Top Low Cost Franchises

The Best Low-Cost Franchises to Buy in 2019 - Reviewed and Recommended

Many people are surprised at how affordable owning a low-cost franchise can be... with opportunities starting under $10K. We researched the leading low-cost franchise opportunities in the marketplace today, and we are excited to present this year's list of award-winning Top Low-Cost Franchises.

Table of Contents

  1. The List - Top 100 Low-Cost Franchises
  2. The Data Behind the Ratings
  3. FBR’s Survey and Research Methodology
  4. Financing Options for Low-Cost Franchises

The List - Best Low-Cost Franchise Opportunities 

The Data Behind the Ratings

This year, we surveyed over 15,000 franchisees from 153 of today’s leading franchise brands to determine the best low-cost franchises, based 100 percent on franchisee satisfaction. Each survey participant was asked 33 benchmark questions about their franchisor that focused on areas such as leadership, training, and core values as well as 16 more personal questions concerning their business lifestyle and overall enjoyment of running their franchise. This year nearly 100 brands made FBR’s top-rated list! 

FBR’s Survey and Research Methodology

Every year, Franchise Business Review surveys thousands of franchisees from hundreds of leading franchise brands to gauge franchisee satisfaction and performance — and to compile our lists of the top-rated franchise brands. Our independent franchisee satisfaction reviews measure the health of franchise systems that participate in our research, based exclusively on the feedback of franchise owners... the real experts!

Not all brands willingly open their doors to an independent research firm like Franchise Business Review, but those who do can offer investors, like you, a wealth of information on the system’s leadership, culture, training and support, financial outlook and franchisee community.

Learn more about FBR’s survey and research methodology.

Financing Options for Low-Cost Franchises

If you don’t have the savings to pay for a low-cost franchise out of pocket, financing options can help. There are several options you’ll want to consider:

Low-Doc SBA Business Loans: An alternative for those searching for smaller amounts of capital, these loans offer you the same benefits as SBA Loans (guaranteed by the Small Business Administration (SBA) and lent by banks) with a shorter turn-time. 

401 (K) Business Financing: You can use up to 100 percent of funds from an existing retirement account to buy or start a small business or franchise without taking a taxable distribution or getting a loan. 

Unsecured Loans: You don't need collateral to qualify for these loans, which can happen in just three weeks. They are a great option if you need a fast funding solution. If you have a high credit score, banks and credit unions are good sources for unsecured loans. If your credit score is lower than the required range for banks and credit unions, consider a third party lender.

Portfolio Loans: Security-backed loans allow you to take a loan using a financial portfolio, such as a mutual fund, as collateral. There are several potential advantages to doing so. First, you can leave your portfolio in place, which enables it to grow. Second, because the loan is backed by your portfolio’s value, the interest charged will be lower than for an unsecured loan. It is important to note that the risk of borrowing against the value of your securities is that if your investments fall in value, the money borrowed will emphasize your losses.

Family and Friends: For low-cost franchise loans, you may be able to turn to family and friends for assistance in getting started.

To help keep your startup costs low, talk to franchise companies about potential discounts or financing options they may provide. Some companies will let you finance a portion of the initial franchise fees over time and many offer special incentives to military veterans and other special groups such as first responders.