Getting in on a franchise is a costly investment, one that scares off a lot of people, especially those of us without the resources to plunk down $500,000 or more to launch one. Fortunately, there are many franchise opportunities that are much more affordable including the following four that can be had with an initial investment of under $100,000.
1. Liberty Tax Service
You do not need to be a tax expert to open a Liberty Tax Service location. You should, however, be passionate in all that you do and have a good business head on your shoulders.
Founded by John Hewitt, a former H&R Block tax advisor and later founder of Jackson Hewitt, the Liberty Tax Service began in the late 1990s and is based on the years of experience that Hewitt brought to the market. Liberty has more than 4,500 tax assistance centers in the United States and Canada, typically choosing strip malls to set up shop.
Because its customer base includes military members and ethnic minorities, each Liberty Tax location serves its customers with distinction. It isn’t just a tax season business either as Liberty locations are open throughout the year, dispensing financial advice. Your franchise fee should cost approximately $50,000.
2. 7-Eleven Convenience Stores
Convenience stores serve neighborhoods across the country. Some include service stations while others offer only the retail outlet. One such chain that has been serving the public for decades is 7-Eleven, with more than 8,000 franchise units in the US alone.
At present, 7-Eleven is seeking new franchises in most states. Franchise fees vary from location to location and start at $20,000. Your total investment starts at $50,000 and can top $1 million. One of the advantages of a 7-Eleven shop is that a small workforce runs each location, with no more than 10 people employed at that.
3. CruiseOne Travel Service
A franchise fee of under $10,000 and a royalty fee of 3 percent should interest potential franchise operators. If you like to take exotic vacations or would enjoy helping your customers take one, then a CruiseOne franchise might be right for you.
The company has more than 900 franchises in the United States, with its agents selling cruise and travel packages to individuals, families and businesses alike. Hotel stays, tours, cruises and other travel arrangements are handled by this mostly online business.
Keeping homes and businesses clean is important. For the latter category, System4 provides a way for franchise operators to get in without purchasing an existing business or buying expensive equipment. The company has approximately 1,200 franchise units in the United States and is actively looking for new operators in most states.
The costs for launching a System4 location is a modest $4,440 to $32,000 according to Entrepreneur . Your total investment rivals that amount and a 5 percent royalty fee is charged. The franchise agreement is for 20 years and is renewable. A purchasing cooperative helps to contain your costs.
If you are considering any franchise, only choose the one that is right for you. Cost shouldn’t be your only concern — your desire to work the business is important, therefore avoid the cleaning business if you prefer something that involves customer contact such as a convenience store notes FranchiseExpo .
When operating a franchise you should seek to improve your business skills, follow the tried-and-true franchise system, and have a business plan. That plan is different from the franchise plan, what represents your own goals for the business. Expect to continually market your business, control your costs including your credit card expenses, and have a full grasp of your industry. Do these things and you will enjoy your business always and in all ways.