Learn more about the steps we are taking against the Coronavirus.

blog

Low-Investment Franchises: What to Look for Before Investing

Person taking money out of wallet to spend in low-investment franchise

What constitutes a low-investment franchise? Is a cheap franchise worth the investment in the long run? Here’s what you should consider before investing.

What Constitutes a Low-Investment Franchise?

Buying a franchise is one of the best ways for people to achieve their dreams of owning a business and working for themselves within the structure of a proven brand system. And while buying a franchise may have once seemed like an unlikely venture for individuals with less startup funds, these days there are many great low-capital franchise opportunities in various industries for motivated entrepreneurs from all walks of life to explore.

However, not all low-capital franchises are created equal, and it is important for each prospective owner to consider his or her own strengths and goals as well as what they hope to receive from the franchisor in return for their investment.

Advantages of a Low-Investment Franchise

Startup Costs. Comparatively low startup costs are one of the biggest initial benefits of a low-investment franchise. New franchisees hoping to get their business off to the races without a large initial investment will be especially drawn to low capital options. Typically, initial franchise fees can range anywhere from $10,000 to $60,000 for a single unit. Many newer franchises offer lower investment opportunities as they are still in the process of fully establishing their brand. If you can recognize a winning concept and get in on the ground floor, your earnings potential will only grow as the franchise grows.

Reduced Risk. Ideally, with a lower investment, there is less risk while you’re waiting on a return. You will notice profits more quickly and your cash flow will only improve over time, giving you the option to expand in the future if you choose.

Lower Operating Costs. Many low-costs franchises are home-based, mobile, or operate with smaller teams and lower overhead, keeping costs under control even after initial startup.

Freedom and Flexibility. Running your own business allows you to set your schedule and complete work largely on your own terms. A career as a franchise owner helps you prioritize a healthy work/life balance and grow your business with the backing of an established brand.

Possible Drawbacks

Lack of exposure. You will have to work harder to build a consistent clientele base with a smaller versus larger franchise. Low-cost franchises tend not to be as widely recognized among consumers, which puts you in the position of having to work extra hard to attract business. This isn’t always the case, of course. Some larger franchises provide little ongoing support and marketing guidance, while many boutique franchises operate as tight-knit families who strive to make sure every location succeeds. Still, it is something to take into consideration.

Uncertain Future Success. While getting in on the ground floor with a new and promising low-investment franchise can turn out to be the best business decision you ever make, there is also less certainty about how the future will unfold. Low-cost franchises offer a smaller initial investment but may also have a lower potential for return.

Choose the Right Investment: Franchise with Uni K Wax

Uni K Wax opened the first-of-its-kind unisex waxing studio in 1993 and has been growing steadily ever since. With a tight-knit and supportive franchise network and leadership team, we offer a winning opportunity for both new and experienced franchise owners to become a part of this booming, recession-resistant industry. Uni K Wax franchise startup costs include a $40,000 initial franchise fee, which is comparable to (and even less expensive than, in some cases) other beauty franchises. The total initial investment to open a Uni K Wax Studio ranges from $321,550 to $528,300. If you sign a Multi-Unit Development Agreement, the initial franchise fee is reduced to $30,000 for your second studio and $20,000 for other studios beyond the first two. Even if you lack the initial capital, Uni K Wax works with all potential franchisees to support them through the financing process and will help find options that are tailor-made to fit any given situation. When you invest in Uni K Wax, you can rest assured that we are equally invested in you. Request info to learn more about franchising opportunities with Uni K Wax.