When you think of low-cost franchises, what do you envision? Retail stores? Maybe you think of a cleaning franchise or landscaping company. Chances are, the first thing that comes to mind is a classic quick-serve restaurant franchise.
Whatever you imagine, you can be sure almost every successful business can be turned into a franchise – from dog grooming to dentists’ offices and everything in between.
However, when searching for your dream franchise opportunity, it’s important to look beyond just the price tag. Consider a few additional points before committing to buying a franchise.
Start-Up Costs are Affordable vs On-Going Expenses
If you’re searching for a low-cost franchise, you’ll want to consider more than just initial franchise fees and the cash required for start-up (although those are important factors!). You’ll also want to think about ongoing inventory costs, marketing expenses, costs to rent or purchase a new space, and any equipment needs that may not be outlined in the initial pricing a company offers for franchising with them.
Location, Location, Location
Another consideration beyond the initial fees is the variety of locations for your new business. A great location is one that’s accessible to your market.
Do you have an area in mind for your new business? Ask yourself if the population that visits or lives in your potential location area would benefit from your new business? If your potential customers want to stop by your business on their way home, being near their communities may help you decide on a great location.
It’s also good to consider any highways or main roads that have available space for your business. The goal of placing your franchise in a location that works best for your customers is to maximize your business’s potential for profits through proximity.
Check Out The Profit Margin Possibilities
There’s a common misconception that low-cost franchises make less money or provide lower quality products and services than larger, more expensive chains. However, with the correct business model, low-cost franchises can often be an effective avenue to higher profit margins for your business.
Choose a Franchise That Can Grow With You
Make sure your chosen franchise has room to expand and grow as needed. Considering the growth opportunities for your small business will help you in the long run. This doesn’t mean you need to find a company that expects you to open a new storefront quickly after getting your bearings. Still, it’s great to ask if there is space and opportunity for your business to grow into new locations in your area over time.
You might also ask how other franchise owners have performed in the past, both financially and operationally to set reasonable expectations for your performance. Also, If you’re interested in expanding locally, consider how many locations your area could benefit from having.
Choose a Company with Training and Support Resources
A franchise is only as good as its support system, so you’ll want to ensure the company you work with has an established support program that will help you become a successful business.
How much training is provided when you buy a franchise?
The best way to answer this question is simply by asking the franchisor what kind of support and training they offer. You can also ask them if they have an in-depth training program, if you’ll have a main point of contact with the company, how they handle marketing support and what to do if you encounter an issue that you’ll need assistance in handling. The answers to these questions are essential because they’ll tell you how much help you can count on in the process of opening your franchise and in day-to-day operations.
Consider More Than Just the Price Tag
A low-cost franchise is not necessarily a good investment because it’s cheap. However, great franchises that offer a full range of benefits with lower start-up costs and affordable franchise fees bring the full package to help small business owners reach their goals. Be sure to consider your location, the industry, the company’s business model and the support you’ll receive when deciding.
Low-Cost Restaurant Franchises
Restaurant franchises are some of the most popular restaurant choices for Americans and can be found in various types of restaurant models. From family dining chains for a special dinner night to quick-serve options like a neighborhood pizza shop – these businesses are often easily identifiable and can become mainstays of the areas they serve.
However, only some affordable food franchise opportunities have the standard for great quality for their customers and high-profit margins for their franchisees. Low overhead costs and a model that fosters customer loyalty can make a big difference in the success of your investment. It’s worth it to take a look at the numbers and a taste of the menu before you make a decision.
Simple Simon’s Pizza Offers Franchise Ownership at an Affordable Price
Simple Simon’s Pizza has a proven model for success with approximately 200 locations throughout nine states and is ranked among the top ten best low-cost franchise opportunities in the United States. Not only do we require a lower initial investment than similar franchisors, our simple operations model is built for quick returns without compromising quality or service.
Contact us to learn more about our affordable franchising opportunities that can help you reach your business goals.