Do you have $50K or less to start a franchise business? Many people think they need at least $100K to get started in the franchising industry, but surprisingly, getting into the franchise ownership gave may cost you less than you think. In fact, there are many opportunities available for those with a smaller budget. So, if you’re looking for a franchise opportunity that doesn’t break the bank, we’ve collected 28 best franchises under $50K that you can consider.
But first, let’s review some important things to know before buying your dream franchise.
- READ MORE: See our Franchise Guide
What are Some Advantages of Buying a Franchise?
There are many advantages to buying a franchise vs. starting your own small business. Perhaps the most appealing is that you are buying into a proven business model. When you buy a franchise, you are essentially buying a turnkey business that comes with all the systems, processes, and support in place to help you succeed.
Another advantage of franchising is that it allows you to be your own boss while still having the backing of a larger organization. This can give you peace of mind and a support network to help you through the inevitable challenges of owning your own company.
The cost of buying a franchise can also be lower than the cost of starting your business from scratch. When you factor in the cost of marketing, research and development, and other start-up costs, a franchise can actually be a more affordable option.
Franchising also allows you to receive training and support from the franchisor. This can be extremely helpful and is one of the reasons why franchises have a higher rate of success than startup companies.
The 5 Different Types of Franchises Available
Now that we’ve gone over some of the advantages of buying a franchise, let’s take a look at the different types of franchises that are available.
1. Investment Franchises
These are large-scale franchising projects where franchisees typically invest money and time into developing and operating the franchise location to produce the ROI and capital investment they want upon their exit. Examples of this type of franchise would be hotel chains, large restaurants, car dealerships and gas stations.
2. Business Format Franchises
This is the most popular and familiar type of franchise. It includes well-known brands like McDonald’s, 7-Eleven, and Ace Hardware. With this type of franchise, you are buying the right to use the franchisor’s trademark, and the franchisor will provide you with a detailed business plan and procedures on the aspects of the business. Also importantly, you get permission to use their entire system to operate and market their products and services.
3. Distribution Franchises
With this type of franchise, you will be licensed to use the franchisor’s trademark. However, you typically don’t get their entire system for running the business. Instead, in a supplier/dealer relationship, you sell products that are manufactured by the franchisor. Or, in the case of companies like Coca-Cola and Pepsi, you are licensed to distribute and be a part of their manufacturing process.
4. Job Model Franchises (Lowest Cost Business Model)
This option requires relatively little capital to buy, and it is usually comprised of home-based businesses and solopreneurs. This option will usually hit the sweet spot range for franchises under $50K too. Here, franchisees would purchase a minimum amount of equipment and supplies and maybe even a vehicle or two. A perfect example of this is a lawn care franchise. You would simply purchase the equipment and supplies needed to start the business and then find customers in your area.
5. Conversion Franchises
With a conversion franchise, you transform independent companies in the same industry into different franchise locations. As a franchisee, you will receive trademarks, marketing, critical client-serving aspects and trademarks from the franchisor. An example of this would be if you owned a successful mom-and-pop pizzeria and wanted to convert it into a Domino’s franchise. Conversion franchises have the potential for the rapid growth of locations and income that’s often royalty-free.
How to Choose the Right Franchise for You
When choosing the best franchises, you’ll want to look for the following:
1. Strong support: A franchisor that provides strong support will help you get your business up and running quickly and smoothly. They will also be there to help you troubleshoot any problems that come up along the way.
2. Proven success: You’ll want to choose a franchisor that has shown success in the industry. Look for a franchisor that has been in business for several years and has a large network of happy franchisees.
3. Clear expectations: Be sure you have a clear understanding of the expectations and requirements of being a franchisee. This includes things like an initial investment that includes royalties, marketing fees, minimum liquidity and any other ongoing costs. Of course, you’ll want a franchise under $50K, so consider that into everything too.
4. A good fit: Be sure to choose a franchise that is a good fit for your skills, interests, and lifestyle. Not all franchises are a good fit for everyone, so it’s important to choose one that is right for you.
