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