Browse our listings below to see some of the best franchises under 50K. The list includes a few food franchises under 50k but most food franchises cost $200k+.
You can also obtain an SBA loan for a franchise and invest as little as 30% of the total investment amount to open up the franchise search criteria.
Generally, these will be service-based businesses where you don’t need a lot of money to open the location. Keep in mind that below $50,000 means the franchise fee is zero up to approximately $50,000, as you will typically need expenses for other items and working capital to get the business up and running.
If you’re looking to invest in a franchise but don’t want to spend too much, there are many options available for less than $50,000. With franchises in various industries and from some of the biggest names in the franchise world, you’ll be able to find a business that fits your budget.
Keep reading and discover it!
If you are looking for an opportunity to invest in a franchise but don’t have the available capital, there is still hope. There are franchises out there that cost less than 50K and can provide a great return on investment.
I’m going to go through different industries that are well-suited for those wanting to invest less than $50,000 in a franchise or business opportunity in the United States. So let’s get right into it. What industries are well-suited or even available for those wanting to invest in a franchise less than $50,000?
So there are a few exceptions on the food side for those that don’t have $50,000 to invest in a business. And you could look at different concepts that are just focused on delivery and takeout. However, if you don’t already have a restaurant or a very recognizable brand and area, it can be hard to sell through the third-party apps a new brand that consumers are not used to that’s fully virtual. You can also look at converting an existing business.
The franchise “Cell Phone Repair” specializes in repairing cell phones and other mobile electronic devices, such as tablets and laptops. The company offers repair services in a variety of areas, including screen repair, battery replacement, button repair, camera repair, speaker repair, and more. Additionally, it also offers services for buying, selling, and trading mobile devices. The franchise has a wide network of stores throughout the United States and prides itself on offering fast and reliable service to its customers. The company also provides ongoing training and support to its franchisees, enabling them to effectively develop and grow their businesses. The initial franchise fee scales up from $50K-$218K
There are a few different sports-related businesses like TGA Premier Sports. It has 100-plus locations where you can open up sports clinics to help with golf, tennis, even soccer in your local community. I believe that it starts at around $40,000.
The TGA franchisee receives the authority to utilize their trade names, service marks and trademarks regarding the operation of a TGA Sports Franchised Business. They must adhere to quality control standards while offering only designated products or services approved at any given time. Franchisees must have adequate financial means to open and manage their franchises.
Children’s programs is another industry that you can invest in. But beware, I haven’t been that impressed by the figures I’ve seen on children’s programs. I see there are a lot of opportunities where you can open up for $30,000, $40,000, $50,000, even $80,000, but the average sales of their franchisees are $80,000. So even if you’re making a profit of 30%, 40%, you’re not even making $40,000. And with most of those opportunities you have to work full-time in the business. So I would be a little skeptical about children’s programs franchises based on the information that we’ve reviewed. However, there are a few diamonds in the rough in the children’s programs space.
So if you’re investing in a franchise that’s less than $50,000, keep in mind, it’s competitive. It’s easy for people to enter into this space. It’s not like you open up a laundromat where you’ve got to invest half a million dollars and you have all these capital expenses and it’s harder for a competition to open up given the high capital expense. So less than $50,000, the failure rate we’ve seen can be higher than investments at $100,000, $150,000 for similar types of service-related businesses.
Keep in mind also, if you’re an American green card holder or a U.S. citizen, you might be eligible for the SBA 7(a) loan program where you only need to put up 30% of the total investment amount. So say a $50,000 franchise, including additional working capital, franchise fee, you might only have to invest $15,000 and get a loan of $35,000. However, again, that draws more competition as people only need $15,000 cash to open up a franchise for which the total investment is $50,000.
For most franchises I see under $50,000, you have to work hard. So get ready to roll up your sleeves and be willing to work 40, 50, 60 hours a week at least for the first 18 months. We’ve had hundreds of clients invest in franchises and we’ve had the privilege to accompany their journey throughout the first initial months of deciding what franchise to choose, to investing in the franchising, to opening the business and growing from there.
Looking at one client case, I have a client who invested in a real estate property management franchise, where the starting investment was even lower than $50,000. The first 6 months were tough. A lot of hard work, a lot of outreach, leaning on the franchisee community, leaning on the franchisor for training and support, lead generation. However, that client who invested not so much capital has now grown to have over 300 properties under management in a period of a little over 3 years.
