The 8 Cheapest Franchises to Buy in 2025

What are the cheapest franchises to buy?

If you are basing your decision on which franchise to open mainly on costs, it is important to have an idea of which ones have the cheapest point of entry. Keep in mind that, even after you open your business, you may have to pay an advertising fee, royalty fee or other recurring costs. Here are some of the cheapest franchises to start.

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1. Cruise Planners

• Franchise fee: $10,995 
• Initial investment: $695 to $23,367
• Royalty fee: 1.5 to 3 percent of gross commissionable fares, or up to 10 percent if you use suppliers not on Cruise Planners’ approved list
• Type of franchise: Travel

Cruise Planners may have less brand recognition than other franchises, but it certainly costs less to open. It ranks as one of the most affordable travel franchises in the industry. You’ll pay between $695 and $23,367 — significantly less than a McDonald’s or Dunkin’ franchise — to start your own Cruise Planners location.

2. Proforma

• Franchise fee: $0 to $34,500, depending on experience
• Initial investment: $7,030 to $59,695
• Royalty fee: 7 to 8 percent of gross volume
• Type of franchise: Print and promotional products

Proforma is a leading business-to-business (B2B) franchise within the print and promotional products industry. Not only are the franchise fee and initial investment significantly lower than those for business-to-consumer franchises, but it also offers a 50 to 100 percent discount to veterans on their franchise fee. There’s another massive benefit of a Proforma franchise: No large storefront or brick-and-mortar space is needed. Franchisees can operate from a home-based office environment and will learn about the industry and products in the required franchise training.

3. Vanguard Cleaning Systems

• Franchise fee: Fees vary by location
• Initial investment: $5,500 to $36,600
• Royalty fee: 11.5 percent
• Type of franchise: Commercial cleaning

The U.S. janitorial services industry reached a value of $91.8 billion in 2023, according to IBISWorld. Vanguard Cleaning Systems offers a trusted and reliable brand backing. It has often ranked among the top franchises in Entrepreneur magazine’s annual Franchise 500 list.

4. United Country Real Estate

• Franchise fee: $8,000 to $20,000
• Initial investment: $10,875 to $50,380
• Royalty fee: 2 to 12 percent
• Type of franchise: Real estate

United Country Real Estate has an esteemed reputation in the real estate world. The brand hit $35 billion in annual sales in 2022, making profits likely for your franchise. Plus, because launching your franchise requires a total startup cost of $10,875 to $50,380, you don’t have to spend much to join the United Country Real Estate family and enjoy a slice of its revenue.

5. Stratus Building Solutions

• Franchise fee: $3,600 to $69,000
• Initial investment: $1,000 to $53,800
• Royalty fee: 5 percent
• Type of franchise: Commercial cleaning

Opening a commercial cleaning company tends to involve an especially large number of equipment purchases. When you open a Stratus Building Solutions franchise, you eliminate most of this burden and you can open your location fairly inexpensively. Expect to spend between $1,000 and $53,800 to open a Stratus Building Solutions Janitorial Unit franchise.

6. Anago Cleaning Systems

• Franchise fee: $400
• Initial investment: $1,000 to $21,000 for a unit franchisee
• Royalty fee: 5 percent (only on collected janitorial services)
• Type of franchise: Office and commercial cleaning

Like Stratus Building Solutions, Anago Cleaning Systems offers cleaning services. However, Anago focuses more on regularly scheduled office cleanings, whereas Stratus tends to perform one-off commercial cleaning jobs. Both franchises allow affordable entry into the cleaning industry. Anago has a long history of success and more than 1,800 franchises, including many in Canada.

7. Town Money Saver

• Franchise fee: $0
• Initial investment: $17,000 to $29,000
• Royalty fee: Varies
• Type of franchise: B2B advertising

Like Proforma, potential franchisees don’t need a storefront, inventory or employees to start a Town Money Saver (TMS) franchise. Not to mention, TMS corporate handles accounting, graphic design, printing, mailing and digital services — so the franchiser can focus on building and cultivating customer relationships and growth. 

8. Club Z! In-home Tutoring

• Franchise fee: $19,750
• Initial investment: $10,000 to $15,000
• Royalty fee: 6 to 8 percent of gross sales volume 
• Type of franchise: Tutoring

As one of the largest-growing one-on-one home tutoring companies in the U.S., Club Z! offers national franchising opportunities for one of the lowest costs in the tutoring industry. The franchise does a lot for its franchisees to ensure success, including its proprietary Z! Tutor Match process that accurately matches the right tutor to each child; part-time or full-time ownership options; and the ability to become a home-based operation rather than having a storefront.

