In this article, we will discuss the 20 low-cost franchises with high profits. If you want to skip our detailed analysis, you can directly go to 5 Low-Cost Franchises with High Profits.
Franchising has played a crucial role in shaping the business environment in 2023. According to a report by the International Franchise Association, the number of franchise establishments is expected to increase by 15,000, amounting to 805,000 units in 2023. Moreover, 2023 may bring an additional 254,000 jobs in the franchising industry, with a forecasted 4.2% increase in output.
Among all industries, franchises in the quick restaurant services industry are expected to post the highest growth in 2023 at 2.5%, followed by the commercial and residential services industry and the retail industry reporting 2.1% growth in franchise establishments. You can also check out some of the leading restaurant franchises.
Notable Low-Cost Franchises
Low-cost franchises offer niche services to consumers across the globe. Some of the most profitable yet low-cost franchise opportunities include Cruise Planners and Brightway Insurance.
Cruise Planners is a home-based travel agent franchise network based in Florida. The company is a prominent name in the travel industry and requires at most $7,000 to $10,000 in initial investment. On August 29, the company reported that it ranked 10th among the fastest growing companies by the South Florida Business Journal. According to the report, Cruise Planners experienced significant growth in the past three years, contributing to the award. The company posted annual sales of $545 million in 2022, and annual sales of $845 million in 2023.
Brightway Insurance is another profitable yet low-cost franchise. Brightway Insurance is a network of leading insurance agencies and insurance experts. On March 30, the company reached a $1 billion milestone. According to the report, the company received $1 billion in written premiums and was awarded two industry accolades. The company ranked on the Entrepreneur Franchise 500 list and the Franchise Times Fast & Serious list. The Franchise Times list includes some of the world's smartest, fastest growing franchises. Brightway Insurance made it to the list for the ninth time.
Large Franchises: At a Glance
Large franchises offer strong financial returns. Some of the notable names include The Wendy’s Company (NASDAQ:WEN), McDonald’s Corporation (NYSE:MCD), and United Parcel Service, Inc. (NYSE:UPS). You can also check out some of the most profitable franchises in the world.
Wendy's Company (NASDAQ:WEN) is an international fast food chain in the United States. The company has over 6,900 franchises across the globe. Wendy's Company (NASDAQ:WEN) is a prominent name in the fast food industry due to its unique taste and offerings. On September 6, the company reported the launch of its new brew and frosty for the Halloween season. Wendy's Pumpkin Spice Frosty and Pumpkin Spice Frosty Cream Cold Brew were included in menus worldwide on September 12. The company uses subtle strategies to keep up with the market and to ensure that consumers continue to find the brand exciting.
McDonald's Corporation (NYSE:MCD) is a leading fast food chain in the United States. The company has over 40,000 franchises globally and operates in over 100 countries. On October 11, Stephens & Co. analyst Joshua Long reiterated an Overweight rating on McDonald's Corporation (NYSE:MCD) and maintained his price target on the stock at $325. Over the past 12 months, 21 Wall Street analysts have recommended to Buy the stock. McDonald's Corporation (NYSE:MCD) has an average price target of $328.6 and a high forecast of $383.
United Parcel Service, Inc. (NYSE:UPS) is a multinational shopping and supply chain management company based in the United States. The company has over 5,400 franchises across the globe. On August 8, United Parcel Service, Inc. (NYSE:UPS) reported earnings for the fiscal second quarter of 2023. The company reported earnings per share of $2.54 and outperformed EPS estimates by $0.04. The company reported a revenue of $22.06 billion during the quarter. As of October 11, United Parcel Service, Inc. (NYSE:UPS) is trading at a PE multiple of 13x and is offering a forward dividend yield of 4.17%.
Setting up a franchise is a relatively simple way to become a business owner. However, it does demand certain leadership qualities and capital. With that, let's look at the 20 low-cost franchises with high profits.
20 Low-Cost Franchises with High Profits
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Our Methodology
For the article, 20 low-cost franchises with high profits, we sourced the top 50 franchise names from Franchise Direct for our initial pool. Franchise Direct ranks the top 100 franchises in 2023, with separate sections for low-cost and top franchises. We consulted the three reports from the same source to ensure every franchise is considered. We then set limits on the "minimum cash required," to extract names relevant to our title. Our list includes items that cost between $10,000 to $50,000 to set up.
We curated the list with the "minimum cash required" as a primary metric. Therefore, franchises with the lowest investment rank higher regardless of their profitability. Since it was challenging to source profits or profit margins for every franchise location, we sourced the cumulated annual sales revenue estimates of the franchise companies from Growjo. Sales estimates were a secondary metric for our list and were used as a tiebreaker to rank two or more franchises with the same minimum cash requirement. Our list is in descending order of the minimum cash required.
20 Low-Cost Franchises with High Profits
20. GYMGUYZ
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $58.8 Million
According to our methodology, GYMGUYZ is one of the most profitable low-cost franchise opportunities. The company offers personal training. The training services are offered in any location as per the client's convenience, be it their home, their workplace, or online. The company currently operates in over 1,100 cities, 22 states, and 3 countries.
