Published on 10 May 2024 Time 4 min read Last update by 10 May 2024

Franchises under 5k | Low Cost Franchise Opportunities

Low Cost Franchises 25 Franchises Under 25000 e1619813531470

Are you looking to invest in a franchise, but you’re on a tight budget? Are you willing to spend no more than $5,000 on your initial investment?

Browse our listings below to see some of the top franchises under 5k for sale.

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

Franchises under 5k

We are going to talk about some top franchises under 5k. From our last count, there are only 21 franchises where you could invest less than $5,000, open up the business including working capital to pass the break-even point and start collecting your dividends back.

POOP 911

This franchise is called POOP 911. The numbers are pretty appealing for those who are on a limited budget. POOP 911 offers franchises with a minimum investment amount of $3,620. The POOP 911 business can take as little as 6 months to over 2 years to ramp up, depending on the franchise opportunity.

The nice thing is that customers become very loyal to pet waste removal businesses because who wants to pick up dog poop every week? Yeah, no one does! That’s why POOP 911 franchises are doing so well across the U.S. while providing people with an opportunity to break away from their day jobs and become their own boss without risking too much capital upfront.

But before signing any agreement make sure to read their FDD (Franchise Disclosure Document), which can be found on our sister website. It’s essential to get familiar with the financials of the franchises and understand what you’re getting into. To find out more about POOP 911, read our review, where we cover all the essential topics in-depth.

College Pro Painters

There’s also College Pro Painters, a professional painting company that has been in business for over 50 years. College Pro Painters offers a wide range of services, including interior and exterior painting, staining, wallpaper removal, and pressure washing.

The minimum investment amount required to open a College Pro franchise is $2,925. However, we are not so convinced by this opportunity given the relatively high failure rate. And, again, that’s not just with College Pro Painters; most franchises under 5k have a pretty high failure rate. That’s largely because it’s easy to get in and usually the franchisor is open for you to get out of the contract before the 5-year or 10-year period which you signed the franchise agreement for.


Franchise Financing

If you’re looking to open up franchises under 5k, try to save some more money in capital. Or you could potentially look at different ways to finance the investment. You can consider a cash-out refinance mortgage from your property, apartment, or house. You could also do a 401(k) roll over. So use part of your retirement savings to invest in your business, or you can look at an SBA loan. But if you have cash less than $5,000, there aren’t too many options available in the traditional SBA financing round.

If you’re considering franchises under 5k, make sure to do your due diligence before signing any agreement. Do your business research and understand the financials of the franchises that you’re looking at. Make sure to read their FDD (Franchise Disclosure Document) as well as think about other financing options available if you don’t have enough capital. With any franchise opportunity, there are risks and rewards so it’s important to weigh both carefully. Ultimately, doing your homework can help you decide whether it’s a good business move for you or not.

So, again, $5,000 or less to invest in a franchise will definitely limit your options. There’s very few available, and we do have the largest database at on franchises in the United States.

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