchise fee is low.

7) United Country Real Estate

Initial Investment: $15,000

Fee: $1,200–$2,400 per month

United Country Real Estate focuses on rural, country, and lifestyle properties. While many real estate companies focus on their client’s needs, the experienced franchising organization markets a particular lifestyle synonymous with ranching, hunting, fishing, and small-town living.

When franchisees invest, they receive entrance into a yearlong training program. They also have access to live web-based training and a library of tools available on-demand.

8) Motto Mortgage

Initial Investment: $47,800 to $68,100

Fee: $12, 500

Motto Mortgage’s goal is to make shopping for a mortgage a more pleasant task. Since 2016, the franchise has been linking real estate agents with loan originators to create a smoother experience for homebuyers.

Each Motto Mortgage office is independently owned. In addition, the investment gains franchisees access to three days of a broker-training program in Denver and access to a design center for marketing materials.

9) Dream Vacations

Initial investment: $3,245 to $21,850

Fee: $495 to $9,800

Dream Vacations started in 1991, and the at-home travel agency has been specializing in vacations on land and sea.

Paying the fee sets franchisees up with six days of training in Fort Lauderdale, Florida, along with tips on website design, access to software for booking and invoices, and ongoing business support.

Many entrepreneurs who are passionate about travel have bought a Dream Vacations franchise and enjoyed the profits.

10) Pillar to Post Home Inspectors

Initial investment: $36,350

Fee: $21,900

Pillar to Post Home Inspectors presents another affordable option for interested franchisees. Formed in 1994, Pillar to Post is the preferred home-inspection company by many real estate partners across the country.

When franchisees join Pillar to Post Home Inspectors, they enjoy an excellent work-life balance combined with a trusted business model.

Financing Options: What is the best way to finance a franchise?

Although starting a new company from scratch can be overwhelming, purchasing a cheap franchise can be an affordable and promising choice for entrepreneurs.

Multiple financing options make it easier to afford to buy a franchise. For example, many entrepreneurs apply for small business loans to finance the cost of franchising a company.

Lenders tend to feel more comfortable supplying funding to a franchisee than a brand-new company since there is already an element of success. Here are five funding sources for new franchisees.

Franchisor Financing

Before speaking to anyone else about a loan, the individual should contact the franchisor. The franchisor, whoever it is, has been through this process before and can help offer guidance. They also may be able to link the franchisee up with lenders they have used before or tap into internal funding options. For example, Mosquito Squad offers internal financing options to qualified individuals.

However, we recommend comparison shopping with outside lenders as well. The goal is ultimately to obtain the best possible rates and terms for the loan.

Family and Friends Loans

Some entrepreneurs who are seeking a franchise appeal to friends and family. The benefits include paying less loan interest and often a more extended repayment schedule. In addition, friends and family members usually know and trust the entrepreneur and are willing to take more of a chance on an individual they trust.

However, there are risks to involving family or friends in a business’s finances. Loans like this can result in strained or damaged relationships among those who used to be close, so proceed with caution. Carefully document the repayment expectations and the loan itself just in case problems develop. This documentation will also be helpful if the franchisee wants to deduct the loan interest on their tax return.

Traditional Loan

Term loans are the traditional option for franchisees. A set amount of capital is obtained from the lender, then paid back—plus interest—over time and based on a fixed schedule.

Many franchisees seek out these loans because of their simplicity. However, they are not easy to get. However, some loans do have restrictions that limit funding for franchises. Therefore, it makes sense to be transparent with lenders about what the money is used for before signing anything.

Also, some lenders may balk at a franchisee’s lack of experience or business history, making term loans challenging to procure.

SBA 7(a) Loans

The U.S. Small Business Administration runs several loan programs, and SBA loans are famously popular. These loans are constantly in-demand due to their low-interest rates and extended repayment terms. However, the application process is arduous and selective.

Although SBA 7(a) loans are an excellent choice for franchisees, those applicants with bad credit or a brief buying timeline should look elsewhere. Those applicants who qualify will receive a loan applicable to business acquisitions and franchise purchases.

Equipment Financing

Think of equipment loans as similar to automobile loans: the quality and price of the equipment dictate the size and terms of the loan.

These loans are available to purchase computers, cars, machinery, and other business equipment, and borrowers generally have fewer personal collateral requirements.