Franchises are one of the most popular business models within the US. There were an estimated 775,000 operational franchises in the United States in 2021, and that number is expected to rise to nearly 792,000 by the end of 2022. The market share of franchises is extensive. Due to that, it can be an intriguing business venture you might want to follow by searching “franchise opportunities near me.” Once you decide to open a franchise it can be difficult to determine which is the best fit. You might consider the most profitable franchises, but large franchises can require expensive initial investments and high royalty fees. So what’s the solution? For low-cost franchises with high profit, researching small franchises could be very fruitful for a potential franchisee.

What Are the Types of Franchises?

types of small franchises

There are several businesses that provide products and services based on a franchise model. While large companies like McDonald’s and Subway dominate the quick service restaurant industry. Jiffy Lube, UPS, and Great Clips take up a large market share in their industries. There are other smaller established businesses that can cater to new potential business owners. Before we dive into the small franchises available for investment, we’ll explain a few of the types of franchises and how they operate.

Business Format Franchise

If you franchise using the business model runs their franchise under the parent company's name and receives the proven system to use for operations and product or service marketing. You would receive the trademarks, trade names, business procedures, and systems in order for them to sell their products under this sort of franchise format. The franchisor provides initial and continuous training, ongoing assistance, as well as a comprehensive strategy and processes for you to run the business.

Some examples of business format franchises include:

  • Quick service restaurants (fast food)
  • Packaging and delivery services
  • Motels and small lodging
  • Full-service restaurants
  • Fitness centers / gyms

Product / Distribution Franchise

Unlike a business format franchise, if you choose to franchise a product/distribution business you would not receive a full business plan from the franchisor. Instead, you serve as the franchisor's product distributor. In these franchises, you offer products created by the parent company as well as certain related services. Franchisee licenses may occasionally include supplies for both distribution and production.

Here are a few examples of product / distribution franchise products and services:

  • Parts used for vehicle repair
  • Heavy-machinery for all industries
  • Pre-built computers
  • Home appliances
  • Beverages like Coca-Cola, Pepsi
  • Assembled bicycles
  • Vending machines

Job Franchise

If you choose to launch and manage a small franchised business on your own, typically the best option is a job franchise. This is frequently a home-based or low-investment franchise. Job franchises, where you would personally do a majority of the work, generally have one to five employees working from a non-commercial location. In this case, you often have to invest in a small amount of inventory, equipment, and perhaps transportation for yourself and any equipment. These low-cost franchises lend themselves well to franchisees who prefer working on a small scale rather than a larger corporation.

Below are a few examples of job franchise opportunities:

  • Travel agency
  • Food trucks
  • Residential lawn care
  • Plumbing and drain cleaning
  • Commercial building cleaning
  • Cell phone accessories and repair
  • Event planning

No matter which franchise type you decide to invest in, there are several options to choose what best fits your needs as a business owner. If you’re looking for a small franchise, there are many franchises available that give you the tools necessary to run a successful business without a huge investment. Of course low-cost franchise opportunities can help get you off the ground, but how much can it cost to begin a small franchise?

How Much Does a Franchise Cost?

Many potential franchisees want the best return on investment for franchises they can afford. So how much money do you need to start a franchise? According to ADP, the majority of franchise startup costs fall between $100,000 and $300,000, although they might actually vary from $10,000 to $5 million. The cost depends on the franchise type, the area, and the industry. While full-service restaurants and hotels are among the most expensive, mobile and home-based businesses are frequently the least expensive. At, you can find franchises under $10,000, but most franchises require a $30,000–$50,000 investment.

When researching franchising costs, you'll likely encounter two terms that are worth defining here:

  • Liquidity: The available liquid assets of a business or individual, like cash, money market instruments, and marketable securities.
  • Net worth: The value of the liquid assets of a business or individual.

On a franchise company's website or other franchise information sites, you can often find some information on upfront expenses. But to learn more about the exact costs involved, you should get in touch with the business and express your interest. These total costs include royalty fees and other financials typically found in the franchise disclosure document (FDD).

Some typical costs you should expect to pay outside of franchise and royalty fees, which should be clearly stated in the franchise agreement, include:

  • construction
  • inventory
  • equipment
  • insurance
  • employee training
  • business licenses
  • rent
  • landscaping
  • signage

As you can see, there are more than just fees to consider.Starting a small franchise is still a large investment. Because of the necessity, you should be prepared to pay for all franchising costs. But with liquidity and financing, it's still possible for anyone to achieve their dream of owning a franchise.

So what are franchises for sale that you can invest in now?

Small Franchises to Invest In

Deciding on a small franchise requires research, but here are a few examples of the best franchises you can invest in as a small business owner.


If you love dogs, BarkSuds™ is a membership dog salon where you can provide quality baths and haircuts in a $100 billion industry. A BarkSuds franchise is perfectly positioned to profit off today’s higher-maintenance doggie lifestyle. There are no prerequisites, no high-cost machines to purchase and maintain, and no required finishes, fixtures or even flooring in the back-end of the salon.

My Business Venture

If you’re looking for cheap franchises under $5,000, My Business Venture is a great opportunity to start your own online business from home. You can add up to 2,000 products to your site out of a choice of two million product inventory. Sell a little of everything or focus on a certain niche. Ownership of your own online business is simple, hassle-free, and affordable with My Business Venture!

