Finding a franchise opportunity that’s both low-cost and profitable can be tough. But as any successful franchise owner will tell you, it’s well worth the work to identify a winning opportunity.

If you’ve spent any time looking for low-cost franchises online, you’ve likely seen many businesses that label their franchise opportunity “low-cost.” In truth, it’s easy for a franchise to call themselves low-cost. It’s not always easy for buyers to validate whether or not it’s genuinely any less expensive than other opportunities after considering the potential for a healthy return on investment.

Franchising puts thousands of people in control of their own businesses each year, but those who succeed don’t get there by luck––they did their homework first.

While we often hear hard work alone can get you anywhere, most franchisees know there’s more to it than that. Making smart decisions, especially early on, is equally important to making your investment a lucrative one.

One of (if not the) most crucial things to consider is money. Not only how much you have now, but how much you stand to make and when you can expect to see those earnings once you’re underway.

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Low costs mean low rewards, right?

Wrong.

According to a 2015 study from the Franchise Business Review, prospective franchise owners looking to invest in a low-cost franchise opportunity––one that costs less than $100,000––can make just as much in earnings as the higher price options.

Earnings aren’t the only advantage, though. The study also found that those making smart low-cost franchise investments often have a “more flexible lifestyle,” and are often given the same high level of support from their corporate offices as more expensive franchise opportunities.

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Completely new to franchising and struggling to understand the lingo?

It helps to have a good idea of the terms and phrases you’ll be discussing with potential franchisors.

To give you a quick-and-easy reference to the world of franchising, we’ve created this go-to cheat sheet. Keep this guide handy when investigating potential opportunities you may be interested in pursuing, as you’ll mostly likely come across a few things you may not be familiar with. Read more

Thinking about buying a low cost franchise? Worried about the earning potential? Don’t worry –– it’s healthy to be skeptical. Many people looking to become business owners with a franchise assume that if an opportunity doesn’t cost much to start, it must mean there isn’t as much to make for one reason or another.

The truth is, many franchise owners turn a little into a lot every year. One of our very own franchise owners plans to do $1 million in sales in 2018 owning and managing his grout and tile franchise, The Groutsmith. Learn more about Mike Ketzner and his low cost high profit franchise here.

In general, turning a low cost franchise into a high profit business boils down to three essentials: doing your homework, learning and using the systems the franchisor lays out for you, and making smart investments in growth.

Mark Laughlin, a former owner of three low cost franchises (that he grew and sold for six-digit figures) says the key to low-cost franchise profitability is more about the franchise’s business model than the business itself. Specifically, he recommends new franchisees “find a business model that fits your life and your personality, not just your business goals.” Read more