The franchise industry in the States generates over $2.1 trillion and has 18 million people in its employ. This is going by IFA’s word (International Franchise Association), which also says that 4% of small businesses in America are franchises.
There may be a host of appealing reasons why one would opt to buy into a franchise, but the most obvious one is that the business is already established. For a concept that has already proven itself, you won’t have to start from scratch.
Usually, the franchisor has streamlined all operation details, they have a working marketing plan, and have tested all advertising campaigns. Additionally, you are never the only franchisee on board, so you can liaise with your counterparts on how to be successful in your new venture.
Jaw-dropping Price Tag
Unfortunately, all these perks may come with a jaw-dropping price tag. For Taco Bell, or even McDonald’s, the bottom line is liquid assets worth at least $750,000. For a KFC franchise, you have to be worth much, much more, nothing less than $1.5 million.
The IFA says that on average, the initial investment on a franchise is $250,000, and that’s not including the real estate part of it. Of course, you’ll need multiple stores, and rent doesn’t come cheap these days. As they put it, rent will eat into up to 6% of your gross monthly sales.
All the same, all hope isn’t lost. According to research conducted by Franchise Business Review, there are a lot of other cheap franchise options. In fact, they went a step further to provide us with a list of some of them that will set you back a mere $15,000 or even less to start. Compared to the KFC requirement, isn’t this a huge bargain?
One such franchise is Image One, a cleaning service. According to one Bob Caramusa, he ventured into Image One nine years ago after being employed for two decades. The move was a means to make more money while also being his own boss.
And guess what? He bought everything for $15,000, and he even admitted that he thought of the financial risk as being minimal. He did pretty well that he quit his other job to concentrate on Image One completely.
He is yet to regret this decision, and he doesn’t even think he ever will. With how well he is doing, Caramusa expects 2019 to be the year his franchise hits the $1 million revenue mark, making him wish that he had ventured into business soon after graduating college.
Dream Vacations
Dream Vacations is another franchise with an affordable start-up price tag, with the amount being $9,800. Thus far, there are over 1,200 Dream Vacations franchises in the United States, all with an average of $336,971 in annual sales.
What’s more, the company also provides entrepreneurial training once you get started, in addition to website design, invoice software, booking software, and holds your hand all the way till your business is up and running.
TSS Photography, Cruise Planners, Motto Mortgage, Rhea Lana’s and Showhomes Home Staging are also franchises worth checking out, all with a budget of not more than $15,000. If you’ve been thinking about buying into a franchise, now’s as good a time as any!
