Why invest in a low cost franchise?

Posted on Feb 25th 2020


Why invest in a low cost franchise?

If you're an entrepreneur and have dreams of becoming your own boss, investing in a low cost franchise may be a viable option for you. While franchising opportunities offer attractive alternatives to traditional small business ownership, finding the capital to invest in some of the high-cost concepts may be an issue. But, fear not; there are a number of low-cost franchise opportunities that can satisfy your entrepreneurial spirit.

What are the advantages of a low cost franchise? 

The incentive to investing in a low-cost franchise is usually driven by a low investment/high return scenario. Because they are easy to start and typically have low operating costs, these low investment opportunities have the advantage over larger franchise system.

Also, investing in a low-cost franchise allows you the opportunity to choose a financing option with a lower debt service. Getting a small loan to cover your franchise startup costs can be cheaper in the long run. Low investment also means low operating costs. With lower operating costs, your business will have flexibility to operate and will ideally offer you less stress in day-to-day operations. 

Scalability is another advantage to a low-cost franchise because these types of businesses are easy to scale. That leads to a potentially higher cash flow and flexibility to do other things.

Saving money on initial investments means you can use that money elsewhere. Many franchise systems require franchisees to buy equipment and other items to get the operation up and running. Using the savings gained from investing in a low cost franchise can help reduce overhead as your business begins.

What markets have low franchise startup costs?

There are a number of markets that have low franchise start-up costs. A large variety of them are service-based, including hair salons, tax preparation, exercise systems and cleaning services.

With a lower than average initial investment than other salon concepts, the low cost, Lemon Tree Family Hair Salon franchise is one system that offers all of the benefits listed above, with a trusted name and history. Check out our Lemon Tree Franchise Available Locations in New York, New Jersey and Connecticut.

Interested in our haircut franchise? Learn why a hair salon franchise is for you!

Curious about opening a haircut franchise? Get answers to all our frequently asked questions or contact us to learn more. Find answers to questions about our beauty franchise owner requirements, financials, operational aspects, and the start-up process of your hair salon franchise location!

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