Multi-Unit Franchise Experts

Learn more about owning a franchise and what it takes before you sign-off on a new business.

Most Profitable Low Cost Franchises to Open

Between the affordable startup capital, structured business model and industry guidance, investing in a franchise business is a great option for motivated entrepreneurs. The International Franchise Professionals Group (IFPG) is proud to bring together franchisors, franchise brokers, and vendors to assist eager business owners in making the best investments.

However, with so many options out there, prospective business owners may be overwhelmed with questions. In this article, we’ll aim to answer the most commonly asked questions related to starting a successful, low-cost franchise business.

What is a low cost franchise?

A low cost franchise, also known as a micro franchise, refers to small-scale franchising operations with a fixed cost of investment of under $200,000. This low investment is made possible by the fact that many elements of the business are already established. Examples of a low cost franchises include food chains, automotive services, home services and much more.

What should I consider when choosing a franchise?

When selecting the right franchise for you, there are several factors to consider. First, ask yourself if you have the funds to make the preliminary investment. You should also consider the franchise’s existing infrastructure, its customer base, the size and scope of the local market, and the skill set you and your team bring to the venture. Further, assess the franchisor’s business model and the operations manual, review the training and support program in detail, and research future growth potential.

Are franchise businesses profitable?

When operated correctly, franchise businesses can generate significant profit. Just remember that like any business, it may take time for profitability to be realized. When researching a prospective enterprise, take a close look at the franchisors current and projected financial performance, as reported in the Franchise Disclosure Document (FDD). Additionally, most franchisors also provide a “break-even” analysis.

How long does it take to become profitable in a low cost franchise model?

That is difficult to predict, as profitability depends on the particular franchise, the level of effort invested, and local market conditions. Furthermore, profitability can be affected by the degree of competition in the space, the level of social media engagement, the skill of the proprietors, and the number of customers served. However, you and your franchise consultant can review the franchisors projected financial performance and calculate a break-even point to get a better idea.

Can husband and wife open a low cost franchise?

Yes! A husband and wife team can make a great franchise business partners. But before you decide to take the plunge together, agree on individual responsibilities and goals. Establish designated roles right away, clarify events such as decision making, and proactively avoid potential problems down the line.

Do I need special skills or knowledge to open a franchise?

Many franchise opportunities don’t require any specialized skills or knowledge. However, if you are interested in a particular industry or type of business, tools like the IFPG franchise consultant network can help you uncover business opportunities that are better suited to your specific interests and background.


Low cost franchises,

Franchise investment,

Franchise profitability

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