Are you looking to invest in a franchise, but you’re on a tight budget? Are you willing to spend no more than $30,000 on your initial investment?
Browse our listings below to see some of the top franchises under 30K.
You can also obtain an SBA loan for a franchise and invest as little as 30% of the total investment amount.
Franchises under 30K for sale are generally going to be in the service industry. This could be commercial cleaning, it could be travel agency concepts, and it could be waste management solutions. There are all different types of service franchises that are available for those that want to invest less than $30.000 in a franchise.
Be aware, under $30.000, there are a lot of business opportunities that are marketed as franchises like vending machine options, ATM type businesses that boost having passive income, but they’re not required to have the same disclosure as a franchise in terms of disclosing estimated investment amounts, the litigation, experience of the executive team, openings and closures. Just do your due diligence if a business does not give you a Franchise Disclosure Document.
If it’s being marketed as a franchise, they’re legally required to give you a Franchise Disclosure Document if you’re in the United States. Under $30.000, there are a lot of business opportunities that are packaged and sound like a franchise, might even be marketed as a franchise, but they’re not franchises. They’re franchises like franchises in the sense that you have a system and it’s a business concept, but they don’t have to provide you with the same disclosure.
All franchises on Vetted Biz are clearly stated and noted as franchises and we even give the source of when we last got the information from their FDD. If you’re going to buy any franchise, you’re going to receive this document in the very initial phases of investigating that franchise.
So, if you are looking for franchises under 30K, one of the best places to start would be VettedBiz.com, which provides an array of franchises available for less than $30,000. The site does an excellent job at filtering out some of those opportunities that aren’t franchises, allowing you to focus on franchises instead. It also offers comprehensive information about each opportunity including estimated initial investment costs, ongoing fees (royalties), training and support provided by franchisors, the total number of units open and closed, and more so that readers can make an informed decision.
Lots of franchises are cleaning concepts. I’m not a big fan of residential cleaning, as you’re competing with people that operate in the gray market where you have people still paying cash for their cleaners. And then you’re also competing with technology firms that are launching apps where you can get a cleaner on-demand, where commercial cleaning if I was going to open up a franchise in the space would be a lot more attractive because you’re dealing with business professionals. You generally have a contract that could be up for a year and you’re getting paid every week or every month for services rendered.
Some notable franchises are under $30.000, and you can listen to our podcast or watch our video on the Chick-fil-A franchise which is $10.000, as well as the Steak ‘n Shake franchise which is $10.000. Now both those franchises do not operate as traditional franchises where you own and operate and you get 100% of the profits, but for the right candidate, they might be worth exploring.
The most important point that often is not spoken to would-be franchisees of some of these low-cost franchises, which are generally under $100,000, is there’s not enough profit margin available to hire a day-to-day manager. So as a franchisee of a low-cost franchise, it could be in the service sector. You can expect to work full-time for the first 12 to 18 months. That’s something that many would-be franchisees don’t expect. And so, if you are not prepared to work full-time for 12 to 18 months, then franchises under 30k might not be the best fit for you.
It takes a long time to build up that initial customer base and pass break-even. Where some franchises, especially in the Food sector, might break even after three or six months, for some of the service brands, it can take up to 12 months or more. Especially for service concepts like staffing, it can take 18 months to break even. It’s really important to talk to current franchisees of any franchise model that you’re thinking about investing in to see how long it took them to break even, as well as until what time was there enough profit margin to potentially have a day-to-day manager in place.
I mentioned working full-time. Full-time has different definitions depending on who you are. Many of the service concepts that we’ve looked at in the $40,000, $50,000, $60,000 range require or strongly suggest that most of the franchisees that are doing this work 50 to 60 hours a week for the first year. So this essentially requires a full-time commitment to the business without earning any money. So make sure that you’re comfortable with that. And perhaps you have a spouse that has a job or another business with steady income coming in for about 6 to 12 to 18 months because for that period of time you can expect to make no money at all. Or very little money in many of these service-based, low-franchise-cost businesses.
Keep in mind that the failure rate is pretty high for many of these low-cost franchises. Our analyst looked at over 2,000 different franchise brands, and how they performed with the 7(a) program under the SBA program. Our analyst at Vetted Biz looked at over 2,000 franchise brands. Many of these franchises were low-cost opportunities under $100,000 that tended to have high default rates, depending on the specific industry, as well as the specific franchise opportunity.
Some of the reasons that might contribute to this high failure rate are that it’s a low entry amount, so it’s easy to get in, there’s a lot more interest, and perhaps there’s even heavier competition in those different industries. Also, some of the systems have less commitment from the franchisor. You’re not working with the franchisor on selecting the real estate and building out the store. There’s not extensive training on-site oftentimes. So there’s less commitment on the side of the franchisor – as well as on the side of the franchisee in terms of signing a commercial lease for 5 years or 10 years. And having that personal guarantee.
