Wondering How to Start a Franchise Business? Consider 6 Affordable Opportunities

Whether you’re looking to build a side hustle or jump straight into running your own company, a franchise business can give you a head start.

However, there’s a lot of noise out there when it comes to choosing the right franchise business opportunity.

From companies that require huge upfront investments—from several hundred thousand dollars into the millions—to organizations that promise support and don't deliver, it can be hard to know where to begin.

But you can do it. And it doesn’t have to cost millions. 

We’ve compiled this list of opportunities for entrepreneurs looking for a franchise. Each franchise on the list has the following characteristics:

• An entry point under $100,000

• The backing of a strong reputation

• High growth potential

Before digging into the franchise roundup, let’s define key terms and answer a few common questions that come up when evaluating franchise opportunities.

What is a franchise business?

In a franchise business, the franchisor grants rights to independent business owners (franchisees) to do business under their name. In return for compensation and specified obligations in the franchise agreement, the franchisor typically assists the franchisee in training staff, merchandising, marketing, and more in order to sell their products or services.

For example, 95% of McDonald’s restaurants in the US are franchises that are owned and operated by independent business owners, though McDonald's typically owns or controls the real estate and leases it back to them. Business owners have the permission of the franchisor, McDonald’s, to use their proprietary systems, sell their products, and advertise under their brand name.

McDonald's franchise owners pay handsomely for this privilege, but they're buying into a tested operating system with proven demand and a powerful global brand—advantages an independent fast food restaurant would have to build from scratch.

Here are the key terms to know when starting a franchise business:

• Franchisor: The company that wants to expand its business through franchising. It grants franchisees permission to use its intellectual property—brand, trademarks, and operating system—to conduct business.

• Franchisee: An independent business owner (hey, that could be you!) who pays fees to the franchisor in exchange for the right to operate under its brand and run the business using its established system.

• Franchise Disclosure Document (FDD): The disclosure document the Federal Trade Commission (FTC) requires franchisors to give prospective franchisees at least 14 calendar days before they pay or sign anything. Its 23 standardized items cover fees, total investment, litigation history, territory, outlet counts, and audited financials.

• Franchise Agreement: The binding contract between franchisor and franchisee. It sets out the terms under which the franchisee operates an independent business using the franchisor’s brand and system, plus the specific obligations of both parties. It’s attached to the FDD as an exhibit. These agreements are largely non-negotiable, with a fixed term and no guaranteed renewal. 

• Initial Investment Cost: The total amount of capital, or money, you need to invest upfront to actually start the franchise business. Along with training, equipment, and operations costs, this figure might also include a one-time franchise fee. That’s the non-refundable, upfront fee that the franchisee pays to the franchisor in order to open the new franchise business.

• Royalty Fees: These are the ongoing fees that franchisees pay to the franchisor for use of its trademarks, resources, and other benefits. Generally, the royalty fee is expressed as a percentage of your gross sales. But it could also be a fixed monthly amount or calculated against a different base (like membership fees or billings). 

• Advertising Fund (or Brand Fund) Fee: An ongoing fee that pools money across the system for national and regional marketing. It's usually a percentage of gross sales, and is not guaranteed to be spent in your market. 

• Territory: The geographic area the franchisor grants you. It may or may not be exclusive to you, meaning the franchisor may open another location or sell to another franchisee inside it.

Pros of starting a franchise business

Starting a franchise business offers a few key perks: 

• A tested business model. Franchising removes the concept risk and the years of brand-building that an independent business faces from day one.

• Brand recognition. Customers already know the name, which means less work for you to build an audience.

• You don’t need industry experience. The system supplies the domain knowledge, and most franchisors train you in the industry. However, some business or management experience is generally recommended or required.

• Startup costs are disclosed and itemized. The FDD breaks down your estimated investment line by line, including working capital. Keep in mind that these are estimates, not guarantees. 

• Easier access to financing. Lenders can verify a brand’s eligibility through the Small Business Administration Franchise Directory instead of reviewing your franchise agreement from scratch, which speeds up SBA 7(a) approval.

• Ongoing support (sometimes). Many franchisors provide training, marketing, and operational help, but it varies by brand. Read Item 11 of the FDD to see what the franchisor is obligated to provide. 

Cons of starting a franchise business

You have to be comfortable with certain limitations when you start a franchise business, including: 

• You have to follow the system. Even if your instincts say otherwise, you have to follow the franchise agreement’s dictation of products, pricing, suppliers, hours, and appearance. 

• You owe fees whether or not you’re profitable. Royalties are calculated on gross sales, not profits, so you owe them whether or not the business turns a profit each month.

• Your equity is constrained. You're building a sellable business, but selling usually requires franchisor approval and a transfer fee. For example, Caring Transitions (on the list below) charges the greater of $15,000 or 10% of the sale price. And the brand value you helped build stays with the franchisor either way.

• Other franchisees’ problems become yours. You’re not in charge of the public perception of the brand. A bad decision at the national level, or a poorly run location across town can affect your sales through no fault of your own.

