Best Low Cost Franchise Business Ideas For 2012

Many of our visitors over the years have inquired about low cost franchise business ideas wondering if the franchise business model was a good way to start a business.  Over the years low cost franchise opportunities have changed.  While most franchise business have a large capital requirement there are several that truly low capital business opportunities.

I would, however, add that most low cost franchise ideas I've found are service based business ideas and this explains why the are inexpensive to start.  Owning a Jimmy Johns franchise is a lot different than owning a lawn care franchise, one is a service based business model the other is a retail franchise opportunity.  What are some common low cost franchise businesses?

Here is a short list of the most popular 2012 low-cost franchise business opportunities I've found:

• Cleaning Franchise Ideas
• Web Based Franchise Ideas
• Vending Type Franchises
• Consulting Type Franchise Ideas
• Handyman Franchise Ideas

This is a very general list of service based low cost franchise opportunities for 2012.  There are several in each group and some are better than others.  Much of the value, in my opinion, that a franchise offers is name recognition in YOUR local area.  There may be a low cost cleaning franchise that is well known in your region that would perform much better than better business model that isn't, just because of name recognition.

What Do Low Cost Franchise Opportunities Offer?

So what do you get when you choose to start a low cost franchise?  After all you will be paying a good chunk of cash, even if you start a franchise for under $1,000 you want to make sure you are getting value, so how do you determine value when buying a franchise? Here are the top three factors I would use in determining "bang for your buck" when it comes to starting a low start up franchise in 2012:

Exclusive Market Area
Brand Recognition
Hungry Market

If you can find a franchise you're interested in that has a low capital start up requirement, offers an exclusive market area, has a brand that you recognize, and serves a hungry market or cash in hand customers, you've got a winner.

Choosing the Best Franchise For You

I've given this simple piece of advice over a hundred times to people who are looking at low cost business opportunities. Here it is again:

Choose a business that you have a genuine interest in or even a passion for, this will serve as fuel to get through tough times and help you stay in the game until you can succeed.

Do you have franchise experience?  If you do, have you or someone you know ever started a low cost franchise?  How much capital outlay do you think qualifies for a low cost franchise, $1,000, $2,000 or $500?  If you felt you could make over $50,000 the first year of your franchise being in business, how much would you be comfortable investing?