Low Cost Franchises

What Are Low Cost Franchise Opportunities?

Many people will have their own definition of what a low cost franchise is, and what franchises constitute as being an affordable, low cost franchise. However on Franchise Planet, we consider anything with a full investment of £15,000 or less, to be a low cost franchise. This being the maximum you need in order to get the business off the ground and start trading.

Many people might assume that a low cost franchise isn't very profitable, but that's truly not the case. As with all franchises, what you earn depends a lot on the structure of the business and how much work you put in. A lot of low cost franchises might have low overheads. This means that ongoing, there aren't a lot of expenses whilst running the business and this is often the case with home based franchises which are businesses you can run from home.

What types of low cost franchises are for sale in the UK?

Many of the low cost franchise opportunities for sale in the UK tend to be home based, but that's not always the case. Home based franchises tend to only require a computer and internet connection so therefore have low overheads and potentially high profit potential.

Not all low cost franchises are home based though, because many are van based franchises as well. With some mobile franchises, a van may be included in with the franchise investment, or the franchisor might be able to recommend a vehicle leasing supplier where you pay a small rental fee for the van each month. In the van based franchise scenario, the franchise fee would usually cover the vehicle livery, required equipment and launch marketing, but each franchise will vary in their investment and offering.

You can find a wide range of medium and small sized franchises above that are low cost and are priced under £15,000 investment.

Investment levels will vary by franchise, but some typical low cost franchises include:

Low Cost Cleaning Franchises

Owner operated franchises are generally affordable due to their low overheads. One such example is van based cleaning. Ongoing you might pay for the van and cleaning chemicals, but the investment will usually include the starter kit, equipment and sufficient marketing to get your franchise running.

All you really need is a duster, cleaning chemicals and flyers. Cleaning franchises can often be run as a management operation, where you'll hire staff but never actually do any cleaning yourself (unless you wanted to). Management franchisees typically oversee the day to day running of the business and its staff.

Low Cost Computer franchises

This might include web design franchises, children's coding franchises and mobile computer repair franchises (as opposed to running one from a shop). Many computer franchises can be run from home, minimising overheads. The main cost will be the franchise fee. Explore each franchise option carefully to weigh out and see which opportunities justify the fee best to your requirements.

Affordable Food Van Franchises

Van based operations where you run a coffee shop from a kitted out van. Day to day, you might find yourself travelling between events, workplaces and busy town centres providing the public with their caffeine fix. The van might be a one-off purchase from the franchisor (who may cover the fitting of the in-van equipment) or this might be an ongoing cost whilst keeping the initial investment relatively low.

Many of these franchises are considered small franchises because they either have low investment, are owner operated, or are home / van based.

Benefits of Low Cost Business Opportunities

The benefits are rather obvious for low cost franchises, namely the fact that they're low cost. As a result, these are one of the most popular types of franchise businesses because they can be afforded by the majority of people. Coincidentally you may just find that your perfect franchise just so happens to be low cost, whilst others intentionally search for an affordable franchise business with intentions to work from home and be their own boss, or even to run a business on the side.

Franchises such as oven cleaning and window cleaning services can often be run part time, which means they can be fit around your social life, family commitments or even another job! If you're running a low cost franchise alongside another job though, you need to make sure that you're still profiting. You'll need to ensure that you make enough money from your franchise work, to pay your Management Service Fee (if there is one), and any other recurring fees such as a vehicle hire or marketing expenses and overheads. You don't want to end up paying for your franchise with your other job!

Overall the benefits of a low cost franchise are that you can be your own boss, work your own hours and maybe even work from home, with a proven business backed by the support of a franchisor.

How to invest in a low cost franchise?

The first step to investing in a franchise is through expressing interest to the franchisor. You'll need to complete the enquiry form on one of the franchises above that you're interest in, or if they have a phone number then give them a call. Usually after you express your interest, they'll send you their franchise brochure which includes more information about the opportunity, such as earning potential, profits and losses, and maybe some case studies and testimonials from existing franchises as well. Afterwards if the opportunity still appeals to you, the franchisor might invite you to a discovery day or meeting at their head office so you can learn more about the low cost franchise and get to know the franchisor.

Zero Cost Franchises

Some franchises might expect £15,000 initial investment, others six figures, but some are advertised as £0 investment. Referred to as "zero cost franchises", these businesses give you the tools to start trading and usually rely on ongoing royalty fees as a means to recoup on the franchisor's own costs. Zero cost franchises are attractive but looks can sometimes be deceiving because with any type of franchise, trusted bank funding up to 70% is available anyway. Therefore care is needed before committing to a zero-cost franchise. Especially, take a look at how the franchise royalty fees pay out - especially if they're variable percentage.

Many zero cost franchises are sustainable and simply a way of helping entrepreneurs with little cash get involved. But they may also depend on the entrepreneur having a strong amount of working capital to market and get the business trading.