Low Cost Franchises Less than $50k
Some people are still under the impression that a franchise has to cost thousands of dollars or even in the millions. While that may certainly be true of major brands, there are actually plenty of profitable, low-cost franchises that can be acquired for just a few thousand dollars allowing you to run your own profitable business in no time at all.
Entrepreneur.com has put out an impressive list of 97 businesses that meet the criteria above and can be purchase for under $50k. While there are certainly many more options available for anyone willing to perform the hunt, Entrepreneur’s choices are justified according to many criteria such as growth, stability and the overall objectives of the franchise.
One popular choice that requires a minimum of capital to get started with is Coffee News, which became established in 1988. It involves connecting with local businesses and offering them affordable advertising options to use with restaurants and cafes in the area. It is easy to run and requires only a minimal amount of experience in graphic designing, which can be easily mastered.
Those who abide by the line that only death and taxes are sure in life may prefer to invest a little more capital in order to start an H & R block branch. These provide a wide range of services in order to help individuals and business owners maximize the amount of benefits that they are entitled to receive.
There are also numerous franchises that have a great mix of entertainment with something more practical such as fitness. Jazzercise can be the perfect low-cost franchise for those who love to mix fun with practical with their popular dance fitness classes.
Important Ways of Reducing Costs
There are many important ways of reducing costs when purchasing a franchise, which can save you thousands of dollars in expenses. The first method relates to the initial franchise fee often demanded a lump sum payment from the franchisor. It is noted as Item 5 on the Franchise Disclosure Document (FDD) that accompanies every franchise transaction. It is important to get the best possible value you can out of this figure as it can often be the most substantial payment of the entire transaction when setting your heart on purchasing a low-cost franchise.
There are several other important ‘items’ to watch out for when reading over your FDD. Another important item to look at is Item 6 on the FDD, which encompasses a wide range of other fees such as royalties or other kinds of costs that are not included in the initial startup fee. Finally, Item 7 can give a well-rounded ball park figure of all the estimated fees that will be required to run your business including the cost of equipment, business licenses, supplies, real estate and more.
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