Starting a franchise doesn’t always require a massive investment. A lot of new entrepreneurs assume franchising is only for people with huge capital, but that’s not the full picture. There are legit, low-cost franchise options out there—you just need to know what to look for and how to evaluate each opportunity.

If you’re thinking about getting into franchising without draining your savings, this guide breaks down everything you need to know: what makes a franchise “cheap,” what to watch out for, and examples of affordable franchise categories. You’ll also get practical tips to help you assess whether a specific opportunity is actually worth your money.

Before you dive in, it helps to get a clear picture of how franchising works. If you want to explore broader franchise opportunities, check out this casual guide to starting a franchise over at the intro to franchising blog.

Why Look Into Cheap Franchises?

Not everyone wants—or needs—a $1M McDonald’s buildout right out of the gate. Cheap franchises allow you to:

• Start with lower risk
• Keep overhead manageable
• Get into business faster
• Test your entrepreneurial ability without intense financial pressure

The key is making sure “cheap” doesn’t turn into “bad deal.” That’s where your research matters.

What Actually Makes a Franchise “Cheap”?

Affordable franchises usually have three things in common:

1. Lower Startup Costs

This includes everything you need to open your doors: equipment, inventory, licenses, fees, and your initial franchise fee. Cheaper franchises reduce these costs significantly—often by avoiding physical storefronts or using simpler business models.

Industries like cleaning, consulting, home services, and mobile businesses often fall into this category.

2. Minimal Ongoing Fees

All franchises have recurring fees, but cheaper ones keep them reasonable. These may include:

• Royalties
• Advertising contributions
• Technology fees
• Required supplies

Cheaper franchises often limit these to keep barriers low.

3. Low Overhead Business Model

Some business types naturally cost less to run. For example:

• Cleaning franchises require simple equipment
• Mobile services don’t need a physical location
• Home-based franchises eliminate rent entirely

Meanwhile, restaurants and retail require more money because of permits, buildouts, staffing, and inventory.

4. Opportunity to Purchase an Existing Franchise Location

Sometimes you can buy an already-operating location for a lower price than the cost of building a new one. This cuts costs and gives you:

• A customer base
• Existing equipment
• A working business model

Buying an existing franchise can significantly reduce time-to-profitability.

What to Consider Before Buying Any Franchise

Before signing anything, slow down and evaluate the franchise objectively. Here’s what you should look at:

1. Initial Investment

Understand exactly what your upfront money covers:

• Franchise fee
• Training
• Equipment
• Inventory
• Technology systems
• Insurance
• Licenses
• Location costs

Comparing franchises is easier when you break down the numbers this way.

2. Ongoing Costs and Royalties

Some franchises look cheap at the start but make up for it through high royalties. Make sure to check:

• Percentage or flat royalty fee
• Marketing contribution
• Software costs
• Renewal fees

A low-cost franchise should stay affordable long after you launch.

3. Training and Support

Good franchises set you up to win. Look for:

• Training programs
• Marketing support
• Tech support
• Business coaching
• Operations manuals
• Mentor networks

If support is weak, you may end up running the business alone—defeating the point of franchising.

4. Brand Reputation

A recognized name is a huge advantage. People prefer businesses they already trust. Research:

• Reviews
• Customer feedback
• Franchise owner satisfaction
• Growth history
• How long they’ve been in business

A cheap franchise with a bad reputation is not a deal—it’s a headache.

5. Profitability Potential

Look for signs of a strong business model:

• What do current franchisees earn?
• How long until they break even?
• How competitive is the industry?
• Is demand growing?

If the numbers don’t make sense, don’t force it.

Popular Cheap Franchise Categories (With Examples)

While franchise costs vary, the categories below consistently offer the lowest startup costs.

1. Cleaning & Janitorial Franchises

These are usually the most affordable because they don’t require retail space or heavy equipment. You can start quickly and grow through word of mouth.

Examples:

• Commercial cleaning
• Residential cleaning
• Carpet or floor cleaning
• Sanitizing services

Why they stay low-cost:

• Simple supplies
• No storefront
• Scalable hours
• High recurring customer potential

2. Personal Services and Wellness

These franchises often require a small space—or even run from home.

