Best Franchises Under 50k: Ultimate Deals for 2021

Searching for the best franchises under 50k? Well, look no further as CapitalCounselor has got you covered!

In general, franchises are a lot easier to get off the ground than independent small businesses, and for good reason too! Namely, franchises take far less time and investment (hence, they are less risky) to set up and use a pre-established business model that has been proven and perfected over time.

Like what you hear? Then keep on reading to get a glimpse of our top 10 picks below!

Affiliate Disclosure

When talking about the best franchises to own in the US, delivery ventures are never a bad idea. Enter Time To Eat Delivery.

For starters, food delivery is a growing industry with almost no overhead costs, has great income potential, and sports a semi-automated order placement system.

So far, customer reviews were mostly positive — communication was excellent and the franchise was flexible both in terms of working hours and delivery models as well.

Better yet, multiple franchises under 50k reviews mentioned that you can also design your own logo with this brand; namely, the franchise encourages each business to grow as its own separate entity.

On the other hand, you only pay a one-time fee without royalties or monthly payments.

All in all, if you want a relatively low-cost franchise, with training, a one-time fee, business flexibility, then Time To Eat Delivery is the perfect fit for you.

Pros:

• Low cost
• Comes with driver GPS tracking and delivery software
• Custom website
• Flexible work model

Cons:

• Lots of competition

Yet another one in the line of food franchises under 50k that’s worth every penny — despite the somewhat steeper initial costs, HealthyYOU Vending is still a solid choice in our opinion. 

What we liked about it, in particular, was that there are no employees, no franchise fees, marketing expenses, royalties, or post-investment fees after your acquisition; you only need to replenish your stocks.

What’s more, it comes with franchise-level support and with the flexibility of a small business.

In addition, you’ll also get help with training, identifying prime locations, etc. Plus, you get to choose your particular offer in each vending machine. Meaning, you can promote wellness in your local area with healthy snacks.

We should also point out that while being one of the top franchises under 50k, you still need to do your homework and find optimal locations for your vending machines.

Pros:

• No franchise fees
• App-operated machines
• Several payment options
• Franchise-level support

Cons:

• Finding the right machine location can be difficult

If you’re looking for a top franchise under 50k that has to do with sports, look no further than Skyhawk Sports Camps.

For one, the brand requires relatively low (9%–6%) ongoing royalty fees. Meaning, you can upscale your business with relative ease (financially speaking). Moreover, the franchise offers a wide range of support from toll-free call lines to social media and web development management.

We also liked how former employees enjoyed working for the business, praised its flexibility, and loved the home-based work (in the off-season), as well as the traveling during the summer months. 

What’s more, former military personnel get a special 30% discount, making it one of the best franchises for veterans.

Pros:

• Third-party finance options available
• Over 40 years of experience
• Good for the society
• Exceptional military discount

Cons:

• Might require a lot of traveling during the summer months

Yet another one in our series of best food franchises under 50k, Kona Ice offers more than mere nostalgia for food trucks. Namely, with Kona Ice you get to customize your base business model by either investing in a trailer, two separate trucks, or a kiosk.

We also liked the fact that it’s fairly easy to set up and that the overhead costs are ridiculously low. And to our delight, you also get access to the brand’s in-house funding, including their digital marketing strategy and support.

Albeit a solid under 50k business opportunity, like with every business venture, you need to do your homework and research every aspect of the business before jumping right in.

To sum up, Kona Ice is an excellent business venture for first-time entrepreneurs due to its fast and relatively straightforward business model.

Pros:

• In-house financing
• Constantly updated product line
• Kona Kollege (free 30-day training)
• Continuous ongoing training

Cons:

• Expenses can pile up

Sitting right in the middle of our top ten franchises under 50k is Benny’s Pizza, and for good reason too! Namely, more often than not smaller food joint franchises are costly investments, yet Benny’s Pizza requires a minimum sum of only $50k.

Also, investing in a pizza franchise makes perfect sense seeing how it’s a multi-billion dollar industry and how the demand for pizza is constantly growing.

Moreover, competition within this industry is fierce (think Domino’s, Pizza Hut, Papa John’s). Hence, starting from scratch will not only cost you more money, but you’ll also have trouble breaking through.

