The COVID-19 pandemic has left many corporate layoffs across the globe in its wake, leaving thousands of individuals in search of a new career path. Starting up a business or branching into a new industry can be intimidating, but with the right franchise you can become a business owner with minimal risk and a high potential for success.
When considering a franchise, the cost of investment is often the most significant factor. Fortunately, there are many franchising opportunities available today that come with a low-cost barrier of entry—under $20,000—for those looking to capitalize on the security and convenience of owning a franchise. Whether you’re looking for food service, a retail store, or professional business services, here’s a guide to low-cost franchises that you can start up with a manageable budget.
For those with a love of food and an entrepreneurial spirit, many food franchises require an initial investment of under $20,000 to get going. Subway, for example, requires a minimum franchise fee of under $20,000 and an overall initial investment of between $116,000 and $263,000 for a standard restaurant franchise. Similarly, Quiznos requires an initial fee of $20,000 and an overall initial investment of between $149,000 and $262,000. Other popular franchises that are available for under $20,000 include Homegrown Burgers, Happy J’s Pizza, Maui Wowi Hawaiian Coffees & Smoothies, and Pieology Pizzeria.
Many retail franchises also come with a cost of entry under $20,000. If you’re looking to break into the clothing and fashion industry, ILoveKickboxing and Kid to Kid are both available for under $20,000. If you prefer to sell home goods, Dream Dinners has an initial franchise fee of $19,500. There are also opportunities to get into the beauty industry with an initial cost of $10,000 for The Lash Lounge and $1,000 for The Groom Room.
For those looking to invest in professional services, there are a variety of options available for under $20,000 that can give you the freedom to be your own boss and the potential to make a good living. Critter Control and Mosquito Authority both require a franchise fee of $19,500, while My Home Watch, Virtual Business Network, and Uplink Outdoor Lighting each come with an initial fee of $9,500.
Businesses that require more specialized skills, such as bookkeeping, tax preparation, and accounting, can also be a viable and profitable investment. Check into The Tax Coach, Liberty Tax Service, and Tax-Maxx, all of which require an initial franchise fee of under $20,000.