Multi-Unit Franchise Experts

Low-Cost Franchises after Corporate Layoff Survivors

The COVID-19 pandemic has pushed many corporate workers out of their jobs and into a life of uncertainty as they search for their next career move. Given the uncertain landscape, many individuals now have no other choice than to look into franchising opportunities as an alternative form of work. But given the current economic climate, it is important for those who are looking to invest in a franchise to find a lower-cost solution that can still generate a steady return on investment.

Fortunately, there are several low-cost franchise opportunities available to those with limited capital. As a franchise consulting firm with over 1,300 members, the International Franchise Professionals Group (IFPG) understands the importance of finding a cost-effective solution that will still generate a positive return for the franchisee.

In this article, we will provide an overview of some of the most profitable low-cost franchises to consider when investing in a franchise. We will also offer some advice on the process of researching a franchise to ensure you make a fully informed decision before committing any capital.

Franchise Opportunities and Why They’re a Great Choice

When considering the many forms of work available to corporate employees after a layoff, franchising has a number of advantages. For many prospective franchisees, it represents the perfect gateway to living the American dream of “working for yourself” without taking on too great of a risk.

Franchising is attractive not only because it’s relatively low risk, but also because it is a great opportunity for someone to start their own business. Most franchise systems have national, or even global, recognition and come with a brand name that customers already recognize and trust. For instance, one could purchase a franchise such as 7-Eleven or McDonald’s, and capitalize on the existing recognition of the brand.

In addition, most franchises also provide a vast array of resources, including training and assistance to franchisees from the franchisor. This can be essential in the early stages of running a business, and can also be a great source of ongoing guidance and support.

Many franchises also have economies of scale as well. This means that certain costs such as supplies, licensing, insurance, advertising and marketing can be spread out among multiple franchisees, instead of being shouldered by just one business.

The main downside of owning a franchise is the initial capital outlay. Many franchises require a large up-front investment, particularly well-known brand names, which can make it difficult for prospective franchisees to acquire them, especially after a layoff.The Most Profitable Low-Cost Franchises

But fear not—there are several franchises available that require lower levels of upfront capital, which can be highly profitable despite the lower cost. Below, we will look at some of the most cost-effective but profitable franchises available on the market.

One of the most well-known low-cost franchises, which requires an investment of around $1,000, is 1-800-GOT-JUNK? This junk removal service operates in over 176 locations in the United States and Canada. The franchise was founded in 1989 and has since become one of the most recognizable franchises around. Not only does 1-800-GOT-JUNK? Require a low cost upfront investment, but the return on investment can potentially be very high.

The Maids is another low-cost franchise opportunity worth considering. Founded in 1981, the residential cleaning service has over 220 franchises across the United States. The initial investment for The Maids is $35,000 and includes comprehensive training in residential cleaning and franchise management.

Fully Promoted, a franchisor of promotional marketing services, is an additional franchise opportunity worth exploring. Operating in over 190 locations outside the United States, Fully Promoted requires an initial investment of $25,000. The franchise offers services such as embroidery, signage, promotional products and corporate apparel.

Finally, two more widely known low-cost franchises are Anytime Fitness and Pop-A-Lock. With an initial investment of $25,000, Anytime Fitness offers its franchisees access to a large selection of gym solutions, services and equipment. Pop-A-Lock, a 24/7 locksmith service, also requires an initial investment of around $25,000 for one franchise.

Tips for Choosing a Low-Cost Franchise

While there is a wide selection of low-cost franchises to choose from, there are certain criteria to consider before investing. These include researching the business model, reviewing the number of franchising opportunities, looking into potential locations and evaluating any possible risks.

In terms of the business model, it is important to understand the basic principles of the franchise and the services it offers. It is also important to research the level of support offered by the franchisor in areas such as franchise marketing and training.

When looking at the number of franchising opportunities available, make sure that the franchise you select has a network of successful locations around the country. This can be a good indication of how well the business is doing and how attractive it may be to potential customers.

Finally, it is important to research the potential locations available for the franchise. It is essential that the chosen location is convenient to customers but also provides access to necessary resources and services.

Going through the Process of Investing in a Franchise

Investing in a franchise is a major decision and requires careful research. Everyone’s situation is different, so it is important to find the franchise that best suits the individual’s needs and goals. The IFPG’s franchising professionals can offer guidance and assistance to those considering investing in a franchise. Our experienced franchise consultants are here to provide advice and answer any questions prospective franchisees may have.

With the right guidance and the right franchise, investing in a lower-cost franchise option doesn’t necessarily mean achieving a lower return. Low-cost franchises such as the ones outlined in this article can still have a significant impact on the life of a corporate layoff survivor, and can potentially set them up on the path to success.

Topics:

Low Cost Franchises,

Profitable Franchises,

Franchise Investment

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