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Top Low-Cost Franchises 2015

A look at the top Low-Cost Franchise Opportunities for 2015 based on owner satisfaction.

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SPECIAL REPORT<br />

FranchiseBusinessREVIEW<br />

Ratings and Reviews of the Best Franchise Opportunities by Franchisees<br />

<strong>2015</strong><br />

LOW-COST<br />

FRANCHISES<br />

Today’s <strong>Top</strong> Opportunities<br />

Under $100K<br />

A Soccer Shots coach shares his love<br />

of soccer with enthusiastic children.<br />

The Most<br />

Profitable<br />

<strong>Low</strong>-<strong>Cost</strong> Sectors<br />

PAGE 13<br />

$<br />

A Look Inside<br />

Today’s <strong>Top</strong><br />

<strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

PAGE 8<br />

<strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

That Provide The Highest<br />

Average Income<br />

PAGE 5


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

Features //<strong>2015</strong><br />

3 6<br />

5<br />

2 Letter from the Editor<br />

“<strong>Low</strong>-<strong>Cost</strong>” Doesn’t Mean Sacrificing Quality<br />

3 <strong>Low</strong>-<strong>Cost</strong>, High Return<br />

Identifying the Best Budget-Friendly<br />

Franchising Opportunities<br />

8 THE LIST<br />

Best of the Best: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

14 Marketplace<br />

More on the award-winning<br />

franchise opportunities for <strong>2015</strong><br />

+<br />

Reviews, interviews, franchisee satisfaction<br />

awards and more resources available at:<br />

www.FranchiseBusinessReview.com<br />

For more information on this report, visit: www.FranchiseBusinessReview.com | 1


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

“<strong>Low</strong>-<strong>Cost</strong>” Doesn’t Mean<br />

Sacrificing Quality<br />

If you’re like many people, you’ve probably been told that franchising is a very expensive proposition<br />

and only an option for individuals with specific skillsets. It’s true that many top brands<br />

require a large up-front investment and a strong business or other specified background. In this<br />

report, however, we have identified 80 low-cost franchise opportunities, the majority of which are<br />

appropriate for first-time business owners.<br />

Choosing the right low-cost franchise, one with an average initial investment of less than $100,000,<br />

can be overwhelming. To help you do so, we address how to identify a low-cost franchise opportunity<br />

that is a good fit for you, considerations to make prior to investing in one, and more within<br />

this report.<br />

Taking a look at the top brands on our List is a good place to start your franchise research.<br />

Many offer their full franchisee satisfaction survey results, which provide unbiased<br />

insight regarding their leadership, training and support, financial outlook, culture, and more at<br />

www.FranchiseBusinessReview.com.<br />

In this report we have<br />

identified 80 low-cost<br />

franchise opportunities,<br />

the majority of which are<br />

appropriate for first-time<br />

business owners.<br />

Informed franchising is happy franchising!<br />

Emma Pearson, Editorial Director<br />

Franchise Business Review is the leading national franchise market<br />

research firm that performs independent surveys of franchisee satisfaction<br />

and franchise buyer experiences. Before you invest in any franchise opportunity,<br />

read our reports to get the facts about it from those who know best,<br />

its franchisees. We publish five annual research reports: Guide to Today’s<br />

<strong>Top</strong> <strong>Franchises</strong>, <strong>Top</strong> 50 Multi-Unit <strong>Franchises</strong>, <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong>,<br />

<strong>Top</strong> Food <strong>Franchises</strong> and Veterans & Franchising. All are available for free<br />

at www.FranchiseBusinessReview.com.<br />

Eric Stites, CEO<br />

Michelle Rowan, President<br />

Emma Pearson, Editorial Director<br />

C.J. Fleck, Senior Web Developer<br />

Michael Kupfer, Online Marketing Manager<br />

Nicole Kenney, Client Services Manager<br />

Julie Nelson, Client Consultant<br />

Linda Lorrey, Client Consultant<br />

Chris Poirot, Client Consultant<br />

Margot Doering, Accounting<br />

The Secret Agency, Design & Production<br />

Call us at 603-433-2270<br />

ABOUT OUR RESEARCH<br />

For this report, we surveyed over 9,200 franchise operators who represent<br />

132 leading brands with an average investment of under $100,000.<br />

We asked each franchisee to answer 33 benchmark questions ranking<br />

their franchise in the areas of financial opportunity, training and<br />

support, leadership, operations and product development, core values<br />

(e.g., honesty and integrity of franchisor), general satisfaction, and<br />

the franchisee community. We also asked them to answer an additional<br />

16 questions about their market area, demographics, business lifestyle,<br />

overall enjoyment running their franchise, and role in the franchisee<br />

community. From this data, we identified our list of top low-cost<br />

franchises with the highest franchisee satisfaction. Participation in<br />

Franchise Business Review’s franchisee satisfaction research is free for<br />

all North American franchise systems with a minimum of 10 franchisees.<br />

Surveys to determine the <strong>Top</strong> <strong>Franchises</strong> for 2016 are underway.<br />

If you are a franchisor and would like to participate, please call 866-397-6680<br />

or contact info@FranchiseBusinessReview.com.<br />

2 | For more information on this report, visit: www.FranchiseBusinessReview.com


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

Jack Marino, who owns a The Traveling Photo Booth franchise in Austin and San Antonio, TX, enjoys watching clients hamming it up for the camera. Photo by Suzanne Pressman.<br />

<strong>Low</strong>-<strong>Cost</strong>, High Return<br />

Identifying the Best Budget-Friendly Franchising Opportunities<br />

If you’ve always wanted to have a business<br />

of your own, there are a variety of low-cost<br />

franchises to choose from. These franchises<br />

offer the potential for financial independence,<br />

with the advantage of providing you with a<br />

proven playbook for success. According to<br />

research firm FRANdata, there are currently<br />

668 franchise opportunities covering 29<br />

industries with investment requirements of<br />

under $100,000. FRANdata based its findings<br />

on three years’ worth of data from 2013 to<br />

<strong>2015</strong>. The median investment for our top<br />

franchises in this report is $67,130.<br />

Not all low-cost franchise concepts are<br />

created equal. Startup costs, market demand for<br />

the product or service, franchise fees, potential<br />

These franchises offer the potential for financial<br />

independence, with the advantage of providing<br />

you with a proven playbook for success.<br />

revenue, and contract provisions are just some<br />

of the factors you should carefully consider.<br />

Sifting through hundreds of opportunities to<br />

figure out which one is most likely to meet<br />

your financial and personal objectives can<br />

be tedious and tricky. That’s where Franchise<br />

Business Review comes in. We surveyed over<br />

9,200 franchisees from 132 different brands,<br />

to identify the top low-cost franchises with the<br />

most satisfied franchisees. If you’re interested<br />

in purchasing a low-cost franchise that will<br />

enable you to be your own boss or to diversify<br />

your investments, our List on page 8 is a great<br />

place to begin.<br />

For more information on this report, visit: www.FranchiseBusinessReview.com | 3


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

A few of the franchises featured in<br />

this report hold the honor of making our<br />

<strong>Low</strong>-<strong>Cost</strong> List each year since Franchise Business<br />

