Do you like the idea of owning a franchise, but you don’t have the cash that most require? No problem. We have some low-cost franchises that won’t break the bank!
Starting a franchise is an exciting and rewarding way to create your own business. Some of the local businesses you interact with daily may be franchises. What you may not know is that there are several low-cost franchises that you can run from home.
Running a home-based franchise allows you to significantly reduce business expenses, while working with established brands.
In this article, we’ll explore 12 low-cost franchises that are work from home friendly and how to get started with each one.
How Franchises Work
Owning a franchise allows you to leverage an established brand name and proven business model, while still enjoying the freedom to be your own boss and make decisions about how you run your business. Popular franchises include McDonald’s, 7-Eleven, and The UPS Store; however, these franchises require large down payments, business loans, and ongoing monthly fees.
For instance, to start a McDonald’s franchise, the buyer will need $750,000 in non-borrowed personal funds. These types of franchises tend to offer very high returns, but they still involve significant financial risk.
Low-Cost Franchises
As you can see, starting a franchise can be costly, depending on the company, but there are many smaller companies with low-cost opportunities for Americans.
If you’re looking for a franchise company with low start-up costs, here are 12 home-based low-cost franchise opportunities that are worth exploring.
1. American Business Systems
Patrick and Linda Phillips launched American Business Systems in 1994. With this low-cost franchise, you’ll offer medical billing services from the comfort of your own home. For a one-time all-inclusive fee of $30,000, you’ll be given everything you need to launch your business, including comprehensive training, software and marketing tools, and ongoing support. According to their website, most franchises earn $25,000 to $50,000 per doctor annually. So, if you had 4 clients, your potential annual earnings would be $100,000 to $200,000.
- American Business Systems has an A+ rating on the Better Business Bureau.
2. Bee Organized
Bee Organized is a franchise in which you’ll provide professional home-organizing services to clients. This low-cost business opportunity is available in AK, AL, AR, AZ, CO, CT, DC, DE, FL, GA, IA, ID, KS, KY, LA, MA, ME, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, WV, and WY. In addition to being named one of the best franchises for women, Bee Organized provides franchisees with a 90-day ramp-up program. According to Top Franchise, potential franchisees need $50,000 in liquid assets and $49,500 for the initial startup fee.
Bee Organized receives a 3.6-star rating on Glassdoor.
3. Card My Yard
Card My Yard is a unique, low-cost franchise opportunity in which you’ll run a business renting yard signs. You know, the larger-than-life, celebratory lawn signs that celebrate special occasions? If you would like to become a franchisee, you’ll need to complete the online interest form. Once they determine that you live in a qualified area, they will send you an application and schedule a time to speak with you. From there, you’ll receive the Franchise Disclosure Documents (FDD), and you’ll have 14 days to sign the contract.
According to their website, the initial franchise fee is $8,500 and includes all necessary signs, tools, and training to help you start your business. Besides the initial franchise fee, you may need to invest in business insurance, business incorporation, and other miscellaneous expenses.
4. Club Z!
With a Club Z! franchise, you’ll manage a remote team of tutors who provide individual instruction to students. Tutoring services include one-on-one home tutoring, test preparation for standardized tests such as the ACT, GRE, and SAT, and one-on-one online tutoring. The initial franchise investment is $19,750 with an additional $15,250 to $22,250 for startup costs and advertising. No prior experience is required to start a Club Z! franchise, and small business owners can begin their business in as little as 30 days.
- Club Z! has an A+ rating with the Better Business Bureau.
5. Coffee News Weekly
Coffee News Weekly is a franchise that publishes a free weekly hard-copy publication for the customers of coffee shops, restaurants, and cafes. With this business, franchisees earn money by selling advertising in free publications.
According to Franchise Direct, the initial franchise fee is $9,900. To begin the process, schedule a free phone call with the company. During the call, you’ll learn all about the business venture and have the opportunity to ask questions. If you decide to move forward, you’ll receive online training.
Each franchise owner will select the territory where they want to distribute the publication (they recommend populations with at least 50,000 people). With this affordable franchise opportunity, you can create your own schedule and work from home; however, you’ll need to work full-time hours. Coffee New Weekly has publishers in six countries, including the United States and Canada.
- Coffee News Weekly gets a 4.4-star rating out of 5 stars on Indeed.
6. Cruise Planners
Cruise Planners is a home-based travel advisor business and one of the largest travel franchises in the US. No experience is required to start your own business, and you’ll learn how to help clients plan trips, including cruises, land tours, and all-inclusive resort vacations.
This business is also flexible, allowing you to set your own hours. Cruise Planners also provides all the technology, marketing, and support needed to run your business. This is another low-cost franchise, with initial franchise fees starting at $7,995.
By taking on less debt, you can reinvest more money into growing your business over time.
- Cruise Planners gets a 5-star rating out of 5 stars on Host Agency Reviews.
7. Decorating Den
Do you love to decorate and have an eye for detail? Decorating Den is an interior design business with franchise owners located all across the country. You can leverage the business’s name and reputation to secure local interior design clients.
The company has been around since 1969 and provides you with a design concept, training, and a range of resources. The design process starts with a phone consultation with the client. Then, you will set up a tour of the client’s space to develop a plan and understand their budget.
