Are There Any Low Cost Franchise Opportunities?
If you find the idea of investing in a franchise appealing, you’re not alone. The world is full of people just like yourself who like the idea of owning their own business, but who are worried about the idea of starting a business from scratch. Investing in a franchise allows you to call yourself a business owner
The Cost of Investing in a Franchise
Many people are caught off guard when they inquire into the cost of investing in a franchise. While the actual cost varies from one franchise to another, you should plan on spending between $50,000-$100,000 just in franchise fees. That amount rarely covers the cost of building a location, the legal expenses connected toinvesting in a franchise, furnishing the establishment, purchasing the initial inventory, and setting up a team of employees.
Low Cost Franchising Opportunities
If you find the idea of spending more than $200,000 setting up your personal part of a franchise to scary, you should know that there are low cost franchising opportunities all around you. All you must do is change how you think about franchises. Instead of setting your sights on a fast food restaurant or auto parts store, you should explore home-based and mobile franchises.
Just like with large franchises, home-based and mobile franchises do have franchising fees, but they’re usually smaller. An established franchise may charge $20,000-$30,000 in franchising fees, while a home-based or mobile franchise that’s just starting to make its mark may have franchising fees for as low as $10,000.
In addition to significantly reduced franchising fees, the amount of money needed to get your portion of the franchise up and running is significantly smaller. In the case of a mobile franchise, you’ll probably have to purchase one or two vehicles and pay a small workforce. If you invest in a home-based franchise, it’s likely that your only real additional expenses will include legal services, local advertising, and initial inventory.
The best thing about low cost franchises is that they’re a great way to gain some experience in the world of franchises. If you like franchising, you should make enough from your investment in a successful low-cost franchise to finance a venture into a higher priced franchise opportunity.