A list of 80 top low-cost franchises that can be started for less than $100,000 and were given high-satisfaction scores by their franchisees, has been released by Franchise Business Review.
“Franchising is a great opportunity, but you have to research everything there is to know about brands you are interested in,” says Eric Stites, CEO of Franchise Business Review. “How satisfied current franchisees are is one of the most important things to find out. Our list of top low-cost franchises is the only one in the industry that is based on franchisee satisfaction.”
The top low-cost franchise brands that made Franchise Business Review’s list were selected based on survey data obtained from over 11,000 franchisees, representing more than 145 low-cost brands. Franchisees answered 33 questions ranking their franchise system in the areas of financial opportunity, training and support, leadership, operations and product development, core values (e.g., honesty and integrity of franchisor), general satisfaction, and the franchisee community. An additional 16 questions asked franchisees about their market area, demographics, business lifestyle, overall enjoyment running their franchise, and role in the franchisee community.
Below are some of the key findings from Franchise Business Review’s low-cost franchise research:
LOW-COST FRANCHISEES THOUGHTS ABOUT FRANCHISING
- 89% enjoy operating their business
- 88% enjoy being part of their franchise
- 86% respect their franchisor
- 84% believe their franchisor acts with a high level of integrity
- 78% would “do it again” knowing what they know today
- 86% are satisfied with their franchisor and the opportunity provided
- 84% would recommend their franchise brand to others
A LOOK A WHO LOW-COST FRANCHISEES ARE
- Age: median age is 45-54; 62% are 45+
- Gender: 57% male; 33% female; 10% male/female partnerships
- Education: 65% have a Bachelor’s degree; 21% have no college education; the remainder have an Associate’s degrees.
- Military Veterans: 11%
- Years of Ownership: 33% for less than 2 years; 34% for 2-5 years; 17% 10+ years
LOW-COST FRANCHISE INDUSTRY SECTORS WITH THE HIGHEST AVERAGE INCOME
- Business-to-Business $100,500
- Senior Services $92,300
- Real Estate $91,500
- Home Services $72,700
MEDIAN INITIAL LOW-COST FRANCHISE INVESTMENT PER SECTOR
- Business-to-Business $95,000
- Senior Services $85,000
- Real Estate $89,000
- Home Services $60,000
All of Franchise Business Review’s annual unbiased and free franchisee satisfaction research reports, which focus on a variety of sectors including Senior & Child Services, Home Services, and Food in addition to Low-Cost, are available here.