How to Choose a Low Cost Franchise Opportunity

business owner takes franchise opportunity

Franchising can be quite intimidating when you’re first introduced to it. The upfront costs to invest, the responsibility of it all and, not to mention the stress, are all factors that make starting a franchise opportunity appear far less accessible than they actually are. 

Despite all of this, many think that pursuing a low cost franchise opportunity is still the best way to get your foot in the door with investing in franchises. In this article, we’ll be discussing how to choose a low cost franchise opportunity. We’ll also discuss why you should be investing in franchises, as well as the advantages and disadvantages of doing so. 

It’s important to note that this article is intended to be used as a guide. Everyone’s situation is different. That means a good franchise opportunity for one person might not be for someone else. 

What is a low cost franchise opportunity?

Firstly, let’s just revisit the definition of a franchise. It’s a joint venture between a franchisor (company or individual that sells or grants a franchise) and a franchisee (individual or company that holds a franchise). With this in mind, a low cost franchise does not take a large initial investment. Generally speaking, any franchise that requires £10,000/$15,000 or less is seen as low cost. 

However, this is all relative. What might be a low cost franchise for one person, might not be for another and vice versa. It all depends on your income and the amount of money you’ll be willing to comfortably invest. 

Why invest in a low cost franchise?

A low cost franchise is a great option for anyone looking for an investment that carries a relatively low level of risk. They’re also ideal for anyone who wants to invest without breaking the bank – low cost franchises are a realistic investment opportunity for anyone. Let’s break down the advantages and disadvantages of investing in a low cost franchise. 

Advantages of investing in a low cost franchise

  • No crazy running costs: the majority of low-cost franchise opportunities that you’ll come across will either be remote or mobile – this means you’ll keep things cheap as you won’t have many other costs to account for. 
  • Low-level investment with potentially high return: newer franchises are the ones that tend to be low-cost, meaning that they might not yet have reached their full potential. This is music to the ears of franchise owners, as an early investment in a quality business is bound to increase your earnings ceiling as the franchise grows. 
  • Low risk investment: this one is quite simple – the less money you invest, the less you’re potentially losing out on. In addition, you’ll notice a faster return on your investment as another nice little bonus.  

Disadvantages of investing a low cost franchise opportunity

  • Less support: it’s to be expected that a smaller franchise means less support as they’re likely newer and have less staff to provide training, for example. 
  • There’s no guaranteed success: investments in low cost franchises are inherently more unpredictable than investing in a well-established franchise as they’re often newer, meaning that their future is uncertain. 

Things to consider: evaluating your investment

Now we’ve discussed some of the clear advantages and disadvantages of investing in a low cost franchise, it’s time to think about some questions you should ask yourself when seriously considering investing. 

First, let’s talk about one of the most important tips – don’t rush into anything. Whilst it might seem tempting to dive straight into an investment, try not to act too impulsively. It’s always worth analysing your potential investment opportunity to see if it really is the right choice for you. Seek advice from people experienced in franchise investments as their opinion will help you make an informed decision either way.

However, if you’re struggling to get advice from someone familiar with franchise investments, then ask yourself the following questions to help you gauge whether this opportunity is right for you: 

  • Are there competitors and how do they compare to my investment?
  • Is there enough demand for the product/services that the franchise is offering?
  • Has their brand gained any recognition or traction?
  • What support and/or training is available for you?
  • Has the franchise got a clear business plan / model that you see as being achievable and successful?


Do you daydream about launching your own company? Many people do and what stops them is pretty simple. Money and doubts about how much of it they need to put up in the beginning are usually big roadblocks for even the bravest entrepreneurs. 

It costs a lot less to get started with a ‘ready to run’ low cost franchise opportunity than going it alone. It’s a business that’s in operation already and you can benefit from that. Often, many people already know about the company, and it’s an established business model. There’s also probably a good chance you have a team already in palace that knows what it’s doing. 

Franchise Local offers the best franchise opportunities, support and advice for anyone looking to buy and run a franchise business of their own. With a wide range of low-cost franchise opportunities, finding the right franchise for you is easy. 


Photo by MART PRODUCTION from Pexels

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