Review launched a decade ago. They are<br />

Heaven’s Best Carpet Cleaning, Our Town<br />

America, Miracle Method, ActionCOACH<br />

and JumpBunch. Each has shown consistently<br />

superior performance. Making an appearance<br />

on our List for the first time are ImageOne,<br />

S.T.O.P., and Mosquito Authority.<br />

One of the most unique concepts that<br />

caught our attention is The Traveling Photo<br />

Booth. By giving clients the instant gratification<br />

of being able to take and share photos, it is<br />

benefitting from the “selfie” and social media<br />

trend. In addition to letting people instantly<br />

share their photos via its mobile app, clients<br />

are given a printed photograph, which is an<br />

appreciated rarity in our digital world.<br />

BENEFITS<br />

<strong>Low</strong>-cost franchises offer a variety of benefits<br />

over more costly franchise opportunities. This<br />

is reflected by the satisfaction of low-cost<br />

franchisees being 11% more than higher cost<br />

opportunities.<br />

Faster Potential Profitability<br />

If you’ve already started researching franchises,<br />

you know that many can cost hundreds of<br />

thousands or even millions of dollars. <strong>Low</strong>cost<br />

franchises, however, are a financially viable<br />

way for you to own your own business. Less<br />

debt, combined with lower start up costs,<br />

can result in faster profitability. When we<br />

compared the average annual pre-tax income<br />

of <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong> vs. All <strong>Franchises</strong>, we<br />

found it was $75,217 for <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong> 1<br />

and $86,940 2 for All <strong>Franchises</strong>.<br />

Even though profitability may occur faster<br />

with low-cost franchises, all businesses take<br />

time to be profitable. It is important that you<br />

have adequate funds to carry you until your<br />

business is generating enough revenue to be<br />

self-sustaining. Do your due diligence in order<br />

to figure out the amount of money you should<br />

set aside since every franchise opportunity is<br />

different and your personal financial situation<br />

unique.<br />

“When I converted my three-year-old landscaping<br />

business, which focused on design<br />

and installation, to a U.S. Lawns franchise in<br />

January 2002 I was doing $250,000 in sales,”<br />

says New Albany, MS franchisee, Mike Kirk.<br />

Number of Units*<br />

<strong>Low</strong>-cost Franchisees Own<br />

Unit<br />

Percent<br />

1 70%<br />

2 16%<br />

3 5%<br />

4 2%<br />

5+ 6%<br />

* includes units and territories<br />

“We saw an immediate financial benefit from<br />

U.S. Lawns’ full service maintenance model.<br />

We are budgeting $2.4 million in sales this<br />

year.” Kirk holds a degree in accounting and<br />

entered the green industry, which he always<br />

had a passion for, in 1998 after having worked<br />

in manufacturing for 13 years and being<br />

downsized when the company he worked for<br />

was acquired.<br />

“We suggest that new franchisees have 12<br />

months of living expenses in the bank,” says<br />

Todd Hopkins, founder and CEO of Office<br />

Pride Commercial Cleaning Services.<br />

Often Home-Office/Mobile Based<br />

Since most low-cost franchises take their<br />

products and services directly to customers,<br />

many can be run out of your home or a small<br />

rented office or trailer. Some, such as those<br />

in the green space, may need to expand to a<br />

larger location as business grows in order to<br />

accommodate equipment and vehicles.<br />

“I work out of my home,” says Stacey Black,<br />

who owns Rhea Lana’s Frisco/McKinney, TX<br />

territory. “When holding events I, like most<br />

Rhea Lana’s franchisees, either rent an empty<br />

retail location or event location for them.”<br />

Flexibility<br />

Since many low-cost franchise concepts do<br />

not necessitate owners being present at a<br />

particular location for a set period of time,<br />

they offer more flexible schedules than a retail<br />

outlet or restaurant. Many can even be operated<br />

part-time.<br />

“Traveling is in our name and being able<br />

to work remotely has always been a priority.<br />

From any smart phone, franchisees can manage<br />

leads and clients, change online pricing,<br />

personalize automated emails, and even<br />

answer questions in real-time from leads<br />

using the ‘live chat’ feature on our website,”<br />

says Founder of The Traveling Photo Booth,<br />

Jacob Stewart. Most of The Traveling Photo<br />

Booth’s franchisees have other jobs in addition<br />

to running their franchise, although Stewart<br />

says this can and does change based on franchisees’<br />

personal goals, the market they serve,<br />

how long they’ve been a franchisee, and their<br />

skills as an operator.<br />

“I purchased a Rhea Lana’s franchise<br />

because I wanted to be able to work around<br />

my children’s schedules for most of the year,”<br />

says Black. “I work hard for two months<br />

prior to my event, although still around my<br />

kids’ schedules, and then two weeks straight<br />

during my events. Essentially during my<br />

events it’s as though I am away on a business<br />

trip. Since I only have two events a year, I have<br />

a great work-life balance.” She notes that if she<br />

had to rely on her business, which had sales<br />

of $300,000 last year, 10X more than her first<br />

year (2009) sales, that it would be challenging<br />

to support her family in the lifestyle they’ve<br />

become accustomed to with a dual income.<br />

“We could make it work if we had to though,”<br />

says Black. “I know of one woman who is<br />

doing so.” That’s impressive for a business<br />

that requires working on average five months<br />

a year.<br />

1<br />

Based on independent surveys of 9,214 franchise operators representing over 130 low-cost franchise brands<br />

(defined as franchise businesses with an average startup investment under $100K) conducted by Franchise<br />

Business Review between January 2014 and April <strong>2015</strong>. Franchise operators were asked to report their<br />

annual pre-tax income provided by their franchise business. Franchise operators that were in the “startup<br />

period” of their business (defined as the first two years of a new franchise business) were excluded. Only<br />

low-cost franchise brands with a minimum of 50 operating units were considered in this research.<br />

2<br />

Based on independent surveys of 26,140 franchise operators representing 364 franchise brands, across all<br />

sectors and investment levels, completed by Franchise Business Review between January 2014 and April<br />

<strong>2015</strong>. Franchise operators were asked to report their annual pre-tax income provided by their franchise<br />

business. Franchise operators that were in the “startup period” of their business (defined as the first two<br />

years of a new franchise business) were not included.<br />

4 | For more information on this report, visit: www.FranchiseBusinessReview.com


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

<strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong> with<br />

the Highest Average Income*<br />

1. Sandler Training <br />

2. Critter Control <br />

3. Visiting Angels <br />

4. Right at Home <br />

5. Murphy Business & Financial <br />

6. MaidPro <br />

* The brands listed above each have an average annual<br />

pre-tax income of over $100,000, as reported by<br />

franchisees who have been in operation for a minimum<br />

of two years. The average annual income reported<br />

across this group was $116,525.<br />

Dan and Lisa Nausley, who own a Sandler Training franchise in Chattanooga, TN, inspiring a group to succeed.<br />

