What are the most affordable franchises to buy with less than 5k dollars? Buying a franchise has become a trend among entrepreneurs willing to become part of a successful business brand.
On the other end stand the franchisors who seek to expand their business into newer territories.
However, there are terms and conditions governing the sale of its franchise. Although prospective franchisees want to become part of a successful franchise, the question of affordability comes into play.
This is a challenge, though not a difficult one as there are tons of low cost franchise opportunities. We will consider franchise opportunities under $5,000.
Also, you’d find that despite being quite affordable, they are also highly profitable.
Things you Should Consider When Selecting Under 5k Franchises for Buy
Before delving into the main issue, there are certain cost parameters you need to consider. These are crucial and necessary because they enable you determine if a franchise opportunity is within your budget or not.
The Franchise Fee
The ownership of any franchise requires a franchise fee payment. Though this is a constant, cost varies from one franchise to another. This is a one-time payment you need to make as an agreement to do business under the brand name of the franchisee.
This is similar to running costs. During your franchise ownership term, you need to make funds available for the smooth running of the business.
Hence, before a franchise contract is signed, every detail regarding this is disclosed in the franchise disclosure document.
Initial investments are usually all encompassing. In other words, it includes the franchise fee as well as all other costs associated with equipment, running costs, etc.
5 Low Cost Franchise Opportunities Under $5k to Invest In
Under this section, we beam our searchlight on affordable and low cost franchise opportunities under $5,000. This is ideal for entrepreneurs on a tight budget looking for viable investment opportunities.
In addition to this, we will also consider multiple franchise niches to increase your likelihood of finding one which is best for you.
If you’re looking for a gym or fitness franchise, then this might be for you.
Jazzercise offers dance fitness classes to its wide range of health and fitness conscious clientele. It was founded by Judi Sheppard in 1969 and has grown into a global fitness brand with presence in 32 countries with headquarters in California.
To become a Jazzercise franchisee, you need to meet its initial investment requirements within the $3,700 to $32,750 range.
Its ongoing fees include an Initial Franchise fee of $1,250 and an Ongoing Royalty fee of 20%. In the area of support, you get to enjoy 5 hours of on-the-job training and 6 hours of classroom training. Others include absentee ownership as well as seminars offered as additional training.
Stratus Building Solutions was founded in 2004 but started franchising in 2006. With its headquarters located in California, services include its proprietary “Stratus Green Clean.”
Such cleaning services are offered to both commercial and residential clients. To become a Stratus Building Solutions franchisee, you need an initial investment of $4,350 to $72,850.
Its liquid cash requirement ranges from $2,000 to $20,000. Others include a 5% Ongoing Royalty fee, $3,600 to $62,100 initial franchise fee as well as a net-worth requirement of $5,000 to $40,000.
As a franchisee, you stand to benefit from its in-house financing arrangement. This covers inventory, accounts receivable, payroll, start-up costs and franchise fee.
Veterans aren’t left out of its financing requirements as well. As a veteran, you get to enjoy a 10% discount off franchise fee.
Support includes marketing, training as well as ongoing support.
This franchise opportunity is for lovers of travel business. Founded in 1991 with its corporate headquarters in Florida, Dream Vacations offers a variety of travel services. These include the sale of travel packages that include shore protection, tours and hotel reservations for all age groups.
Others include travel protection as well as shore excursions.
The financial requirements include an initial investment starting at a low of $3,245 and a high of $21,850. Its initial franchise fee ranges from $495 to $9,800. There’s also an Ongoing Royalty fee of between 1.5 to 3%.
Are there financing options? Yes, there are. As a Dream Vacations franchisee, you stand to benefit from its in-house financing arrangement covering the franchise fee.
Veterans also get a 10% discount off franchise fees as well as a waived training fee for business partners and spouses. This is in addition to 50% discount in training fees for additional associates.
Apart from being one of the low-cost franchise opportunities under $5,000, a benefit of buying this franchise is that it has no experience requirement whatsoever. In other words, you get a comprehensive on-the-job training. This travel and lodging franchise is an American Express Travel representative.
To own a part of this franchise, franchise costs include an initial investment of $2,295. You also get to choose from its investment options. These have a low of $2,295 and a high of $23,617.
To become a Cruise Planners franchisee, you need to pay a franchise fee of $695. Other benefits include training and support as well as financing.
This is a commercial cleaning services franchise headquartered in Georgia. Its clientele includes residential and commercial. You can become a part of the Jan-Pro success story by meeting its financial obligations.
These include an initial investment that ranges from $4,170 to $54,700, a $1,000 liquid cash requirement as well as a net-worth requirement between $1,000 to $14,000.
Ongoing fees include an initial franchise fee with a low and high of $2,520 to $44,000 respectively, as well as an Ongoing Royalty fee of 15%.
Its in-house financing option covers the franchise fee. There is also a financing arrangement with third party sources. This covers the payroll, accounts receivable, start-up costs, equipment as well as inventory. As a veteran, you get a 15 to 20% discount off of the franchise fee.
There’s never a short supply of low-cost franchise opportunities to invest in. You only need to find out what works for you depending on your budget.
Here, we’ve listed a few low-cost opportunities under $5,000. We hope you find these helpful.