The Wendy’s Company (NASDAQ:WEN), McDonald’s Corporation (NYSE:MCD), and United Parcel Service, Inc. (NYSE:UPS) are some of the leading franchises in the world.
19. NOVUS Glass
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $63.2 Million
The company, NOVUS Glass, offers services in windshield repair and has repaired almost 23 million windshields since its inception in 1972. The company has over 1,300 service locations across the globe with over 250 in North America.
18. Big Frog
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $73.7 Million
Big Frog is a custom apparel company and is among the most profitable low-cost franchises. The company offers clothing items to people of all ages including infants, teens, men, women, and pets. The company also allows customers to purchase customized t-shirts once a free design consultation with the team is scheduled. The company appeared on the Entrepreneur's "Top 500 Franchise" list numerous times.
17. Caring Transitions
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $74.6 Million
According to our methodology, Caring Transitions is one of the most profitable low-cost franchises. The company offers services to individuals and families looking to relocate, declutter their homes, and get their spaces cleaned. Additional services include online auctions, estate sales, and downsizing. The company currently has over 200 franchise owners.
16. Paul Davis
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $111.4 Million
According to our methodology, Paul Davis is among the most profitable low-cost franchises. Paul Davis is a construction and restoration company in the United States. The company has over 300 franchises across the United States and Canada.
15. Mr Rooter
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $141.5 Million
Mr Rooter is among the most profitable low-cost franchises. The company is a leading plumbing and drain cleaning franchise based in the United States. Founded in 1970, the company now has 230 franchises in the United States and 26 in Canada.
14. Mosquito Joe
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $145 Million
Mosquito Joe is a leading mosquito control service provider to residential and commercial customers. The company deals with killing outdoor pests such as mosquitoes, ticks, and fleas. The franchise was ranked as the number one franchise by Entrepreneur in 2022.
13. CarePatrol
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $172.5 Million
According to our methodology, CarePatrol is among the most profitable low-cost franchises. The franchise helps seniors and families find the perfect housing and care options, meeting their personalized needs for health and care. The company has over 150 franchise locations across the United States. Under the franchise network, Living Advisors fulfill the responsibility of finding a living community for seniors based on their needs.
12. SYNERGY HomeCare
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $269.5 Million
SYNERGY HomeCare is among the most profitable low-cost franchises. The company offers services in nursing, physical therapy, occupational therapy, speech therapy, and medical social services. To become a franchise owner, the company has a minimum financial requirement of $50,000 in liquid capital and $150,000 in net worth.
11. ComForCare Home Care
Minimum Investment Required: $50,000
Estimated Sales Revenue Per Year: $829.3 Million
According to our methodology, ComForCare Home Care is among low-cost franchises with high profits. The franchise operates in the United States and Canada. The company provides in-house care services to seniors inside their homes. The company offers care for Alzheimer's disease, dementia, and other chronic conditions. Other in-house services include housekeeping, laundry, and shopping. The initial investment may range from $73,000 and $162,00, inclusive of the minimum cash requirement.
10. Visiting Angels
Minimum Investment Required: $49,950
Estimated Sales Revenue Per Year: $3.8 Billion
Visiting Angels is a leading senior home care services provider. Visiting Angels provides services to adults and seniors with special needs. The company provides in-house services and care, enabling adults and seniors with special needs to function properly inside their homes.
9. Oasis Senior Advisors
Minimum Investment Required: $40,000
Estimated Sales Revenue Per Year: $81.7 Million
Oasis Senior Advisors is among the most profitable low-cost franchises. Oasis Senior Advisors offers free personalized services to families and seniors in finding housing and care. The advisors at Oasis Senior Advisors closely work with families and seniors to understand their health needs, preferred living conditions, and financial considerations. The advisors then offer possible options and help them find the perfect fit for their needs.
8. British Swim School
Minimum Investment Required: $39,000
Estimated Sales Revenue Per Year: $76.7 Million
According to our methodology, the British Swim School Franchise is one of the top low-cost franchises with high profits. The franchise is based in the United States. As the name suggests, the British Swim School offers premier survival and stroke development swimming lessons and training. The services offered under the franchise program include training and support and enrollment in recognized aquatic programs.
7. United Country Real Estate
Minimum Investment Required: $30,000
Estimated Sales Revenue Per Year: $161.7 Million
United Country Real Estate is a franchise-based real estate marketing company in the United States. The company offers a range of services and marketing services to affiliated retailers against a franchise fee. These services include the provision of leads, training, the provision of technology solutions, and marketing programs.
6. Club Z!
Minimum Investment Required: $30,000
Estimated Sales Revenue Per Year: $240.7 Million
According to our methodology, Club Z! In-Home Tutoring Services, an education management network, is among the most profitable low-cost franchises. The program allows students to avail personalized one-on-one tutoring services from the comfort of their homes. The franchise package is almost $19,750. An additional $10,000-$15,000 is required for startup expenses and advertising.
The Wendy’s Company (NASDAQ:WEN), McDonald’s Corporation (NYSE:MCD), and United Parcel Service, Inc. (NYSE:UPS) are some of the most profitable and in-demand franchises in the world.