• Your territory may not be exclusive. Some franchisors reserve the right to open nearby locations, sell online in your area, or operate competing brands. 

• The rules can change after you sign. The operations manual (the document specifying how you actually run the business, from uniforms to software to suppliers) is incorporated into your agreement, and the franchisor can usually revise it unilaterally. If they add to or change the requirements, you have to comply.

Questions to ask before you decide if a franchise is right for you

Take these considerations into account before you get deep into the franchising process: 

• What’s your motivation to start this business? If you go with a franchise business in an area that interests you, then you're more likely to still be running it in five years—remember this is a long game. Be sure your choice is based on more than just the financial opportunity.

• Do you need the hands-on guidance a franchise provides? If you’re an experienced business owner and prefer control over your own operations, then you may not like adopting a formulaic franchise system to conduct your business.

• Are other franchisees happy with their business? Talk to several owners before signing anything. You don't have to hunt for them: every FDD includes a list of current franchisees with contact information, plus everyone who left the system in the past year. Call both. Former franchisees are usually the most candid, and if the franchisor is reluctant to discuss why people left, that itself is an answer.

• Do you understand your agreements and legal responsibilities? Lastly, before taking the leap, read the franchise agreement carefully yourself and always consult a franchise attorney to make sure you’re not misunderstanding anything crucial in your specific agreement.

• Is the system growing or shrinking? Item 20 of the FDD shows how many outlets opened, closed, and changed hands over the past three years. A system losing units year after year is telling you something a brochure won't. 

• What do current franchisees earn? Item 19 discloses financial performance, but it's optional, and plenty of franchisors skip it. When it's there, look for medians and ranges rather than averages, since a few high performers can skew an average higher than what most owners make.

Steps to start a franchise business

Most people picture the franchising process as choosing a brand and writing a check. In reality, it's a months-long, two-way screening process with these steps:

1. Narrow by budget and format first. Your total initial investment and how much liquid cash you can put down will determine what you can buy. Home-based and mobile franchises cost the least because they don’t include rent and building out a location. 

2. Inquire, and expect to be screened. Franchisors qualify you as much as you qualify them. Most set minimums for net worth and liquid capital, and some check credit, run background checks, or require business experience.

3. Do your due diligence. Once you receive the FDD, the franchisor can’t take your money or signature for at least 14 calendar days—this is time you have to research and make your decision. Read the FDD closely, and call current and former franchisees.

4. Line up financing. Confirm the brand is listed in the SBA Franchise Directory if you're pursuing a 7(a) loan. Expect to cover 10% to 30% of the total cost yourself in cash.

5. Settle your territory. Finalize your territory rights, boundaries, and exclusivity, and have an attorney read the agreement. If the franchisor materially changes the agreement attached to your FDD, you’re entitled to the revised version at least seven calendar days before signing.

6. Sign, pay, and form your business entity. Most franchisors require you to operate through an LLC or corporation before you begin the franchise and start training. 

Now that you’re familiar with the basics of what a franchise company is and have explored the pros and cons, let’s dive into our picks for affordable franchise businesses you could start.

6 affordable franchise opportunities, from $10,500 to $135,000

If you’re searching for an affordable franchise to invest in, start with this list. When you read through the list, you’ll notice that every one of these businesses runs out of a home or a vehicle (which can account for the lower costs). 

You’ll also notice that many depend on crews, contractors, and coaches. How you classify employees has real tax and legal consequences, and franchise businesses don’t escape from scrutiny. Gusto handles payroll, contractor payments, and onboarding, so you can get it right from your first hire.

1. Pool Players

What it is: American Poolplayers Association (APA) franchisees are League Operators: you run recreational 8-ball and 9-ball pool leagues at local bars and pool halls. Revenue comes from weekly team fees, and every player pays a $30 annual APA membership you're responsible for collecting.

What you get: Training seminars, marketing templates for local advertising, the proprietary handicap system that lets beginners compete against strong players, and access to other League Operators. 

Best fit for: People who like organizing and running events on nights and weekends. APA's own disclosure warns revenue can stay minimal well past the first three months, so it works best as a build-it-slow business rather than a fast income replacement.

2. Jani-King

What it is: Jani-King franchisees provide commercial cleaning to offices, medical facilities, and other businesses. The distinctive part is that your franchise fee buys guaranteed initial business: Plan A comes with $2,500 in monthly billings, Plan D with $10,000. Jani-King finds and contracts the accounts, bills the customers, collects payment, and disburses your share monthly after deducting its fees.

What you get: Training on commercial cleaning standards, the account contracts themselves, central billing and collections, and ongoing operational support. If Jani-King fails to deliver your plan's promised business within the initial offering period, you're owed a credit of three times the shortfall.

Best fit for: People who'd rather manage cleaning crews than sell cleaning contracts. Jani-King finds the accounts, signs them, and hands them to you, then bills the customers and disburses your share. This explains why the ongoing fees are roughly a fifth of gross revenue.

