Tweet

Top Reasons To Consider Buying A Low Cost Franchise

Guest post by: ray haiber

Article Overview: Provides a list of some of the top reasons why low cost franchise opportunities are so appealing in today’s market.

Top Reasons To Consider Buying A Low Cost Franchise

With many prospective entrepreneurs finding their financial resources greatly diminished by the recent and severe economic downturn, and the continuing credit squeeze still significantly hindering small business lending, its no wonder that the appeal of low cost and affordable franchise opportunities has never been greater. This article will detail some of the obvious and top reasons why investing in a low cost franchise opportunity makes good sense for many individuals in today’s market.



Affordability:

The number one and most obvious reason why low cost franchise opportunities are so appealing today is because of there relative affordability. When compared to many traditional and popular brick and mortar franchises like fast food restaurants for example, that on average cost anywhere between $300k to $500k, most low cost service related franchises generally cost less than $100k to start-up. Because of the lower investment required these types of franchises are often able to be purchased by individuals using there owner personal financial resources. This in turn can often eliminate the headaches and time consuming delays many franchise buyers experience when trying to secure bank or SBA financing to purchase a more expensive franchise opportunity. And let’s not forget that with no burdensome loan payment every month the new franchise owner can put more money in his or her pocket.

Easier & Quicker To Get Started:



Because most low cost franchises tend to be service related they generally don’t require the time consuming build out of a new location. Consequently they can often be up and running very quickly. This is an obvious advantage to entrepreneurs who for various reasons such as a job loss need to get a business off the ground quickly. In fact, many low cost franchises can often be operated from a home office thus even eliminating the need and time to find and lease an office or retail space.

Easier To Grow Business:

With a lower overall investment required many low cost franchise opportunities can often be easier and less expensive to expand or grow. This appeals too many first time and inexperienced small business owners who are concerned about minimizing their risk. The option to grow the business by taking smaller incremental steps and with out making a big investment can be very comforting.

Lower Overhead Expenses



Unlike your typical brick and mortar franchise opportunity many low cost franchises are designed to be an owner operated and generally have little or no staffing requirements. Many are also designed to be either home-based or don’t require expensive and high traffic retail space further reducing monthly overhead costs. Obviously with lower overhead and operating expenses your chances of reaching profitability and putting more money into your pocket can increase dramatically.



Offers Potential Better Lifestyle:

And finally because many low cost franchise opportunities today are service related and can be operated from a home office you could potentially have a lot more flexibility in running your business. Ultimately this could also provide you with more free time to spend on other priorities in your life including your family.

Related Articles
  Low Cost Franchises Offer Way to Own Your Own Business
  Buying A Franchise
  Seven Questions to Ask when Starting a Franchise
  Why Franchises are Good Investments
  Reselling Your Franchise
  Why are Coffee Franchises so Popular?
  This is the best time to invest in yourself and buy a business
  Franchising with all its Success
  Best Franchising Opportunities: Chem-Dry and Papa Murphy's
  I Wished I Had Hired a Franchise Lawyer When I Bought the Franchise
  Things to Watch Out for When Buying a Franchise
  Why Use a Franchise Consultant?
  Multi-Brand Franchising May be Declining
  Are You a Potential Franchisee
  How to Purchase a Franchise that is Right for You
  Franchising FAQs
  Is Franchising Scary?
  Franchising Continues To be a Safe Way to Go in Troubled Economy
  Franchisors Moving Toward Preference of Multi-Site Franchisees
  Franchise Resales - Pros and Cons

Article Tags: buy a franchise, franchise opportunities, low cost franchises



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: 10 Reasons Who Startups Fail & Book Recommendations - Great post,but please edit the headline. I presume it is "10 Reasons Why Startups Fail & Book Recommendation


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How To Calculate A Minimum Fee For Your Services

What is an Adaptive Organization

Top Ten Home-Based Businesses

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.