5. Reviews: Be sure to read reviews of the franchise you’re considering. This will give you a good idea of what other franchisees think about the franchisor and how it’s structured.
6. Due diligence on your part: To have a successful business, you need to start out on the right foot. So, no matter how much the franchise costs, you should always carefully read over business disclosures and legal documents, including the franchise disclosure document. Also, consult with accountants and franchise attorneys, and even the CEO of the franchising company, to mitigate your risk.
30 Franchise Opportunities You Can Start for under 50K
If you are thinking about buying a business franchise and have a budget of 50k or less, the following business opportunities are looking to expand and new need franchisees to increase their footprint across the country. Most of them are in booming industries too.
1. Skyhawks Sports & Supertots Sports Academy
If you enjoy being a mentor to children, Sport & Supertots Sports Academy is the franchise for you. As a franchisee, you will acquire exclusive territories for athletic camps and programs in various sports at community-based organizations like schools and park & rec departments.
- Sports camps and programs startup cost: $30.8K – $71.75K. This fee includes the $17.5K to $42.5K paid to the franchisor or its affiliates.
- Total franchises co-owned: 62
- See details here: Franchise information
2. The Dog Wizard
The Dog Wizard, now merged with The Upbeat K-9, is a dog training franchise that offers a wide variety of services, including obedience training, puppy training, behavioral modification, and guidance for dogs with aggression issues. They also have a strong training program for their franchise owners so you can grow. Woof!
- Dog training startup cost: $41,83K – $124.9K
- Total units: 7 in Florida, Massachusetts, Ohio, Vermont and Tennessee.
- See details here: Franchise information.
3. Pillar to Post Home Inspectors
Pillar to Post Home Inspectors is a home inspection franchise that helps buyers, sellers, and real estate agents by providing top-quality inspections. With their low up-front investment, established processes & technologies and ongoing support & guidance, they make it easy to get started in the home inspection business.
- Home inspection programs startup cost: $44.2K – $54.4K
- Total units: 552
- See details here: Franchise information
4. Lil’ Angels Photography
Photo studios and photo booth services are relatively cheap franchises. If you are a shutterbug and good with kids, Lil’ Angels Photography Studio could be an excellent fit. As a franchisee, you can be your own boss and help parents capture their children’s precious moments through professional photo sessions that are tailored to every stage of their development. Lil’ Angels has six-figure income-earning potential and is a very affordable business to boot.
- Kids and family photography startup cost: $39.5K, which includes $10,000 of equipment, supplies, marketing materials and training.
- Units in operation: 44
- See details here: Franchise information
5. Kinderdance Area Developer
If you have a passion for dance and teaching, you’ll want to check out Kinderdance. As an area developer, you will help to enrich children’s physical, cognitive and social skills through a curriculum that focuses on yoga, dance, music and pre-gymnastics. With their low investment cost and strong support system, they make it easy for you to get started in this exciting industry.
- Dance and yoga programs startup cost: $45,838 to $76,442 (depending on the area size)
- Units operating or planned: 1,132
- See details here: Franchise information
6. Window Gang
Privately owned franchise Window Gang offers expert window, gutter, dryer vent cleaning and pressure washing services. As an area developer or franchisee, you work directly with the CEO and help homeowners maintain their homes. With a long and proven track record, strong support system, and high earning potential, Window Gang makes it easy to get started in the exciting home services industry.
- Window services and chimney sweeping startup cost: $40K to $125K
- Units in operation: 190 in the U.S. and Canada
- See details here: Franchise information
7. Class101
Looking for an affordable franchise opportunity that can provide you with flexible work hours, high earning potential, and the chance to make a real impact on your community? Class101, with a low investment requirement and a high return potential, might be just the right option for you. This particular business is one of the leading language tutoring franchises in the country, helping to get high school students into better colleges and qualify for higher amounts of financial aid and scholarships.
- Language tutoring franchise startup cost: $45.8K – $63.3K
- Units in operation: They are actively recruiting in more than 40 states nationwide. Large territories like Nashville, TN have multiple territories available.
