Best low cost franchise opportunities in 2025

October 22nd, 2025 By Kenny Rose

Many aspiring entrepreneurs dream of opening a franchise business but worry about high investment costs and large-scale build-outs. Most people mistakenly believe that franchise ownership requires a massive upfront investment, but that’s not always the case. The good news? Low cost franchise opportunities are more accessible than ever, with quality franchises offering affordable entry points that make it easier to become an entrepreneur in the franchise industry. In fact, many franchises require far less than hundreds of thousands of dollars to get started—some opportunities are available for as little as $15,000.

The franchise sector is experiencing strong growth in 2025. Franchising is projected to grow by 2.4% this year, outpacing the broader U.S. economy’s expected 1.9% growth, and will add approximately 210,000 jobs across the nation. Total franchise output is expected to exceed $936.4 billion in 2025, rising 4.4% from $896.9 billion in 2024.

In this comprehensive guide, we’ll explore everything you need to know about cheap franchise opportunities and low investment franchises, including:

What makes a franchise “low-cost” and why these opportunities matter
The benefits of investing in an affordable franchise
Key traits that successful low-cost franchises share
Top low-cost franchise opportunities for 2025
How FranShares offers a completely passive investment model

What Are Low Cost Franchise Opportunities?

Low cost franchise opportunities typically require initial investments under $50,000, making them accessible to first-time investors and entrepreneurs who want to minimize financial risk. Some options marketed as low cost may actually be a business opportunity rather than a franchise, meaning they often provide less comprehensive training and ongoing support, and are subject to different regulations. These best low cost franchises offer numerous advantages beyond affordability.

Key Benefits of Low Investment Franchises

Affordability: While many franchise opportunities require initial investments starting at $100,000 and climbing well above $1 million, low-cost alternatives provide an easier entry point. These affordable options are an excellent way to break into franchising without overwhelming debt.

Flexibility: Low cost franchise businesses often feature models that lend themselves to operational flexibility. With lower headcount requirements and reduced overhead costs compared to larger operations, they’re easier for first-time entrepreneurs to launch and manage. Many can operate as semi-passive business options, giving owners more control over their time. Low cost franchises also allow you to become your own boss, offering the independence to manage your work-life balance on your terms.

Lower Debt Burden: With a smaller investment required, entrepreneurs may have the option to self-fund their franchise purchase and build-out. This provides some investors the opportunity to enter franchising debt-free—a significant advantage when most larger-scale franchise businesses require at least some financing.

Faster Path to Profitability: Franchises have a higher success rate, with approximately 80-90% remaining successful. Lower initial investments combined with proven franchise systems often mean a quicker return on investment.

What Makes the Best Low Cost Franchises Stand Out?

Low investment franchises share many characteristics with their higher-cost counterparts. Regardless of investment level, conducting thorough due diligence remains essential. This includes examining franchise disclosure documents (FDDs), interviewing current franchisees, and consulting with knowledgeable franchise professionals such as brokers or attorneys.

When evaluating cheap franchise opportunities, look for these critical traits:

Return on Investment (ROI)

A solid franchise opportunity should provide returns that justify the investment. Look for healthy ROI metrics and reasonable timelines to profitability. Some low cost franchise opportunities can deliver a high return on investment, making them especially attractive to those seeking significant long-term gains. Many FDDs include income disclosures that can guide your analysis.

Proven Growth Track Record

Examine how the franchise network has expanded over time. While you don’t want to partner with a saturated franchisor, healthy unit growth, low location closure rates, and minimal franchisee turnover indicate solid business processes and strong support structures. Franchises that operate with a proven system and a proven business model offer greater reliability and a higher chance of success for franchisees.

Strong Leadership

Get to know the people behind the franchise brand. Like any business, leadership is a critical pillar of success. The role of a managing director, for example, is essential in guiding the franchise’s direction and ensuring long-term growth. Research past business ventures and the reputation of key executives within the franchise organization.

Sustainability Commitments

Sustainable business practices increasingly drive better outcomes. Over 60% of consumers prefer to buy from brands with ethical and sustainable environmental practices. Review the franchisor’s sustainability commitments and supply chain transparency to ensure alignment with your values and market demands.

Recession and Economic Resilience

Franchise businesses thrive by offering goods and services that are essential or highly desirable to consumers. Personal services and retail food products and services are expected to be the fastest-growing franchise industries in 2025, increasing by 4.3% and 3.5% respectively. Evaluate how the franchise performed during economic downturns and the COVID-19 pandemic.

Franchises with strong economic resilience can provide stable returns and sustained growth in the long run.