<strong>Low</strong>-cost franchises also offer many<br />

benefits that higher cost franchises do, but<br />

that starting your own business from scratch<br />

does not.<br />

Plug & Play<br />

A franchise provides you with an out-of-thebox<br />

business model that is ready to be implemented<br />

as soon as you have gone through<br />

your training. All you have to do is to adhere<br />

to the established guidelines.<br />

“When we had our own landscaping company,<br />

we were on an island on our own and<br />

made a lot of mistakes,” says Kirk. “By buying<br />

a U.S. Lawns franchise, we bought a business<br />

that already had all the kinks worked out of it.”<br />

You’re Not Flying Solo<br />

You’ll receive your franchisor’s support in a<br />

variety of crucial areas including training and<br />

operating procedures as well as marketing.<br />

“We provide a full week of classroom training<br />

for new franchisees followed by in-market<br />

sales and operations training,” says Hopkins<br />

of Office Pride. “After their initial training is<br />

completed, our new franchisees are placed<br />

into peer groups, which allows them to get<br />

to know other owners, share best practices<br />

and more.”<br />

In addition, you have a network of fellow<br />

franchisees to learn from and work with.<br />

“Our Franchise Advisors spend quality<br />

time with owners. We’re also big fans of group<br />

and regional franchisee meetings which provide<br />

a forum for franchisees to seek advice<br />

from and share best practices with each other,”<br />

says Ken Hutcheson, President of U.S. Lawns.<br />

“We hold a best practices competition at<br />

our annual conference,” says CEO & Founder<br />

of Visiting Angels, Larry Meigs. “Franchisees<br />

compete to win one of three categories such<br />

as Palliative Care, Caregiver Retention and<br />

Converting Leads into Clients. The categories<br />

change each year. The winners present their<br />

best practices at the conference, which benefits<br />

all who attend.”<br />

Brand Recognition<br />

Since the franchise brand is already recognized<br />

by customers they know that it offers<br />

consistency and appreciate the comfort its<br />

familiarity provides.<br />

Minimized Risk<br />

If you have done extensive due diligence<br />

including reviewing the FDD and talking<br />

to franchisees in order to identify a strong<br />

franchise brand with a proven business model,<br />

your chances of building a successful business<br />

are greater than if you were starting one<br />

from scratch.<br />

Resale Value<br />

Prospective investors tend to favor known<br />

brands. <strong>Franchises</strong> typically fetch a higher<br />

resale price than a mom and pop business,<br />

and most franchisors will assist you in finding<br />

a buyer.<br />

CHALLENGES<br />

Like all businesses, low-cost franchises come<br />

with risk. Here are some things to keep in<br />

mind prior to taking the franchise plunge.<br />

Managing a Business<br />

If you are like many franchisees, you may have<br />

no prior business ownership experience. Ask<br />

the franchisor what business skills you’ll need<br />

to be successful, and what they will train you<br />

to do. You should seek outside assistance from<br />

accountants, attorneys, and other business<br />

professionals that have expertise in your areas<br />

of weakness.<br />

“We spend three days teaching our franchisees<br />

the basics they need to run their business<br />

including how to read and strategically act<br />

upon Profit & Loss statements,” says Jump-<br />

Bunch CEO, Thomas Bunchman.<br />

Self-Discipline<br />

Although the idea of working from home is<br />

appealing and a benefit many low-cost franchise<br />

opportunities offer, it can be challenging<br />

for some since it requires a lot of self-discipline.<br />

Home-based business owners have to learn<br />

to set limits not only for themselves, but also<br />

for family members who may feel inclined to<br />

interrupt them or expect them to take care of<br />

non-work related tasks during working hours.<br />

For more information on this report, visit: www.FranchiseBusinessReview.com | 5


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

Left: Kurt and Melissa Godwin get rid of pesky insects with their Mosquito Joe franchise in Baltimore and Annapolis, MD. Photo by Poon Watchara-Amphaiwan.<br />

Right: Windows gleam throughout Fort Worth, TX thanks to Window Genie franchisees Patty and Chuck Street, who are seen here with John Lumme, their Lead Tech.<br />

(from left to right)<br />

It’s a good idea to set business hours at home<br />

and to make your family members aware of<br />

them and the importance of respecting them.<br />

This will help you stay focused and productive.<br />

“Although we provide our franchisees with<br />

a system, roadmap and lots of training on how<br />

to execute, they no longer have someone looking<br />

over their shoulder. They are their own<br />

boss, which means that at the end of the day,<br />

they have to follow through and be relentless<br />

if they want their business to get them where<br />

they want to go,” says Hopkins of Office Pride.<br />

“Results do not magically happen,” says<br />

Black of Rhea Lana’s. “You have to be a selfmotivator.<br />

The reality of working hard and<br />

not seeing a profit for the first two years was<br />

difficult at times even though corporate told<br />

me it would probably be three years before I<br />

saw a profit. It was seeing the success of other<br />

Rhea Lana’s franchisees who had persevered<br />

that kept me going.”<br />

Focus<br />

Many franchisees initially can be overwhelmed<br />

and find it difficult to focus on what is important<br />

at the right time. It can be easy to get<br />

sucked into the minute details of the business.<br />

“Our Franchise Advisors help our operators<br />

stay on task,” says Hutcheson of U.S.<br />

Lawns. “They help them set actionable goals<br />

and prioritize them so they can hit each one. If<br />

you don’t have goals then you are just doing<br />

stuff, but most likely not making progress.”<br />

Hiring and Managing Others<br />

For many franchisees, finding the right staff<br />

and training them is one of the most challenging<br />

aspects of their business. Doing so is<br />

a worthwhile investment since it will prevent<br />

you from having to consistently spend precious<br />

time hiring and training new employees<br />

due to turnover.<br />

“One of the biggest frustrations for our<br />

franchisees is hiring and keeping good staff,”<br />

says Bunchman of JumpBunch. “We offer them<br />

tools to manage their employees, as well as<br />

universal background checks and online programs<br />

that help them to train their coaches.”<br />

“When interviewing, you have to have a<br />

good instinctual feeling for a candidate and<br />

understand what their expectations are,” says<br />

ShelfGenie franchisee Ric Trahan. “I look for<br />

people with a solid values system, who are<br />

team players, good at customer service, and<br />

able to effectively communicate.”<br />

HOW TO BEGIN YOUR QUEST<br />

FOR A LOW-COST FRANCHISE<br />

By reading this report, you are already off to<br />

a great start in your search for a proven franchise<br />

that suits your personal and financial<br />

goals. Doing the following may help clarify the<br />

direction you should take.<br />

Identify Your Interests<br />

For every interest, there is a low-cost opportunity<br />

available such as cleaning, business services,<br />

recreation, art, health and travel. While some<br />

franchisees invest in a concept they have had<br />

prior experience with, many do not.<br />

“Our top five performers were tired of the<br />

rat race and joined us in order to have more<br />

time to be with their families,” says Bunchman<br />

of JumpBunch. “Two have an IT background,<br />

one was a lobbyist, one was an ad executive<br />

and the other managed a large sales team.”<br />

Assess Your Skills<br />

Understand your strengths and your weaknesses<br />

and how they relate to what the business<br />

requires to be successful. In some cases you can<br />

hire for your weaknesses, (bookkeepers, etc.) as<br />

mentioned earlier. Even so, you will most likely<br />

have to do the bulk of the hands-on work while<br />

getting started, so it’s a good idea to invest in a<br />

concept you are very comfortable with.<br />

Set a Budget<br />

How much can you afford to invest in the<br />

business and still be able to live the way you<br />

are accustomed to until it is profitable? Be sure<br />

to ask if the franchise you are interested in<br />

offers any discounts for minorities or veterans<br />

if you qualify.<br />

Continued on page 12.<br />

6 | For more information on this report, visit: www.FranchiseBusinessReview.com


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

Additional Considerations Before Investing<br />

There are many variables to consider when analyzing a low-cost franchise opportunity.<br />