- See details here: Franchise information
8. Rooter-Man
Rooter-Man has a wealth of experience and offers a wide range of expert plumbing, septic and drain cleaning services to homeowners across the country. They provide franchise owners with equity in their national brand, meaning your investment will appreciate as time goes by. Whether you want to operate as an independent franchisee or become an area developer with multiple territories, Rooter-Man has a low overhead, ongoing corporate support and innovative training.
- Sewer cleaning startup cost: $49K – $125K
- Units in operation: They have 1100+ locations across North America, and you can clock on their online map to see available territories.
- See details here: Franchise information
9. Surface Specialists Bathtub Repair and Refinishing
With repairs startup cost at around 40K, this franchise opportunity is nothing to sneeze at. Surface Specialists have been repairing and refinishing kitchen and bathroom surfaces to look new since 1981, and they started franchising a year later. Their gorgeous franchisee work has been showcased on Rehab Addict and Flipping Vegas. If you want to buy a franchise from them, you are supported by a skilled national team that offers training and support for all aspects of your business, from technical to marketing and beyond.
- Bath remodeling startup cost: $43.2K – $56K
- Type of business: Home improvement franchise
- Units in operation: 49
- See details here: Franchise information
10. ServiceMaster Clean Disinfection Services
With 65 years of experience in the industry, ServiceMaster Clean Disinfection Services offers commercial cleaning services and comprehensive training programs for franchisees they take on. They also offer ongoing support to these prospective franchisees, along with generous financial incentives. These incentives include a 20% discount off the startup costs for veterans, a 10% discount for minorities and women and 80% off financing for startup costs for qualified groups.
- Disinfection Services startup cost: $41.3K with financing and $86.3K without
- Units in operation: 900+ in different countries
- See details here: Franchise information
11. Young Rembrandts
Young Rembrandts is a recognized leader in art education for children aged 3-12. Their unique method of drawing prepares youngsters’ brains for more advanced learning. From coloring to shading and line drawing, their lesson plans are carefully designed with students’ cognitive development in mind. If you decide you want to start a franchise with Young Rembrandts, you will receive one-on-one support from their team of art educators and business experts.
- Educational services startup cost: $41.3K – $48.1K
- Units in operation: 105
- See details here: Franchise information?
12. SuperGreen Solutions
If you believe in eco stewardship, then owning a SuperGreen Solutions franchise might be a good fit for you. Their mission is to provide businesses and homes with affordable, high-quality renewable options for heating, air conditioning and water heating. If you want to own your own SuperGreen franchise, they will help you launch your business quickly and efficiently so that you can start earning revenue right away.
- Development startup cost: $40K – $60K.
- Units in operation: 30
- See details here: Franchise information
13. Action Coach
If you are a business-savvy person who is interested in helping entrepreneurs succeed, then consider franchising with Action Coach. This particular company works internationally to provide business coaching services to help companies grow and thrive, no matter what industry they operate in. Their coaches have years of experience working with small businesses and can offer practical guidance to help you launch and manage your own franchise.
- Business coaching startup cost: $48K – $467K
- Units in operation: 100+
- See details here: Franchise information
14. Anago Cleaning Systems
Anago Cleaning Systems is a top choice for anyone looking to start their own cleaning franchise. This commercial cleaning business offers its franchisees comprehensive training programs, ongoing support, and marketing materials so you can get your business off the ground quickly and easily. Whether you want to specialize in carpet cleaning, window washing, or commercial janitorial services, Anago will provide you with everything you need to succeed.
- Commercial cleaning startup cost: 10.4K – 68.5K
- Units in operation: 1500+
- See details here: Franchise information
15. H&R Block
H&R Block is the industry leader in tax preparation services. As one of the most well-known franchising opportunities in the country, they feature excellent organization training and development which leverages entrepreneurs to start their own tax services businesses. Franchisees operate a tax return preparation business where they may also have rights to offer payroll services, bookkeeping and training.