Next, a design plan will be developed, and you can pick out colors, fabrics, furnishings, bedding, and more. Decorating Den has relationships established with more than 150 vendors and provides professional training, business management services, and turnkey marketing systems to all franchise owners. According to Franchise Direct, the initial investment is $39,900.
8. Dream Vacations
Dream Vacations is a home-based travel franchise and a good, low-cost option. The initial franchise fee is $9,800, but they offer in-house financing. They also have discounts for community heroes (first responders, teachers, and medical professionals) and veterans and military spouses. You’ll also receive 100% of travel commissions for what you help book.
With this company, you can help clients find the best deals for travel, including cruise packages, resorts, hotels, car rentals, and more. Franchise owners can also get free and discounted rates for their own travel as an added perk.
With Dream Vacations, all technology is web-based, and you’ll receive full training, including lead generation, along with 24/7 support. Dream Vacations also spends more than $4 million annually on marketing and promotions for franchise owners.
9. Just Between 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 gear, and more. Business owners purchase gently used children’s items from consigners to build their inventory.
This is a seasonal business where franchise owners produce spring and fall events, so you’ll enjoy a flexible schedule rather than running the business and tracking sales year-round. Just Between Friends has an initial franchise fee of $24,900, and with expenses, the total investment to begin operating your business will range from $66,665 to $97,515. Like other companies on this list, Just Between Friends offers a 10% discount on purchases to veterans and military spouses.
Other costs may include inventory, storage, marketing, and pre-opening labor costs. Just Between Friends provides several tools and resources to help you get started, along with support along the way. This includes 30 hours of online training and coaching, 56 hours of classroom training, and onsite apprenticeship hours.
- Just Between Friends gets a 4.6-star rating out of 5 stars on Glassdoor.com.
10. Moms on the Run
Moms on the Run is a Minnesota-based franchise that supports women of all ages with their running goals, whether that’s running a 5K or training for a marathon. The initial franchise fee for a single location is $9,995, plus $300 per month in technology fees. Moms on the Run has been ranked in the top 10% of Healthiest Brands by the Franchise Grade 500 for its low financial investment.
11. Starz Program Franchise
If you’re looking for a fun, part-time franchise focused on fitness and kids, check out the Starz Program. With this franchise, you’ll offer part-time skill-building classes in dance, cheerleading, sports, and fitness for kids. This can be done at your home, a local park, or a school. Like other franchises, you’ll get extensive training and tools to help make your business successful.
The initial franchise cost is $39,000, plus a $500 branding fee (which includes branded promotional items) and a 4-8% monthly royalty fee. How much you can earn varies on numerous factors, but the going rate for a class is $65 a month, and most new business owners have 60 to 80 students in their first year, which would be $46,800 to $62,400 annually.
12. The Neat Method
The Neat Method is a home organization company that sells both products and provides on-site organizing services. The company has been around since 2010 and now offers franchise opportunities with an initial franchise fee of $30,000, allowing you to begin offering home and virtual organizing services to clients in your area.
As a franchise business owner, you’ll learn to specialize in home organization, unpacking, and decluttering for various spaces.
Like a few other businesses on this list, The Neat Method is not solely home-based, as you may need to travel to clients’ homes. However, you can do the bulk of your training and marketing work from home and consult with clients online or by phone.
- The Neat Method gets a 3.9-star rating out of 5 stars on Glassdoor.com.
What to Keep In Mind When Starting a Franchise
As a franchisee, it’s important to look beyond the initial investment costs and also consider other setup costs. Make sure you fully understand the upfront investment and that you will receive comprehensive training, resources, and support to contribute to your success.
It’s essential to conduct thorough research and ask detailed questions about the business before making a final decision. All franchise companies are required to provide a Franchise Disclosure Document (FDD), a legal disclosure document mandated by the Federal Trade Commission (FTC).
The FDD provides extensive details on how the business relationship works between the franchisee and franchisor and the responsibilities of each party. This document should also include how royalties work, any royalty fees, advertising fees, and recent profit margins and performance. You should also check out reviews on Franchise Business Review and talk to current or past franchise owners about their experiences.
If you agree to start a franchise and pay the upfront fees, you’ll be agreeing to license that franchise company’s knowledge, processes, and trademarks through your business. While there is a lot to consider, you should take your time thinking through starting a franchise and possibly discussing the FDD with a legal representative.
Is a Low-Cost Franchise Right For You?
While there are low-cost franchises you can start from home, this is not the only way you can start a business. There are many online training programs available if you want to be a Bookkeeper, Virtual Assistant, Dog Treat Baker, Proofreader, Parking Lot Cleaner, or Etsy Seller. These types of businesses are very affordable to launch, and you’ll get to keep more of your profits when you start a business from scratch.
However, if you’re looking to start your own small business and rely on a well-known name and proven system, these home-based franchise opportunities could be ideal.
While some franchises require a six-figure investment or have minimum net worth requirements, you can consider becoming a franchisee and setting up your own decorating, vacation-planning, or pop-up shop businesses in just a few months.
Starting a franchise requires hard work and dedication, but with the right preparation, you can have a rewarding experience owning and running your very own business.
If you’d like to start a business but have a small budget, here are some business ideas you can start for free!
