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WELCOMEThank you for downloading our Low CostFranchise Report. The report provides allthe information you need to start yourown Franchise today!Franchise Me ConsultingCan Help You Find thePerfect FranchiseW W W. F R A N C H I S E M E C O N S U LT I N G . C O MFranchise Me ConsultingThis website, and the information contained herein do not constitute the offer or sale of afranchise. There are certain states that require the registration of the companies’ FranchiseDisclosure Document (FDD) before the franchisor can advertise or offer the franchise in thatstate. The franchises listed on our website may not be registered in all registration states andmay not offer franchises to residents of those states or to persons wishing to locate a franchise inthose states. The offer and sale of a franchise can only be made through the delivery and receiptof a Franchise Disclosure Document (FDD.)

FRANCHISE ME CONSULTING3Low Cost FranchisingLow-Cost Franchising: A Closer LookWith more and more people looking to “control their own destiny” and become business owners,franchising is on the rise. And with todays challenging economic conditions, people are evenmore cautious when considering an investment in a new start-up. Therefore, low-cost franchiseshave become increasingly relevant these days, and why our article will focus on low-cost franchises: what their benefits are, whether they are the right option for you, and how to go aboutchoosing the right franchise opportunity for you.However, before we take a closer look at low-cost franchises, we offer a brief glimpse at franchising as an entrepreneurial option and the benefit it offers when compared with its alternatives.What Is Franchising?Franchising is when an established business (the franchisor) licenses its products, branding, operations, and procedures to another business (the franchisee) in exchange for a fee and ongoing royalty payments.What makes franchising an attractive option to many? Several key factors:Reduced risk of failure: The biggest challenge when starting your own business is identifyingyour customer and understanding how your product, or service, will sell. You need to knowwhether it is marketable, and does it have a strong consumer base in the market However, witha franchise, you get to sell a well-established product or service that has proven itself in themarket. This plays a huge role in reducing the level of risk involved in starting up your business.Reduced startup cost: Startup cost is one of the biggest roadblocks for most people when setting up shop. Compared with the option of starting from scratch or adding a partner, franchisingtypically has significantly lower startup costs, which makes it a viable option for a larger group ofpeople.Access to support resources: As a franchisee, you are granted considerable support from thefranchisor. Typically, the support can come in the form of training, marketing, back-office support, ongoing mentoring and troubleshooting, help with your grand opening, and sometimes thefranchisors even offer financing options.Access to expert knowledge: Particularly for those who have never owned their own business, theentrepreneurial world can be tough to navigate. Franchising gives you access to an establishedbusiness model, with proven procedures and operational support, These tools provide the franchisee with the confidence and knowledge needed to launch your own business in the future.

4FRANCHISE ME CONSULTINGAccess to other franchisees: Becoming a franchisee will connect you to all the other franchiseowners of the business, which can allow you to gather even more diverse knowledge and understanding of business procedures and operations.Low-Cost FranchisingWhile a franchise has many benefits to offer, low-cost franchises have even more advantages tooffer.The initial investment for many franchises can be well over 100,000, and for retail-based franchises investment costs can exceed 500,000.So, what exactly is a low-cost franchise? Low-cost franchises typically require a much lower investment, and a good “rule of thumb” or definition is a franchise with an initial investment rangebetween 25,000 to 100,000. This lower level of investment and limited operational cost allowa low-cost franchise to offer several more advantages to a business:Even lower cost: Low-cost franchises cost even less than typical franchises, sometimes with theinitial investment so affordable it doesn’t even require you to look for a loan or at other financingoptions. Also, low-cost franchises are often home-based or service-based, cutting down on theoverhead cost of premises and associated utilities. Additionally, with limited staff typically required, the operational costs are also kept low.Greater flexibility: With low-cost franchises often being home-based or service-based (such asoffering mobile pet cleaning services) there is considerable flexibility in your lifestyle and hoursworked, allowing you to set your own work schedule.Greater value for money: Low-cost franchises ultimately offer the benefits that the more expensive franchises offer in the form of selling an established product, access to extensive supportresources and the experience of learning to run your own business. And they do it at a muchlower cost. This makes them a much more rewarding investment.Potential to become an additional stream of income: With the flexibility that low-cost franchisesoffer, and the possibility of a semi-absentee or complete absentee arrangement in many cases,you have an affordable means of adding a secondary income while still working full-time in yourarea of expertise.As you can see, low-cost franchises have undeniable appeal, especially for those on a modestbudget for their business startup.Types Of Low-Cost FranchisesThere are some types of franchises that are more commonly the low-cost options. We take alook at some types of low-cost franchises:Home-based: Home-based franchising is often a low-cost franchise. It eliminates the need torent premises and deal with the associated utility bills. Additionally, businesses that can be run