So you can turn that investment of, say, $50,000 into a business where if it’s real estate property management, it’s valued, if you want to sell the business in the future, generally off 1 times the sales, so if you’re doing $500,000 in sales and you invested $50,000, to me, that’s a very nice high return investment to think about. And the beauty of service-based businesses is they can be valued at a much higher amount compared to the investment that you initially contributed, where food franchises unless you have 5, 10, you’d be lucky to get your money back sometimes. And maybe if you invested, say, $250K, do you get $350K back when you do decide to sell that business?
So in summary, I’m a big fan of service-based businesses like accounting, insurance, real estate property management, commercial cleaning, especially for those that are willing to work hard and might be on a tighter budget.
For these franchises under $50,000, you got to be careful and do your due diligence. Don’t let the low entry cost fool you into a business that might not be as successful as what you had initially planned. You want to make sure there are good franchisee support and training programs when it comes to franchises under $50,000.
Are you looking to invest in a franchise? Vetted Biz offers a selection of franchises under 50k on its website. Here are some franchises that may be of interest:
7-Eleven Micro Market is a compact retail outlet that offers a wide selection of products, many not traditionally found in convenience stores. This type of franchise covers minimal floor space and provides an assortment of fresh food, hot meals, proprietary drinks and private brand items. Generally open 24 hours a day (with certain exclusions based on the franchise owner’s preference), Micro Markets may be stand-alone or situated within business buildings, universities, clinics, hotels or similar locations. A distinct disclosure document applies to this form of 7-Eleven store.
The business will provide inspection services for residential and commercial properties, operating under the title of A Buyer’s Choice Home Inspections.
Abrakadoodle offers an opportunity for entrepreneurs to own and operate their own franchise. As a franchisee, you will be responsible for managing your branch, which includes recruiting staff, marketing the business, and handling finances. Abrakadoodle provides art education to children between the ages of two and twelve; these services include courses, events and camps.
The Franchise Business you will own and manage offers specialized courses in leadership, under the name of ‘Academy Leadership©’. With over two decades of experience providing coaching to individuals from both the corporate world and military services, they have created a program designed to improve the managerial competencies of participants. Their programs are an amalgamation of experiential learning exercises, individualized sessions, and team-based activities; all crafted to suit the specific needs of different organizations. Each course is facilitated by experienced teachers who apply their knowledge acquired from both business and military backgrounds. Upon completion of any program at Academy Leadership©, participants can expect to feel confident and energized in making positive changes within their respective organizations.
The ACE DuraFlo® franchise affords you the opportunity to capitalize on this renowned brand name and exclusive patented and proprietary technology in order to provide pipe restoration and associated services.
ACFN is the premier provider of automated teller machines in North America. It owns and operates several ATMs in both Canada and the US, enabling customers to access services such as cash withdrawals, account inquiries, and money transfers. ACFN has an expansive network of ATMs available at multiple locations across the continent, providing a range of membership plans suitable for all needs. Businesses are also able to take advantage of ACFN’s ATM machines which accept card payments from patrons.
Acti-Kare is a home healthcare organization that specializes in delivering first-rate in-home services to seniors. They are dedicated to providing their clients and families with the highest quality of care and service, while maintaining a comforting and caring atmosphere. Their range of options includes personal aid, housekeeping, transport and companionship. Additionally, they provide respite care for those who need temporary assistance caring for a loved one.
Advanced Fresh Concepts Franchise Corp. (“AFC”) offers its franchise system to provide freshly-made meals from their food service counters in a range of locations, including supermarkets, military commissaries, university campus food courts, corporate office buildings and more. Their products are made daily with quality ingredients and packaged as take-away meals.
Adventures in Advertising is a program that helps businesses with their promotional needs. They offer economical and adjustable packages to suit any budget. Their services encompass everything from devising ad campaigns to maintaining social media accounts. They also provide tuition and consultancy services to aid companies amplify their advertising operations. Their mission is to assist firms extend and succeed. The organization furnishes an entrepreneurial format and system of support for the sale and marketing of advertisement-related items and merchandise. The entrepreneur offers these facilities to enterprises and institutions in their nearby region.
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