There are low-cost franchises that claim to have high-profit potential, but a few key things separate the potentially lucrative opportunities from the rest. Learn more.
Why Some Franchise Opportunities Fall Short
Venturing into the realm of franchise ownership unveils a diverse landscape. Franchises can cost from as low as $20,000 or up to a couple of million, according to Lendio. But there are several affordable franchises out there that can fit your budget.
It’s important to acknowledge that not all low-cost franchises with high-profit claims are created equal. While the prospect of a modest upfront investment might seem promising, there are several aspects to be wary of.
One is insufficient support. Some low-cost franchises might cut corners on their support systems, leaving you to tackle challenges on your own without the necessary training, marketing aid, or operational guidance required for success.
Opting for a low-cost franchise opportunity that lacks a proven track record is a risky endeavor. Without a history of success, you’re essentially walking into uncharted territory, making profitability uncertain. A franchise should encourage you to talk with current franchise owners. Talk to them about the brand’s business model and support system, and ask them whether they’d do it all over again with the same brand if they had the chance.
Initial franchise fees are merely the tip of the iceberg when investing in a franchise. Some low-cost franchise opportunities may surprise you with hidden fees, ongoing expenses, and unexpected financial burdens that erode your profit margins. Study the brand’s Item 6 in their franchise disclosure document (FDD). This section discloses those ongoing fees, from royalties to advertising and technology fees.
Identifying Low-Cost Franchise Opportunities
Despite the above concerns, plenty of affordable franchises with liquid capital requirements below $75,000 can yield impressive profits — the secret lies in recognizing the distinguishing factors that set these opportunities apart.
Low-cost franchises with high-profit results have a proven track record of success and a portfolio of satisfied franchisees. A location-tested business model significantly enhances your chances of turning a profit. It’s a good sign when a brand is experiencing growth and expansion because it shows its business model is working.
Choose a franchise that prioritizes your success through comprehensive training, ongoing assistance, and a well-structured operational framework. A robust support system can empower you to navigate obstacles efficiently. Not only do you want a franchise that preps you to open your business, but you want one that will support you throughout your franchise agreement term.
Evaluating the Opportunities
Now that you know what to look for in a low-cost franchise with high-profit potential, it’s research time. Here are the top factors to consider when evaluating affordable franchises.
- Market Demand: Analyze the market demand for the products or services offered by the franchise. A thriving market with untapped potential can propel your path toward profitability.
- Scalability: Assess the scalability of the franchise. Will you have the potential to grow and expand as your business gains momentum? Scalability is a key factor in maximizing the return on your investment.
- Diverse Revenue Streams: Look for franchises that offer multiple revenue streams. This diversification can provide stability and increased income opportunities, reducing your reliance on a lone source of income.
Where Affordability Meets Profit Potential
Enter the senior-focused home care provider franchise, A Place At Home. We’re a rapidly growing brand that’s also a low-cost franchise with high-profit potential. Our low initial investment costs, proven business model, and top-tier support have put us on numerous top franchise rankings. Franchise Business Review deemed us a 2023 Top Low-Cost Franchise, while Entrepreneur ranked us No. 97 on their 2023 list of Top Franchises for Less Than $100,000 ranking. Plus, we’ve experienced rapid growth over the years, doubling our number of locations in just three years. We still have plenty of prime territories for you to choose from.
With a liquid capital requirement of just $50,000, we exemplify an accessible entry point for aspiring franchisees like yourself. Our total initial franchise fees remain under $150,000. Additionally, we offer a de-escalating royalty structure, which means that as your revenue increases, the percentage that goes to us shrinks, meaning more of your revenue returns to your pocket.
Joining A Place At Home means investing in the thriving senior care industry. IBISWorld finds the industry is worth $64.4 billion and is only expected to grow because 10,000 Americans turn 65 every day. Additionally, the U.S. Department of Health & Human Services found that in 2020, 65% of seniors utilized some type of in-home care.
With A Place At Home, you can capitalize on more aspects of the senior care industry than just in-home care. As a franchise owner, you can provide in-home care, care coordination, senior living alternatives, and staffing solutions for your community.
Even as a low-cost franchise opportunity, we ensure that our franchisees are set up for success through our comprehensive CARE training program. From initial training to continuous support, we furnish you with the tools needed for success. Our committed team is at your side, ensuring guidance at every juncture. As of 2022, our five-step training track has a 95% success rate, which means serving clients in the first 60 days post-launch.
Ready to begin your journey with us? Fill out our Request Information form to start.