Recent college graduates may find themselves uncertain about their future prospects. Job searching can be a trying experience, and it has likely been heavily impacted by the COVID-19 pandemic and its associated economic recession. One possible solution for young aspiring entrepreneurs is to look into low cost franchises. With a franchise, you have a turn-key business model that can provide immediate and long term success, often without extensive business experience.
The International Franchise Professionals Group (IFPG) has the experience and resources to connect franchise seekers with the perfect business opportunity. Through our network of 1,300 franchisors and consultants, our goal is to equip aspiring business owners with the knowledge they need to make smart investment decisions. In this article, we explore some of the most profitable low-cost franchises, and discuss the benefits they provide.
Risks and Benefits of Franchising
Before discussing the most profitable low-cost franchises, it’s important to understand the risks and benefits that come with franchising. Investing in a franchise is a major decision that can significantly impact your finances. It’s wise to understand the associated risks and rewards before committing to a business venture.
The primary benefit of franchising is the undeniable power of an existing brand. With a franchise, you are investing in a proven business model that has already gone through extensive market testing and enjoys established customer loyalty. This saves a large amount of time in terms of market research and obtaining necessary resources. Additionally, the products and services being sold are often already in high demand. All of these elements contribute to a franchisee’s overall success.
As with any investment, there are associated risks with franchising. It’s important to remember that it is still a business, and the franchisor and franchisee do not always agree on every aspect of the agreement. Additionally, some franchisors may have certain restrictions on the franchisee’s operations. These can include prohibitions on certain sales channels, geographic territories, or the products and services they offer.
Most Profitable Low Cost Franchises
Franchise investments vary in terms of initial costs and ongoing involvement from the franchisee, so it’s important to select a business model suitable for you. Here are some of the most profitable low-cost franchises:
Subway is the classic go-to franchise for those looking to invest in a low-cost, yet highly profitable business. Initial startup costs vary widely, from $84,000 for a non-traditional franchise to $373,000 for a traditional restaurant, and you’ll likely need to have a minimum of $30,000 in liquid assets. To operate a Subway franchise, you’ll be expected to provide items like restaurant furniture, equipment, a marketing budget, and inventory.
Jan-Pro Cleaning Systems
Jan-Pro is a commercial cleaning franchise that was founded in 1991. It’s a turn-key business opportunity: the franchise fee is just $1,200 and on-going fees are only $150 per month. You’ll need to make an initial investment of at least $2,000 in equipment and supplies, and you can expect to earn a very healthy return on investment.
Brightway Insurance is a franchise that specializes in personal and commercial insurance sales. The fun, insurance-centric business model is a great fit for those with a sales and business background. Initial startup costs are just $15,000, with expected franchise fee returns that are much higher. To be successful, you will need to pass the required testing for the respective state you’re operating in.
Investing in an Ace Hardware Franchise always provides potential franchisees a sound return on investment. As one of the largest hardware retailer chains in the world, Ace Hardware has a trustworthiness that’s well established, and their ability to serve the needs of each individual customer from a local level make them a great option for those looking to open up their own business.
Low-cost franchises can provide recent college graduates with a tremendous opportunity to start their own business and generate steady, dependable, and profitable revenue streams. To get started, one should reach out a reputable team of franchise brokers to further discuss the pros and cons of franchising and the wide variety of investment options.