Local Editor

Low Cost Franchises

So what is a low cost franchise? Well I suppose everyone will have a different definition of what they think a low cost opportunity is but for these purposes we will use an investment level of £15,000 or less as the guide price for a low cost franchise.

So does low cost therefore mean low earnings or profit? No, some low or even no upfront investment franchise or business opportunities can represent very high earnings potential. So why would a franchise business sell it a low cost even if the earnings potential was high? Well the initial franchise is generally determined by the cost to set-up which includes training, equipment, product and premises not the actual earnings potential. Sure sometimes with a recognized brand just the area alone will have a impact on the price as the largest the franchise area or territory, the more business will be obtained. That said that’s generally not the case for less known brands or new brands and if a franchise requires a lot of franchisees to provide national coverage and set-up costs are quite low then many will have an initial fee of under £15,000 to try to recruit as many franchisees as quickly as possible to grow their brand and provide a better service to their customers.

Some of the low cost franchises for sale under £15,000 include product distribution, pet related, children fitness and swimming, travel agency and even financial and business advice franchises so there is a huge choice of opportunity even if you are seeking a lower initial investment. The main thing to consider if the “overall” investment, just because a franchise has a low initial fee doesnt mean you won’t need to invest additional funds so when choosing a low cost franchise opportunity make sure you find out about all costs involved before you invest and as always seek professional advice.

Just because a franchise investment is low cost doesnt mean you should not carry out thorough research before you make any commitment. Regardless of initial investment check out the business and seek professional advice.

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