Are you feeling a lack of fulfillment and growth in your current corporate job? Have you been thinking about investing in a franchise business but aren’t sure where to start? The ability to break away from the corporate world and invest in a franchise business with a relatively low investment cost can be a daunting prospect. The International Franchise Professionals Group (IFPG) are here to arm you with the knowledge and resources to make sure you make a sound business decision when pursuing this route.
When you’re setting out to invest in a franchise business, it’s important to consider the opportunities available and conduct proper due diligence to ensure the best possible franchise and price is chosen for you. In this article, we will examine the most important questions to consider when researching franchise opportunities under 20K, as well as spotlight some of the best franchises to invest in in this price point.
Frequently Asked Questions
When venturing outside of the corporate world to invest in a franchise business, there are a number of essential questions to ask before taking the plunge.
1. What is the franchise fee? The initial franchise fee is among the most important costs associated with starting a franchise. It is a one-time cost that covers the franchise rights, training materials, and initial support services needed to launch the business. While most franchise fees for existing franchisors run several hundred thousand dollars, there are a handful of companies offering franchises for under 20K.
2. How much is the total startup cost for the franchise? In addition to the franchise fee, opening a franchise requires additional costs such as legal expenses, permits, training materials, logo design, grand opening promotions, signage, equipment, and more. It’s important to factor these costs in your total budget to make sure you have enough funds to start your own business.
3. How much money can I make? It’s important to research a potential franchise’s average gross income, as well as its break-even time, to ensure it is a feasible and profitable venture for you. Evaluating the brand’ reputation, footprint in the market, and contact with corporate organizers can help give you a better idea of it’s success.
4. What are the support services provided? It’s important to consider the support services available when investing in a franchise business. Can you rely on the franchisor for marketing support, customer service, consulting services, and training materials? These are all questions to consider when identifying the best franchise for you.
The Best Franchises Under 20K
Now that you know the key questions to consider, let’s review some of the best franchises available under 20K.
1. Baristas: With an initial investment fee between $13,400 and $19,000, Baristas Coffee Company offers a unique franchise opportunity in the fast-growing coffee industry. Franchisees benefit from the support and resources provided by the Baristas team to run a successful business.
2. Subway: One of the most well-known franchises in the world, Subway has been around since 1965, offering a simple, affordable franchise business to anyone looking to join the food industry. The initial investment fee for Subway vary, starting at $15,000.
3. cruisePLANNER: The newest entrant in the travel industry, cruisePLANNER offers a unique franchise business model for aspiring entrepreneurs. With an initial investment fee of $15,000, cruisePLANNER is a low-cost way to enter the travel industry.
4. Patrice and Associates: If hospitality is of interest, Patrice and Associates is the perfect franchise to invest in. With an initial fee between $14,800 and $19,500, Patrice and Associates provide a comprehensive training program to set you up for success.
5. Chem-Dry: Last but not least, Chem-Dry offers a unique opportunity to break into the franchise industry with a low initial investment fee of $8,000. Chem-Dry provides training, support, and extra marketing support to help you grow your business.
Now that you have identified some of the best franchises available for under 20K and have the know-how to do your due diligence and research them, you’re on your way to becoming a successful business owner. Don’t forget to evaluate your goals, needs, and budget, consider the information provided in this article to determine the best franchise business to invest in.