According to a new report from Franchise Business Review, low-cost franchises – those that demand an investment of less than $100,000 — have realized significant gains in popularity during the recent economic downturn and are positioned for strong growth as the economic recovery strengthens.
FBR surveyed more than 11,000 franchisees for the report and found that the low-cost franchises with the highest owner satisfaction were in the following sectors:
- Advertising & Sales
- Business Services
- Child Services
- Cleaning & Maintenance
- Finance & Tax
- Home Services
- Pet Services
- Real Estate
- Senior Care
- Specialty Retail
- Sports & Recreation
In addition, the report found that among low-cost franchise owners:
- 15% are more likely to be female, compared to all franchise sectors
- 20% are more likely to be veterans, compared to all franchise sectors
- 71% are currently single-unit or single-territory owners
- 25% plan to purchase additional units or territories
- 83% are operating in markets with 100K+ populations
FBR reported that the lower-risk nature of the low-cost franchise space is increasingly popular with all levels of investors, and the number of opportunities and types of businesses within the space increases every day. In the past year, many franchisors have made a concerted effort to reduce franchisee costs even more and to increase their profitability.
You can learn more about a wide variety of franchise options during our free June 26 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
You may also register by calling 866-246-2884.