This is why Benny’s Pizza is probably the best food franchise on our list.

Pros:

• Growing industry
• Popular product
• SBA-approved
• Third-party financing

Cons:

• Though competition

Some of the best franchises to own in 2020 (as well as in 2021), are none other than cleaning franchises. Enter 360 Clean — a franchise offering commercial cleaning services. 

We liked the fact that they focus more on helping the franchisee than growing their own business. For instance, they will provide you with the necessary support structure to accomplish your business goals, etc. 

So far, user reviews seem to back this up, stating that the customer support is excellent and that the company has great core values, to name but a few.

Also, considering the fairly low initial investment (just $15,000), we rank it among the best small franchises when it comes to budgeting.

In addition, the franchise is primarily home-based. Meaning, overhead costs will be significantly smaller than that of larger franchises, which is great for first-time entrepreneurs. Plus, if you do fail to stand out from the crowd, you won’t lose nearly as much money as with some other ventures.

Pros:

• Exceptional support
• Positive customer feedback
• Home-based
• Great low cost franchises under $50000

Cons:

• Not available in all states

If you have previous experience in the travel industry, then you’ve probably thought about opening your own agency. Well, you’re in luck as Cruise Planners has the ideal under 50k business opportunity just for you.

To our delight, the brand offers a lot more than mere cruises; they’re partnered with travel insurance companies, land travel firms, car rental companies, and more. Meaning, you can expand your business services or focus on a specific niche within the industry.

What’s more, you’ll also get a wide palette of comprehensive marketing programs from the franchise so you won’t have to hire expensive marketing agencies.

Additionally, according to the website, Cruise Planners is also among the best franchises for veterans as it offers a 20% initial franchise fee discount.

Pros:

• Low-cost initial investment
• American Express travel partner
• Veteran and travel agent discount
• Multiple niches available within the industry

Cons:

• Tough competition

We can’t talk about the most profitable franchises under 50k and not mention real estate. Namely, Property Management Inc. offers a wide market, covering residential, commercial, association, and vacation rentals. 

What we also liked about this brand, in particular, was their ongoing support, business training, and third-party financing, as well as the opportunity to run the business as a home-based operation — hence why this ranks as one of the best franchise opportunities under 50k for people with prior knowledge of the real estate sector.

Plus, for those who aren’t as intimate with said industry, Property Management Inc. offers weekly webinars, training sessions, company resources, and everything you need to get started.

All in all, an exceptional business opportunity for those with a knack in wheeling and dealing.

Pros:

• Excellent for those with prior experience in real estate
• Small overhead costs
• Guaranteed company resources
• Available financing options

Cons:

• Demanding and tough industry

When talking about hot franchises under $50k, business coaching often comes to mind; and with good reason, too! For one, it’s a great way to monetize your vast expertise and knowledge of the business world.

Well, if that is indeed the case, ActionCoach offers a once-in-a-lifetime opportunity. More specifically, the B2B model in question offers a flexible schedule, solid profit margins, scalability, and everything one would want from a franchise. 

Being one of the best franchises under 50k certainly has its perks — free training, available financing, SBA-approved status, home-based business model, etc. Therefore, if you know your way around the industry and you’re not a relative newcomer to the game, look no further than ActionCoach.

Pros:

• Multiple financing options
• Flexible
• Small overhead costs
• Easily scalable

Cons:

• Requires prior business experience

Last but not least on our top 10 franchises under 50k list is Chem-Dry — the world’s largest carpet cleaning brand. In fact, this famous brand has been in the industry since 1977. And according to the company, their customer retention rate is around 96%, which is pretty darn impressive, to say the least.

Better yet, they offer over 3,000 locations and you can start your business with around $50,000; the initial investment depends on your location and the equipment packages you opt for.

In addition, the company provides all the necessary training, equipment, and can even help you with financing. The last feature alone would probably make this one of the best, if not the best franchise under 50k.

Nevertheless, you should always have a lot of cash on hand to meet the increasing demands and keep your business afloat (same as with any other franchise). In fact, several franchisee reviews point out that they had some minor difficulties with supplies, but nothing too serious.