- Electronic filing startup cost: $31.6K – $158.9K
- Units in operation: 110,000+
- See details here: Franchise information
16. Paymore
Electronic sales stores are often profitable, and Paymore is no exception. There are other advantages to buying one of their franchises too, including low overheads, high consumer demand and high customer retention rates. Their proprietary software makes operations easy, and you can combine multiple revenue streams such as consumer electronics, pawn, eCommerce and second-hand retail for growth and better profitability.
- Electronic sales programs startup cost: $44.7K – $203.9K
- Units in operation: 100+
- See details here: Franchise information
17. Property Management Inc
For those with prior knowledge of the real estate sector, Property Management Inc. represents an exceptional home-based franchise opportunity for real estate agents, especially if they have skills in wheeling and dealing. This property management franchise has ongoing support, company resources, business training, and third-party financing that make this operation for under $50K a great idea.
- Managing commercial, residential, association and short-term property startup costs: $45K – $85K
- Units in operation: 380
- See details here: Franchise information
18. Jazzercise
With their signature dance-fitness workouts and personal training programs, Jazzercise provides franchisees with an established business model that offers an excellent return on investment. Whether you’re just starting out or have years of experience in the fitness industry, Jazzercise is one of the top franchises for entrepreneurs who want to build a profitable business that helps people maintain a healthy lifestyle.
- Group fitness classes, conventions, apparel, and accessories startup cost: $3.7K – $32.8K
- Units in operation: 7761
- See details here: Franchise information
19. Drama Kids International
This low-cost home-based franchise offers a unique opportunity to work with young children. With a focus on creativity and communication skills, Drama Kids offers classes for kids that help them develop confidence and social skills through interactive theatre games and exercises. Before opening your franchise, Drama Kids will ensure that you acquire the necessary training, marketing, administration and management skills before you open.
- Drama classes and summer camps startup cost: $28.8K – $49.5K
- Units in operation: 206
- See details here: Franchise information
20. TSS Photography
TSS photography is one of the leading photography franchises in the country, with a focus on providing safe and secure photography services for schools, sports teams and other organizations. With its cutting-edge technology and years of experience, TSS photography is the perfect choice for entrepreneurs who want to start their own photo businesses.
- Event photography startup cost: 20.4K – 74.3K (also, there are no royalty fees)
- Units in operation: 187
- See details here: Franchise information
21. Naturals2Go
With a focus on providing healthy, nutritious smoothies and snacks made from natural ingredients, Naturals2Go is one of the leading franchises in the health food industry. Whether you’re just starting out or are looking to expand your existing business, owning your own Naturals2Go franchise is an excellent opportunity to build a profitable business that helps people live healthier lives.
- Healthy smoothies and snacks startup cost: $48K – $230K
- Units in operation: 807 franchised outlets
- See details here: Franchise information
22. Champs Chicken
Chicken restaurants are one of those service-based franchises that are on the rise. Champs Chicken is an example of this, and with a proven record of success and no experience needed, this low-cost turnkey business opportunity is an excellent opportunity to build a profitable business in the fast food industry. Champs Chicken serves delicious fried chicken, pork loin and shrimp with sides like mashed potatoes and collard greens. They offer their franchisees perks like fanatical support, ample marketing funds and hefty margins.
- Fried chicken restaurant startup cost: $9K – $349K
- Units in operation: 393
- See details here: Franchise information
23. Proforma Printing Solutions
Franchising since 1985, Proforma Printing Solutions has more than 40 years of experience working with a wide range of industries. The company focuses on providing high-quality printing services for businesses of all sizes, including print management, digital and offset printing, fulfillment services, mailing services and more. You will need to be confident and good with people since working with customers requires a professional and friendly approach.
- Printing and promotional products startup cost: $5K-$60K
- Units in operation: 600+
- See details here: Franchise information
24. Estrella Insurance
Estrella Insurance is a property and casualty insurance agency. With more than 20 years of experience in providing affordable car and home insurance, they are a reliable choice for anyone looking to franchise with them. They offer their franchisees marketing & advertising services, onboarding and support, brand strength and an established corporate model, ensuring that you have everything you need to succeed as an entrepreneur with Estrella Insurance.