1 Franchisee Satisfaction<br />

If the brand has been around for a while, but you can’t<br />

find any franchisees to speak with who have been with the<br />

company for five or more years, this is a big red flag. If the<br />

franchise you are considering has been featured on one of<br />

our top franchises lists, look to see if it opted to provide<br />

its satisfaction report within the Franchise Reviews section<br />

of www.FranchiseBusinessReview.com. It is interesting<br />

to note that of the franchisees we surveyed, 40% have<br />

owned their business for five years or less and 60% have<br />

owned it for more than five years.<br />

6<br />

2<br />

Number of Successful <strong>Franchises</strong><br />

Find out what the number of franchise closings or nonrenewal<br />

rates have been over the past few years. The lower<br />

the percentage, the better. If it’s high, find out why. Scrutinize<br />

Item 20 of the Franchise Disclosure Document (FDD), which<br />

contains all unit growth and turnover info. Multiple resales<br />

and/or transfers can indicate a troubled system.<br />

Profitability<br />

There is no connection between the amount you invest<br />

in a franchise and how much money you’ll earn.<br />

The FDD, however, may provide you with examples of<br />

average franchisee financial performance. Even if these<br />

examples are available, there is no guarantee that you will<br />

earn the same revenue since so many variables are involved<br />

including how long the franchisee has been in business<br />

and location. The best way to obtain an idea of how much<br />

money you might make is to ask franchisees about their<br />

experience.<br />

“Our franchisees each enjoy the same level of support<br />

and tools, but it is their individual drive that ultimately<br />

determines the success they achieve. Our Huntsville, AL<br />

franchisee did over $1.7 million in sales as outlined in our<br />

item 19, but not all our franchisees grow that big,” says<br />

Hopkins of Office Pride Commercial Cleaning Services. Item<br />

19 is where financial performance information is disclosed<br />

by franchisors in their FDD, but the level of detail varies.<br />

3<br />

4<br />

Training & Support<br />

Find out what kind of human and virtual support you<br />

will receive initially and on an ongoing basis. Ask the<br />

franchisees you speak with if their business needs are met<br />

by the franchisor.<br />

“In addition to having permanent training materials<br />

and helpful information available online 24/7, we send<br />

new information every day to our franchisees. They also<br />

receive a video essay about a different topic, and a Q&A<br />

each week,” says Meigs of Visiting Angels. “To ensure our<br />

franchisees have the right gross profit margin, are properly<br />

staffed and efficiently marketing themselves on the local<br />

level, we conduct in-person one-on-one consultations.”<br />

Equipment & Supplies<br />

How much equipment and supplies will you need?<br />

Does the franchisor offer any financing assistance or<br />

have pricing arrangements with vendors? Don’t forget<br />

future equipment and supply needs when crunching your<br />

numbers. Equipment doesn’t last forever and supplies<br />

run out.<br />

“We have financing programs for a variety of things<br />

including equipment, vehicles and business services,” says<br />

U.S. Lawns’ Hutcheson. “We also have preferential pricing<br />

with suppliers of fertilizer, grass seed etc. and pass the<br />

savings on to our owners.”<br />

7<br />

8<br />

Growth<br />

Can you add additional units or territories? This factor<br />

ties into profitability, since most multi-unit operators make<br />

more than single unit operators. To learn more about multiunit<br />

ownership, read our <strong>Top</strong> Multi-Unit <strong>Franchises</strong> report<br />