Pros:

• Franchise with a trackable history
• In-house financing
• SBA-approved
• International franchise

Cons:

• May be too expensive for some

In this section, we will take a closer look at all the things you need to know before buying a franchise. From conducting the proper market research to assessing your own finances. Lastly, we’ll also mention the pros and cons of running a franchise.

Getting Started

Franchising is an excellent business venture for those looking to run an enterprise without having to deal with the nitty-gritty of a full-blown establishment.

Nevertheless, you should bear in mind that although you get the extra support and structure of a pre-existing business model, you also answer to the franchisor, which may or may not impact how you operate your business.

Most often, the best franchises to buy have at least one common characteristic: the franchisor treats the franchisee (you) as a partner. Therefore, with the right mindset, you can steadily grow your business and expand your venture thanks to the immense help you receive from your franchisor.

That said, here are four things you should consider before actually buying a franchise:

Small Business vs Franchise

How good are you at falling behind and following a predetermined business model with its own set of rules? 

The reason being, the best franchise opportunities under 50k will usually have set guidelines and requirements for you to adhere to. If you want to build your own brand and make your own unhindered financial and branding decisions, you might be better off as a small business owner.

To put it simply, with a small business of your own, you get the freedom to do whatever you want; with a franchise, you get a proven business model (read: structure and support). 

All in all, if you feel that you’d rather risk it and learn from your own mistakes than having to abide by someone else’s rules, a franchise is not for you.

Know Your Budget

In other words, you need to determine just how much you can go for without breaking the bank. If you have a smaller budget, fear not, simply look at the best franchises under 10k or less that you can find (there are a few on this list within that range). Also, crowdfunding can be one of the funding options.

Why?

Well, it’s simple really. You see, each franchise requires you to invest a fixed amount of money to get started. This capital is then used for construction, equipment, inventory, supplies, and other expenses.

In addition, costs don’t stop there. You also need to pay attention to your overhead costs, etc., as with any other small business venture. However, you might get some additional support from your franchisor (say marketing and training, for instance) free of charge.

That said, even the best cheap franchises need working capital and additional funding to get the business off the ground. Hence, if you are thinking about financing, you should know that you need a solid credit score (a score of 680), and have around 30% of the money you aim to borrow already in cash.

Do Your Homework

Before you make your decision you need to determine whether or not the franchise in question has a market demand in your area. 

For example, if you are looking for the best franchises in Texas, be sure to check out the local supply and demand, including the competition within the state. One of the most common rookie mistakes you can make is falling in love with a franchise first and only then convincing yourself about its market potential. 

After all, purchasing something that has little or no potential makes little financial sense. Therefore, research databases and look at statistics, reviews, etc. in other words, examine our reviews.

Interview the Franchisor Thoroughly 

When it comes to buying franchises under 50k, reviews often highlight the importance of speaking with the franchisor first before making any serious business decisions. Likewise, you need to make sure that you fully understand the terms of the agreement, so be ready to ask some questions in advance.

Also, invest some time in getting to know your potential franchisor. You want to be sure that you’re partnering with someone who has a genuine interest in your business and not someone with a rehearsed FAQs script.

Lastly, taking a closer look at the amount of support you will be getting from your franchisor is never a bad idea. The most profitable franchises will often offer additional training and support if necessary to ensure your success. Overall, your franchisor should be there to help you and point you in the right direction.

Types of Franchises

Despite using a predetermined business model, not all franchises are the same. Namely, there are different types of franchises that you should be aware of when looking for top franchise opportunities under 50k. 

Here are the five most common franchise types:

Job Franchise 

These are low-investment (mostly home-based) models for people looking to run a franchise on their own. This is why with this type of franchise the franchisee usually purchases only the essentials — the necessary equipment and a limited amount of supplies, for instance. 

Plumbing, travel agencies, coffee vans, domestic lawn care services, real estate services, pool maintenance, event planning, and similar fall under this category.

Distribution (Product) Franchise

Here, the franchisee distributes a certain product line from the franchisor. As a result, the franchisee gets the trademark but not the entire network of the franchisor. In general, franchises for sale under 50k are not often found under this category as they usually deal with larger products, like cars and spare car parts, computers, appliances, and so on. 

