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Research Report of 50 Franchises under $50K

Published by: Franchisehelp Inc

Published: Jun. 1, 2007 - 103 Pages


Table of Contents


1. 50 Low Cost Franchises Listed Alphabetically(Minimum Initial Investment under $50K)

2. Introduction and Methodology for 50 Low Cost Franchises Under $50K

3. Low Cost Franchises: Description of Business and Logos

4. Low Cost Franchises Organized by Categories

Pie Chart: Franchises Organized by Category

5. Franchise Fee, Royalty & Advertising Fees

6. Investment Analysis Chart

Graph: Average Unit Investment

7. Franchise Term & Renewal

8. Item 20 UFOC Information: Unit Closures by number and percentages

9. Training Program

10. Contacts for Management & Franchise Development

11. Summary and Selection of FranchiseHelp’s Three Best Low-Cost Franchises

Abstract

FranchiseHelp’s June 2007 Low-Cost Franchises Research Report examines 50 franchises with minimum initial investment under $50,000. We looked at important franchise elements such as:
  • Franchisee fees
  • Investment Analysis
  • Franchise Units closed
  • Training Programs
  • And much more.
Everything is charted so you can compare and contrast the different franchise systems easily. Also included as appendixes are the Earnings Statements from those Franchises which provided this in the Uniform Franchise Offering Circular (Item 19 in the UFOC) - a $595.00 value, if purchased separately.

Who should buy this report?

This report is valuable for the following:
  • Potential Franchise Buyers with limited investment capital
  • Franchise Buyers looking to maximize their return on investment (ROI)
  • Current Franchisees on the lookout for a new, great opportunity
  • Franchisors, see what the competition is all about and how your system compares.
  • Potential Franchisors, receive valuable information and insight on how a low investment franchise is structured.
How did we select the low investment franchise companies for our detailed analysis?

FranchiseHelp utilized the January 2007, 28th Annual Franchise 500 of Entrepreneur magazine to begin compiling our own low investment listings. All 50 of our franchise entries have been honored as a Franchise 500 company for the current year. After looking at Entrepreneur’s compilation, we only examined those franchise companies where after further research we determined that the minimum initial investment was under $50,000. Then, utilizing the company’s Franchise Offering (UFOC), we extracted the information most important in the evaluation of a franchise system. Lastly, we entered all the document information into charts for easy comparison.

FranchiseHelp’s Selection of the Top 3 Low Investment Franchises

First of all, we eliminated all those franchises that had an annual franchise closure rate (for the last year available) of more than 10% after we excluded all transfers.

Next, we looked at the following factors to make our final selection of the top 3:

1. Marketability of the business product or service (especially in regards to population, demographics and perceived market needs)
2. Competition in the business category
3. Ability of the franchise to service the franchisee satisfactorily
4. Chance of Franchisee achieving a reasonable return on investment (ROI)

FranchiseHelp’s Three Best Low Investment Franchises from the original 50 are revealed at the end of the study.

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