Wanting to buy a low-cost franchise business in the U.S.? Find out here in this guide, a selection of low-cost franchise options that bring in high profits.
A good place to begin if you don’t want to spend time starting up a new company from scratch is buying a brand name in the US. You can use these established companies’ success to help you grow your own business.
Before deciding which type of franchise to go for, think carefully about your preferences. For example, if you want to start a restaurant, choose from fast food franchises like McDonald’s or Kentucky Fried Chicken (KFC) or choose from different types of restaurants like pizza or Chinese restaurants.
Another important factor you should consider is your financial situation. A franchisor requires a certain amount of capital as an investment, a deposit, etc. Franchising in the US has provisions for different budgets. You should choose one that fits your requirements.
If you’re planning to open a franchised restaurant in the United States, be sure to do thorough market research before you decide to invest your time and money into opening one. According to Statista (2019), there were roughly 8.43 million workers employed by franchises in the US in 2019.
List of 25 Low-Cost Franchise Opportunities in the USA
Below we’ve listed some of the most lucrative franchises available in the US today.
1. McDonald’s
Headquartered in Chicago, McDonald’s is one of the world’s largest fast food chains. Founded in 1940, McDonald’s had more than 38,000 outlets worldwide by 2005. There are different types of McDonald’s franchise options for you. These can be found in traditional restaurants, small-town oil, small-town retail, and the BFI franchise.
For McDonald’s franchises, you’ll pay a $45,000 franchising fee plus anywhere from $1 million to $22.5 million for an initial investment.
2. KFC
Kentucky Fried Chicken (KFC) was founded in 1937 by two brothers who wanted to sell fried chicken from their truck. They started out selling fried chicken sandwiches at fairs and carnivals. Since then, KFC has grown into one of the largest fast-food chains in the world. Today, there are more than 24,000 franchise units worldwide.
You must pass an assessment test to obtain a KFC restaurant license. A non-traditional KFC requires investments ranging from $241,100 to up to $996,000. A traditional KFC requires investments ranging between $1,442.6K and up to $2,771,500. These include licensing, inventory, training, insurance, etc.
3. Dunkin’
Dunkin’ Donuts is a famous doughnut store in the US and is almost a staple of daily life. It was founded in 1950 by Joseph A. Coughlin Jr., who opened his first store in Quincy, MA. Today, there are more than 13,000 Dunkin’ stores worldwide.
A Dunkin’ franchise in the United States costs between $40,000 and $90,000 as franchise fees, plus an initial investment of between $1.5 million and $3 million.
Related: Top 10 Bagel Franchise Business Opportunities
4. Taco Bell
If you want to start up a taco restaurant business in the United States, then Taco Bell is an excellent choice. It was founded in 1964 and currently operates with approximately 7000 restaurants worldwide. Its most popular menu items include tacos, burritos, quesadillas, and nachos.
Taco Bell is an American fast-food restaurant chain specializing in Mexican cuisine. It was founded in 1982 by Glen Bell and his wife Sylvia Morales. They started franchising in 1983. Their first store opened in 1984 in Lakewood, California. Today, there are over 7,500 locations worldwide. Taco Bell is owned by YUM! Brands, Inc., a subsidiary of PepsiCo.
5. Subway
Famous for its fresh sandwiches, wraps, and salad bowls, Subway has been serving delicious meals since 1965. They began franchising in 1974 and now there are more than 37000 franchises worldwide.
For Subway’s US franchises, you need to invest anywhere from $167,500 to $476,900. You might be able to get a low-interest rate or even a waiver of the initial investment if you qualify for one of these situations. After the first year, the contract renews itself automatically.
6. Baskin Robbins
The famous ice cream brand Baskin Robins was founded in 1946 by Ben and Phil Robinson. It has since grown into a chain of more than 7000 stores worldwide.
For the Baskins & Robbins franchise, your initial outlay would be anywhere from $280,340 to $636,360 depending on how much money you put into the business. You will receive a 10-day training course on production, merchandising, services, etc.