- Business insurance startup cost: The total investment is approximately $49.5K
- Units in operation: 175
- See details here: Franchise information
25. Mint Condition
Mint Condition has provided comprehensive cleaning, disinfecting and janitorial services to their commercial customers since 1996. The commercial cleaning startup cost with them is one of the lowest on this list, and their team is powered by a network of hard-working regional offices and franchisees. The franchisors provide a comprehensive training program, flexible financing and ongoing support to help you succeed in business and ‘mint’ money.
- Building maintenance startup cost: $4.6K – $32.4K
- Units in operation: 400+
- See details here: Franchise information
26. Town Money Saver
For another very low-cost franchise opportunity, we have Town Money Saver. TMS is a digital monthly community magazine that provides coupons and features for local businesses and advertisers. Their goal is to provide effective, cost-effective advertising for local companies that allows them to compete with bigger, national chains. With no experience, employees or inventory needed and with the minimal initial investment, owning a Town Money Saver franchise is an excellent opportunity to own a company in the publishing industry.
- Digital advertising startup cost: $6K – $17K
- Units in operation: 250
- See details here: Franchise information
27. Superglass Windshield Repair
SuperGlass Windshield Repair has been operating for 30 years and specializes in repairing any wayward glass scratch or crack on your auto windshield. It’s one of the more budget-friendly franchises on this list, with the high end of startup costs only being $31K. Also, overhead costs can be kept low due to its mobile option — a physical shop location is not required. It also offers classroom and on-the-job training,
- Glass scratch removal Startup cost: 9.9K – 31K
- Units in operation: 332
- See details here: Franchise information
28. ACFN Automated Teller Machines
This is one of the hot ATM franchise ops that Small Biz Trends reported on back in September. ACFN provides automated teller machine services to hotels and other travel and entertainment-based businesses. The franchisors offer all you need to get your own ATM private network started, including, site selection, lease negotiation, equipment and signage.
- Automated teller startup cost: $39.1K – $64K (royalty and franchise fees included).
- Units in operation: 280+
- See details here: Franchise information
29. Mattress by Appointment
As far as low-cost franchises go, it’s hard to beat this one. You only need $20,000 to get started with Mattress by Appointment, which includes your opening inventory, advertising and leasehold expenses. In addition, there is no training cost, franchise fee, or setup fee. You get lots of flexibility because Mattress by Appointment lets you work independently and make your own schedule.
- Mattress startup cost: $20K – $47.7K
- Units in operation: 175+
- See details here: Franchise information
30. Oxi Fresh Carpet Cleaning
Oxi Fresh is a green carpet cleaning service and a world leader in environmental sustainability. They use the power of oxygen to leave the carpets of residential and business customers clean and dry in just one hour. With Oxi Fresh, you can work as much or as little as you want, and they offer comprehensive training, marketing support, ongoing education and more to help franchisees succeed. With a booming industry and solid business plan, owning an Oxi Fresh franchise could be the perfect opportunity for you to start your own business.
- Carpet cleaning startup cost: Your first Oxi Fresh franchise can be started for as little as $50K. The more territories you add, the more discounts you get off the purchase price too.
- Units in operation: Territories include 110,000 households
- See details here: Franchise information
The Most Profitable Franchises Under 50K
This can be a bit of a challenge to answer, as it depends on several different factors, including your location, industry experience and how well you manage your business.
Some of the most lucrative franchises under 50K include Jazzercise, Town Money Saver and Superglass Windshield Repair. Both are successful with low small businesses startup costs and no initial experience or inventory needed. Other popular franchise opportunities include ACFN Automated Teller Machines and Oxi Fresh Carpet Cleaning.
Additionally, bear in mind that franchisors will often list revenue and profitability cases in their franchise packages. However, as a potential franchise owner, be sure to do your due diligence and ensure that the franchise you choose is sustainable and not just a flash in the pan.
Ultimately, the most profitable franchise opportunity will be the one that best suits your needs and skillset. So consider all of your options carefully before making a decision.
Image: Envato Elements
This article, "30 Franchises Under $50K" was first published on Small Business Trends
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