Low Cost Franchise Opportunities

Low Cost Franchise Opportunities


As franchise brokers and consultants we are
asked regularly which are the best “low cost” franchise opportunities. There are many, some better than others and
I will explain why. Lets first look at what “low cost” actually
means in terms of your franchise investment. For example if you invest $12,000 in a franchise
next week, and you close your doors in 5 months because you didnt make any money how much
did your franchise actually cost? Well it cost you $12K plus your working capital,
your time and other costs associated to the venture. So unless you actually make this franchise
work, your costs will actually be quite high. Higher in fact than someone who purchased
a McDonalds for a million dollars but is turning a profit. A low cost franchise has to turn a profit
or it is no longer low cost. It may have been low initial investment but
that’s another story. Now why do I bring this up and why is this
so omportant. Because all low cost franchises, almost every
single one of them under $50,000 (unless it is a financially distress retail sale) has
a business model that is 100% dependent on the owner for success or failure. Now what do I mean by that. These businesses are not brick and mortar
like your burger or sub franchises where people walk in off the street and buy. These franchises all require the owner to
go out and either market, or sell, or service, or usually a combination of all of the above,
to make the business work. So by nature of these operational models the
failure rates are higher with low cost franchise opportunities because some people are just
not cut out for a particular business. In a retail situation where people walk in
to your store your skills are not so important. Not so with a lower investment franchise. That’s why here at franchise city we like
to get a good handle on the persons background first and than match them with the franchise
to make sure its a good fit. Most low cost franchises require selling,
or business networking of some sort. Ask your self are you good with people? Are you willing to put in the hours to make
your franchise succeed. Do you have the skills required to make it
happen? If you have the skills, the background and
the motivation there are many low cost franchises that offer tremendous ROI. For example we work with a consulting firm
that has top 25% of owners earning over $600K annually. There are many service based franchises under
$50K that can generate a strong 6 figure income. So what is the best low cost franchise opportunity? One that best suits your background and skills. If you are not good at selling or networking
make sure you look at franchises that provide leads or at least some sort of lead generation
support. If you are not good with people try and look
into franchises that can be operated online. Talk with existing owners to see how their
experiences have been, and pay attention to which types of people are failing and which
are doing well. If you do have a sales background there are
dozens of options available, many of them very profitable and well established. If you would like to discuss what franchises
are available in your area give us a call. Our service is free and we work with over
600 of the Nations top national franchise brands. You can learn more about us at http://www.Franchise.city

7 Comments

  1. D S says:

    Can you give some examples?

  2. Jigar D says:

    I'd like to know your thought's on Rhea Lana's franchise?

  3. Joey says:

    Can you talk about some of the franchises on franchise.city?

  4. Brad K says:

    I don't know…I might be able to afford a hot dog cart, lol.

  5. Marquis Donaway says:

    Fucking love this dude and the channel amen 🙏🏿

  6. funguy29 says:

    Do one for Kumon

  7. mohammed khairy says:

    Can you please give your thoughts on trash valet franchise

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