Ford, Chrysler, Exxon, Texaco, GoodYear Tires, Coca-Cola, and Pepsi are great examples of this model with the latter two even licensing the manufacturing process, or at least, parts of it.

Business Format 

In this case, the franchisee also gets the right to use the trademark along with the entire business system to run things and to market the service/product in question. 

If you are looking for the best business to start with 50k, this franchise model might be worth looking into since the franchisor will provide you with a detailed plan of business procedures, as well as additional support and training — hence why this is the most popular franchising model and the one that most people refer to when they’re talking about franchising.

Investment Franchise

More often than not, these are large-scale projects with a large capital investment (barely falling under the “best franchises under 100k” category); think hotels and large restaurant chains. With these models, the franchisee usually invests money and engages his or her own management team (or the franchisor) to operate the business to provide a return on their investment.

Conversion Franchise

A slight modification of standard franchising relationships, this model grows by converting independent small businesses of the same industry to franchise units, adopting trademarks, logos, advertising programs, client service standards, and so on.

In fact, they are often the best franchise opportunities under 50k, and the model is used extensively in the real estate industry, as well as in professional services companies and home services, including electricians, plumbing, and air conditioning.

The Pros and Cons of Franchise Ownership

As previously mentioned, running a franchise is a great way of breaking into the business world since there’s less risk involved. However, licensing agreements, company rules, and predetermined business models all confine the entrepreneur into a set structure.

So, before you start looking for the best franchise opportunities under 50k, be sure to weigh both the pros and cons of the business model in question.

Pros:

• An already-working business plan — if you’re looking to up your prospective entrepreneurship stats as a small business owner, coming up with a solid business plan is the first thing you should do. Namely, you have to design your product/service, come up with an entirely new brand and brand identity from scratch, and so on. But, if you opt for a franchise, you don’t have to mess with any of this since you are buying an already established brand.

• An easier way to secure your finances — let’s say you’re looking at franchises under $30k. If it’s a solid opportunity, you might be able to land a loan contract with said company. And while these in-house options aren’t always the best in terms of interest rates, third-party loans can be a true life-saver for those who have a harder time securing a loan from a bank.

• Less risk involved — buying a franchise means buying an already established and coveted product. As a result, there’s a good chance you’ll be running a successful business. The best small franchises are often established right off the bat; unlike new small businesses.

• More personalized business advice — if you have any questions, you can get info about a particular business from the brand itself (provided they offer their support and guidance). You can also go online and check the different stories from past owners, as well. 

Cons:

• Potentially high startup costs — even if you’ve managed to get your hands on the best franchise under 50k, chances are, your startup costs might be steeper than with an independent small business. If you literally want to start from scratch and become an entrepreneur without investing a lot of capital, a franchise might not be for you. It’s best to do the math first, check out corresponding statistics on small businesses, franchising trends, and compare them before opting for one.
  
• Limited by the brand — as previously mentioned, when you buy a franchise, you have to adhere to a set of rules and stick to the terms of the licensing agreement. Your hands are pretty much tied when it comes to the services/products you offer. Moreover, not even the best franchises under 50k will let you shake up the decor nor the uniform of your staff.
• Fees can add up — a portion of each month’s profits goes to the franchisor in accordance with your licensing agreement. What’s more, fees and other expenses can add up quickly. Hence, to get the best deal possible, hiring a lawyer to look for the business with the most agreeable terms is never a bad idea. If you can’t really wrap your head around the idea of paying monthly fees for owning a well-known brand, then owning a franchise might not be your cup of tea.

• You’re not the one entirely in control — essentially, a franchise’s brand recognition is like a double-edged sword. Even the most profitable franchises under 50k aren’t immune to scandals. This can put a huge strain on your business and your entire entrepreneurial future might be in jeopardy, albeit you did everything by the book. 

We hope our comprehensive reviews regarding the best low-cost franchises helped you gain a better understanding of what franchising is and how it works. Likewise, we hope our extensive guide at the end gave budding entrepreneurs a hand at starting a franchise of their dreams. 

And as with any financial move, you have to do proper market research and buy a franchise that you truly believe in; otherwise, you won’t be as invested.