According to Franchise Direct, out of the top ten franchises today, only three aren’t food-related. That’s because people will always need to eat, and even more so, they like to eat!
McDonald’s is still the largest and highest-profit franchise in the world, but perhaps you don’t have $2,313,295 to invest. Or food isn’t really your thing.
Whatever the case, you’re looking for a low-cost, high-profit franchise, but where do you begin?
In this article, we’ll dive into a high-level look at what to consider when choosing a franchise, and provide the top low-investment, high-return franchises for an investment amount between $1,000 – $100,000.
While starting a franchise offers a much higher degree of guarantee than setting up shop from scratch, the costs of owning a franchise can range widely, from $1,000 to millions of dollars. As you can see with the McDonald’s example, the very top franchises require an investment of around $2 million. In addition, access to large amounts of liquid assets is usually a requirement.
But there are other options, and we’ve even listed one that only requires an investment amount of $1,000 and low overhead, so be sure to shop around and do your homework.
Franchises usually have proven success methodologies and have a quicker ROI than starting your own business, where you need to set up everything yourself. So while franchises are a great option for starting a business, choosing a food-based one can require a lot of capital.
The goal is obviously a low-cost franchise with high-profit returns, so to choose one you need to check off some boxes to ensure the franchise you decide on has the best possible chance of success.
Make sure the franchisor has a proven support system for franchisees, specifically with regards to marketing because that is what will make or break your business.
For example, does the franchisor advertise the brand? Do they make it easy for people to know about the business?
The marketing and brand are what you are paying for most, so it is critical that they’ve mastered this particular aspect. The marketing they do for the brand as a whole is of the utmost importance, as well as the support they give to franchisees, otherwise, you are wasting your money by investing in a franchise business instead of starting up from scratch.
It is important to know if there is a demand for the products or services they sell, and if products or services are offered in specific locations, is there a demand for them there?
The product could be exceptional, but there is a possibility that if it’s in the wrong location, the business could flop. Request this information from the franchisor. Another good way of determining demand is by doing a simple Google Trends search to find out if people in the area are searching for those products.
It’s also a good idea to analyze the competition for the product or service—that may give you a good idea of what it takes to be successful.
Check nationwide the number of locations and annual revenue. It may also be a good idea to have some conversations with other franchisees.
Franchise Direct offers another valuable tip: the best way to determine a franchise’s future profitability is by analyzing Item 19 of the franchise’s FDD (franchise disclosure document), which outlines the business’s financial performance. It may be beneficial to consult an accountant or lawyer to fully understand this.
Only consider the franchises whose initial fee and upfront investments are realistic for your current financial situation; this may be another discussion to have with an accountant or lawyer.
There may be hidden costs, personal financial necessities, or royalties, so reading the fine print is essential.
Lastly, but perhaps most importantly: Is what’s required of you something you will enjoy doing, and do you believe in the core offering? For most people, using their top skills is what’s going to fulfill them on a daily basis.
Armed with this knowledge, there are several franchises that meet the above requirements and are also low-investment, high-return franchises.
Investing in a P3 Cost Analysts franchise means you have the flexibility of starting out with no additional expenditure other than your investment for this ready-to-go business because it’s a consultative business that can be run from home with only a computer and internet connection.
The best thing about it though is that all you really have to excel at is sales; you find the clients and the franchisor provides the expert team who analyses your clients’ expenses and finds ways for them to save money, so you don’t even need to be a maths pro.
P3 Cost Analysts—a low-investment, high-profit franchise—provides training, support, and marketing. It doesn’t get much easier or more profitable than this.
Pillar to Post allows you to own your home inspector business with state-of-the-art technology, top-notch marketing, training, and networking support. It’s North America’s largest professional home inspection franchise.
Ranked top low-cost franchise for the last five years, the franchisor offers industry-leading training and startup programs in order for you to begin making money fast.
There are a few great reasons you may want to consider a Fit4Mom franchise; with this business, not only can you make money while impacting mother’s lives as you train them to stay fit and happy, but you’ll also build a highly rewarding community of moms supporting moms.
Fit4Mom is the leading company for pre and postnatal health, wellness, and fitness programs for every stage of motherhood.
A fascinating concept is offered by What’s On In, where ultimately you would be responsible for securing advertising for the website that is shown to visitors searching for events in their location. However, they advise you to utilize a 50/50 commission split by handing over the sales part to someone keen to make 50% off the sales they generate.
If you follow the proven process, the company promises you will get your investment back within 8 weeks.
Chem-Dry, with 3,000 franchises using the company’s patented products in more than 55 countries around the world, offers franchisees an already-built brand, products, support, and training so that you can easily and quickly start your own low-investment, high-return franchise business.
This carpet cleaning franchise offers financing for entrepreneurs who seek to own one of their franchises.
Focusing on mobile service is the key differentiating factor allowing SuperGlass Windshield Repair to keep up to speed with customer demand and, at the same time, keep startup and overhead costs low for franchisees.
All that’s required is an address for the collection of payments and correspondence, an answering service, and a mobile phone for communication with clients.
The franchise comes with all you’ll need to get started quickly, even a ready-made website.
A commercial cleaning franchise, Image One Facility Solutions offers electrostatic spraying, disinfecting, and sanitizing services that meet EPA and CDC guidelines, which is something clients look for before they agree to sign with a commercial cleaning company.
With almost 100 owners across Chicago and other big cities, Image One Facility Solutions is a trusted cleaning company, and facility owners know that this franchise consists of a highly trained team that accomplishes sanitization and cleaning professionally.
Become a certified dog trainer and own your own dog training business with Sit Means Sit.
The company cites consumer spending on pets to be billions a year, so this may be a good franchise that also allows you to work from home, which also makes it a low overhead franchise. It currently boasts 147 franchise units.
This low-cost franchise with high-profit potential is ideal if you want your own business, love dogs, have your own home, a car, a phone, and a computer.
In 2017, nine of their franchisees made $1 million in revenue.
A residential cleaning franchise, The Maids serves tens of thousands of homes every week across 90 major U.S. and Canadian markets.
This franchisor provides franchisees with the best systems in the industry, innovative processes, technology, training, and support; everything you need to start and run a thriving residential cleaning franchise.
On average, it is usual for their franchises to rake in around $1million in annual revenue.
Choosing the franchise route compared to building a business from scratch may take the same amount of time to generate a sustainable income, but a franchise only has a 1% failure rate as opposed to setting up from the ground, where half of all businesses die within 5 years.
That’s because franchises come with proven systems and methodologies while starting right at the beginning does not.
At P3 Cost Analysts, we have a few other reasons why franchising works; one of which is that we offer a service that is always of interest to entrepreneurs and small business owners because it helps them cut costs. If you enjoy helping people, there is nothing quite as fulfilling as helping others to cut costs.
P3 Cost Analysts makes it easy for franchisees because they are bold in their promises to clients:
Save an average of 20-40% or you don’t pay.