Examples:

• Massage studios
• Kids activity centers
• Wellness coaching
• Senior care (non-medical)

Some require certifications, but many do not. Costs depend on location and equipment.

3. Fitness and Gym Franchises

Some premium gyms are expensive, but smaller-format or niche fitness franchises keep expenses low.

Examples include:

• Boutique fitness studios
• 24/7 minimalist gyms
• Self-service training centers

These franchises keep costs down by operating from compact spaces with limited staffing.

4. Smoothie, Beverage & Grab-and-Go Concepts

Not all food franchises are expensive. Some beverage or kiosk-style businesses offer low-cost entry points.

These models often avoid the high overhead of full restaurants.

5. Home-Based Franchises

Perfect for cutting costs because you avoid rent completely.

Examples:

• Tutoring
• Digital marketing
• Travel planning
• Real estate services
• Financial consulting

One popular category here is tutoring. Small equipment needs and a flexible schedule allow owners to scale gradually.

For more ideas, check out this helpful guide on starting a reseller business—another low-cost model similar to home-based franchising. You can skim through it here:
why starting a reseller business is smart

6. Mobile Franchises

These are ideal if you want to skip rent and take services directly to customers.

Examples:

• Mobile pet grooming
• Mobile car detailing
• Mobile repair services
• Mobile food carts or coffee trucks

These models thrive because they meet customers where they are—and overhead stays low.

7. Landscaping & Home Services

These businesses stay affordable thanks to straightforward equipment and high demand.

Examples:

• Lawn care
• Pest control
• Handyman services
• Pressure washing

Seasonal or year-round, home services generally offer predictable demand and scalable income.

Cheap Franchise Examples (Detailed Breakdown)

Below is a refined explanation of the franchise examples mentioned in the original content:

Sport Clips

• Startup investment: ~ $169,500
• Industry: Men’s grooming
• Why it’s affordable:
  • Small footprint
  • No complex equipment
  • Strong walk-in model
  • Recognized national brand

Anytime Fitness

• Startup investment: ~ $94,350
• Industry: Fitness
• Why it’s affordable:
  • Minimal equipment compared to big gyms
  • 24/7 automated operations
  • Loyal membership model

Jamba Juice

• Startup investment: ~ $169,000
• Industry: Smoothies & Beverages
• Why it’s affordable:
  • No heavy cooking equipment
  • Small footprint
  • Strong customer base

Note: These prices vary depending on location, market conditions, and franchise fees. Always request the FDD (Franchise Disclosure Document) for exact numbers.

Home-Based Franchise Opportunities

Home-based franchises are ideal if you want something affordable, flexible, and simple to operate. Examples include:

1. Tutoring / Educational Services

Why it’s affordable:

• Home office setup
• No physical facility needed
• Very low equipment costs
• Strong demand

2. Virtual Business Services

These can include:

• Digital marketing
• Admin services
• Business consulting

Many of these require no more than a laptop and training.

Mobile Franchise Opportunities

Mobile franchises keep costs low by avoiding traditional retail locations. These businesses are especially attractive for first-time entrepreneurs.

Examples:

• Mobile detailing
• Mobile repair
• Mobile food kiosks
• Mobile pet grooming

These businesses leverage flexibility and convenience—two things modern customers love.

Service-Based Franchise Opportunities

If you want low overhead and high demand, service-based franchises are an easy win.

Examples:

• Lawn care
• Landscaping
• Handyman services
• Pest control

Why they’re affordable:

• Low equipment cost
• No large staff
• No expensive buildout

Final Thoughts: Finding the Right Cheap Franchise for You

A “cheap” franchise doesn’t mean a low-quality franchise. It simply means the business model is lean, efficient, and accessible. Before you decide, make sure you thoroughly research:

• Startup costs
• Ongoing fees
• Training and support
• Brand reputation
• Profit potential

If you take your time and choose wisely, an affordable franchise can be your launching point into successful business ownership.