Buying a low cost franchise is a good option for those who do not have surplus capital to buy and set up a large franchise, as it needs a lot of investment in terms of fees, real estate, marketing, merchandise etc. Low-cost franchises require low initial investment of less than $60K. So aspiring entrepreneurs who were in a quandary due to lack of finances can take a breather and relax.
Franchising offers variety in low-cost franchises
With the evolution of franchising to its present stature, many companies have adopted the franchise route for expansion. Even small businesses which were earlier considered inapt for expansion have taken the franchise route and have tasted success in their journey. Kiosks are the best way to enter franchising in the low-cost way. Apart from taking a kiosk these are the best segments to enter franchising with low investments.
F&B industry always gives an impression of a hefty investment for taking any franchise. However this can be quite misleading as there are few segments in this sector which require less than $60K investment. These are:
Juice bars and café bars: Juice bars are becoming the in-thing with consumers becoming more health conscious. Tropical Sno, Mr Orange, Tornado Cocktails, Juice Lounge etc are some of franchised juice bars which come under low-cost. Similarly café bars have become popular with more and more people preferring to have coffees and talk. The coffee culture is sure to increase in the future as well. Brewers, Coffee Day Xpress, Cupo’ Cofe, Café Desire, etc are few franchise in low cost section.
Bakery and confectionery: This segment also offers great avenues in fetching high profits. Brands like, Waffle Express, Chocolate Graphics, Sweet World, Muffins Bakery, are some low cost attractive options under bakery and confectionary.
Ice-cream parlors: Kwality Wall’s, MiniMelts Ice-creams, Baskin & Robbins, Royal Ice-cream, Gelato Vinto etc are few some of the popular frozen desserts franchises.
Business services also provide a low-investment and high- profit opportunity. Franchising in this sector is growing tremendously. Few segments are given below:
Financial services: As long as people continue to spend money, they’ll need financial services providers to manage finances for them. Financial services franchises are the perfect opportunity for agents, brokers and real estate dealers.
Courier Services: The typical feature of courier service includes doorstep booking, customer convenience and security of each and every consignment that has been entrusted to it. Jaguar Couriers Franchise, Blazeflash Couriers, etc are some of the franchising companies under this category.
Cartridge refilling: In the modern age of I.T, there is a constantly growing need of cartridge re-fills. A cartridge refill franchise offers to its user’s quality refills at a fractional cost. Current industry trends and future projections suggest that printer cartridges demand will continue to multiply at a very fast pace. Cartridge World, Cartridge Café, Cartridge Xpress are some of the good low-cost franchise options.
Services like, dry cleaning, matrimonial alliances, tour and travels, fitness franchise like the Extreme Gym Franchise fall under this category.
Dry cleaning services have come under the fold of franchise business in the last few years, and some franchisors are: White Tiger, Wardrobe Franchise etc.
Matrimonial sites: Matrimonial web sites like Shaadi point and Shadilagn are getting increasingly popular these days, and are offering franchise at low cost.
Travel companies: With the economic up-liftment of the common people in last two decades, the tour and travel industry has witnessed a phenomenal growth. Some of the franchisors offering low cost opportunities are East Trip Planners, Mahindra Holiday & Resorts, Arzoo.com etc.
Retail sector is another low cost franchise option for aspiring franchisees.
Artificial jewelry: It can be the best alternative to precious jewelry, if one has the interest in it. Trenz, Dia Gold, Silver Maya etc are some costume jewelry franchises.
Florist is another category calling for low investment. Ferns n petals, Florists, Fiore and many other companies are offering opportunities in setting up a florist franchise.
Before opting for any of the above options, clear all your doubts. Apart from your initial investment, take into account the ongoing costs that must be paid to your franchisor, including franchise royalties, marketing fees and other required purchases. After you are convinced go ahead and make your mark in the franchising arena!
There are many different types of business individuals throughout the world, but one type of person that would take up a franchise as their own and succeed at it
someone who has an entrepreneurial type of attitude. There are many reasons for investing in a franchise, but an individual who is a real go-getter and is able to get things done will realize the true value of owning a franchise. Many people throughout the world have realized that franchises are good investments to take advantage of and if you have never considered it until now then perhaps it is time to put your business thinking cap on. Here are some reasons why so many people consider franchises good investments:
Just Plug It In!
Essentially, all you have to do to a franchise is just plug it in. In other words, though, the old phrase of “if you build it then they will come,” is certainly true in the view of the franchise-owning individual. Since the name of the franchise is a store that is usually pretty much known throughout the nation, chances are that people will be instantly attracted to the business. For example, if you build a franchise of Starbuck’s next to an apartment complex and it is closer to them than any other Starbucks around then chances are that you’ll be in luck and have chosen a good spot for the franchise.
Another great thing about owning a franchise is that you have the ability to use the copyright of the original company. Of course franchise owners won’t want to do anything to damage the reputation of course, especially since the franchise is trying to succeed, but being able to advertise that you own a part of the company is a great accomplishment for many people! Franchise owners have the ability to advertise coupons in the company’s name, give out discounts, as well as many other benefits that come along with owning a franchise package! Furthermore, many of the customers won’t even know that you’re a franchise of the company but will treat your store as if it was the company store itself!
Possibility of Profit in the First Year
The franchise that you build will most definitely make some sort of profit in it’s life, but a franchise usually has the possibility of producing a profit or profit margin within the first year! The reason for this is mainly that it usually doesn’t cost as much to start a franchise as it does to build a business or company from scratch. Those who are starting a franchise, though, will be able to realize profit a lot sooner than they thought!
All of these ideas are the exact reasons why franchises are a good investment! Of course, there are plenty of other reasons why it’s a good investment to get started with a franchise but there are too many to name here. If you have ever thought of owning a franchise then hopefully the information presented here provided the nudge you need to get started!