The franchise is for 20 years and the renewals are subject to fulfilling certain conditions. Third-party loans may be obtained if needed.
7. Dream Vacations
To learn more about franchising in the US, check out the Dream Vacations Home Business Opportunity. It’s one of the best franchises if you’re interested in starting a home-based business. There are lots of special offers available for people who serve our country.
For the Dream Vacation franchise, you need to invest initial franchise fees of $495 to $10,000. The amount depends on your experience. In this case, more experienced franchise owners receive bigger reductions. The initial investment range between $1,795 to $20,300.
8. 7-Eleven
7-Eleven is one of the most popular franchises in America. You can choose from traditional stores, convenience store conversions, and micro markets.
If you want to open a 7-Eleven store, you need to invest somewhere between $53,000 and $1163,000, depending on the location of your store. You will receive 300 hours of training and some concessions in the down payment and initial fees in special cases. The duration of the agreement is 15 years and renewal is subject to various conditions.
9. The Maids
The maid service industry has an extremely wide market. If you’re interested in starting a franchised business, The Maids is probably the best option for you. It was founded in 1980 and currently has approximately 1,500 franchises nationwide.
For the franchises, you must pay $12,500 as an initial fee and then another $48,950 to start your own business. In addition, you may require additional investment depending on whether you choose to go for a new or used vehicle. The duration of the agreement is ten years.
10. Anytime Fitness
If fitness is your hobby as well as a business, then Anytime Fitness may be the perfect franchise for you. Its unique selling proposition (USP) is that it stays open 24 hours a day, 365 days a week so that clients never need to miss out on their workouts. It was founded in 2002 and now has more than 4,800 locations worldwide.
For anytimefitness.com, the initial investment ranges from $58,870 to about $521,437 depending on how much capital one wants to start off with. In addition to that, one needs to invest around $3,150 to 42,500 annually to run the gym.
One also needs to spend around $58,870 to 521,437 annually to run the gym as a franchisor. The duration of the agreement is 6 years. After completing the agreement, the gym can be renewed for another five years.
11. Supercuts
If you want to open a barber shop, Supercuts is one of the best franchises for you. It has been operating for more than 40 years, and currently has more than 2600 franchised locations. Besides a shave, the Supercuts brand offers other services and sells various cosmetics.
To be a part of the Supercuts franchising business, you must first purchase a license for $39,500 and then invest between $151,370 and $321,020.
12. Sport Clips
Sport Clips is one of the most popular franchises for salons in the United States. It has been operating for more than 25 years and has more than 1,700 locations across North America.
For the Sport Clips franchise, you have to invest a minimum of $59,500 (depending on the size of your business) and get three licenses. You’ll be paying a franchise fee of 6%, which amounts to between $1,000-$2,400 per month.
13. Papa John’s
It’s no secret that Papa John’s Pizza has been one of the top franchises since its inception back in 1985. With more than 5,000 locations across the United States alone, it’s no surprise that Papa John’s Pizza is among the best pizza franchises out there.
For Papa John‘s franchise, you must spend $25,000 and put down an investment of about $250,000. Training sessions are provided during the initial period of two months. In the case of small towns, the duration of the contract lasts for five years.
If you manage the restaurant successfully, it will be renewed for ten years or five years depending on the size of the town.
14. Ace Hardware Corporation
If you’re interested in starting a hardware and tool franchise, then the Ace Hardware Corporation franchise may be right for you. With more than 5,000 stores across North America, the company offers several opportunities for those who wish to enter the industry. You can either open a new location, take over an existing store, or convert an unused area of a supermarket into an Ace Hardware store.
To become an Ace Hardware franchisee, you must first invest between $286,000 and $1.07 million into the business. After which, you’ll receive training and marketing assistance from the company.
15. Interim Healthcare
If you’re interested in the adult care industry, then Interim Healthcare could be the right choice for you. They offer both Home Care and Hospice franchises.