3. Complete Weddings + Events

What it is: Complete Weddings + Events franchisees provide DJ services, photography, videography, photo booths, and event coordination for weddings, corporate parties, and bar/bat mitzvahs. Revenue comes per event, and the franchisor’s in-house sales team provides franchisees with leads through its national sales program. You pay a weekly fee plus commission on the bookings it generates.

What you get: Owner training, equipment specifications, a website and CRM, media assets, Google Ads management, and bridal show booth materials. You staff events with contractors rather than full-time employees.

Best fit for: People who'd rather sell and coordinate than perform. You book events and manage contractors, rather than DJing every Saturday. Results vary widely: the bottom third of franchises averaged about $102,000 in gross receipts last year, the top third about $646,000. Expect work to be weekend-heavy and seasonal.

4. Soccer Shots

What it is: Soccer Shots franchisees run youth soccer programs for children roughly 18 months to 8 years old, delivered at childcare centers, preschools, parks, and camps. You don't rent or buy a field. Revenue comes from session enrollments. Territories cover about 500,000 people.

What you get: Four to five days of initial training in Middletown, Pennsylvania for you and a manager, an age-graded curriculum built around character development, coach training and recruiting tools, on-field equipment, and marketing support.

Best fit for: People who want to recruit and manage coaches rather than coach every session themselves. To grow, you’d want to add territories: single-territory franchises median $189,390 in gross sales, two-territory operators median $530,029.

5. CarePatrol

What it is: CarePatrol franchisees act as senior care advisors, helping families find assisted living, memory care, nursing homes, and in-home care. Families pay nothing, because you're paid placement fees by the facilities. CarePatrol has national partner facilities that remit those fees through the franchisor. Revenue depends on referral relationships with hospitals, social workers, and discharge planners.

What you get: Initial training, Certified Senior Advisor certification, a contact center that fields inbound inquiries for your territory for the first six months, client management software, and national facility partnerships.

Best fit for: People who can build professional referral networks and handle emotionally difficult conversations with families in crisis. Expect a long ramp: franchises in business 13–36 months median $83,603 in gross sales, while those past five years median $364,062.

6. Caring Transitions

What it is: Caring Transitions franchisees manage estate sales, liquidations, downsizing, and move management, mostly for seniors relocating to smaller homes or care facilities, and for families settling estates. Revenue comes per project, split between sale commissions and transition service fees, and leads arrive through a central call center you're required to route calls through.

What you get: Initial training, Certified Relocation Transition Specialist certification, the call center, an Estatesales.org Elite listing, a 90-day onboarding, and ongoing webinars. Caring Transitions is one of the few franchises that discloses gross profit margins, not just revenue, so read Item 19 closely before you commit.

Best fit for: People who can sit with a family in a house full of a lifetime's belongings and help them decide what to do next. Results vary widely: the top quartile of franchises averaged $661,952 in gross receipts last year, the bottom quartile $67,143. Budget for the monthly minimums, which are due whether or not you book a job.

Is franchise business ownership for you? 

These six franchise options won’t be right for every entrepreneur. This list deliberately skips household names (since most of them cost more than a house). 

What these options have in common is that a real person could start one this year without remortgaging anything. Someone will read this, call the APA, and be running pool leagues at three bars by next spring. Someone else will spend two months with a Caring Transitions FDD and decide the numbers don't work—which is also a good outcome, and a lot cheaper than finding out later.

Whichever way you go, choose something you'd still want to do on a weekday in February when the novelty has worn off—that way you’ll be more motivated to push through the inevitable challenges. And it’ll make the wins you get that much sweeter. 

FAQs

What financing options are available for buying a franchise?

Financing options for would-be franchisees include an SBA 7(a) loan, a conventional bank loan, a ROBS rollover using retirement funds, and in-house financing from some franchisors on the franchise fee. Most franchisees stack more than one, and lenders typically want 10% to 30% down. You'll also need a business plan: the franchisor supplies the business model, but your market analysis and financial projections are yours to build.

What is the cheapest franchise to open?

Among the franchises on this list, Jani-King's entry-level Plan A starts around $10,500, and the American Poolplayers Association runs roughly $22,000 to $31,000. But all the franchises on this list are home-based and mobile models, making them less than other franchises because they don’t require rent, build-out, and signage.

Can you own a franchise while working a full-time job?

According to Gusto research, 44% of new business owners launched a company while working for another employer in 2023, up from 25% in 2022. APA pool leagues run on evenings and weekends, and Complete Weddings + Events is weekend-heavy and seasonal by nature. Others expect full-time attention. Item 15 of the FDD spells out whether you're required to participate personally in day-to-day operations, so check it before assuming you can keep your job. 

How do you check a franchisor's litigation history?

Read Item 3 of the FDD, where franchisors must disclose material civil litigation plus certain criminal and administrative actions involving the company and its management. Item 4 covers bankruptcies. Cross-check the entity name in PACER for federal filings. A pattern of franchisee suits signals friction an Item 3 summary can understate.