Best Franchises under 100k

There are a few key industries that are well-suited for those looking to invest in franchises under 100K. There are some industries that you might want to stay clear of and think about only if you have more capital to invest ($200,000+) in the business.

Today, franchises under 100K are becoming increasingly popular as entrepreneurs look for low-cost franchises to get their start in business. And thanks to the internet, it has never been easier to research franchises that meet your budget and needs criteria.

VettedBiz is a great resource for those looking for franchises under 100K. With VettedBiz, you can quickly compare franchises by industry, size, and investment range with just a few clicks of a button.

SBA Franchise Loan Available 

One good thing, you don’t have to have that $100,000 in cash. If you’re a U.S. citizen, green card holder, you might be eligible depending on the business for an SBA 7(a) loan. So that’s from the small business administration where they’re backing the majority of that loan, and you get the loan through a commercial bank. Right now, rates are at 5%. So, if you’re investing in a franchise that’s $100,000, you could potentially put up $30,000 cash, get a loan for $70,000 at a 5% interest rate to help support the initial start-up of your business, as well as sustain the growth, and so you start to draw dividends from your business. So on our portal vettedbiz.com, we have over 600 opportunities available starting at less than $100,000.

Best Franchise under 100k to Buy – Not Food Related!

Now, most of these are gonna be dominated by the service industry. When I talk about service, I mean the following industries. Home care, property management, accounting, commercial cleaning, cell phone repair, different retail service businesses, education that would include tutoring as well as STEM education businesses. You can also look to convert an existing business that you own, say a small cell phone repair business into a franchise business to leverage the brand technology system of that franchisor for an investment in franchises under 100K.

Franchise Return on Investment 

If you invest under $100,000 in a franchise, get ready to work hard. Generally, it’s gonna take three to 12 months just to break even. So you’re gonna have to have additional capital or maybe you’re married to a spouse who makes a lot of money or has a lot of capital. In such a case, you wouldn’t have to worry as much for those first three to 12 months before you break even and start taking a salary or taking distributions from the company. So the first year, you’re basically living off your savings, or your spouse has a great job.

Second and Third Years of Owning Franchises under 100k

In general, during the second year you’re gonna have a tight budget and will have to watch your expenses. Going into the third year is when growth starts to accelerate. You can take more and more profits out of a business that you invested up to 100K. Again, though, profits generally don’t really come until well into the second and third year. So, say you invested $80,000 into a property management business. It could be months until you take some cash out of the business. However, when you’re at year three, there are some systems in which average franchisees do sales of $500,000 at a profit margin of 30%. So, of that business that you invested $80,000, you take out $150,000 in cash in the form of salary and dividends, and you have a pretty stable business, and you’ve created an asset now.

Make a 3-5X Return on Investment? 

With a property management business, an accounting business, or an insurance franchise in which you do sales of $500,000, right now you could probably sell for 1X the revenue. So with a business that you initially invested $80,000 or $100,000, you could sell at a later date for nearly $500,000, representing a pretty nice return on your investment. Beware of franchises in which you invest, say, $100,000 that have sales of $100,000. It’s better to buy that business on the open market than start it from zero. A big, important thing to look at is the multiple sales over the initial investment amount. For franchises under $100,000, I like to see sales represent 3 or 6 times the initial investment to start that business.

So given the example, you open up an insurance business for, say, $100,000. I’d like to see sales once you hit maturity, could be in year two, year three, of $300,000, $400,000, $500,000 as there are many franchisees that are competitively positioned where that’s going to be your return. With service-based concepts, the profit margin can be anywhere from 20% to 40% plus for those that are active on our operators.

Examples of Franchises under 100k

Are you looking to invest in a franchise? Vetted Biz has several franchises under 100k listed on its website. Here are some examples that may be of your interest.