>> Learn More: Tips for Building an Investor-Ready Franchise Business

Here are three examples of name-brand franchises that demonstrate the difference in costs between lesser-known and well-known franchise brands.

1. McDonald’s

• Franchise fee: $45,000
• Initial investment: $1.47 million to $2.64 million
• Royalty fee: 4 to 5 percent of gross sales
• Type of franchise: Restaurant

When you think of franchises, fast-food locations probably come to mind, and McDonald’s is one of the most famous restaurant franchises in the world. While expensive, McDonald’s franchises are popular with established entrepreneurs, as the company consistently stays in the list of the top 10 franchises in the world, according to Entrepreneur.

2. Dunkin’

• Franchise fee: $10,000 to $90,000
• Initial investment: $121,400 to $1.81 million
• Royalty fee: 5.9 percent of gross sales
• Type of franchise: Restaurant

Dunkin’, which sells more than just doughnuts and coffee, is another brand people often associate with franchises. Opening a Dunkin’ location may cost a bit less than a McDonald’s location, with the high end of initial investments dipping into the million-dollar mark. Dunkin’ offers both traditional and nontraditional franchising opportunities. Some of the nontraditional opportunities feature lower franchise and advertising fees. While the minimum net worth for the potential franchisee is the same ($500,000) for both opportunities, nontraditional may suit some entrepreneurs better.

3. Taco Bell

• Franchise fee: $25,000 to $45,000
• Initial investment: $575,600 to $3,370,100
• Royalty fee: 5.5 percent
• Type of franchise: Restaurant

Long the top pick for late-night cravings and tasty Tex-Mex, Taco Bell offers franchising opportunities for motivated entrepreneurs to take advantage of the restaurant chain’s 42 million weekly customers. However, it ranks as one of the most expensive franchises on the market.

Franchises with low overhead, no storefront and few (or no) employees need much less to get started making money. Conversely, the better-known franchise names — which are often restaurants or cafes — require much more startup because they need equipment, uniforms, additional training and other products. If the franchise must break ground on completely new real estate, that’s another huge cost. Construction of a hotel franchise or restaurant has considerably more overhead than a home- or small-office-based cleaning service. 

Another factor that makes well-known companies a more expensive franchise option is brand recognition. Lesser-known brands are eager to get their name out in different markets, whereas community staples like McDonald’s, Dunkin’ or Taco Bell can charge franchisees higher advertising and franchising fees. 

What is the cheapest franchise to open?

Depending on your initial investment costs plus the franchise fee, the cheapest franchise to open could be Stratus Building Solutions or Anago Cleaning Systems. 

However, when you also consider the potential for long-term profits, it becomes more complicated. Is it better to make a small upfront investment to launch a franchise location with modest profits, or should you invest more to achieve profitable growth over the long term?

What is the most profitable franchise to open?

Of the options mentioned, McDonald’s would probably allow you to bring in the most money, with the average restaurant making around $3.83 million in annual sales, but that doesn’t mean it will be the most profitable for you, the franchisee, considering the high upfront investment required.

Of course, chances are, you don’t have millions of dollars lying around to make your initial investment. You also likely don’t want to search high and low for business loans and financing options that you’ll eventually have to pay back — what if your new franchise location fails to turn a profit?

By this logic and our calculations, the most profitable franchise to open may be Cruise Planners. The company makes $1 billion annually, and you’ll pay somewhere between $695 and $23,367 for your initial investment. In addition, the luxury travel industry is expected to hit $3,064 billion by 2032.

The royalty fee for a Cruise Planners franchise is usually between 1.5 percent and 3 percent of gross commissionable fares — not as high as the fees for some of the other franchises listed in this article. However, Cruise Planners franchises let you sell more than just cruises to maximize your imprint. With Cruise Planners, you can also sell land tours, all-inclusive resorts, hotels, travel insurance, rental cars and more.

If you have the passion to succeed in the travel industry, Cruise Planners may be your best option for opening a franchise location without breaking the bank.

What are the benefits of opening a business franchise?

Here are some of the benefits of opening a new location for a franchise business rather than building a new company.

Capital and access to financing

Any small business owner will lament the startup costs and time burden of acquiring capital when launching a company. When you start your small business as part of a franchise, the franchise directs you toward certain types of machinery and equipment, so you won’t spend time comparing options. Some franchises can connect you with lenders for easier funding options, too, so you won’t have to search high and low for business financing to cover your startup costs. [Related article: The Best Business Loan and Financing Options of 2024]

“Franchises are often viewed as safer investments by banks, as they come with a track record,” said Pete First, chief development officer of the home care franchise BrightStar Care. “This can make it easier to secure financing and startup loans, as lenders are more confident in the established nature of the business.”

Branding

As a business owner, you have to develop logos, slogans and other marketing materials that make your company stand out to consumers. Not all business owners are thrilled at the prospect of the more creative side of business ownership, not to mention the expenses. When you open a franchise, you get to use the company’s established branding, which makes it easier to build brand advocacy that spreads the word about your business.

“For somebody wanting to open a business, the risk of starting a concept or brand from scratch is very high,” said Lindsay Junk, president of the fitness franchise YogaSix. “Partnering with a concept like YogaSix can give entrepreneurs an established brand name to tap into.”

First also named a franchise’s established branding as a benefit of starting a franchise. “Attracting customers to a new business can be a significant hurdle for entrepreneurs, but franchisees benefit from the power of having the backing of an established brand that customers recognize and trust,” First said. “This familiarity lends immediate credibility to new locations, making it easier to build trust and connect with potential customers, resulting in faster customer base growth, positioning them for rapid market success.”

Low risk

Worried that your new company won’t turn a profit? If your business has the familiar logo, layout, aesthetic and equipment of a widely recognized franchise, you should have significantly less trouble finding and retaining loyal customers because they already know and trust the brand. And, of course, with more customers comes more revenue and, hopefully, profit.

“Franchises typically have lower failure rates compared to new independent businesses,” First said. “By following the franchise’s business model and leveraging their support, franchisees often achieve profitability more quickly.”

Extra management and marketing help

In addition to its many storefronts, a franchise likely has a corporate office. This office houses employees who oversee marketing, so you won’t need to hire a marketing expert. The corporate office also houses management and training for all franchise locations, so when you need help on any of these fronts, you have built-in assistance.

“With a franchise, a new business owner receives consistent support before and after the grand opening,” said Ron Holt, founder of the franchises Two Maids & A Mop and Pink Zebra Moving. “Whether it’s regulatory challenges or operational inefficiencies, a franchise brand works directly with a franchisee to ensure the business is following the prescribed business model in order to produce optimal top-line and bottom-line results.”

Franchisor support is one of the key benefits of starting a franchise. “Franchisors supply a suite of ready-to-use resources, including marketing assets, HR guidance, company policies, and established business models that help the business get off the ground smoothly and turn a profit quickly,” First explained. “Most franchises provide extensive training, which can be especially valuable for those who may not have experience in the industry.”

Extra purchasing power

The cost of new inventory and supplies is often lower for a franchise. A franchisor may have larger collective buying power than an individual business does, which can result in cost savings when you’re buying large quantities of equipment or other materials. The money saved via that purchasing power is often passed on to franchisees.

Greater autonomy

First pointed out that owning a franchise strikes a middle ground between starting your own business and working for a huge corporation.

“Franchising strikes an ideal balance between entrepreneurial independence and structured business support,” he said. “Franchisees enjoy the benefits of business ownership, including the freedom of leading their local teams, making tailored decisions for their community and supporting local economies — all within the established framework of the proven business model.”

Larger potential support network

Junk and Holt named peer support as a huge advantage of starting a franchise over building your own business from the ground up. “You [always] have a big network of fellow franchise owners to lean on,” Junk said. “These people are going through the exact same journey as you, so you can share best practices, learnings, et cetera, to help make improvements to your own franchise.”

Franchisees can also learn from other franchisees. That way, they may avoid some of the costly mistakes that may prevent slower growth or profits, Holt added. “Franchise brands typically offer peer support groups, along with virtual and face-to-face group meetings to facilitate communication between franchise owners,” he said.

Ease of scaling

Junk said that, in her experience as YogaSix’s president, she has frequently seen franchisees expand from one to multiple locations. As a franchise owner, you could put yourself on a similar path toward easily scaling your business.

“Once you learn the ropes of a franchise brand and have success, the business model makes it easy to license more locations,” Junk said. “YogaSix has been able to grow very quickly, with owners investing in second, third and more studios after their first.”

Franchises can be a fantastic long-term investment

Even the cheapest franchises require a significant investment to get off the ground. However, the return on this investment is usually high enough to justify its costs. Beyond that, the benefits of running a franchise compared with starting a standard business yourself are compelling. And sure, franchises might not be for everyone, but if they’re calling your name, success is likely — so go ahead and commit.

Max Freedman contributed to this article.