Do you like the idea of owning a franchise, but you don’t have the cash that most require? No problem. We have some low-cost franchises that won’t break the bank!
Starting a franchise is an exciting and rewarding way to create your own business. Some of the local businesses you interact with on a daily basis may be franchises. What you may not know is there are several low-cost franchises that you can run from home.
This means you don’t have to worry about paying for physical space or hiring several employees. In this article, we’ll explore 10 low-cost franchises that are work from home friendly and how to get started with each one.
How Franchises Work
Owning a franchise helps you utilize an established brand name and proven business model while still having the freedom to make decisions on how you run your individual business. There are several franchises in various industries, and some of the most common include companies like McDonald’s, Dunkin’ Donuts, 7-Eleven, and The UPS Store.
With a franchise, you work for a specific, well-known business. You typically need to pay a fee to get started and meet other financial requirements.
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Low-Cost Franchises
Starting a franchise can be costly, depending on the company, but smaller companies with fewer requirements tend to charge less. If you’re looking for a franchise company with low start-up costs, here are 10 home-based low-cost franchise opportunities that are worth exploring.
1. Coffee News Weekly
Coffee News Weekly is a franchise where you’ll publish a free weekly hard copy publication for the customers of coffee shops, restaurants, and cafes. With this business, franchisees earn money by selling advertising in free publications.
According to Franchise Direct, the initial franchise fee is $9,900. To begin the process, schedule a free phone call with the company. During the call, you’ll learn all about the business venture and have the opportunity to ask questions. If you decide you want to move forward, you’ll be provided with online training.
Each franchise owner will select the territory where they want to distribute the publication (they recommend populations with at least 50,000 people). With this affordable franchise opportunity, you can create your own schedule and work from home; however, you’ll need to work full-time hours. Coffee New Weekly has publishers in six countries, including the United States and Canada, and they get a 4.4-star rating (out of 5) on Indeed.
2. Dream Vacations
Dream Vacations is a home-based franchise in the travel industry and a good low-cost option. The initial franchise fee is $9,450, but you can get started with as little as $3,500 down. They also have discounts for community heroes (first responders, teachers, and medical professionals), and veterans and military spouses. You’ll also receive 100% of travel commissions for what you help book.
With this company, you can help clients find the best deals for travel, including cruise packages, resorts, hotel and car rentals, and more. Franchise owners can also get free and discounted rates for their own travel as an added perk.
With Dream Vacations, all technology is web-based, and you’ll receive full training, including lead generation, as well as 24/7 support. Dream Vacations also spends more than $4 million annually on marketing and promotions for franchise owners.
3. Cruise Planners
Cruise Planners is a home-based travel advisor business and one of the largest travel franchises in the US. No experience is required to start your own business, and you’ll learn how to help clients plan trips such as cruises, land tours, and all-inclusive resort vacations.
This business is also flexible, allowing you to set your own hours. Cruise Planners also provides all the technology, marketing, and support needed to run your business. This is another low-cost franchise, with initial franchise fees starting at $9,995.
By taking on less debt, you can reinvest more money into growing your business over time.
4. Decorating Den
Do you love to decorate and have an eye for detail? Decorating Den is an interior design business with franchise owners located all across the company. You can leverage the business’ name and reputation to secure local interior design clients in your area.
The company has been around since 1969 and provides you with a design concept, training, and several resources. The design process starts with a phone consultation with the client. Then, you will set u a tour of the client’s space to develop a plan and understand their budget.
Next, a design plan will be developed, and you can pick out colors, fabrics, furnishings, bedding, and more. Decorating Den has relationships established with more than 150 vendors and provides professional training, business management services, and turnkey marketing systems to all franchise owners. According to Franchise Direct, the initial investment is $39,900.
5. FIT4MOM
FIT4MOM is a leading company for pre and postnatal health, wellness, and fitness. The company provides moms with support, community, and fun fitness classes online and in their local area.
FIT4MOM currently has nearly 2,000 class locations, 1,850 instructors, and 250 franchise owners across the U.S. The company was also ranked by Entrepreneur Magazine’s 500 as one of the fastest-growing low-cost franchises.
As a franchise owner, some of the programs and classes you’ll learn to offer include:
- FIT4BABY Stroller Strides
- Stroller Barre
- Body Well
- Body Boost
- RunClub+
- Body Ignite
- FIT4MOM
This business is also flexible, allowing you to set your own hours, and you’ll also receive onboarding help, community, and a supportive home office team to help you get set up.
According to Franchise Direct, the initial franchise fee for FIT4MOM is around $7,495-$13,395.
A couple of other franchise opportunities that are similar in nature are Moms on the Run and Baby Boot Camp Franchise. Their websites do not provide much information, but you can request additional information if interested.
