Cheapest Franchise to Open

Cruise Planners

Franchise fee: $10,995

Preliminary investment: $2095 to $23,367

One of the cheapest franchise to open is Cruise Planners. Do you dream of operating a travel company? If so, you should think about Cruise Planners, which is connected to American Express. This is a very popular cruise planning company in the United States. Now for the great news: an individual can run their Cruise Planners franchise from home, which makes the preliminary investment one of the lowest out there.

Fit4Mom

Franchise fee: $5495 to $10,495

Preliminary investment: $6205 to $24,285

Another low cost franchise to open is FitfMom. This franchise grew from the popular fitness program for mothers of young kids, known as StrollerStrides. It offers franchising opportunities across the country, boasting flexible scheduling and low startup costs. By becoming a franchisee, fitness instructors may conduct their own Stroller Strides classes, Body Back classes, Stroller Barre classes, Fit4Baby classes, and Fit4Mom Run Club. You may lead the classes within your own neighborhood and on a schedule that works for you.

Chem-Dry

Franchise fee: $23,500

Preliminary investment: $56,495 to $162,457

Personal financials: $50,000

A low cost franchise to open is Chem-Dry which installs carpet. Chem-Dry Installs an average of 10 billion square feet of carpet every year. The company was founded in 1977 with the purpose of cleaning and maintaining carpets. Ever since, they have been known to support their franchisees build successful businesses.

The costs associated with becoming a franchise owner very according to an individual’s equipment purchases at the beginning. Some people have managed to start their business for a meager $56,495, which includes the franchise fee. Luckily, if you are interested in opening one of these franchises and require assistance with the preliminary investment, Chem-Dry offers financing options to get you started.

Jazzercise

 Franchise fee: $1250

Initial investment: $2500 to $38,000

A fun and cheapest franchise to open is Jazzercise. Jazzercise, founded in 1969, is no longer associated only with 80s music and like warmers. This business is responsible for the dance party craze and has been making a modern comeback with exercise and dance classes. To purchase a jazzercise franchise, an individual will need to make a preliminary investment, identify the perfect location, and work on their dance skills. With a low initial investment and franchise fee, this is one of the most affordable franchises on the list.

Stratus Building Solutions

Franchise fee: $2700 to $100,000

Preliminary investment: $3450 to $100,000

Personal financials: $5000 to $10,000 minimum net worth, as well as $2000 to $20,000 cash

Another cheapest franchise to open is Strata Building Solutions. The purpose of this franchise is to bring environmentally safe solutions to the janitorial services in office buildings, restaurants, retail malls, and more. The franchise began in 2006, and in 2017, established a further 91 units.

The company offers potential franchisees 2 choices for purchasing an affordable franchise: executive or regional master and unit. Both of these choices are fairly affordable, but for those individuals with not much money available to invest, the cheaper unit-level ownership is particularly attractive.

If you are interested in beginning at a greater level of investment, the company offers financing options to assist with the preliminary equipment, fee, inventory, and additional startup expenses.

SuperGlass Windshield Repair

 Franchise fee: $5000 to $17,500

Preliminary investment: $18,685 to $84,205

Personal financials: $15,000 minimum net worth, as well as $15,000 cash

One of the many low cost franchises to open is SuperGlass Windshield Repair. Almost any new business owner, with only a few weeks’ training, can develop the skills to become a franchise owner of SuperGlass Windshield Repair. The company has locations across the world and is among one of the cheapest franchises to purchase. The company focuses on offering mobile services, which has allowed it to cater to customer demands and keep overhead costs minimal for franchisees.

Mosquito Squad

Franchise fee: $15,000 to $32,500

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

Although not the lowest cost franchises, Mosquito Squad is cheap franchise to open. Everyone can agree that mosquitoes are annoying, and they can even be dangerous for your health. Believe it or not, dealing with pest control can be your path to a successful business.

Started in 2009, this company is one of the most recognizable brands in the pest control industry. It has established more than two hundred franchise locations and raked in $50 million in sales. The franchise fee is inexpensive, and the company has relationships with third-party lenders to help franchisees with financing.

Pillar to Post Home Inspectors

Franchise fee: $21,900

Preliminary investment: $36,350

A low cost franchise to start is Pillar to Post Home Inspectors. An affordable franchise opportunity for new entrepreneurs, Pillar to Post Home Inspectors boasts over five hundred franchises in the United States and Canada. Founded in 1994, the professional home inspection company has become the top brand in its field and is the preferred option among real estate partners. By joining their team, you can enjoy the perks of an established  business model and a healthy work-life balance.

Property Management Inc.

Franchise fee: $15,000 to $45,000

Preliminary investment: $21,250 to $106,800

On the higher cost spectrum but still a cheap franchise to open is Property Management. Over 1/3 of United States residents rent their homes instead of owning them. The increasing number of rental properties and tenants indicates a fantastic opportunity for the property management industry.

Property Management Inc. operates over two hundred franchise locations in over 40 states. It provides the training, marketing solutions, and technology that franchisees need to thrive. Luckily, you do not even have to be a property management whiz, because the company offers extensive training.

Whether you are brand new to the field or are a current property manager looking to expand the scope of your business, becoming a franchisee supplies you with a legitimate model to establish your property management business on.

Soccer Shots

Franchise fee: $34,500

Preliminary investment: $41,034 to $53,950

A low cost franchise to open is Soccer Shots. If you love fitness, kids, and being outside, this franchise could be the perfect solution for you. Two former pro soccer players founded the company in 2005, and as of last year, there were more than a quarter of a million children in youth soccer programs. Impressively, the company is continuing to expand at a sixty percent rate each year.

