It can take hundreds of thousands to start a franchise, and even though you have the success of the company backing you up, there’s still the possibility of a poor return on investment. Instead of pouring a small fortune into a franchise that may flop, consider buying one of these low-cost franchises. All five of these franchises require no more than $50,000 to get started.
Cruise Planners by American Express
Startup costs: $12,095+
This American Express sponsored travel service is the largest vacation planner in the country. If you have a passion for travel, you will flourish with this commission-based franchise. Cruise Planners is a great franchise for people retirees and people seeking a part-time commitment, however, you can easily maximize profits by going full-time. While the initial cost starts low, the franchise fee sits at just under $10,000. Royalty fees are 3% of profits, and the contract requires you to commit for only three years. Cruise Planners offers specials deals for veterans, including a discounted franchise fee, three months of web hosting, and $500 for marketing.
Startup cost: $34,005
There’s always going to be people who want financial guidance—especially during tax season. With several locations in Canada and overseas, H&R Block is one of the most popular and established franchises you can buy. New franchisees will have plenty of support from H&R Block; you start with 10 days of training at headquarters, following by reoccurring regional and online training. Aside from the startup cost, franchisees will need to pay a $2,500 franchise fee, and are expected to pay a regular royalty fee of 30% of their profits. Your franchise agreement lasts for 10 years.
Club Z! In-Home Tutoring Services
Startup cost: $37,250
Here’s another franchise opportunity that doesn’t require you to lease or buy a commercial property. Club Z is one of the most well-known tutoring and test prep companies around. Owners can operate part-time, partner with a school, or focus on online tutoring services. As a franchise owner, you can operate from home. You don’t need to worry about finding qualified tutors or managing customer support; Club Z provides the certified, experienced trainers and a call center, complete with web-based scheduling. Training is held at the company headquarters in Tampa, Flordia, or online with an instructor if you prefer.
Bricks 4 Kidz
Startup cost: $33,800
Bricks 4 Kidz is a unique franchise focused on budding engineers. Founded in 2008, Bricks 4 Kidz provides Lego building activities for children, ranging from in-school activities to birthday parties. Franchisees are required to dedicate at least 30 hours a week to their operation, so people interested in part-time opportunities should look elsewhere. You don’t need any teaching experience to startup; training is included in your franchise package. The renewable franchise agreement lasts for 10 years and carries a 7% royalty fee. The franchise fee is $25,900, and veterans get a 10% off discount.
Startup cost: $39,750
90% of seniors would prefer to live at home instead of a nursing home or retirement community. With the increase of independent seniors, the demand for the services Acti-Kare provides is apparent. Acti-Kare specializes in non-medical assistance for seniors, such as companionship, personal care and household duties. They even have family care specialists who work with special needs children. The franchise agreement is valid for seven years and is renewable. The royalty fee ranges from 3 to 5%, and the franchise fee starts at $19,750, depending on the package. Veterans receive a 12% discount.