More than one-quarter of the businesses on this year’s Franchise 500 list can be started for $50,000 or less.
Entrepreneur Magazine whittled that list down to 10 highly ranked franchises with start-up costs of $20,000 or less.
Experts caution that super-cheap franchises are often home based and don’t offer a strong support network, so investors must be highly motivated in order to turn a significant profit. Here is Entrepreneur’s top 10 list of ultra-low-cost franchises:
Cruise Planners/American Express, the cheapest startup on the list, costs $1,595 for those with industry expertise. Those new to the industry would need to put down about $10,000. Pluses: Businesses can usually be up and running within six weeks, and the American Express name gives you instant credibility.
Jazzercise, which opened more than 930 new franchises in 2009, topped the fitness category. A Jazzercise franchise can cost as little as $2,980 to start up.
Express Tax – lowest starting cost $6,500
Coffee News – lowest starting cost $8,925
Jani-King — lowest starting cost $11,400
United Country Real Estate – lowest starting cost $11,790
Kinderdance Int’l Inc. – lowest starting cost $14,950
American Poolplayers Assn. – lowest starting cost $17,360
Snap-on Tools — lowest starting cost $17,619
Novus Glass – lowest starting cost $18,900
This article was submitted by Katie Kapler, Director of Online Strategy for Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com