Many of the service-based concepts can be operated from your home, a shared office, and month-to-month rent office space, as many of the services are conducted outside of your business premise.
Low-cost franchises often don’t have enough profit margin for a manager. Also, the franchisee for the first year is generally working many hours; it could be 50 to 60 hours plus. It can take a long time to build your customer base and then break even. Also, many of the brands in the low-cost category (sub-$100,000 franchise investment) have pretty high franchise failure rates. So we strongly recommend that you look at franchises under 30k and consider the pros and cons before taking the plunge.
It is important to do your research and to speak with existing franchisees of any potential franchises that you’re interested in. Make sure that you have a good understanding of how long it will take for franchises under 30k to break even, what kind of commitment to time and money is required, and what kind of success rate these franchises have had. This way, you can make an informed decision whether or not franchises under 30k are right for you.
Are you looking to invest in franchises that require limited funds? Vetted Biz offers a selection of franchises under 30k on its website. Here are some franchises that may be of interest:
Abbey Carpet & Floor has been in the business for over three decades, providing franchises with expertise and assistance in the floor covering and window treatment industry. Through their tried and true model and strong purchasing power, franchisees gain access to a wide range of services including carpets, hardwood, laminate, tiles, vinyls, blinds, shades, and shutters. Franchisees are supported by an experienced team of professionals who are well-versed in franchising. Benefits of being part of Abbey Carpet & Floor include: training from seasoned specialists; reliable company strategy; nationwide buying clout; plus access to an array of choices for customers.
The American Poolplayers Association (APA) is the biggest pool league in the world, with more than 250,000 members and 8,000+ establishments in the US, Canada and Japan. The APA is deemed to be the preeminent amateur pool organization in North America. To-date, it has dispensed over $1 billion in prize money, making it the most generous cash prize entity globally. The APA also provides chances for players of different aptitude levels to go up against each other through a structured divisional system. The franchise being offered is intended for managing an amateur pool league.
AmSpirit Business Connections is a services firm that provides business professionals with the resources they need to network, educate themselves, and promote their businesses. Membership of AmSpirit grants access to a wide range of tools that can help take any business to the next level. Its team is composed of seasoned individuals who are dedicated to helping its members reach their goals. They are well-aware of all the resources available through AmSpirit and will always strive to provide clients with the most appropriate solutions for their professional development needs. Additionally, AmSpirit also offers event planning and marketing support services. By joining AmSpirit, entrepreneurs have a clear path towards success.
Aptask is an international provider of staffing and hiring solutions. They collaborate with businesses of all sizes, across multiple industries, to identify the ideal candidate for their requirements. They recognize that each business has its own distinct needs, which is why they offer a variety of services to help them locate the best possible match. Their range of services encompasses short-term, contractual, or long-term placements, as well as sourcing and evaluating potential hires and onboarding new employees.
Assist-2-Sell is a pioneering real estate business that offers home buyers and sellers an unparalleled, comprehensive service that other firms cannot match. With offices distributed all over the U.S., their team of seasoned real estate agents are passionate about aiding individuals with purchasing or selling their homes. They offer a broad range of services such as house staging and advertising.
The Benjamin Franklin Plumbing franchise provides a broad array of residential and light commercial plumbing services, extending from maintenance and repair to remodels and replacements. In addition, they provide water conditioning upkeep, drain and septic tank digging, cleaning, re-piping, as well as drain cleaning assistance – excluding industrial or any new construction processes. With all-encompassing offerings like taps & faucets to toilets and showers, not forgetting gas piping plus fixture services too – they even boast grease trap and interceptor solutions. All additional service requirements are met with appliance fixing or replacing expertise along with small electrical needs and HVAC demands. Furthermore this franchise offers 24/7 emergency support – guaranteeing those in need get the help required whenever the need arises.
As a franchisee, you will be responsible for running an educational center under the BEST BRAINS brand name.
Box Drop is searching for entrepreneurs to expand its franchise network. As a franchisee, you would take on the responsibility of delivering the company’s services in your region. This entails finding clients, arranging bookings, and giving customer support. Franchisees at Box Drop should be ready to put in tremendous effort into developing their businesses and providing remarkable customer service. Under this franchise agreement, you will market furniture, mattresses, appliances and other household items at reduced prices to the public.
This opportunity encompasses a gym functioning under the moniker of BRICKHOUSE CARDIO CLUB®.
The franchisee will be authorized to provide food, drink and other consumer goods using one or more of the following options, as established by Canteen: vending machines, meals, combined services, office-brewed coffee and/or protected delivery systems.
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