It may sound like a challenge, but the possibility of discovering and investing in a low cost franchise may be more realistic than one may first suspect. Not unlike the makings of a recipe that holds a top spot in an arsenal of go-to dishes, considering franchise ownership options includes some foundational ingredients that must work together for a delicious outcome.
1. It All Starts with a Key Ingredient
A few key ingredients in a recipe set the dish up for a winning meal. A low cost franchise opportunity begins the same way – the reasonable cost of entry is key.
While many of the larger players in the QSR space require minimum investments well past the $1 million mark, there are high quality franchises that exist for under $500K and are positioned for impressive industry growth over the next decade.
Some examples include franchises in the prepared meal delivery industry market – which is projected to grow at a compound annual growth rate (CAGR) of 17.15% through 2027. Fueling this growth is increasing demand for minimally processed, additive-free foods by working individuals, students and families keeping up with hectic schedules and looking for convenience without sacrificing healthier choices.
It is in this spirit that UpFresh Kitchen was founded, and grew into a low cost franchise in which a well-rounded plate of healthful, affordable and convenient meals is readily available for consumers and an equally healthy opportunity awaits hungry franchisees.
2. The Best Low Cost Franchise Opportunities – Hold the Guesswork
In addition to forecasted industry growth, potential franchisees are wise to inspect the quality of another key ingredient that goes into a rewarding low cost franchise – support systems.
How is the franchisor setting up franchise owners to grow within the category? Are there tools are in place to ensure a smooth experience during the start-up phase, and does the franchisor provide ongoing guidance in operations, marketing, and technology?
Other benefits could include help with initial site selection and build-out if the franchise operates out of a physical space; staff training materials; and accounting systems for a streamlined day-to-day experience.
Support Services to Look For
Some of the support systems in place for new UpFresh Kitchen franchise owners, for example, include assistance in ordering from selected suppliers, technology tools, and a host of procedures outlined in a comprehensive operations manual.
A pre-opening training plan onsite training upon opening are also part of the onboarding experience for UpFresh franchise owners preparing for launch and early days of business operations.
Prospective franchisees can also examine available marketing initiatives and branded promotional materials, including those assets used specifically for online and for social media strategies.
A thorough analysis of the franchisor’s resources and support systems will move the needle toward selecting the best low cost franchise opportunity for you.
3. Review the Options and Choose a Brand that Speaks to You
When it comes to meal choices, one thing that influences the decision about what to prepare is what options are available. After all, we spend a lot of time studying menus or checking out the refrigerator before choosing what we want to eat.
When thinking about investing in the best low cost franchise, brand power has a similar impact. A low cost franchise opportunity may involve a less-known brand that is still high quality and offers a lot of advantages.
What type of growth has the brand experienced in the last year or two? A small but mighty brand with the ability to generate potential revenue and offering a more accessible point of entry can give a potential franchisee an advantageous start to building a dynamic business.
4. Serve Up a Great Spot for Your Low Cost Franchise Opportunity
Another key ingredient to consider during the evaluation phase in the search for a low cost franchise opportunity is location.
First, what are the available territories? Most franchisors are looking to grow in a particular region, usually starting in the home area of the original concept and then expanding in locations outward from there. Perhaps you are open to relocation if a brand you admire is growing an area that interests you.
Whether you choose a location close to your current home or a potential new one, choosing the right spot and understanding the surrounding community is important when opening a lost cost franchise. What areas have high consumer traffic? Do you need parking or room for a drive-through? Can you retrofit an existing building, or do you need to build from the ground up? And are there complementary businesses in the neighborhood for develop relationships?
Being able to see how your prospective location fits in your preferred community as well as the franchisor’s overall growth plan can have a big impact on decision making and ultimately determining the ideal scenario for you.
5. Growth Potential: The Proof is in the Pudding
Of course, a memorable aspect of any meal is the incredible flavors it imparts. Similarly, say you are searching for the top low cost franchise opportunities in North Carolina, you will find that the ingredient with the most punch often boils down to potential.
Is there one main revenue stream, or a diversified approach that can drive growth from different angles? For instance, at UpFresh Kitchen consumers can order from weekly meal plans, request custom-made meals, purchase prepared grab-and-go items from each location, or arrange for on-site catering.
During the discovery phase, you’ll be able to speak with ownership, management and other franchise owners. Take advantage of the opportunity to ask about factors like unit growth, how many locations have opened in the last few years, and how many are going strong after their first year. These offer valuable insight into the best low cost franchise opportunities with the most bang for the buck.
Full of Good Info About Low Cost Franchise Opportunities
For many potential franchise owners, the process of identifying a low cost franchise opportunity can be seem daunting. These five things provide the right portions to start with – the details satisfy the hunger for knowledge and allow for the thoughtful planning of next steps to decide on the best low cost franchise opportunity.