Inexpensive franchising programs are a good opportunity for aspiring entrepreneurs to open a profitable business without having solid financial support. We have collected the cheapest franchises that allow you to start a business with minimum investment. The low cost of a franchise package does not mean that the business will not bring profit, on the contrary, small investments are more likely to turn around and be reimbursed. Choose the best offers and start earning.
#1: SportHero Franchise
Field of activity: sports service.
Lump sum: 50 000 rub.
Royalty: from 2% of turnover.
Initial investment: RUB 86,000
The idea of SportHero was born in England, for more than two years the company has been developing a network in Russia. SportHero is a system that helps the client find a team and a venue for sports games. Fans of team sports order services through the franchisor's website, and the franchisee forms teams, rents fields and halls, and organizes amateur tournaments. The SportHero service maintains a client base, helps to book venues with partners, makes mailings, etc. According to the franchisor, at least half of the Russian population is interested in sports leisure services.
Partners of the company earn at the expense of a 20% margin on all services. SportHero offers three packages depending on the population of the city: "Start", "Master" and "Champion". The representative's monthly income is 50-120 thousand with investments of 86-176 thousand (including the entry fee). A fast-paying business returns investments in 4-5 months. The franchise price includes: business plan, brand book, software, personal manager and training.
Pros and Cons of Buying a Cheap Franchise
The company has accumulated European experience and takes into account the realities of Russia. Profitable business under a cheap franchise SportHero is the best way to monetize your favorite hobby. It is available to anyone: no need to rent an office and pay salaries to staff, just a computer and Internet access. Customers of the service apply for services repeatedly and recommend it to friends. However, in the first steps, you will have to actively advertise the system.
Worth remembering! In a small town in Russia, where the incomes of residents are low, franchisees in the field of organizing sports leisure will compete with enthusiasts who do it for free.
#2: The Bantino Proviani Franchise
Field of activity: entertainment and recreation.
Lump sum: no.
Royalty: 3,000 from the 2nd month of work.
Starting investment: 100 000.
Every entrepreneur who wants to open a business with an idea that has already proven itself in the market has a choice: to start on their own from scratch or. This choice is more difficult than it seems, because the money invested in the business is at stake. Some say that a franchise is a waste of money. Others call her the best way grow rich. We will tell you whether a franchise business is profitable and how to make the right decision.
Benefits of a Franchise
The essence of franchising brings it to the fore: perfect cooperation between the seller and the buyer, when the first expands the business with almost no investment, and the second receives entrepreneurial experience, support and profit. Statistics are also on the side of the franchise, because most newcomers are forced to close in the first year. In franchising, this percentage is much lower. Let's figure out why it is profitable to work on a franchise:
- Buying a franchise, you automatically get a promoted brand, recognizable and with a clean reputation.
- The franchisor invests in advertising himself. You can save on this item of income and time to form the company's image, win over customers - you can immediately proceed to making a stable profit.
- Support and training from the franchisor - this is not what you get when starting alone. The seller can take care of the franchisee, increasing his knowledge, skills and abilities through courses, master classes, training materials, individual consultations.
- Consulting. When buying a franchise, the partner will help with specific issues: providing initial information about the market segment, advice on choosing premises and personnel, and marketing consultations.
- You know the amount that will be needed to run the business, everything has already been calculated for you. So you take less risk by taking on too large amounts or stumbling with too little.
- Individual entrepreneurs are a dime a dozen, counterparties will not single out someone, which cannot be said about franchisors. They usually have established contacts with suppliers and have big discounts, so you will also get favorable conditions.
- The franchisee shares responsibility with the franchisor. It is stress that can prevent a beginner from calmly and confidently approaching the matter. He does not feel alone in difficult business situations and therefore the franchise becomes more competitive.
- Often the franchisor demarcates the territory so as not to create competition between his own franchisees. The scope of the expansion is prescribed in the contract.
When buying a franchise, the partner will help with specific issues: providing initial information about the market segment, advice on choosing premises and personnel, and marketing consultations.
As a result, the picture is rosy: a franchise is easy money. You get the opportunity to develop, immediately rising to the same level as the parent company. But in no case can one draw conclusions without learning about the shortcomings of the franchise.
Franchise Disadvantages
Franchising is not the dominant system in business, which means that it is far from ideal. The disadvantages are related to the fact that the franchisee with a business that seems to belong to him does not feel independent. And the payback of the franchise depends on many factors. You may encounter obstacles not only in developing a franchise, but also yourself as an entrepreneur.
The most banal problem of the franchisee is. The start itself lump sum- costs a lot. Especially if you wanted privileges, so you won’t be able to fit into franchising from scratch. Add to that a recurring royalty payment, which can be a fixed amount or a tangible percentage of profits. It turns out serious expenses, which are your responsibility to pay, even if you go broke.
Unfortunately, in Russia there is no legislation on franchising that would regulate its activities from and to, and franchisees usually suffer from this. You should take care of your own at the stage of signing the contract, asking for help from a specialist. Do not forget about the powerful legal support of the franchisor.
Another trouble that the franchisee faces is the limitation of independence on all fronts. has already developed a business development strategy and is working on it, so it will not work to get out of this framework. It is important for the franchisor that you maintain the brand image. These standards may relate to the quality of service or the choice of premises and can be very high - such that the chance of burnout becomes real. Even a sensible remark or an effective idea of an entrepreneur can be rejected only because the franchise is a well-oiled mechanism that does not tolerate deviation from the standard.
The cons of a franchise are associated with risks that depend on the choice of the parent company. Franchising has become so popular that even yesterday's newcomers sell it. Sometimes it "shoots", but more often it leads to bankruptcy of both the franchisor and all his franchisees.