at www.FranchiseBusinessReview.com.<br />

Want vs. Need<br />

Since there are typically fewer costs associated with<br />

low-cost franchises, this can make it easier to survive an<br />

economic downturn. A key consideration is whether or<br />

not customers will need what you are offering if the<br />

economy tanks. Are the products or services you’ll be<br />

providing nice-to-have or need-to-have?<br />

“The cost of having a child participate in one of<br />

our programs ranges from $8-$15 per week,” says<br />

Bunchman of JumpBunch. “The pricing, coupled with<br />

parents’ understanding that their kids are happier and<br />

healthier when they are active, means our business has<br />

experienced a steady upward curve throughout bad and<br />

good financial times.”<br />

“The healthcare sector always grows in revenue and<br />

employment even during recessions,” says Meigs. “As baby<br />

boomers age, their significant needs will only get greater,<br />

which equates to an ongoing revenue stream for our<br />

franchisees.”<br />

5<br />

Fees<br />

Although royalty fees are not included in startup costs,<br />

it is essential that you consider them when analyzing the<br />

franchise investment. Although most franchises charge<br />

a percentage of revenues, some charge a flat monthly<br />

fee. In addition, most have some form of marketing fund<br />

contribution. Find out how much everything will cost and<br />

how it could impact cash flow.<br />

Our Franchise Buyer’s Toolkit<br />

provides all the resources you need<br />

to make an informed investment.<br />

You only have<br />

one chance<br />

to make the right<br />

franchise choice.<br />

www.FranchiseBusinessReview.com/Toolkit<br />

For more information on this report, visit: www.FranchiseBusinessReview.com | 7


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

THE LIST<br />

Best of the Best:<br />

<strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong><br />

<strong>Franchises</strong><br />

* Visiting Angels — more on p. 16<br />

In-home senior care<br />

Weed Man<br />

Lawn care<br />

Survey<br />

Date<br />

June<br />

2014<br />

Jan.<br />

2014<br />

Startup<br />

Investment<br />

$65,935 –<br />

$89,685<br />

$40,000 –<br />

$60,000<br />

Cash<br />

Requirement<br />

$37,950 –<br />

$45,950<br />

Total<br />

Units<br />

515<br />

$50,000 545<br />

Cruise Planners<br />

Travel agency<br />

May<br />

2014<br />

$495 –<br />

$9,995<br />

$10,495 1,455<br />

“They consistently<br />

reevaluate their programs,<br />

technology and training<br />

to make sure they are<br />

giving the franchise<br />

owner the best possible<br />

edge in a competitive<br />

market.”<br />

– Cruise Planners Franchisee<br />

MaidPro<br />

House cleaning & maid services<br />

* Heaven’s Best Carpet Cleaning<br />

Carpet cleaning<br />

* Sandler Training — more on p. 13<br />

Business consulting & coaching<br />

* Our Town America — more on back cover<br />

Advertising services<br />

Proforma<br />

Print & promotional product supplier<br />

* Painting with a Twist<br />

Paint & sip<br />

Apr.<br />

2014<br />

Jan.<br />

<strong>2015</strong><br />

June<br />

2014<br />

Sep.<br />

2014<br />

Dec.<br />

2014<br />

Jan.<br />

<strong>2015</strong><br />

$45,000 –<br />

$114,509<br />

$28,900 –<br />

$64,000<br />

$73,000 –<br />

$105,125<br />

$49,000 –<br />

$85,000<br />

$4,730 –<br />

$50,195<br />

$89,300 –<br />

$143,300<br />

$45,000 188<br />

$15,000 1,304<br />

$100,000 181<br />

$89,000 57<br />

$0 – $29,500 700<br />

$67,500 –<br />

$107,500<br />

216<br />

Best In Class Education Centers<br />

Tutoring services<br />

July<br />

2014<br />

$69,500 –<br />

$114,100<br />

$40,000 31<br />

Rhea Lana’s<br />

Children’s consignment<br />

Dec.<br />

2014<br />

$16,050 –<br />

$33,050<br />

$8,000 –<br />

$10,500<br />

80<br />

Fit4Mom<br />

Fitness<br />

Sep.<br />

2014<br />

$2,359 –<br />

$18,185<br />

$2,359 –<br />

$18,185<br />

233<br />

“The franchisor cares about<br />

all the franchisees equally<br />

and always contributes to<br />

our success.”<br />

– In Home Pet Services Franchisee<br />

* Window Genie — more on p. 17<br />

Window cleaning<br />

* National Property Inspections<br />

Commercial & home inspection services<br />

* CruiseOne — more on p. 14<br />

Travel agency<br />

July<br />

2014<br />

Feb.<br />

<strong>2015</strong><br />

April<br />

<strong>2015</strong><br />

$89,800 –<br />

$139,000<br />

$34,900 –<br />

$36,900<br />

$495 –<br />

$9,800<br />

$60,000 –<br />

$80,000<br />

$39,550 –<br />

$42,000<br />

$495 –<br />

$9,800<br />

197<br />

221<br />

975<br />

CarePatrol<br />

Assisted living placement services<br />

Oct.<br />

2014<br />

$63,000 –<br />

$78,000<br />

$54,500 135<br />

American Prosperity Group<br />

Financial services<br />

Feb.<br />

<strong>2015</strong><br />

$85,000 –<br />

$105,000<br />

$100,000 20<br />

*This brand’s Franchisee<br />

Satisfaction Report is available at<br />

www.FranchiseBusinessReview.com<br />

In Home Pet Services<br />

Pet sitting & dog walking service<br />

ShelfGenie<br />

Shelving solutions<br />

Oct.<br />

2014<br />

Oct.<br />

2014<br />

$9,100 –<br />

$31,200<br />

$70,100 –<br />

$125,250<br />

$9,100 –<br />

$31,200<br />

13<br />

$70,000 172<br />

10-year Hall of Fame Member<br />

Featured on our Best of the Best List for 10 consecutive years<br />

* HouseMaster<br />

Professional home inspections<br />

Oct.<br />

2014<br />

$60,100 –<br />

$107,900<br />

$75,000 314<br />

8 | For more information on the companies in this report, visit www.FBR50.com


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

Survey<br />

Date<br />

Startup<br />

Investment<br />

Cash<br />

Requirement<br />

Total<br />

Units<br />

American Poolplayers Association<br />

Pool league<br />

Sep.<br />

2014<br />

$16,704 –<br />

$19,874<br />

$16,704 –<br />

$19,874<br />

319<br />

Men In Kilts<br />

Window cleaning<br />

Aug.<br />

2014<br />

$50,650 –<br />

$129,400<br />

$100,000 13<br />

Miracle Method Surface Refinishing<br />

Bathroom & kitchen remodeling<br />

Nov.<br />

2014<br />

$85,000 –<br />

$125,000<br />

$75,000 –<br />

$110,000<br />

137<br />

* Mosquito Joe<br />

Mosquito control services<br />

The Mosquito Authority<br />

Mosquito control services<br />

* Soccer Shots<br />

Youth sports<br />

* JumpBunch<br />

Youth sports & fitness<br />

* Homewatch CareGivers<br />

In-home senior care<br />

* Office Pride — more on p. 17<br />

Commercial cleaning services<br />

A All Animal Control<br />

Wildlife control & removal<br />

Aug.<br />

2014<br />

Jan.<br />

<strong>2015</strong><br />

Oct.<br />

2014<br />

Jan.<br />

<strong>2015</strong><br />

June<br />

2014<br />

Oct.<br />

2014<br />

Oct.<br />

2014<br />

$63,850 –<br />

$119,250<br />

$50,000 –<br />

$70,000<br />

$31,742 –<br />

$38,500<br />

$40,300 –<br />

$73,500<br />

$83,250 –<br />

$136,000<br />

$29,900 –<br />

$59,000<br />

$10,750 –<br />

$41,615<br />

$30,000 –<br />

$55,000<br />

$20,000 –<br />

$40,000<br />

114<br />

375<br />

$29,500 166<br />

$35,000 –<br />

$77,000<br />

54<br />

$50,000 227<br />

$29,900 127<br />

$5,000 36<br />

“Quite frankly, it has<br />

always seemed like they<br />

were there for just me.<br />

They respond very quickly<br />

and help you with any<br />

obstacle you encounter.<br />

I honestly don’t know<br />

how they keep up with<br />

all of us, they must be<br />

highly organized.”<br />

– Mosquito Joe Franchisee<br />

Fit Body Boot Camp<br />

Fitness<br />

April<br />

<strong>2015</strong><br />

$27,700 –<br />

$100,500<br />

$27,700 –<br />

$100,500<br />

146<br />

Just Between Friends — more on p. 13<br />

Children’s consignment<br />

Oct.<br />

2014<br />

$24,074 –<br />

$33,668<br />

$14,900 150<br />

* FirstLight HomeCare<br />

In-home senior care<br />

Right at Home<br />

In-home senior care<br />

Aire-Master of America<br />

Commercial hygiene service<br />

Leather Medic<br />

Leather & vinyl repair service<br />

* Pillar To Post Home Inspectors<br />

Professional home inspections<br />

