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15 Apr 2024

Franchises Under $100k: Find the Best Investment

You’re not alone in your desire to start your own business. You’re also not alone if you’ve looked at the initial startup costs of the higher-end franchises and come down with a severe case of sticker shock. Don’t let your need to be thrifty make you feel like you have to give up; there are a lot of franchises under $100k that you can choose from. Here, we’ll take a look at why profitable franchises aren’t out of your reach, what to look for in a franchise, and some affordable franchises that might be a good fit for you.

A Wise Investment

Franchises under $100k can make good business investments. First, franchises in general are considered turnkey businesses, thanks to having proven business models. They’re also very operator-friendly, even for industry newcomers; this is thanks to franchisors that act as trainer, administrative support, and business advisor.

Franchises also frequently have what’s known as a scalable business model. This means their business model is designed with potential growth beyond the starting size in mind. This can be achieved through expanding a single location with more services, a larger footprint to serve more customers, or opening new locations to reach new markets.

Successful Franchise Qualities

Once you’re ready to look for a business to start with $100k, you should familiarize yourself with the most important qualities shared by successful franchises. Being affordable is a good starting point, but there’s more to a good franchise than startup costs. Here are some valuable qualities that profitable franchises tend to share:

  • Growing industries: A franchise needs a solid, growing industry or market to be profitable. Check the latest statistics and economic projections to see how an industry is performing, and if the markets in which the franchise is present have room for growth or are saturated.
  • Good financial performance: Sometimes the best place to get information on a franchise is from the inside. Talk to existing franchisees to see how well the business model works for them, what sort of revenue they’re seeing, and how good their profit margins are.
  • Supportive franchisors: Another important thing to ask existing franchisees is how supportive the franchisor has been. Ask the franchisees about how responsive the franchisor is to requests for advice, suggestions, and criticism, as well as how invested the franchisor is in its franchisees’ long-term success.
  • Comprehensive franchise agreements: A good franchise agreement will be straightforward and easy to understand. Make sure to go over the agreement with a franchising attorney before you sign, and be certain you’re fully informed about franchisee and franchisor responsibilities, fees, royalties, and franchisee rights.

Affordable Franchise Suggestions

You’ll find franchises in just about every industry and market available, and a good many of them are franchises under $100k or have options that are under $100k. While service-based and home-based franchises are good choices, they’re not the only ones out there. Here are a few franchises that fit in the $100k-and-under price range:

  • Hommati – A growing real estate franchise that, according to Entrepreneur magazine, comes with a $65,000-$80,000 initial investment.
  • Hudson Valley Swim – A children’s swimming lessons franchise with initial investment costs starting at $79,000.
  • Stratus Building Solutions – An environmentally friendly commercial cleaning and disinfecting franchise, its startup costs range from $4,000-$80,000.
  • Dream Vacations – A travel agency franchise with an initial investment range of $2,000-$21,000.
  • Sanford Rose Associates – An executive search and recruiting franchise with a startup investment range of $11,000-$15,000.

Find an Affordable, Profitable Franchise with MFV

Let us put our 32+ years of experience bringing the franchising world together at your disposal to help you find the best franchise opportunities for you. Our expos are a great place for franchisors and franchisees to meet and network with franchisors. We also host presentations by thought leaders in many industries, helping you make the most informed decisions possible. Don’t miss your chance! Request attending info for the next MFV Expo near you.
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