Do you want to own a franchise but don’t have the cash required? No problem, we have some low-cost franchises that won’t cost you a fortune!
Starting a franchise can be an exciting and rewarding way to launch your own business. Some of the local businesses you deal with on a daily basis may have franchises. What you may not know is that there are several low-cost franchises that you can run from home.
This means you don’t have to worry about paying for a physical space or hiring any number of employees. In this article, we’ll look at 10 low-cost franchises that are perfect for working from home and how to get started with each one.
How does a franchise work?
Owning a franchise gives you the freedom to decide how you want to run your individual business while leveraging an established brand name and proven business model. There are many franchises in a variety of industries, and some of the most common franchises include companies such as McDonald’s, Dunkin’ Donuts, 7-Eleven, and The UPS Store.
With a franchise, you work for a particular well-known company, and you usually have to pay a fee and meet other financial requirements to get started.
Low-cost franchise
Starting a franchise can be expensive depending on the company. But smaller companies with fewer requirements tend to have lower fees. If you’re looking for a franchise company with low start-up costs, here are 10 low-cost, home-based franchise opportunities worth considering.
1. Coffee News Weekly
Coffee News Weekly is a franchise that publishes a free weekly newspaper for customers of coffee shops, restaurants, and cafes. In this business, franchisees earn revenue by placing advertisements in the free publication.
According to Franchise Direct, the initial franchise fee is $9,900. To start the process, schedule a free phone call with the company. During the call, you’ll have the opportunity to learn all about the business venture and ask any questions you have. If you decide you want to move forward, online training is offered.
Each franchise owner chooses the geography where they want to distribute their publication (areas with a population of 50,000 or more are recommended). This affordable franchise opportunity allows you to make your own schedule and work from home, but you must work full-time. Coffee New Weekly has publishers in six countries, including the U.S. and Canada, and is rated 4.4 out of 5 on Indeed.
2. Dream Vacation
Dream Vacations is a great low-cost option for a home-from-home franchise in the travel industry. Your initial franchise fee is $9,450, but you can get started with a down payment of $3,500. We also offer discounts for community heroes (first responders, teachers, medical professionals), veterans, and military spouses. Plus, you get to keep 100% of the commission on any trips you help book.
The company can help clients find great travel deals on cruise packages, resorts, hotels, car rentals, etc. As a perk, franchise owners can also enjoy free or discounted rates on their own trips.
At Dream Vacations, all technology is web-based and you receive full training, including lead generation, and 24/7 support.Dream Vacations spends more than $4 million annually on marketing and promotion for its franchise owners.
3. Cruise Planner
Cruise Planners is a home-based travel advisory business and one of the largest travel franchises in the U.S. No experience is needed to start your own business. Learn how to help clients plan trips like cruises, land tours, and all-inclusive resort vacations.
This business is also flexible, allowing you to set your own hours, and Cruise Planners provides all the technology, marketing, and support you need to run your business. It’s also a low-cost franchise, with initial franchise fees starting at $9,995.
Reducing debt allows you to reinvest more funds into growing your business over time.
4. Study decoration
Are you the type who loves decorating and has a keen eye for detail? Decorating Den is an interior design company with franchise owners across the company, allowing you to leverage your company’s name and reputation to secure interior design clients in your area.
The company has been around since 1969 and offers design concepts, training, and a variety of resources. The design process begins with a phone consultation with the client. They then walk the client through their space to create a plan and understand the budget.
A design plan is then created and you can choose colors, fabrics, furniture, bedding, etc. Decoating Den has relationships with over 150 vendors and provides professional training, business management services and a turnkey marketing system to all franchise owners. According to Franchise Direct, the initial investment is $39,900.
5. Fit4Mom
FIT4MOM is the leading pre- and post-natal health, wellness and fitness company, providing moms with support, community and fun fitness classes online and locally.
FIT4MOM currently has approximately 2,000 class locations, 1,850 instructors and 250 franchise owners across the U.S. The company was also ranked by Entrepreneur Magazine’s 500 as one of the fastest-growing low-cost franchises.
As a franchise owner, some of the programs and classes you will learn to offer include:
- FIT4BABY Stroller Stride
- Stroller bar
- Bodywell
- Body Boost
- Run Club+
- Body Ignite
- Fit4Mama
The business is also flexible, allowing you to set your own hours, and you’ll receive onboarding support, a community and a home office team to help you get set up.
According to Franchise Direct, the initial franchise fee for FIT4MOM is approximately $7,495 to $13,395.
Other franchises similar in nature include Moms on the Run and Baby Boot Camp Franchise. Their websites don’t provide a lot of information, but you can request additional information if you’re interested.