May<br />

2014<br />

Feb.<br />

<strong>2015</strong><br />

Dec.<br />

2014<br />

Sep.<br />

2014<br />

Sep.<br />

2014<br />

$85,281 –<br />

$128,659<br />

$76,700 –<br />

$127,100<br />

$35,584 –<br />

$126,900<br />

$49,500 –<br />

$59,500<br />

$33,150 –<br />

$42,550<br />

$65,000 125<br />

$150,000 418<br />

$30,000 –<br />

$50,000<br />

$25,000 –<br />

$59,500<br />

106<br />

23<br />

$10,000 458<br />

“They consistently<br />

reevaluate their<br />

programs, technology<br />

and training to make<br />

sure they are giving<br />

the franchise owner the<br />

best possible edge in a<br />

competitive market.”<br />

Amazing Athletes<br />

Early childhood development<br />

July<br />

2014<br />

$34,150 –<br />

$55,650<br />

$18,500 85<br />

– Help-U-Sell Franchisee<br />

Surface Specialists Systems<br />

Home remodeling<br />

Nov.<br />

2014<br />

$43,200 –<br />

$56,000<br />

$25,000 44<br />

Help-U-Sell Real Estate<br />

Real estate<br />

Feb.<br />

<strong>2015</strong><br />

$25,000 –<br />

$97,000<br />

$17,500 99<br />

For more information on the companies in this report, visit www.FBR50.com | 9


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

THE LIST<br />

Best of the Best:<br />

<strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong><br />

<strong>Franchises</strong><br />

Auto Appraisal Network<br />

Automotive appraisal service<br />

Murphy Business & Financial<br />

Business brokers<br />

Survey<br />

Date<br />

Oct.<br />

2014<br />

Jan.<br />

<strong>2015</strong><br />

Startup<br />

Investment<br />

$12,000 –<br />

$30,000<br />

$54,450 –<br />

$113,600<br />

Cash<br />

Requirement<br />

$3,000 –<br />

$5,000<br />

Total<br />

Units<br />

25<br />

$30,000 170<br />

PropertyGuys.com<br />

Real estate<br />

Sep.<br />

2014<br />

$45,000 –<br />

$92,000<br />

$40,000 –<br />

$70,000<br />

119<br />

Estrella Insurance<br />

Financial services<br />

Sep.<br />

2013<br />

$49,000 –<br />

$84,000<br />

$20,000 –<br />

$50,000<br />

94<br />

You’ve Got MAIDS<br />

House cleaning & maid services<br />

March<br />

2014<br />

$37,999 –<br />

$130,842<br />

$37,999 –<br />

$130,842<br />

45<br />

Kid’s Closet Connection<br />

Children’s consignment<br />

Jan.<br />

<strong>2015</strong><br />

$12,000 –<br />

$17,000<br />

$12,000 –<br />

$17,000<br />

40<br />

Realty ONE Group<br />

Real estate<br />

Aug.<br />

2014<br />

$30,000 –<br />

$195,000<br />

$30,000 –<br />

$195,000<br />

50<br />

“I feel like improvements<br />

are made whenever<br />

possible to help us stay<br />

ahead of the game and<br />

offer an ever-increasing<br />

quality of product to<br />

our customers.”<br />

– TGA Premier Golf & Tennis Franchisee<br />

* Payroll Vault<br />

Payroll services<br />

WOW 1 DAY PAINTING<br />

Painting<br />

360clean<br />

Commercial cleaning services<br />

Sit Means Sit<br />

Dog training<br />

Service Team of Professionals<br />

Property restoration services<br />

Oct.<br />

2014<br />

Jan.<br />

2014<br />

May<br />

2014<br />

April<br />

2014<br />

March<br />

<strong>2015</strong><br />

$42,000 –<br />

$69,000<br />

$90,000 –<br />

$140,000<br />

$15,500 –<br />

$80,000<br />

$45,000 –<br />

$93,850<br />

$54,000 –<br />

$131,043<br />

$50,000 22<br />

$50,000 27<br />

$7,500 85<br />

$45,000 82<br />

$54,000 –<br />

$131,043<br />

39<br />

The Glass Guru<br />

Window restoration<br />

Oct.<br />

2014<br />

$30,000 –<br />

$130,000<br />

$30,000 –<br />

$130,000<br />

84<br />

* Mosquito Shield<br />

Mosquito control services<br />

July<br />

2014<br />

$73,100 –<br />

$91,800<br />

$100,000 35<br />

Buildingstars<br />

Commercial cleaning services<br />

Oct.<br />

2014<br />

$1,995 –<br />

$39,995<br />

$500 572<br />

TGA Premier Golf & Tennis<br />

Youth sports<br />

Aug.<br />

2014<br />

$13,150 –<br />

$62,200<br />

$13,150 –<br />

$62,200<br />

70<br />

Paul Davis Emergency Services<br />

Emergency home services<br />

Feb.<br />

2014<br />

$41,784 –<br />

$147,824<br />

$50,000 113<br />

ActionCOACH<br />

Business coaching<br />

Feb.<br />

2014<br />

$61,250 –<br />

$108,441<br />

$35,000 237<br />

United Country Real Estate<br />

Real estate<br />

Sep.<br />

2014<br />

$16,290 –<br />

$38,850<br />

$15,000 432<br />

The @WORK Group<br />

Recruiting services<br />

Feb.<br />

<strong>2015</strong><br />

$91,500 –<br />

$149,500<br />

$50,000 85<br />

10 | For more information on the companies in this report, visit www.FBR50.com


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

Survey<br />

Date<br />

Startup<br />

Investment<br />

Cash<br />

Requirement<br />

Total<br />

Units<br />

Preferred Care at Home<br />

In-home senior care<br />

Jan.<br />

2014<br />

$62,500 –<br />

$84,500<br />

$43,500 83<br />

U.S. Lawns<br />

Commercial grounds care<br />

Sep.<br />

2014<br />

$51,500 –<br />

$79,300<br />

$30,000 262<br />

APEX Fun Run<br />

School fundraising program<br />

Oct.<br />

2014<br />

$60,500 –<br />

$86,200<br />

$10,000 56<br />

Viamark Advertising<br />

Marketing services<br />

Oct.<br />

2014<br />

$37,000 –<br />

$66,050<br />

$40,000 14<br />

Baby Boot Camp<br />

Fitness programs<br />

Feb.<br />

2014<br />

$4,790 –<br />

$10,200<br />

$4,000 –<br />

$6,000<br />

126<br />

Critter Control<br />

Wildlife control & removal<br />

Welcomemat Services<br />

Printing & marketing services<br />

THE TUTORING CENTER<br />

Tutoring services<br />

* Happy and Healthy Products<br />

Distributer, healthy snacks<br />

The Traveling Photo Booth — more on p. 14<br />

Photography<br />

Jet-Black<br />

Asphalt sealcoating & repair<br />

Image One<br />

Commercial cleaning services<br />

4 Pillars Consulting<br />

Financial consulting<br />

* Showhomes Home Staging<br />

Home staging<br />

Boulder Designs<br />

Landscape design<br />

Oct.<br />

2014<br />

June<br />

2014<br />

April<br />

2014<br />

March<br />

<strong>2015</strong><br />

March<br />

<strong>2015</strong><br />

March<br />

2014<br />

Jan.<br />

<strong>2015</strong><br />

Dec.<br />

2014<br />

Jan.<br />

<strong>2015</strong><br />

Sep.<br />

2014<br />

$12,250 –<br />

$80,500<br />

$56,000 –<br />

$83,850<br />

$90,000 –<br />

$130,000<br />

$45,000 –<br />

$90,000<br />

$44,350 –<br />

$62,250<br />

$44,440 –<br />

$104,310<br />

$24,750 –<br />

$103,208<br />

$11,000 –<br />

$47,000<br />

117<br />

$75,000 46<br />

$39,000 64<br />

$24,508 –<br />

$89,045<br />

65<br />

$16,000 22<br />

$16,475 –<br />

$36,035<br />

$24,750 –<br />

$103,208<br />

97<br />

76<br />

$61,500 $61,500 42<br />

$45,300 –<br />

$78,000<br />

$55,965 –<br />

$129,800<br />

$10,000 55<br />

$40,000 94<br />

“The support that I have<br />

received from the<br />

managing partners over<br />

the past 2 years has been<br />

awesome. The guidance<br />

and business coaching<br />

has not only given me<br />

more confidence in what<br />

I am currently doing, but<br />

also for what is coming<br />

in the near future. I don’t<br />

know where they find<br />

the time to do everything<br />

they do but it is very<br />

much appreciated. They<br />

genuinely care about<br />

the franchisees.”<br />

CareBuilders at Home<br />

In-home senior care<br />

Aug.<br />

2014<br />

$68,750 –<br />

$97,000<br />

$75,000 13<br />

– 4 Pillars Consulting Franchisee<br />

FPC National<br />

Personnel consultants<br />

Oct.<br />

2014<br />

$50,000 –<br />

$100,000<br />

$75,000 –<br />

$100,000<br />

64<br />

Caring Senior Service<br />

In-home senior care<br />

April<br />

2014<br />

$58,585 –<br />

$102,450<br />

$35,000 60<br />

The Grout Doctor<br />

Grout repair services<br />

Dec.<br />

2014<br />

$20,405 –<br />

$33,415<br />

$20,405 –<br />

$33,415<br />

71<br />

NYS Collection Eyewear<br />

Eyewear retailer<br />

Oct.<br />

2014<br />

$13,580 –<br />

$97,148<br />

$13,580 –<br />

$97,148<br />

50<br />

For more information on the companies in this report, visit www.FBR50.com | 11


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

Continued from page 6.<br />