For an Interim Health Care Franchise, the franchise fee is 50000 dollars. With that, you must invest 75000 to 148500 dollars. You will get classroom training of 40 hours and another 45 hours of on-the-job-trainings.
16. Pearle Vision
Pearle Vision is an established brand in the eye care industry. It was founded in 1961 and has more than 500 stores throughout the US.
For the PearleVision franchises, the initial investment ranges from $30,000 to $62,500 depending on where you live. You must invest between $391,795 and $620,538. Training includes extensive classroom instruction and hands-on experience.
17. Marriott International
The globally renowned chain of luxury hotels is an ideal choice for your business trips across the US. Marriott Hotels are designed for leisure travel, corporate meetings, and other purposes. With more than 6,000 locations worldwide, the brand is synonymous with quality. For more than half a century, it has been one of the world’s leading hospitality brands.
For the Marriott International Franchise, the initial franchise fee can vary anywhere from $120,000 to $150,000. For a hotel with 300 rooms, your investment could range anywhere from $70 million to $100 million. Your staff will receive training from Marriott International. They’ll oversee the project and make sure everything goes according to plan. The agreement lasts for 20+ years.
18. ServPro
Servpro offers professional cleaning, disinfecting, and repairing services to homes. They started their operations in 1967 and currently, they have about 2200 franchises across the country. Each franchise serves a population range between 5000 to 8000 people. Their policies state that every franchisee must cover a population of 5000 to 8000 people.
For the ServPro franchising business, you must pay a one-time initial licensing fee of $60,00. The approximate total investment is between $100,000 and $150,000. You must complete a five-step program known as the Business Development Program (BDP). The length of the franchising agreement is five years.
19. Jan-Pro
Jan-Pro is yet another successful franchising company in the United States. It was founded in 1991 and has more than 9,000 franchises. There are three different types of options available from Jan-Pro and it varies depending on your skill set.
There are different types of franchises available for sale. Some cost $1,000; others cost up to $100,000. You can get certified by Jan-Pro after completing an online course. It takes approximately 10 months to complete the certification program.
20. Orangetheory Fitness
Orangetheory is a fitness studio based in New York City founded in 2010. They offer a variety of classes such as cardio kickboxing, yoga, Pilates, strength training, and dance. Their color scheme is orange.
The estimated cost of opening an Orangetheory Fitness studio is approximately $59950. You will receive training in operating a fitness studio from the company.
21. Midas
Midas is an automobile franchise store and the stores offering auto repair and maintenance services are known as Midas Shoppes. It was founded in 1954 and has more than 2,000 locations worldwide.
A Midas franchisee needs to invest $30,000 for the franchise fee. Liquid capital must be at least $50, 000, and the minimum net worth requirement is $250,000.
22. The UPS Store
The UPS Stores offer different types of services, including shipping, mailing, and printing. It has been operating since 1983 and has maintained its top position and reputation across the country. You can start your own business by opening a location near your community.
The franchisor charges between $9,950 and $29,950 for the first year of operation. It costs $150,000 to get started. Veterans receive a 10% reduction.
23. Home Instead
Home Instead Senior Care is an established senior care company that was founded in 1994. It provides home care services for the elderly and hospices for the terminally ill.
For the Home Instead franchising business, you need to invest between $50000 and $75000. You must be successful at completing the training program before starting your own business.
24. Fastsigns
FastSigns is a well-known US-based franchisor that offers franchises for different services including signs & graphics, exhibits & displays, promotional products, printing & mailing, graphic design, content development, project management, sales development, etc.
For the FastSigns franchise, you must first purchase a franchise for $49,750. You then have to spend anywhere between $230,000 to $300,000 depending on which type of business you want to set up.
25. Primrose Schools
Primrose Schools is an educational institution that provides childcare services for children between the ages of 6 weeks to 12 years. It was founded in 1982 and currently operates out of more than 400 locations across the country. Its main objective is to help parents get back into work and improve their overall quality of life.
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