Management Structure Compatibility

Every franchise brand has different expectations and requirements for its franchisees. Understand the franchisor’s preferred management style and whether it aligns with your vision. If you’re considering a semi-passive approach, ensure your franchise partner actively supports and allows this structure.

Top Low Cost Franchise Opportunities for 2025

We’ve identified five outstanding best low cost franchises that share common traits of successful franchise opportunities: affordable initial investments, low-headcount business models, comprehensive systems and support, and highly desirable products and services. These are great low cost franchises that offer reliable options for aspiring business owners seeking minimal financial risk with high potential returns. With these opportunities, you can build a successful business and find success thanks to their proven systems, support, and strong financial performance. These franchises span high-earning industries with proven track records of excellent returns on investment.

1. Jan-Pro Cleaning and Disinfecting

Jan-Pro Cleaning and Disinfecting is a commercial cleaning company based in Alpharetta, Georgia. Founded in 1991, Jan-Pro specializes in cleaning commercial spaces including daycares, dealerships, offices, schools, and healthcare facilities. Jan-Pro values strong relationships with its clients and customers, providing tailored cleaning solutions to meet their unique needs and build trust. The company uses high-quality equipment to ensure efficient and effective cleaning results for every job. Jan-Pro has over 11,000 franchise locations globally, with more than 8,000 in the United States and over 2,000 international locations. Jan-Pro is dedicated to deliver exceptional customer service, ensuring customer satisfaction at every level.

The company provides comprehensive training and support to help franchisees develop professional, well-trained crews. With heightened focus on cleanliness following the pandemic, demand for professional cleaning services remains strong.

Initial franchise fee: $2,500 to $44,000
Initial total investment: $4,800 to $58,000
Net worth requirement: Up to $40,000
Cash requirement: $2,000 to $20,000
Royalty: 10% plus 1% ad royalty
Incentives: Veterans may be eligible for financing options

2. Stratus Building Solutions

Founded in 2004, Stratus Building Solutions is a commercial cleaning company headquartered in North Hollywood, California. The company began franchising in 2006 and now has more than 4,000 franchise locations across the US and Canada. Stratus operates with a proven system that provides franchisees with a structured and efficient approach to delivering cleaning services. Franchisees also benefit from ongoing support, including continuous training, coaching, and access to support channels to help them succeed and grow their businesses.

Stratus differentiates itself through environmentally responsible cleaning methods, including UVC light, HEPA filters, and Green Seal-certified products. The company was ranked #1 in Category in Entrepreneur’s Franchise 500 for 2024 and was named Fastest Growing Franchise in 2023.

Initial franchise fee: $3,600 to $69,000
Initial total investment: $4,500 to $80,000
Net worth requirement: $5,000 to $40,000
Cash requirement: $2,000 to $20,000
Royalty: 5% plus 1% ad royalty
Incentives: Interest-free financing available on portion of franchise fees

3. Dream Vacations

This Florida-based travel agency franchise offers a turnkey solution for entrepreneurs interested in running a home-based business. Dream Vacations competes with other leading travel agency franchises like Cruise Planners, making it a strong contender in the industry. The travel industry is a highly competitive marketplace, where agencies strive to offer the best services and support. With over 2,000 franchisees currently operating independently across the US, Dream Vacations provides comprehensive systems and support.

The company offers extensive training, including a six-day initial program and access to over 1,500 online courses. Dream Vacations is known for its world class training, ensuring franchisees are well-prepared to succeed. Operating under World Travel Holdings, one of the largest leisure travel companies in the U.S., Dream Vacations offers the benefits of brand recognition with the flexibility of a home-based model featuring 100% commission structure and no overhead.

Initial franchise fee: $495 to $10,500
Initial total investment: $2,000 to $21,000
Net worth requirement: Not specified
Cash requirement: Not specified
Royalty: 1.5% to 3%
Incentives: 30% discount for veterans and military families; 20% discount for community heroes (first responders, educators, medical professionals)

4. Sylvan Learning

Sylvan Learning is the most recognized brand in tutoring and supplemental education, and is also the nation’s largest provider of STEM education. As an established, proven brand and trusted brand in the education industry, Sylvan has built a strong reputation for delivering quality results. Founded in 1979 and franchising since 1980, the brand currently features more than 750 locations and maintains an industry-leading reputation within the education space.

Personal services, which include education, are projected to grow by 4.3% in 2025, making them the fastest-growing segment within franchising. Sylvan offers turnkey systems and name recognition that facilitate easier launches and profitable operations.