What a Typical <strong>Low</strong>-<strong>Cost</strong><br />

Franchisee Looks Like<br />

62%<br />

28%<br />

male/female<br />

10% partnerships<br />

Median age range:<br />

45 – 54<br />

82 %<br />

Caucasian<br />

64%<br />

have a Bachelors degree<br />

or higher<br />

15%<br />

have an Associates degree<br />

21%<br />

have a high school diploma<br />

11 %<br />

are military veterans<br />

Focus Your Search<br />

After deciding which franchise concepts interest<br />

you most and fit your budget, you’re ready<br />

to begin narrowing down your choices. An<br />

experienced franchise consultant can help you<br />

do so by analyzing whether or not you are a<br />

good fit for a particular business opportunity.<br />

Connect With the Franchisor<br />

Contact the brand’s corporate office to find out<br />

what the investment requirements are and what<br />

kind of training and support you would receive.<br />

It’s a good idea to also ask what they feel makes<br />

their top franchisees successful as well as what<br />

their advantages are over competitors.<br />

Scrutinize the FDD<br />

Read the Franchise Disclosure Document<br />

(FDD) very carefully. It clearly defines what<br />

the franchisor will do for you and what they<br />

expect of you. There are 23 sections to<br />

review, so we suggest that you consult an<br />

established franchise attorney. He can ensure<br />

you understand every aspect of the FDD and<br />

alert you to any red flags. An in-depth breakdown<br />

of the FDD, presented as on-demand<br />

video segments, is featured in our Franchise<br />

Buyer’s Toolkit. It is available at www.<br />

FranchiseBusinessReview.com/Toolkit.<br />

Interview Franchise Owners<br />

The best feedback will come from those who<br />

know the most about the franchise opportunity<br />

you are considering—franchisees who own it.<br />

“It’s essential to find out how supportive<br />

the franchise is of the concerns and needs of<br />

franchisees,” says U.S. Lawns franchisee, Kirk.<br />

Even though our List features low-cost<br />

opportunities with the most satisfied franchisees,<br />

you should still take the time to speak<br />

with at least a dozen current franchise owners.<br />

Once a franchisor determines you are a<br />

qualified candidate, you’ll be provided with<br />

franchisees’ contact information. When you<br />

start reaching out to them, keep in mind<br />

that they are busy. Try sending a brief e-mail<br />

outlining why you are contacting them that<br />

asks if there is a good time for you to call.<br />

Remember, they don’t have to get back to you,<br />

so it is important to keep your tone friendly,<br />

professional and appreciative. It is worth being<br />

persistent since you will obtain insight regarding<br />

whether or not the franchise can meet<br />

your goals via your conversations. You can<br />

also ask a few owners if they would be willing<br />

to have you job-shadow them so you see what<br />

running the franchise is really like.<br />

Find Funding<br />

You can obtain funding via a bank or less<br />

traditional methods such as:<br />

• Security-backed loans: Enable you to<br />

take a loan using a financial portfolio,<br />

such as a mutual fund, as collateral. There<br />

are several potential advantages to doing<br />

so. First, you can leave your portfolio in<br />

place, which enables it to grow. Second,<br />

because the loan is backed by your portfolio’s<br />

value, the interest charged will<br />

be lower than for an unsecured loan.<br />

It is important to note that the risk<br />

of borrowing against the value of your<br />

securities is that if your investments fall<br />

in value, the money borrowed will<br />

emphasize your losses.<br />

• Rollovers as Business Start Up (ROBS):<br />

You can invest up to 100% of your retirement<br />

funds into a franchise without<br />

taxes, penalties or a loan via ROBS. You<br />

must have at least $50k in eligible retirement<br />

accounts such as an IRA, 401(k),<br />

or 403(b). Your retirement funds can<br />

be combined with a spouse’s, partner’s<br />

or traditional business loans. Since the<br />

money is yours interest free, ROBS can<br />

increase your chances of being profitable<br />

sooner. That said, there are setup fees, and<br />

on-going maintenance fees associated<br />

with doing a ROBS transaction. Consult<br />

with your tax professional to determine if<br />

this the best option for you.<br />

“About half of our new franchisees use their<br />

401K to fund their franchise fee,” says Hopkins<br />

of Office Pride. “The rest pay for it in cash.”<br />

“We funded our U.S. Lawns franchise using<br />

our 401K and savings after which we had no<br />

cushion. It was very unsettling, but worth the<br />

discomfort to be where we are today,” says Kirk.<br />

12 | For more information on this report, visit: www.FranchiseBusinessReview.com


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong><br />

Most Profitable*<br />

<strong>Low</strong>-<strong>Cost</strong> Sectors<br />

Sector<br />

Median Income<br />

Business Services $87,500<br />

Senior Services $75,000<br />

Advertising/Sales $62,500<br />

* Data based on franchisees who have owned<br />

their business for two or more years.<br />

ACHIEVING SUCCESS IN FRANCHISING<br />

One of the biggest advantages to franchising is<br />

that you can get your business off the ground<br />

faster since you are implementing a proven<br />

business model. Your franchisor already went<br />

through the typically painful and expensive<br />

period of trial and error to establish it. We’ve<br />

spoken to a lot of franchisors and franchisees<br />

over the years, and hear time and time again<br />

that franchisees who do not appreciate this<br />

fact and “go cowboy”, meaning they do not<br />

follow the system, always face unnecessary<br />

challenges as a result.<br />

In addition to adhering to the business model,<br />

successful franchising requires diligence, motivation<br />

and commitment. When you first start<br />

your business, you’ll have to work hard to<br />

strategically promote it via marketing, participating<br />

in community events, networking and<br />

other means in order to be noticed in your<br />

market. Once you have customers, you’ll have<br />

to meet or exceed their expectations.<br />

“To be a successful franchisee, you don’t<br />

need a fancy-pants business degree, but you<br />

need to be likable, have a strong entrepreneurial<br />

spirit and an incredible work ethic, be a<br />

great problem solver, have a hankering to be<br />

your own boss and the desire to find financial<br />

freedom and generate real wealth,” says Stewart<br />

of The Traveling Photo Booth.<br />

As you begin exploring franchise concepts,<br />

please keep in mind that a franchise is<br />

not a get-rich-quick scheme. It necessitates<br />

just as much dedication as any small business.<br />

Be sure you understand every aspect needed<br />

to run it successfully. A good place to begin<br />

your search is our List. Check to see if<br />

any of the brands you are interested in<br />

share their franchisee satisfaction reports at<br />

www.FranchiseBusinessReview.com. If they<br />

do, you’ll learn a lot about their leadership,<br />

culture, training and support, and financial<br />

outlook.<br />

RATED THE #1<br />

TRAINING FRANCHISE<br />

BY ENTREPRENEUR MAGAZINE<br />

FOR 12 YEARS INCLUDING <strong>2015</strong><br />

Sandler Training is a global network<br />

of sales and management trainers<br />

with hundreds of training centers<br />

throughout the world. Become a<br />

Franchise Owner and be at the<br />

forefront of a business niche that<br />

is growing exponentially, with the<br />

support of a pioneer and leader in<br />

the training industry.<br />

BUILD ON THE<br />

LEADERSHIP<br />

OF SANDLER TRAINING<br />

FranchiseBusinessREVIEW <br />

has recognized<br />

Sandler Training as the<br />

#1 Business Services<br />

Franchise in <strong>2015</strong>.<br />

SANDLERFRANCHISING.COM<br />

800-669-3537 ext. 2033<br />

© <strong>2015</strong> Sandler Systems, Inc. All rights reserved. S Sandler Training Finding Power In Reinforcement<br />