Casey's Cleaning

If you’re interested in a simple startup with low-overhead costs, Casey’s Cleaning is looking for driven, entrepreneurial, and experienced franchisees. You’ll find recurring revenue through repeat customers and growth potential as an established franchise. Get Casey’s Cleaning’s proven market strategies to help you scale your business.

Tutoring Works

If you love education, you can start private tutoring with Tutoring Works. You’ll be provided with refined training of essential knowledge and concepts with a step-by-step blueprint for success. They also provide internet advertising, networking, and a dynamic website. You can assist almost every student with a learning need.

How Do I Open a Small Franchise?

Opening a small franchise requires research, fees, and initial investment amount for things like inventory and training. You might be wondering, “Is it easy to start a franchise?” While opening a franchise requires a lot of hard work, the steps you need to take are rather straightforward. The process of opening a franchise means in-depth research and preparation. Here are the steps you should follow to open a small franchise:

1. Evaluate the goals of your business ideas and future career.

Picking the right franchise doesn't have to be difficult. Simply ask yourself the following questions and see where your answers take you:

  • What are your strengths and weaknesses as an entrepreneur?
  • What industry or sort of franchise business are you interested in joining?
  • What goals do you have for your business, and how might a franchise help?
  • How much money do you have to invest?

2. Examine market trends and franchise possibilities.

The franchiser has a vested interest in promoting their most successful franchisees because markets might differ by area. To be successful with a franchise, you must thoroughly research your area, the requirements of your area, and market saturation. By getting in touch with the franchisors who catch your attention, you can further your research. You can also use sites like to find available franchises within your price range.

3. Draft your business plan.

According to the Small Business Association, a business plan should include:

  • Executive summary
    Briefly tell your reader what your company is and why it will be successful.
  • Company description
    Give specifics on the issues your business resolves. List the people, groups, or companies that your business aims to assist, and be precise.
  • Market analysis
    What do successful competitors do? Why does it work? Can you do it better?
  • Organization and management
    Tell your reader who will run your company and how it will be legally structured.
  • Service or product line
    Describe the products or services you provide. Explain the advantages to your consumers and the product lifecycle.
  • Marketing and sales
    Describe your customer attraction and retention strategies as well as your sales process.
  • Funding request
    Your objective is to clearly describe how much financing you'll require over the next five years and how you intend to spend it.
  • Financial projections
    Include financial forecasts with your funding request. Your objective is to persuade the reader that your company is reliable and will be profitable.
  • Appendix
    Use your appendix to provide supporting documents or other materials that were specially requested. Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts.

4. Form an LLC or Corporation

Your choice of franchisor may influence the kind of business you establish. Some companies may require a corporation or LLC. By incorporating, you establish a legal separation between your company's obligations and your personal assets. You may also consider a sole proprietorship, but this classification puts your house and other assets in danger.

  • A limited liability company (LLC) is a type of corporate structure that protects its owners from being held personally responsible for the liabilities of the business. Limited liability companies are hybrid legal organizations with qualities shared by corporations, partnerships, and sole proprietorships.
  • An S Corporation or B Corporation is a separate legal entity from its shareholders. Many of the same legal rights and obligations apply to corporations as to people. They are able to execute contracts, lend money and borrow loans, sue and be sued, hire staff, own assets, and pay taxes. Limited liability, which prevents its owners from being held personally liable for the company's obligations, is a crucial component of a corporation.
  • A sole proprietorship, also known as a sole trader or a proprietorship, is an unincorporated business with just one owner who is responsible for paying personal income tax on the company's profits. Many sole owners operate under their own names. Because it involves less governmental regulation, a sole proprietorship is the most straightforward kind of business to start or dissolve.

5. Acquire financing

Naturally, you need enough starting money to pay for your franchise fee and other startup expenses, but you also need working capital to get you through the initial stages of opening a business. Banks and other financial institutions are common sources of funding. If you cannot normally qualify for a bank loan, however, you may be eligible for an SBA-backed loan.

6. Review the franchise agreement and sign it

Your franchisor and you are legally bound by the terms of the franchise agreement. As a result, before you sign the agreement, you should consult a lawyer to evaluate it. Make sure you understand the agreement's specific contents, including all of your rights and responsibilities.

7. Obtain various licenses and permits

General company licenses, tax registrations, health permits, and occupational licenses are a few examples of licenses and permits. Government fines and the loss of liquid assets might occur if licenses and permits are not kept up to date. In the event that you fail to maintain compliance with licensing standards, your franchisor may potentially terminate your franchise.

8. Prepare for opening day

Many franchisees are in charge of constructing or upgrading the location where they will do business. The franchisor will typically supply the blueprints, fixtures, and signage. During the building process, you should begin to hire employees and train them before the location opens.

With these tips for starting a franchise business, owning a franchise of a business that makes sense for you is easily achievable.

Become a Franchisee with Franchise Opportunities offers you the greatest selections of available franchises available through our website search. Whether you’re looking for cheap franchises under $1,000 or the best franchises for young entrepreneurs, has a large selection available for you to search. Our easy-to-use site helps you search by industry, investment level, and state. Or you can see what the top franchises are today and get involved with a growing business. Visit our website today to find the perfect opportunity for you!

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