Initial franchise fee: $40,000
Initial total investment: $86,000 to $187,000
Net worth requirement: Up to $150,000
Cash requirement: $75,000
Royalty: 16% of monthly gross revenue, $32,000 minimum
Incentives: Veteran discounts available

5. NextHome

Founded in 2014, this real estate franchise revolutionized how buyers interact with brokers by providing industry-disrupting marketing and systems. Real estate sales are at the core of NextHome’s business model, with a strong focus on maximizing each sale and driving overall sales performance for franchisees. The company focuses on offering franchisees cutting-edge market understanding and a streamlined experience that enables higher-volume deal flow. As an owner, you benefit from comprehensive support and resources, while franchise owners enjoy the advantages and responsibilities of running a successful business within a proven system. NextHome currently operates 570+ franchise locations across the United States.

This brand is an excellent choice for entrepreneurs looking to enter franchising through the real estate market, especially those with existing industry connections or experience.

Initial franchise fee: $4,500 to $8,800
Initial total investment: $16,000 to $220,000
Net worth requirement: Not specified
Cash requirement: Not specified
Royalty: $200 to $210 per month, plus $80 to $90 per transaction ad fee
Incentives: Contact franchisor for details

The FranShares Way: Passive Franchise Investment

If you’re an investor looking to incorporate franchises into your diversified portfolio, FranShares offers a unique alternative to traditional franchise ownership. Instead of operating a franchise yourself, you can invest fractionally in a FranShares franchise portfolio, providing high earning potential and diversification in a completely passive investment model. This passive approach can offer the potential for a very high return, even with minimal initial investment.

This approach eliminates the time commitment and operational responsibilities associated with traditional franchise ownership while still providing exposure to the franchise sector’s strong growth potential.

To learn more about the FranShares opportunity, speak to our Investor Relations team.

Key Trends Shaping Low Cost Franchises in 2025

Understanding current market trends can help you identify the best low cost franchises for long-term success. Market research firms like Franchise Business Review play a crucial role in identifying top franchise trends and opportunities.

One of the fastest-growing sectors is the senior care industry, which offers significant growth and investment potential due to an aging population. Additionally, some franchises have established themselves as a global leader in their respective sectors, setting benchmarks for success and innovation.

Regional Growth Hotspots

The Southeast and Southwest are the fastest-growing regions for franchising in 2025, with output growth of 6.2% and 8.5% respectively. These regions benefit from population growth, business-friendly environments, and favorable demographics.

Industry Leaders

Personal services franchises are projected to grow by 4.3% in 2025, the fastest-growing segment. This category includes beauty, health and fitness, education, childcare, pet care, and travel services—many of which offer low investment franchise options.

Technology Integration

About 40% of franchisors are expected to adopt AI-driven technology in 2025 to optimize customer interactions, automate finances, and streamline internal processes. Even low cost franchise opportunities increasingly leverage technology for competitive advantage.

Consumer Priorities

Market conditions continue to favor franchises that offer convenience, affordability, and value. With food costs up 29% over the last four years due to inflation, consumers are drawn to affordable dining options, particularly QSR and fast-casual franchises.

Frequently Asked Questions About Low Cost Franchises

What is considered a low-cost franchise?

A low cost franchise typically requires a total initial investment under $50,000, though some opportunities start for less than $10,000. The specific threshold can vary, but these franchises generally feature lower franchise fees, minimal build-out costs, and reduced overhead compared to traditional franchise models. Many low-cost franchises also offer low overhead expenses, making them especially attractive for entrepreneurs seeking cost-efficient business opportunities.

Can I finance a low investment franchise?

Yes, many cheap franchise opportunities offer financing options. Some franchisors provide in-house financing for qualified candidates, while others have relationships with third-party lenders. Additionally, SBA loans and other small business financing options may be available.

Do low-cost franchises have lower success rates?

Not necessarily. Franchises generally have success rates of 80-90%, regardless of initial investment level. Success depends more on factors like brand strength, franchisee support, market demand, and individual franchisee commitment than on investment size.

What are the ongoing costs for low-cost franchises?

Beyond the initial investment, expect to pay ongoing royalty fees (typically 4-12% of gross revenue), marketing/advertising fees (usually 1-3%), and operational expenses like supplies, insurance, and potential employee costs. Review the FDD carefully to understand all financial obligations.

Can I run a low-cost franchise part-time?

Many best low cost franchises, particularly home-based models like travel agencies or certain service franchises, can be operated part-time or with a semi-passive management approach. However, verify this with the franchisor, as some require full-time commitment or active involvement.

Explore More Profitable Franchise Opportunities

If you’re considering expanding your business horizons, read on to learn about the most profitable franchise opportunities in each industry. Whether you’re a budding entrepreneur or a seasoned veteran in the franchise world, our curated selection will guide you toward making an informed decision.