(with design) is a registered service mark of Sandler Systems, Inc.<br />

For more information on this report, visit: www.FranchiseBusinessReview.com | 13


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong> // MARKETPLACE<br />

Sandler Training<br />

Startup Investment: $73,000 – $105,125<br />

Cash Requirement: $100,000<br />

Total Units: 181<br />

Sandler Training is the leader in innovative sales<br />

and sales management training. We have over<br />

235 training centers in major cities throughout<br />

the country and around the world, offering<br />

instruction in a dozen languages. Entrepreneur<br />

Magazine has ranked Sandler as the No. 1 training<br />

franchise nine times. Our training is designed to<br />

create lasting performance improvement rather<br />

than the motivational “quick fix” typical of many<br />

seminar-based training programs. The demand<br />

for quality sales training has rarely been greater<br />

than it is today. As a Sandler franchisee, you can<br />

tap this vast market—and beyond.<br />

For more information on Sandler Training<br />

opportunities, call (800) 669-3537 x2005<br />

or visit www.sandler.com.<br />

Our Town America<br />

Startup Investment: $49,000 – $85,000<br />

Cash Requirement: $89,000<br />

Total Units: 57<br />

Our Town is America’s premier welcoming<br />

organization. Since 1972, we have been<br />

connecting new movers with the businesses<br />

they are searching for by mailing warm gifts<br />

from neighborhood businesses in a premium<br />

gift certificate package. Thousands of satisfied<br />

business owners throughout the United States<br />

attest to the success and effectiveness of our<br />

program, while dozens of locally owned Our<br />

Town franchises validate our success as a viable<br />

business opportunity.<br />

For more information on Our Town America<br />

opportunities, call (727) 345-0811 x232<br />

or visit www.ourtownamerica.com.<br />

14 | For more information on the companies in this report, visit www.FBR50.com


Rhea Lana’s<br />

Startup Investment: $16,050 – $33,050<br />

Cash Requirement: $8,000 – $10,500<br />

Total Units: 80<br />

Rhea Lana’s is a national children’s consignment<br />

franchisor that was founded in 1997. As the<br />

leader in the industry, Rhea Lana’s offers<br />

trusted, upscale consignment opportunities<br />

to entrepreneurs across America. Rhea Lana’s<br />

trademarked and innovative software provides<br />

real-time tracking of sales for consignors, as<br />

well as item entry via voice recognition, item<br />

guarantee, and consignor checks on the final<br />

event day. Because of these superior consignor<br />

services, our franchisee management technology<br />

and our unwavering franchise support, we are the<br />

best in children’s consignment.<br />

For more information on Rhea Lana’s<br />

opportunities, call (501) 499-0009<br />

or visit www.rhealana.com/franchiseopportunities.<br />

HouseMaster<br />

Startup Investment: $60,100 – $107,900<br />

Cash Requirement: $75,000<br />

Total Units: 314<br />

For the past 35 years, HouseMaster has been<br />

empowering people from a diverse array of<br />

backgrounds to realize their dreams of business<br />

ownership and to help others. A HouseMaster<br />

franchise is one of the most affordable ways to<br />

develop a successful business in the growing<br />

home inspection industry. As part of the<br />

HouseMaster team, you will receive all of the<br />

training, systems, tools, and support you need<br />

to succeed. Your passion will be rewarded when<br />

you give customers peace of mind regarding and<br />

knowledge to protect their greatest investment—<br />

their home. Now is a great time to join our team!<br />

For more information on HouseMaster<br />

opportunities, call (800) 526-3930 or visit<br />

www.housemaster.com.<br />

The Mosquito Authority<br />

Startup Investment: $50,000 – $70,000<br />

Cash Requirement: $20,000 – $40,000<br />

Total Units: 375<br />

At Mosquito Authority ® , we don’t just kill<br />

mosquitoes. We are the experts in the emerging<br />

mosquito control market. We keep our finger on<br />

the pulse when it comes to all things mosquito<br />

control, from mosquito-borne disease and<br />

environmental responsibility to customer<br />

satisfaction and marketing best practices.<br />

We have developed THE standard for proper<br />

control with our proprietary REPEL+PLUS<br />

protocol, which allows us to offer every Mosquito<br />

Authority customer our exclusive “No Mosquito<br />

Guarantee.” And we do it all for one reason: the<br />

personal and financial freedom and flexibility<br />

that comes with owning a Mosquito Authority<br />

franchise is every entrepreneur’s dream.<br />

For more information on The Mosquito<br />

Authority opportunities, call (800) 709-1190<br />

or visit www.bugsbite.com.<br />

WARNING:<br />

BUYING THE WRONG FRANCHISE<br />

CAN SERIOUSLY DAMAGE YOUR FINANCIAL HEALTH.<br />

When you invest in a franchise, you have only one chance to make the RIGHT choice —<br />

one that will give you and your family a bright future. Franchise Business Review can help.<br />

Our Franchise Buyer’s Toolkit provides all the resources you need to make an informed franchise<br />

investment. Learn the ins and outs of buying a franchise, get tips from the pros, and access insider<br />

insights that you won’t find anywhere else.<br />

Learn more at FranchiseBusinessReview.com/Toolkit<br />

For more information on the companies in this report, visit www.FBR50.com | 15


SPECIAL REPORT: <strong>Top</strong> <strong>Low</strong>-<strong>Cost</strong> <strong>Franchises</strong> // MARKETPLACE<br />

Just Between Friends<br />

Startup Investment: $24,074 – $33,668<br />

Cash Requirement: $14,900<br />

Total Units: 151<br />

Just Between Friends (JBF) is North America’s<br />

leading children’s and maternity consignment<br />

sales event franchise. JBF <strong>Franchises</strong> offer sales<br />

events in safe, organized shopping venues two<br />

to three times per year. Local families sign up as<br />

consignors to sell new and gently used children’s<br />

and maternity items. Shoppers attend the events<br />

to purchase items they need at discounted<br />

prices—often 50-90% off retail. Just Between<br />

Friends provides franchisees with innovative<br />

branding and marketing materials as well as the<br />

latest technology needed to build a successful,<br />

community-supporting business. Just Between<br />

Friends is actively seeking franchises across the<br />

U.S. and Canada.<br />

For more information on Just Between Friends<br />

opportunities, call (918) 230-1371 or visit<br />

www.jbfsale.com/franchising.jsp.<br />

Murphy Business & Financial<br />

Startup Investment: $54,450 – $113,600<br />

Cash Requirement: $30,000<br />

Total Units: 170<br />

Murphy Business & Financial Corporation, LLC<br />

provides new or experienced business brokers<br />

with the support to build a successful business<br />

brokerage firm with multiple revenue streams.<br />

These include ownership transfers, business<br />

valuations, equipment appraisals and sales,<br />

mergers/acquisitions, preferred franchise sale<br />

referrals and property management.<br />

For more information on Murphy Business &<br />

Financial opportunities, call (727) 725-7090<br />

or visit www.murphyfranchise.com.<br />

The Glass Guru<br />

Startup Investment: $30,000 – $130,000<br />

Cash Requirement: $30,000 – $130,000<br />

Total Units: 84<br />

The Glass Guru is the world leader in glass<br />

restoration, repair, and replacement. Our cuttingedge<br />

window restoration process provides<br />

property owners with an environmentallyfriendly<br />

way to restore foggy windows, at about<br />

half the cost of traditional replacement. In<br />

addition to restoration services, our franchise<br />

locations offer an extensive array of replacement<br />

glass products, as well as window and entry door<br />

replacements, shower enclosures, in-glass pet<br />

doors, mirrors and frames, and more! The Glass<br />

Guru provides franchise owners with a winning<br />

concept, allowing us to become the fastest<br />

growing company in the glass, window, and door<br />

industry.<br />

For more information on The Glass Guru<br />

opportunities, call (916) 865-4417 or visit<br />

http://franchise.theglassguru.com.<br />

16 | For more information on the companies in this report, visit www.FBR50.com


Image One<br />

Startup Investment: $24,750 – $103,208<br />

Cash Requirement: $24,750 – $103,208<br />

Total Units: 76<br />

The commercial cleaning industry is one of the<br />

fastest growing service industries in the United<br />

States. Image One Franchisees provide services<br />

that are in demand today, and will continue to<br />

be well into the future. As business formation<br />

rates continue to increase, the demand for<br />

top-of-the-line commercial cleaning services<br />

has never been greater, creating the perfect<br />

opportunity for you to leverage an amazing<br />

opportunity as you join the Image One franchise<br />

program. Franchise Owners, no matter their<br />

background, benefit from our solid systems and<br />

brand and will be able to operate a competitive<br />

business in their own market.<br />

For more information on Image One<br />

opportunities, call (630) 616-1010<br />

or visit www.imageonefranchise.com.<br />

For more information on the companies in this report, visit www.FBR50.com | 17

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