How to Evaluate the ROI of a Low-Cost Franchise Opportunity

How to evaluate the ROI of a low-cost franchise

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.

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How Much Low-Cost Franchise Owners Make: A Quick-Guide

Low Cost Franchises Offer Huge Potential

Low costs mean low rewards, right?




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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