Multi-Unit Franchise Experts

Best Franchises To Own

Cheapest Franchises to Open after Corporate Layoff

The economic shock of the COVID-19 crisis has seen numerous layoffs take effect, putting the future of many in the U.S. in a difficult position. For those interested in business ownership, franchising may provide an opportunity to take control and build a new career. Before getting started, though, it is important to understand which franchises represent the best value and offer the lowest cost of entry. After conducting research, the International Franchise Professionals Group (IFPG) has identified which franchises are among the cheapest to open in both the short and long-term.

Franchising is a business model based on a relationship between a franchisee and a franchisor. With franchising, the franchisee has the right to use the franchisor’s business name, confidential information, processes, trademarks, and leads, while also receiving ongoing marketing and operational training. Each franchisor sets their own fees for the cost of entry to their franchises, and it is important for prospective franchisees to compare different franchises and understand their total real costs from the upfront fees to the ongoing royalties.

This article is designed to provide a comprehensive overview of the cheapest franchises in the U.S. to open, with the ultimate goal of helping those affected by corporate layoff to identify which franchises represent the best initial and long-term value. What follows is an in-depth exploration of the different sizes of franchises, associated upfront and ongoing costs, and other considerations for prospective franchisors looking to get in the game.

Small Franchises

As their name implies, small franchises represent the least expensive option in terms of upfront and ongoing fees. These franchises typically include smaller investments, shorter training programs, and limited overhead. Examples of small franchises include Forever Fences, The Picnic Basket, and The Clean Team.

The Forever Fences franchise, for example, provides customers with fences for their homes and businesses. The franchise has an initial investment of just $25,000 and a low upfront fee of $5,000. The ongoing royalty percentage is also low at just 5%, and additional benefits for franchisees include a large online reporting system and a software program for franchise growth.

Other small franchises offer incentives to encourage prospective franchisees. For example, The Picnic Basket offers an incentivized royalty percentage, with the franchisee earning up to 90% of the franchise fees paid by customers. The franchise also has a very low initial and ongoing costs of just $1,000 and $8 per month, respectively.

Finally, The Clean Team offers a unique business model that allows franchisees to pay no royalties until they reach certain income targets. This means that franchisees can focus on growing their business without worrying about costly upfront or ongoing fees. The franchise also offers both marketing and operational training for new franchisees.

Mid-Size Franchises

Mid-size franchises represent slightly larger investments and more comprehensive training and management, though the fees remain relatively low compared to the larger franchises. Examples of mid-size franchises include Cloverdale Salon Suites, Neon Home Care, and Corporate Investment Group.

Cloverdale Salon Suites offers franchisees a unique way of running a beauty salon. The franchise has an initial investment of $75,000, with a franchise fee of $10,000 and a royalty percentage of 8%. Prospective franchisees also receive comprehensive business training, access to the Cloverdale customer database, and assistance with setting up the salon.

Neon Home Care represents another solid mid-size franchise option, with an initial investment of $45,000 and a franchise fee of $5,000. The royalty percentage is also low at just 6%, and the franchise provides ongoing support for everything from marketing to employee training.

Finally, Corporate Investment Group provides prospective franchisees with the resources and training necessary to run a successful financial planning and management services business. The franchise has an initial investment of $45,000, with a franchise fee of $10,000 and royalties of 6%.

Large Franchises

The largest franchises in the U.S. tend to represent a much larger investment of both money and time, though the ongoing cost is generally much lower when compared to small and mid-size franchises. Examples of large franchises include Ace Hardware, Anytime Fitness, and Subway.

Ace Hardware is a well-known franchise that sells everything from tools and supplies to apparel and outdoor products. The franchise has an initial investment of $500,000, with a franchise fee of $20,000.The royalty percentage is relatively low at 5%, and the franchise offers comprehensive startup and operational training for prospective franchisees.

Anytime Fitness is a global fitness franchise with a strong international presence. The franchise has an initial investment of $250,000, with a franchise fee of $35,000 and a royalty percentage of around 8%. The franchise also offers franchisees comprehensive training and support, including marketing support and assistance with finding the right location.

Finally, Subway is one of the most recognizable franchises in the world, offering its customers subs, wraps, and salads. The franchise has an initial investment of $100,000, with a franchise fee of $15,000 and a royalty percentage of 8%. It also provides extensive training and support in areas like marketing, operations, and store setup.

In the end

The COVID-19 crisis has forced many into unemployment, and seeking out a franchise business can provide an opportunity to take control and start a new career. Depending on the size of the franchise and associated costs, prospective franchisees can identify which franchises represent the best value and offer the lowest cost of entry.

Small franchises provide the least expensive option, with Forever Fences, The Picnic Basket, and The Clean Team offering low startup and ongoing fees. Mid-size franchises, such as Cloverdale Salon Suites, Neon Home Care, and Corporate Investments Group, provide more comprehensive training and management for slightly higher upfront and ongoing costs. Lastly, large franchises such as Ace Hardware, Anytime Fitness, and Subway can represent a larger upfront investment with lower ongoing costs.

Ultimately, each franchise offers a unique set of benefits and a different cost structure, and it is important for prospective franchisees to understand which franchises present the best initial and long-term value for their individual situation.

Topics:

Franchises,

Franchise Cost,

Franchise Business

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