Franchises Under $20,000 in Investment

Are you looking to invest in a franchise, but you’re on a tight budget? Are you willing to spend no more than $25,000 on your initial investment?

Browse our listings below to see some of the top franchises under 20k for sale.

You can also obtain an SBA loan for a franchise and invest as little as 30% of the total investment amount.

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  • Franchises under 25k

    We get asked quite a lot what are the best franchises under 25k? Now, $25,000 isn’t that much money to open up a franchise or a small business. You’re going to be looking at service-based businesses, and often if the price tag is $25K, $20,000, they often have a high failure rate because it’s easy to open and often easy to close. And the franchisors are more lenient with the franchise agreement. And not making the franchisee stay on for 10 years and pay the minimum royalty for the full 10-year period. They’re more accommodating of people entering the system, as well as leaving the system. And the high failure rate of franchises under 25k reflects this reality.

    Now, franchises under 25k investment could turn into an opportunity where you’re profiting $150,000, $200,000 in earnings a year. However, how long is it going to take you to start making $200,000 based on initial capital investment of $25,000? Three years minimum, probably more like four, five, six years. So you’re going to have to calculate how much is your time worth, and is it better, maybe, working at a company and doing something on the side until it really starts to pick up, and then jumping in 100% to a business opportunity or a particular franchise.

    Low initial investment franchise

    Many people do not want to put the time in it takes to start making $150K based on a very low investment. They prefer to collect a steady paycheck. However, there are some exceptions like Chick-fil-A and Steak ‘n Shake. Those are two restaurant franchises that you can basically enter into a partnership model where you split the profits with the franchisor directly.

    And, again, only $10,000 so you can imagine a lot of people applying for the opportunity to partially own a Chick-fil-A franchise, a Steak ‘n Shake franchise, but it is a promising opportunity for those that have less capital, are willing to work hard, however, aren’t motivated to become mega millionaires because you are generally limited to having just a couple of Steak ‘n Shakes or a couple of Chick-fil-As. So I’ve heard of people opening up insurance franchises, starting with $50,000 and create an empire where they have now 35 locations and it’s worth $20 million. You’re not going to do that with a Chick-fil-A or a Steak ‘n Shake.

    Restaurant franchises under 25k

    Most franchisors do want you to continue to grow like Burger King, Papa John’s, Domino’s. Average franchisees have five-plus locations, but Steak ‘n Shake and Chick-fil-A, you’re going to be kind of limited in terms of your upside potential, but you should be making good money. And if you have under $25,000 to invest, I’d recommend a Chick-fil-A opportunity or a Steak ‘n Shake opportunity if you are interested in the restaurant franchises space. If not, you might want to save some additional capital and look at some low cost service franchises, and there’s a lot more available in the $50,000 to $75,000 range.

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