The Best Small Business Franchises You Can Buy (And How)

It can be difficult to know where to start when it comes to small business franchises. There are companies that require an incredibly large upfront investment–often over multiple hundreds of thousands of dollars or more– and others that provide low actual support in return for their low fees. Even so, all you need to do is to be sure and optimistic. 

You can do it. And it doesn’t have to cost you millions

If you are serious about opening a small business franchise in 2020, we assembled a list of the best franchising business opportunities. The small franchises you’ll read below have all of the next features:

• An affordable initial investment
• A good reputation 
• And high potential growth 

The start-up of a company can be expensive and many people can not spend a million dollars to run their company. The good news is that for a profitable business to begin, you do not need that money. There are lots to buy for 25,000 dollars or less.

Franchising companies come from all sorts of sectors —from sports to tax services— and there are plenty of choices that can suit your preferences, abilities and budgets.

Why Choose a Small Business Franchise?

The biggest obstacle to the contemporary entrepreneur’s growth is capital insufficiency. And franchising allows companies to grow without the possibility of debt or equity costs. In comparison to purchasing an existing business or beginning a new one from scratch, a franchise has its advantages and disadvantages. Nonetheless, special requirements are needed, as becoming a partner in a bigger organization when you are a franchisee, makes you an essential part in a larger business structure. 

A small franchise can be a strong first step into a life of wealthiness, if you have what it takes, then give it a try!

Weigh the Pros and Cons

As most things in life, you have to ponder on the advantages or disadvantages of any decision you are about to make, and with the small franchise business, this is no exception. Always remember to weigh the pros and cons of any franchise you have the eyes on, and if you have enough income to make it thrive. To make it easier for you, here are the main advantages and disadvantages of starting a franchise:

Advantages 

• Low business risk
• Recognition
• Support
• Training
• Great marketing and advertising 
• Financing assistance
• Site selection

Disadvantages

• Royalties
• Franchise fees
• No total control (franchisees attain to the franchisor’s will)
• Termination clauses
• Required purchases

 

Pick the Right Franchise Or Existing Business For You

 

There are many places to look for when considering to buy a franchise, but going directly to the franchisor is the most obvious place to start; even more so if you already have a pretty good idea in which franchise you are interested in. By doing this, you can provide the franchisor with all the details you would need to purchase a franchise. This is the perfect way to start and pick the right franchise or existing business for you.

An alternative —one that’s not so obvious as to achieve the same outcome and likely savings—is to meet current franchisors that wish to sell their franchises. When you take over an existing franchise, you will save money because you are not paid the franchiser’s franchise fee.

When the seller demands a price for the franchise being sold, you will pay the equivalent of a franchise fee to the franchise seller. When contrasting that with the expense of a franchise fee on a new franchise, you can see if the premium is fair. A current franchisor that wants to sell the franchise may be able to give a name to you. In the end, a variety of franchisors will buy back franchises and run them until they are able to find a suitable buyer.

If you have no idea where to start regarding small franchise business, then you can consider a franchise consultant. A franchise consultant is someone who helps you decide, at no cost, what kind of franchise is better for you, and in case you’ve decided on the category or concept, a consultant can be someone that helps guide you towards the best brand for your goals and financial capability.

You can also try looking in any of the next options:

• Newspapers 
• Internet (with caution)

To make this easier for you, here is a list of the 10 small franchises to invest in 2020.

 

JAN-PRO

A Sample franchise offers industrial cleaning services to businesses and incorporates two types of franchises in its business model. The first is a homeowner franchise or a cleaner unit franchise. The second is a master franchise which operates a group of units.

Start-up cost

• Initial investment: $3,985 to $51,600
• Initial franchise fee: $2,520 to $44,000

Number of franchises

• 10090 units in operation

 

Cruise Planners

Also an example of easy franchise opportunities, this vacation planning franchise is aimed at folks who want to work from home and have a passion for travel. Cruise Planners franchisees sell full-service vacation packages, including cruises, land-based vacations, trip insurance, and car rentals. A Florida-based company was started by veteran travel agent Michelle Fee in 1994 and began franchising in 1999. Getting started costs $10,995 and includes a six-day in-person training course in Fort Lauderdale, Florida, ongoing home office support and $1 million in insurance.

Start-up cost

• Start-up costs: $10,995

Royalty fee

• Royalty fees: 1%–3% of gross commissionable fares

Number of franchises

• No. of U.S. franchises: 2,569

 

Complete Weddings + Events

The weddings market is 72 billion dollars a year, so you have a slice of this business. For $10,000, franchisees get training and continuous support to deal with grooms, and brides, as well as DJs, videographers, photographers, and such. Complete Weddings + Events teaches franchisees how to recruit and charge these professionals and keeps them up with wedding prices in their market. The first wedding at Complete Weddings + Events was held in 1974, and the company manager, Jerry Maas, began franchising in 1983.