{Yel!} Youth Enrichment League

YEL Franchising, Inc. provides franchises for operations that feature child-oriented after-school and summer programs through its {YEL!} logo. These activities are accessible to pre-kindergarten up to 12th grade students, with unique courses ranging from chess to robotics available. The {Yel!} Youth Enrichment League is dedicated to giving children the tools they need to succeed in academics and life, providing a comfortable, nurturing atmosphere where youth can thrive.

1-800-Plumber

1-800-Services, LLC is offering business opportunities to entrepreneurs with an interest in plumbing, heating and air conditioning (HVAC) services. The 1-800-Plumber franchise system offers a reliable, tested framework to help you deliver quality service to customers while growing your business.

3% Realty, Simply Full Service Realty

The franchise provided is a real estate brokerage that offers residential real estate brokerage services and other products and services, employing our system and using the 3% Realty trademark (each referred to as a “Franchised Business” or “3% Realty Business”).

1Heart Caregiver Services

The franchise opportunity on offer involves creating a non-medical home care provider that specializes in providing caregiving services to elderly people and other adults who need help with their healthcare but do not require such a high level of care as offered in nursing homes (the “1Heart Caregiver Services Home Care Business”).

1st Class Real Estate

1st Class Franchising, LLC, doing business as 1st Class Real Estate, grants Unit franchisees the privilege to offer real estate brokerage services. They provide two opportunities for aspiring entrepreneurs – Standard or Virtual Franchise options.

1-800 Water Damage

1-800 WATER DAMAGE is a franchise that specializes in water damage remediation, mold abatement, and fire & smoke damage restoration. They also provide an extensive selection of residential cleaning services and their franchisees are certified to the most stringent standards in the industry.

1-800-Packouts

1-800-Packouts is an accomplished content organization offering first-rate, innovative material for organizations of all sizes. Their competent authors and editors aid patrons in fashioning engaging content that resonates with the public and produces results. They offer a vast array of content services like blog writing, web copywriting, item descriptions, etc. The business is devoted to providing customers with top-notch material to help achieve their objectives. 1-800-Packouts supports its franchisees with a crew of highly proficient personnel, unique text that is tailored to fit their corporate aims, a thorough material plan that captures the attention of the readership, and an assurance to excellence that yields outcomes.

360 Clean

360 Clean is a well-regarded commercial cleaning firm offering services to customers countrywide. Their range of solutions encompasses office cleaning, carpet sanitizing, window washing, and pressure washing. In addition, 360 Clean creates tailored packages to suit each customer’s individual requirements.

2nd Shift

As a franchisee of 2nd Shift Franchising, LLC (“2nd Shift”), you will be the proprietor of one business that offers 24/7 plumbing and sewer services with no extra costs for emergency service. These services include but are not limited to connecting up sewers; examining underground pipes; executing fixes; cleaning and jetting out sewers; common plumbing jobs; basement reparations; draining obstructions; bathroom makeovers; and mending drains. Your primary responsibility as a franchisee will entail overseeing daily operations, furnishing excellent customer service, coordinating and organizing sales activities, as well as providing these services.

Leading Franchise Platform – Vetted Biz

Being mindful of your time, this is my last thought. It’s gonna take you time to select the business, to invest in a business. At Vetted Biz, we can help you on that side. But in terms of launching the business, you’re there together with the franchisor to get that business open and to get it profitable. So, you have to budget in how much your time is worth and how much time you’re allocating to that business in each step to see if it makes more sense to just continuing to be an employee or looking at some other business endeavor because you’re gonna have anywhere from six months to 12 months where you’re not taking money out of the business so you have to budget in your time as well.

So franchises under 100k are an attractive option for those who are looking to set up their own business but don’t want to break the bank. Vetted Biz is a leading platform to browse such franchises, helping you find the perfect fit for your entrepreneurial dreams. It’s important to note that setting up and running these franchises will require significant effort and time commitment from yourself, so be sure to plan accordingly before taking the plunge.

That concludes our brief overview of franchises under $100K. As always, do your due diligence and research the franchises thoroughly before making any decisions.