6. Just Between Friends
Just Between Friends is an award-winning children’s pop-up resale franchise that helps families save hundreds of dollars on clothes, shoes, books, toys, baby gear, and more. Business owners buy gently used kids’ items from consigners to build inventory.
This is a seasonal business where franchise owners produce spring and fall events, so you’ll enjoy working a flexible schedule rather than operating the business and tracking sales all year round. Just Between Friends has an initial franchise fee of $24,900, and with expenses, the total investment to begin operating your business will range from $65,635 to $94,775. Like other companies on this list, Just Between Friends offers a 10% purchase discount to veterans and military spouses.
Other costs may include inventory, storage, marketing, and pre-opening labor costs. Just Between Friends provides several tools and resources to help you get started and provides support along the way. This includes 30 hours of online training and coaching, 56 hours of classroom training, and onsite apprenticeship hours.
7. The Neat Method
The Neat Method is a home organization company that sells both products and provides on-site organizing services. The company has been around since 2010 and now offers franchise opportunities with an initial franchise fee of $30,000, where you can begin offering home organizing and virtual organizing services to clients in your area.
As a franchise business owner, you’ll learn to specialize in home organization, unpacking, and decluttering for various spaces.
Like a few other businesses on this list, The Neat Method is not solely a work-from-home business since you may need to travel to clients’ homes. However, you can do the bulk of your training and marketing work from home and consult with clients online or by phone.
8. American Business Systems
Patrick and Linda Phillips launched American Business Systems in 1994. With this low-cost franchise, you’ll offer medical billing services from home. For a one-time all-inclusive fee of $30,000, you’ll be given everything you need to launch your business, including comprehensive training, software and marketing tools, and ongoing support. According to their website, if you have ten clients, you can earn $300,000 annually. American Business Systems has an A+ rating on the Better Business Bureau.
9. Club Z!
With a Club Z! franchise, you’ll manage a remote team of tutors who provide individual instruction to students. Tutoring services include one-on-one home tutoring, test prep for tests like the ACT, GRE, and SAT, one-on-one online tutoring, and SAT and ACT online prep classes. The initial franchise investment is $19,750, with an additional $10,000 to $15,000 for startup costs and advertising. No experience is needed to begin a Club Z! franchise, and small business owners can begin their business in as little as 30 days. They also have an A+ rating with the Better Business Bureau.
10. Card My Yard
Card My Yard is a unique, low-cost franchise opportunity in which you’ll run a business renting yard signs. You know, the larger-than-life, celebratory lawn signs that celebrate special occasions? If you would like to be a potential franchisee, you’ll need to fill out the online interest form. Once they determine you live in a qualified area, they will send you an application and schedule a time to talk. From there, you’ll receive the Franchise Disclosure Documents (FDD), and you’ll have 14 days to sign the contract.
According to Top Franchise, the initial franchise fee is $7,000, which gives you all the signs, tools, and training to start your business. Besides the initial franchise fee, you may need to invest in things like business insurance, incorporating your business, and other miscellaneous business expenses.
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What to Keep In Mind When Starting a Franchise
As a franchisee, it’s important to look beyond the initial investment costs and also consider other setup costs. Make sure you fully understand the upfront investment and will receive comprehensive training, resources, and support to contribute to your success.
It’s important to do your due diligence and ask detailed questions about the business before you make a final decision. All franchise companies must provide an FDD, which is a legal disclosure required by the Federal Trade Commission (FTC).
The FDD provides extensive details on how the business relationship works between the franchisee and franchisor and the responsibilities of each party. This document should also include how royalties work, any royalty fees, advertising fees, and recent profit margins and performance. You should also check out reviews on Franchise Business Review and talk to current or past franchise owners about their experiences.
If you agree to start a franchise and pay the upfront fees, you’ll be agreeing to license that franchise company’s knowledge, processes, and trademarks through your business. While there is a lot to consider, you should definitely take your time to think through starting a franchise and possibly discuss the FDD with a legal representative.
Is a Low-Cost Franchise Right For You?
Some of the most profitable franchises can also have low startup costs. If you’re looking to start your own small business but still rely on a well-known name and proven system, these home-based could be ideal.
While some franchises require a six-figure investment or have minimum net worth requirements, you can consider becoming a franchisee and setting up your own decorating, vacation-planning, or pop-up shop businesses in just a few months.
Starting a franchise requires hard work and dedication, but with the right preparation, you can have a rewarding experience owning and running your very own business.
Do you know of some other low-cost franchises? Drop us a note below; we’d love to hear from home!
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Originally published July 24, 2023. Content updated July 2024.