Even at the stage, your task is to study the interested company, make sure that it really has a successful experience, a recognizable brand and a good reputation. Moreover, the collapse of the parent company with unconvincing competence for franchising will lead to the closure of everyone who worked with it.
And, finally, another common problem: the franchisee can eventually find suppliers who are ready to work on favorable terms for him, but there is a requirement from the franchisor to purchase only from him or his suppliers. The rules of free competition do not work.
Drawing conclusions
Of course, the conclusion is different for everyone, and it depends on the specifics of the business, the entrepreneur's expectations, and the conditions of the franchisor. It is useful to study the future partner by numbers (if you have access to them) in order to find out the effectiveness of franchising. Remember that buying a franchise is an investment. So follow the same rules. What return will the money invested in the franchise bring? What is the payback period for a franchise? Will I work better with this experience? Approach with all responsibility to making a decision, then you will get a really profitable system that works for you.
When planning to purchase a franchise, an entrepreneur evaluates the necessary initial costs. You need to understand that before reaching the break-even point, the business will require monthly investments. Therefore, the cost of the franchise must be assessed in the complex.
First, a lump sum. This is the money that the franchisor will have to pay for the right to obtain a franchise at the conclusion of the contract. Then royalties - an analogue of rent, in this case for the brand, which are paid monthly.
In addition, you will need to spend money on opening and running a business. What will require investment? Rental of industrial and retail space, offices. Possible purchase of equipment. Employee salaries. Advertising, transport and other overhead costs.
As a rule, when offering a franchise, the brand owner evaluates the financial component in terms of current costs in the form of two amounts - the minimum and the maximum.
Getting acquainted with the terms of the franchise, the applicant receives reliable information about what budget the purchase of a brand and business model will require, and can objectively assess their capabilities.
So, when considering the price of a franchise, you need to take into account:
- lump sum;
- monthly royalties;
- investments in starting and running the business until it starts to make a profit;
- some franchises are issued with the need to pay monthly advertising fees.
Are there low cost franchises for small businesses?
On the Russian market Hundreds of franchises are represented. These are both foreign and domestic brands.
There are franchises with no lump-sum fee, such as the Sabellino store. You can find a franchise offer with no royalty, for example, the sale of Button Blue children's clothing, there are even options without a lump-sum fee and royalties - multivarka.pro.
But such tempting conditions do not mean at all that you can open a business using these franchises without investment at all. The cost of the franchise is estimated in the complex. And a free offer can be more expensive than one that has both a lump-sum fee and royalties.
But very inexpensive franchises do exist! In the catalog of current franchises, you can find options with absolutely small investment. And among them there are those that are available to almost everyone.
You need to understand that a business that can be opened under such a franchise will not be super profitable. But it is quite possible to gain experience in starting a business, get acquainted with a successful development model and make good money.
A selection of franchises with minimal investment
small selection low cost franchises for small businesses in various fields.
Cookie & coffee
Inexpensive franchise in the field Catering— cookie & coffee.
Lump sum - 0 rub,
Royalties - according to a special scheme (there are 3 options for entering the business)
To run a business, you will need a minimum area, from 2 to 20 m2, with electricity supplied. Staff from 1 person. It is best to start this business in a crowded and passable place. Experience successful development in small towns.
The format of the institution may vary from the counter to educational institution to the cafe. Starting with a small investment, you can become the owner of a network of profitable coffee houses.
infolife
Infolife - earnings on testing the abilities of children and adults by fingerprints (website).
Royalties - from 25 rubles per researched person,
Investments - from 35,000 rubles.
Infolife offers ample opportunities to develop its brand. Depending on the availability of funds, a franchise buyer can equip a stationary point of sale in a large shopping center or organize their work directly in schools and other childcare facilities. The franchise seller claims a payback period of 1 month.
Infolife Franchise Video:
This is an interesting topic for young and ambitious aspiring entrepreneurs.
The undoubted advantages are the lack of competition, low cost, the absence of mandatory conditions for the actual location of points of sale.
Aquapoint
Aquapoint is a franchise in the field of sales and installation of heating systems.
Lump sum - 0 rub,
Royalty - 0 rub.
You can work both in a rented office and in home office mode. The company will undertake the drafting of the project for your customer. The advantage of this franchise is high marginality and the ability to develop business in related areas.
Sun
One of the cheapest today is the franchise of the Sun online store.
Lump sum - 0 rub,
Royalty - 0 rub,
Investment - 10 euros.
The business is based on the dropshipping model. A great opportunity to try your hand at the Internet business with virtually no investment.
Robin Hood
Robin Hood, a consumer protection franchise, will also require minimal costs.
Lump sum - 0 rub,
Royalty - 20%,
Investments in the creation of a reception (office).
Business area - legal services. It has been on the market since 2010, more than 30 representative offices have been opened. Franchise payback from 2 months.
Requirements - for successful business, you will need to open an office with an area of about 15-25 m2, located in a convenient location for customers. The number of employees is from 1 to 5. It is possible to attract law students to work.
Success Examples
It is not necessary for a successful business to start with the purchase of an expensive and popular franchise. The main thing is to evaluate your strengths, tune in to hard work and follow the recommendations of the brand owner.
Little-known at that time, the Fornetti franchise - stalls where buns are baked, became the basis of the well-being of Anna and Leonid. The couple chose the direction of business for a long time and was inclined to buy one of the fast food brands. But small initial investment with a well-thought-out business model, they allowed the couple to become successful businessmen.
Examples of successful business development under the Orange Elephant brand are widely known. bright islands in shopping malls have already arisen in many cities, and everywhere these points bring profit.
Choose a franchise according to your financial capabilities and to your liking, and everything will definitely work out.
Video about the Orange Elephant franchise:
