10 Cheapest Franchises To Open with Low Startup Costs and High Profit Margins

If you are an aspiring entrepreneur or just want to start your own business, here’s a list of 10 cheapest franchises. We have mentioned complete details so just read on!!

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Cruise Planners

Cruise Planners is a great idea for a  home-based travel agency franchise. Basically, it focuses on crafting unforgettable cruise experiences, vacation packages, and a variety of travel services.

• Startup costs: Usually under $11,000.
• Home-based: No physical storefront required; run from your computer.
• Training and support: Comprehensive initial training, ongoing support, and marketing tools.
• Work-life flexibility: Set your own hours and client base.
• Profit drivers: Earn commissions on every travel booking, including cruises, hotels, and tours.

Why it works: With Americans splurging on travel, particularly cruises, the earning potential is impressive. Plus, the low overhead means your profits won’t be significantly impacted by rent or staffing costs. 

Jazzercise

Jazzercise involves a fun mix of dance, strength training, and cardio, all rolled into group fitness classes. These franchises either run their own studios or hold classes in local spaces they rent.

• Startup investment: Typically ranges from $2,500 to $10,000.
• No employees needed: The owner can run the classes on their own.
• Flexible venues: You can rent space by the hour at places like community centers or churches.
• Established brand: A well-known name in the fitness world since 1969.
• Profit margins: Monthly memberships and drop-in fees create a steady stream of income.

Why it works: Minimal inventory and no mandatory retail location will keep costs low. And with ongoing fitness trends, demand remains resilient.

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Jan-Pro Cleaning & Disinfecting

This is a commercial cleaning franchise that provides janitorial services for offices, schools, and various facilities.

Main Points:

• Entry cost: Typically under $5,000 for the starter package.
• B2B business: Engages in contracts with recurring billing.
• Full corporate support: Offers training in sales and marketing.
• Flexibility: You can work independently or with a small team.
• High margins: Labor and supplies are affordable, and client retention is strong.

Why it works: Commercial cleaning is resilient during economic downturns, and the demand remains steady, especially in the post-pandemic world where hygiene standards have become a top priority.

Dream Vacations

Dream Vacations is a travel agency franchise that specializes in leisure trips, cruises, and tours.

• Initial investment: You can get started with as little as $3,500.
• Home-based: No need for a physical office.
• Big commissions: Earn money from cruise bookings, hotel stays, and travel packages.
• Technology tools: Access to a franchisee portal, a booking engine, and marketing support.
• Support: Receive training and ongoing assistance from the parent company.

Why it works: People are increasingly spending on experiences, particularly travel. Since this is a no-inventory business that you can run from home, both risk and expenses are kept low. 

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Vanguard Cleaning Systems

Vanguard provides top-notch janitorial services for commercial spaces, primarily focusing on a B2B approach.

• Startup costs: Usually $2,000–$7,000, with starter packages available.
• Scalable: Begin solo and hire help as business grows.
• Low overhead: Can be run from home or mobile.
• Recurring revenue: Monthly contracts.
• Support: Training, sales, and administrative assistance.

Why it works: Low overhead and recurring contracts yield high margins. Cleaning services remain essential year-round.

Stratus Building Solutions

Stratus offers eco-friendly commercial cleaning and janitorial services aimed at businesses looking for sustainable options.

• Initial franchise fee: Starts at about $2,500.
• Flexible operation: You can start part-time and easily scale up.
• Equipment provided: Comes with a starter cleaning kit and training.
• Monthly accounts: Income is based on contracts.
• Marketing support: Both national and local advertising are included.

Why it works: There’s a growing demand for green cleaning services, and having ongoing contracts helps ensure steady revenue.

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SuperGlass Windshield Repair

SuperGlass is all about windshield repair and restoration, and they bring their services right to you—no need for a shop!

• Investment: You’re looking at an investment between $8,000 and $18,000.
• Mobile business: They come to you, so there’s no need for a physical location.
• High profit margin: With low material and labor costs, the profits can be pretty sweet.
• Niche service: There’s less competition than you’d find at regular auto shops.
• Training: They provide thorough technical training and solid business systems.

Why it works: With low overhead, a mobile setup, and a strong demand for quick repairs, it’s a recipe for success.

Kumon Math & Reading Centers

Kumon is a bit pricier than some other options out there, but it stands out as one of the most budget-friendly educational franchises with fantastic profit potential.

• Initial investment: You can get started for as little as $67,000, which covers lease, buildout, and initial fees.
• Steady demand: Tutoring is resilient even during tough times; education is always in demand.
• Repeat customers: Students come in weekly or monthly, ensuring a steady stream of income.
• Flexible scale: You can begin with a small setup and grow to multiple centers over time.
• Full support: You’ll receive help with marketing, curriculum, and operational training.

Why it works: Kumon taps into America’s growing need for supplemental education. Although the startup costs are on the higher side, the proven business model and increasing demand promise solid returns. 

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Some Tips Before You Jump Into Franchising

To dive into franchise opportunities, start by doing your homework, ensure that the brand and business model resonate with your personal interests, goals, and financial situation. Take a close look at the Franchise Disclosure Document (FDD) and chat with current franchisees to get a real sense of the costs, profit margins, and daily operations you can expect.

It’s crucial to know your budget and financing options from the get-go; make sure to factor in all initial fees, royalties, and working capital. Craft a solid business plan that outlines your local market strategy, staffing needs, and anticipated cash flow. If your franchise isn’t home-based, choose a location that’s visible and easy to access, as this can significantly influence customer traffic. Be ready to stick closely to the franchisor’s systems for consistency; trying to reinvent the wheel can lead to trouble.

Lastly, make it a point to network with other franchisees and take full advantage of the training and support offered by the franchisor. Being open to learning, adaptable, and focused on customer satisfaction are key traits that will help you succeed as a new franchisee.

Conclusion

So there you have it!! Research, finance and take action. Go on and start your own franchisee.