6. Just friends
Just Between Friends is an award-winning children’s pop-up resale franchise that helps families save hundreds of dollars on clothes, shoes, books, toys, baby products, and more. Business owners purchase gently used children’s items from consignment vendors to build up their inventory.
This is a seasonal business, with franchise owners organizing spring and fall events, so you can enjoy working a flexible schedule rather than running a business and tracking sales throughout the year. The initial franchise fee for Just Between Friends is $24,900, and with expenses, the total investment to start the business ranges from $65,635 to $94,775. Like other companies on this list, Just Between Friends offers veterans and military spouses a 10% purchase discount.
Other costs include inventory, storage, marketing, labor costs before you open, etc. Just Between Friends provides several tools and resources to help you get started in your business and support you along the way, including 30 hours of online training and coaching, 56 hours of classroom training, and on-site training hours.
7. The proper way
Neat Method is a home organization company that offers both product sales and on-site organization services. The company has been around since 2010 and is currently offering a franchise opportunity with an initial franchise fee of $30,000 to begin offering home organization and virtual organization services to clients in your area.
As a franchise business owner, you will become an expert in organizing, unpacking, and decluttering homes in a variety of spaces.
Like some of the other businesses on this list, The Neat Method isn’t a completely work-from-home business as it requires travelling to clients’ homes, however, the majority of the training and marketing work can be done from home and clients can be consulted online or over the phone.
8. American Business System
Patrick and Linda Phillips founded American Business Systems in 1994. This low-cost franchise allows you to provide medical billing services from your home. For a one-time fee of $30,000, you get everything you need to start your business, including comprehensive training, software and marketing tools, and ongoing support. According to the company’s website, with 10 clients, you can make $300,000 a year. American Business Systems has an A+ rating with the Better Business Bureau.
9. Club Z!
With a Club Z! franchise, you manage a team of remote tutors who provide individualized instruction to students. Tutoring services include one-on-one private tutoring, test prep for ACT, GRE, SAT, and more, one-on-one online tutoring, and online prep classes for SAT and ACT. The initial investment for a franchise is $19,750, with an additional $10,000-15,000 for start-up and advertising costs. No experience is required to start a Club Z! franchise. Small business owners can be up and running in just 30 days. And it’s A+ rated with the Better Business Bureau.
10. Card My Yard
Card My Yard is a unique, low-cost franchise opportunity to run a yard sign rental business. Have you ever wondered what larger-than-life celebratory yard signs are for special occasions? If you would like to become a franchise partner, you will need to fill out an online interest form. Once we have verified that you live in an eligible area, you will be sent an application and a date and time will be set for an interview. You will then receive a Franchise Disclosure Document (FDD) and must sign the agreement within 14 days.
According to Top Franchise, the initial franchise fee is $7,000 and includes all the signage, tools, and training you need to start your business. In addition to the initial franchise fee, you may need to invest in things like business insurance, incorporating your business, and various other business expenses.
Things to keep in mind when starting a franchise
As a franchisee, it’s important to consider not only the initial investment costs, but also other set-up costs. Make sure you fully understand the upfront investment and have access to comprehensive training, resources and support to set you up for success.
It is important to conduct your due diligence and ask detailed questions about the business before making your final decision. All franchise companies must provide you with an FDD, a legal disclosure required by the Federal Trade Commission (FTC).
The FDD contains detailed information about how the business relationship between the franchisee and franchisor will work and the responsibilities of each party. The document should also include royalty structures, royalty fees, advertising rates, recent profit margins and performance. You should also check out reviews on Franchise Business Review and ask current or past franchise owners about their experiences.
When you agree to start a franchise and pay an upfront fee, you are agreeing to license the franchise company’s knowledge, processes, and trademarks through your own business. There are many things to consider, so we recommend that you take your time to think carefully about starting a franchise and discuss the FDD with your legal representative.
Is a low-cost franchise right for you?
Some of the most profitable franchises have low start-up costs, so if you want to start your own small business but want to rely on a familiar name and a proven system, these home-based businesses could be ideal.
While some franchises require a six-figure investment or minimum net worth requirements, you could also consider becoming a franchisee and launching your own decor, vacation planning, or pop-up shop business in just a few months.
Starting a franchise takes hard work and dedication, but with the right preparation, you can have the rewarding experience of owning and running your own business.
Know of any other low-cost franchises? Send us a message below. We love to hear from you locally!
If you want to start a business but are on a tight budget, here are some free business ideas to get started.
Originally published on July 24, 2023. Content updated July 2024.