FRANCHISE ME CONSULTING5from home typically are ones that do not have extensive staff requirements thus keeping operational costs low.Absentee-based: A semi-absentee arrangement is where the franchisee will need to put in 1020 hours of work in a week. Businesses offering such arrangements usually provide well-prepared, ready-to-go business models, keeping the requirement for initial investment by the franchisee to a minimum. A complete absentee arrangement further absolves the franchisee fromhaving to put in any work in the franchise and this too is one where the franchisor provides aturn-key arrangement with minimal investment typically required by the franchisee.Service-based: Provision of a service-based franchise such as pet care, glass repair, commercial or residential cleaning services, pest fumigations, etc. require a specific set of skills andequipment. The number of employees required is limited and the office space needed is alsominimal when running a service-based business. This is what makes many service-based businesses low-cost options.Retail-based: Retail-based franchising is when you are in the retail market, selling a product, orpossibly a service. If sales are done only online, then a retail-based franchise can also prove tobe a low-cost, effective option. However, brick-and-mortar retail-based options are likelier to bemore expensive and less flexible.Food-based: The most popular food-based franchise options like McDonalds or KFC requireextremely high initial investment (as high as 1 million) and hefty ongoing payments. What isimportant to note though, is that food brands typically require custom retail space with kitchensand equipment. So, it is extremely difficult and rare to find a low-cost food franchise.,Is Franchising For YouBefore delving into how to go about finding a low-cost franchise right for you, we first need toknow whether franchising is the right business startup option for you. A consideration of severalfactors can help you identify whether franchising is something you are compatible with. Some ofthe things to look at to help you decide if franchising is for you are:Do you want to be your own boss: For franchising to be a successful venture, you have to wantto be your own boss and be capable of being organized and disciplined.How much money money are you comfortable investing for your startup cost and as ongoingcost of operations: If you want to start a business and your budget is limited, then franchisingautomatically becomes the most viable means of starting your own venture.How self-motivated are you: While not as daunting as starting a business from scratch, franchising needs considerable commitment and effort, especially in the beginning when you aresetting up. If you aren’t self-motivated and willing to put in the hard work, then franchising is notthe business for you because your success as a franchisee is completely contingent upon howeffectively you set up and run the business on your own.Is this your first entrepreneurial venture: If this is your first time being your own boss, then franchising is the better option because you get to learn from the experience and business model

6FRANCHISE ME CONSULTINGof a well-established franchisor, who can guide you through the tougher parts of setting up andsurviving in the market.How much of a risk can you take: If money is not an issue, or you do not have significant financial responsibilities, and you are a risk-taker by nature, then perhaps you can try the riskier pathof starting your business. However, if you can’t afford to take anything more than a calculatedrisk, then franchising is the way to go.Financing Your Low-Cost FranchiseAnother key factor in deciding whether you should go ahead with the franchise option is thefinancial commitment. The main benefits with a low-cost franchise are the lower initial investment and the minimal operating costs. This means you will not need to arrange for an exorbitantamount of funding to start your business. As mentioned before, there isn’t a set figure of howmuch a low-cost franchise will cost. However, its initial investment are usually modest amounts,often ranging from 25,000 to 100,000. Some financing options you can consider include:Personal savings: If the startup amount is indeed extremely modest, then your personal savingsmight be sufficient for helping you start out.Franchisor franchise loans: Many franchisors offer loans to their franchisees to finance theirsetting up and starting out.Home equity loan: If you own your home, you can try for a home equity loan, using your homeas collateral to secure a loan.Conventional bank loan: With the smaller amount of capital typically needed, a bank loan will beeasier to secure.Borrow from family or friends: Depending on how much you need, this can also be a viable option for smaller amounts.Small Business Administration (SBA): SBA is all about helping new small businesses start out.As a low-cost franchisee, you will easily qualify to apply for an SBA loan.Retirement funds: Check to see if your 401(k) plan allows for a loan. If it does, you can take outthe required funds and make payments back to your IRA.Evaluating Your Low-Cost Franchise OptionsOnce you have decided franchising is for you, that a low-cost franchise best meets your needs,and have identified your possible financing options, it is time to look at the many low-cost franchise options in the market and choose the one that’s right for you.This is not an easy feat. Choosing the right franchise will be key in ensuring sustained successin your franchising journey. You need to evaluate each low-cost franchising option properly.Some of the factors you need to look at when assessing low-cost franchises are: