Starting a franchise can be an excellent way to step into the world of business ownership. If you’re on a budget, you may be wondering which franchises offer a relatively low investment cost but still have the potential for success. Here are some of the cheapest franchise options in the UK, along with their investment ranges and some things to consider before making a decision.
1. Barber Shop Franchises
Investment Range: £10,000 – £50,000
Barber shop franchises offer a relatively low-cost entry point with a high potential for profitability. Many people are willing to pay for a quality haircut, and with the right training and a good location, barber shops can be successful.
- Popular options: Tommy’s Barbers, The Barbershop
- Minimal inventory costs
- Established customer base and brand recognition
- Flexible location options, such as shopping centers or high streets
2. Cleaning Franchises
Investment Range: £10,000 – £30,000
Cleaning services are in high demand, whether for domestic homes, commercial offices, or specialized cleaning services. These franchises often have low overheads and can operate from home, keeping costs down.
- Popular options: CleanBee, Ovenu
- Work-from-home potential
- Low staff requirements
- High demand in both residential and commercial sectors
3. Mobile Food and Beverage Franchises
Investment Range: £15,000 – £50,000
Mobile food franchises, such as coffee carts or snack vans, provide flexibility with lower investment costs compared to traditional brick-and-mortar restaurants. Many offer a proven business model and have minimal overheads.
- Popular options: Cuppaccino Express, Oasis Refreshment Services
- Flexibility to operate at events, festivals, and markets
- Lower rent and property costs
- Menu options often require fewer ingredients than full-scale restaurants
4. Tutoring and Education Franchises
Investment Range: £15,000 – £40,000
The demand for private tutoring and education services has increased, making tutoring franchises an attractive low-cost business opportunity. You can often run these businesses from a small office or even from home.
- Popular options: Kumon, Academy 21
- Low overheads as no large premises are needed
- Strong market demand in core subjects like maths and English
- Low staff requirement, often just tutors
5. Pet Care Franchises
Investment Range: £10,000 – £50,000
The pet care industry is booming, and services such as dog walking, pet sitting, or grooming are always in demand. Pet care franchises can often be operated from home, reducing costs further.
- Popular options: Ruff & Tumble, Petpals
- Work-from-home or low-rent premises
- Flexible working hours
- Growing pet ownership rates across the UK
6. Vending Machine Franchises
Investment Range: £15,000 – £40,000
Vending machine franchises require a relatively small upfront investment compared to other types of businesses. These franchises often provide passive income as you only need to maintain and refill the machines.
- Popular options: Vendia, Snack-in-the-Box
- Minimal daily involvement
- Flexibility to operate from multiple locations
- Low overhead costs as no physical store is needed
Things to Consider When Choosing a Franchise
- Franchise Fees: Look at the initial franchise fee, royalty fees, and ongoing support fees to assess the overall cost of the franchise.
- Training and Support: Consider the level of training and ongoing support offered by the franchisor. A well-supported franchise can help increase the chances of success.
- Market Demand: Research whether there is a demand for the service in your area. It’s essential to ensure that the business model aligns with local preferences and market trends.
Disclaimer:
The investment ranges mentioned above are estimates and can vary depending on the location, size of the franchise, and other factors. Always conduct thorough research and consult with a financial advisor or franchisor for the most accurate and up-to-date information before making any investment decisions.
These franchise options represent some of the most affordable entry points into the world of franchising. However, it’s essential to do your due diligence and carefully assess each opportunity based on your skills, interests, and financial capacity.