Start-up cost

• Start-up costs: $10,000

Royalty fee

• Royalty fees: 8% of annual gross revenue

Number of franchises

• No. of U.S. franchises: 192

 

Showhomes Home Staging

The Showhomes Home Staging business takes empty and other houses for sale and transforms them to a sleek, tidy and trendy appearance with temporary furnishings and accessories.

A Coldwell banker real estate study showed that the houses that have been staged spend half the time on the market than those that have not been staged and sell over 6 percent above the price offered. Potential franchisors will start with $10,000, which includes training at the company headquarters in Nashville, owned CRM software, development of websites, hosting and SEO and a one-on – one company coach.

Start-up cost

• Start-up costs: $10,000 (Based on 2018 data)

Royalty fee

• Royalty fees: 10% of annual gross revenue

Number of franchises

• No. of U.S. franchises: 55

 

Image One

The cleaning service is profitable, and Image One is clear proof. Image One was launched in 2010 as a commercial cleaning company. In the following year, it began to franchise with 103 franchises throughout the country. For $15,000, franchisees get trained to qualify in the commercial method of cleaning services—supplies, equipment, billing and so on. Furthermore, Image One provides assistance with insurance and discounts for supplies and equipment.

Start-up cost

• Start-up costs: $15,000

Royalty fee

• Royalty fees: 10% of annual gross revenue

Number of franchises

• No. of U.S. franchises: 103

 

Motto Mortgage

Mortgage shopping is usually one of the least enjoyable parts of buying a home. This is the target of Motto Mortgage. Launched in 2016, the franchise combines designers and immobilizers to provide homebuyers with a seamless one-stop experience. Each bureau is operated separately, and potential franchisors will start up in cash for $12,500. There’s even $47,800 to $68,100 in extra initial investment. This includes a three day courier training course, which covers various mortgage products and services at its Headquarters in Denver. 

Start-up cost

• Start-up costs: $12,500

Royalty fee

• Royalty fees: $0 for the first 6 months, increasing to $4,500 per month after one year in business

Number of franchises

• No. of U.S. franchises: 100

 

Rhea Lana’s

The eponymous consignment franchise for children’s apparel was launched in 1997 and extended into 22 countries. It gives prospective franchisors the opportunity for $15,000 to plan big all consignment activities on the land they buy. Rhea Lana’s offers training to franchisees, its own inventory tracking systems, barcoding, and even website design. The business says that its franchisees work for a consignment case in an intermediate market two or three months a year and do all they can at a full time job.

Start-up cost

• Start-up costs: $15,000

Royalty fee

• Royalty fees: 1%–3% of gross sales

Number of franchises

• No. of U.S. franchises: 89

 

Monster Tree Service Franchising

Established in 2008, Monster Tree Service® has quickly become the most trusted, successful and recognized tree service franchise in the nation.  We’re a national brand with local experts.

Monster Tree Service® is a home-based franchise opportunity that offers:

• Multiple Revenue Streams
• High Repeat Sales
• Great Profit Margins
• Scalable Growth
• Normal Hours

If you are looking for a solid, sustainable business model that is fun to operate and makes money, and can see yourself in business with the nations’ number one Tree Care franchise, Monster Tree Service® might be the perfect franchise for you 

Start-up cost

• The initial franchise fee for a single territory is $49,500. It includes an exclusive, protected territory of at least 200,000 in population.

Royalty fee

• Royalty fee: royalty rate is 6.5% of gross sales

If you’re interested in the tree service franchise business, then you can get free and honest consultation regarding the subject on Tree Franchise, as they specifically work with people that’s looking for a tree franchise to invest in. Or you can read our full Monster tree service review here.

 

Help-U-Sell Real Estate

In order to sell the house on the basis of a selling price, most real estate brokers charge a fee of about 3 and 6 per cent or more. Established in 1976, Help-U-Sell Real Estate has a special playbook. It was the first real estate service fee franchise in the world, which means that it charged a flat fee for the listing, marketing and sales services of the business. It costs $15,000 for start-ups including preparation, funding from the front and back office, publicity and constant coaching.

Start-up cost

• Start-up costs: $15,000

Royalty fee

• Royalty fees: 6% of gross commissions

Number of franchises

• No. of U.S. franchises: 102

 

United Country Real Estate

United Country Real Estate specializes in country, rural and lifestyle properties, and is one of the largest property franchising organizations in the world. The United Country approach is a lifestyle rather than an emphasis exclusively on where a customer wants to live, whether it be small towns, ranching, forestry, waterfront sports, or fishing. For $15,000, franchisees can receive an onboarding package for a year’s workplace, live webinars and on-demand training library.

Start-up cost

• Start-up costs: $15,000

Royalty fee

• Royalty fees: $1,200–$2,400 per month

Number of franchises

• No. of U.S. franchises: 443

In conclusion, choosing to invest in a franchise, no matter if small or big, can be a decision you will be mostly grateful for in the future. All it takes is for you to do the right research and ask professionals for help, so no matter what decision you make, you can be certain that you did the right thing. Small business franchises are a great way to start on a big dream, and you can prove it! 

*Always refer to the franchises current FDD (Franchise Disclosure Document) on any franchise you are investigating.