The franchise offers franchisees internal financing to assist with fees. The company has geographic limits, but there are plenty of franchise locations in the western and central United States.

Dream Vacations

Franchise fee: $495 to $9800

Preliminary investment: $3245 to $21,850 

One of the cheapest franchise to open is Dream Vacations. Another affordable franchise travel agency is Dream Vacations, which an individual can operate out of their own home. The company offers excellent training, so the entrepreneur will be able to get their business up and running without any trouble. The company also offers discounted vacations and trips to their franchise owners so they may truly appreciate the experiences they are selling.

Lil’ Kickers

Franchise fee: $15,000

Preliminary investment: $25,000 to $35,000 

Although higher startup cost, Lil’ Kickers is a cheap franchise to open. Lil’ Kickers is a soccer program for young children that offers a low-cost franchise opportunity for entrepreneurs. The company also advertises their locations as community Centers for children. This opportunity is ideal for entrepreneurs who are experienced with children or would simply like to give back to their community.

What can you expect from buying a franchise?

While purchasing a franchise is not for everybody, there are certain advantages over creating a startup. First, a franchise enjoys both an established customer base and brand. The franchiser, otherwise known as the parent company, has completed much of the hard labor, including creating the company concept, developing marketing materials, and creating the logo. Your purpose, as the franchisee, is to step in and perform the daily operations involved in owning the business.

As is the case with any company, you will require capital to purchase a franchise. Each franchise demands a certain amount of money upfront, as well as a continuous investment of time and money.

When you buy a franchise, you should consider four primary cost parameters:

• Franchise fee: almost every franchise will require the owner to supply an upfront, one-time franchise fee.
• Preliminary investment: an owner’s initial investment will pay for the labor, materials, as well as resources that are needed to launch. This investment includes the franchise fee.
• Continuing investment: this is the capital an individual needs to continuously operate the franchise.
• Personal finances: some franchises want the owner to possess a certain net worth prior to purchasing a franchise. Some others might have requirements regarding liquidity.

The initial investment, personal finance requirements, and franchise fee are usually the greatest challenges for most individuals interested in purchasing A franchise. When these are tallied, major franchises such as McDonald’s involve initial fees of over $1,000,000. That said, there are certainly affordable franchises across diverse fields, such as fitness, travel, and cleaning. In fact, there are affordable franchise opportunities that can be run as at-home businesses.

It is absolutely possible to purchase an affordable franchise. However, affordable franchises are usually less recognizable. Thus, your profits from the company may not be substantial. Prior to exploring one of these options, be sure to do research, look over the franchise paperwork, and analyze whether the particular franchise is forecasted to trend upward in customer demand and revenues.

Now, let’s look at the top affordable franchises to purchase if you are interested in becoming an entrepreneur. After, we will look at information on business loans and financing that can help make your dream of owning a business a reality.

What are financing options?

When an individual purchases a franchise business, there are many options for different budgets. If an individual is worried about affordability, he or she can always consider getting a loan to assist in financing.

Also, it is likely that an entrepreneur interested in a cheap franchise opportunity will need some financial help at the beginning. There are plenty of small business loans that can help purchase a business or franchise. These funds can cover the preliminary cost of franchising.

Luckily, franchises are predictable, which lenders prefer. Because a franchise has a background of success, lenders are not afraid to extend a loan to a franchisee. They feel assured that they will be repaid, as opposed to dealing with a brand new business.

The following loans have varying benefits, so you will want to pick the one that is the right fit for your future franchise.

Family and friends loan

If available to an individual, there are many benefits in borrowing money from family and friends. This includes negligible interest rates and a flexible repayment schedule. Usually, family and friends will give you a better deal or take on additional risk, as opposed to a traditional lender or bank.

That said, there are negatives involved in getting a loan from family or friends. It is critical that you document the loan, as well as repayment plans, in a written contract. This can protect the relationship if the franchise does not proceed as hoped. Also, if you plan to write off the loan interest as a deduction on your tax return, the documentation will be required.

Franchisor financing

If you are interested in a traditional borrowing arrangement in order to buy your franchise, you should always check with the franchiser directly. It is important to remember that the franchiser has likely handled this process with other franchisees, so they could offer guidance, support, and possibly in-house funding avenues. They may also offer relationships with lenders that can help with the financing process.

Of course, you should always compare with outside lenders to ensure you are getting the best possible borrowing terms and interest rates.

Traditional term loan

This is probably what you think of first when considering loans. In this arrangement, you get a certain amount of capital from a lender, and then repay the amount as well as interest according to an established schedule. You should remember that some loans have restrictions that could limit the use of funds, so be sure that any lenders you are considering know that you are going to purchase a franchise. You should also bear in mind that one of these loans may be inaccessible due to the potential lack of business experience or revenue history. Because a business acquisition term loan is notoriously hard to get, you should not count on it as a definite thing.

SBA 7(a) loan

You have possibly heard about the U.S. Small Business Administration’s loan programs. SBA loans are very popular due to their low interest rates and long repayment terms. It is a very attractive option for people interested in franchising Since they are focused on business acquisitions and franchise purchases. However, you should know that the application process is highly selective and lengthy. Therefore, if an individual wants to buy right away or has poor credit, they should consider other loan options.

Equipment financing

If the franchise you are interested in has significant equipment expenses, you may be able to benefit from equipment financing. Whether it is computers, cars, production machinery, or other kinds of equipment, equipment loans will be available. This kind of loan is similar to a car loan in the sense that the quality and price of the equipment you are buying is linked directly to the terms and size of the loan.

Also, since the equipment functions as collateral, borrowers tend to run into fewer requirements related to personal collateral than they would with other loans.