Best Franchise Under $50K (2024)
April 5, 2024
April 5, 2024
Franchises, with their established brands and business models, help budding entrepreneurs skip the early struggles new businesses experience—but not without a price. Initial investments can be hefty.
So it only makes sense to wonder, “What’s the best franchise under $50K?”
We’ll look at 31 different franchises with initial investments (or franchise fees) of $50K or less to help you decide which is best for you. We cover a range of industries, from pressure washing to fast food to real estate. You’re sure to find something that meets your needs.
The franchise opportunities below can all be started with a total initial investment of $50,000 or less.
Service-based franchises make excellent low-cost opportunities. Brown’s Pressure Washing earns our No. 1 spot as the best franchise to own because of the top-notch support and training they provide to franchise owners.
There are several advantages to opening a Brown’s franchise. For instance, there’s high consumer demand for pressure washing services, the business model gives you flexibility to set your own schedule, and overhead costs are low.
Founder Joshua Brown built Brown’s Pressure Washing from scratch and has turned it into a $2M-a-year business. His franchise model is designed to help other entrepreneurs with no industry experience achieve success with their own businesses. You can learn more about how Joshua started in this YouTube video:
• Franchise Fee: $20,000
• Total Initial Investment: $50,000-$100,000
• Royalty Fee: 10%
• Space Needed: 100-2,000 square feet
• Employees: Can hire employees or use subcontractors
• Territories: Multiple territories allowed
• Funding Assistance: Third-party financing available
Having the backing of a big-name company is one of the biggest advantages of pursuing franchise opportunities. You’ll get that with H&R Block, one of the best-known tax preparation services in the United States.
The low cost of owning an H&R Block franchise makes it very accessible, while the consistent demand for tax preparation services gives you a ready pool of potential customers.
All of these benefits are why Entrepreneur called it the best franchise opportunity in tax services for 2024.
• Franchise Fee: $2,500
• Total Investment: $31,700-$158,317
• Royalty Fee: 30%
• Space Needed: 100-2,000 square feet
• Employees: 1+
• Territories: Exclusive territories available
• Funding Assistance: In-house financing available
The extensive training and hands-on support Realty One Group gives franchisees is what makes it the top real estate and property management franchise company.
It’s also the No. 1 real estate franchise opportunity for 2024, according to Entrepreneur, and was among the “top recession-proof franchises” highlighted by Franchise Business Review in 2023.
• Franchise Fee: $20,000-$25,000
• Total Investment: $48,250-$227,500
• Royalty Fee: 2%
• Space Needed: 100-2,000 square feet
• Employees: 3+
• Territories: Exclusive territories available
• Funding Assistance: Third-party financing available
The low cost of an Augusta Lawn Care franchise is the first reason it’s on our list of franchises under $50K. It also offers a low overhead and multiple revenue streams in the lawn care and landscaping space.
Service-based franchises offer franchisees a lot of flexibility. You can run the business from your home or a storage unit, and you don’t need to make a full-time commitment to find success with this business model.
The strength of the Augusta Lawn Care brand is another way the company stands out in the landscaping franchising world. You can hear founder Mike Andes’s insights into how he built his brand in this YouTube interview:
• Franchise Fee: $6,999-$25,000
• Total Investment: $12,999-$82,500
• Royalty Fee: $600-$1,200 per month
• Space Needed: Minimal (mobile-friendly)
• Employees: 2-6
• Territories: Exclusive territories available
• Funding Assistance: Third-party financing available
Go Oil provides at-home oil changes and tire services. Since it’s a mobile business, franchises don’t need a brick-and-mortar space. This keeps startup costs low and reduces the time it takes to start earning revenue.
New franchisees are provided with the service van and all the payment processing, customer management, and marketing systems they’ll need to achieve success.
Oil changes are a slam dunk service if you want a business with high consumer demand, considering roughly 92% of U.S. households own at least one car. That ready customer base is what puts Go Oil among the top franchises under $50K to start in 2024.
• Franchise Fee: $9,900
• Total Investment: $23,125-$56,300
• Royalty Fee: 10%
• Space Needed: Minimal (mobile-friendly)
• Employees: 1-2
• Territories: Available across Canada and the U.S., exclusive territories available
• Funding Assistance: In-house and third-party financing available
Another top low-cost franchise opportunity in the automotive niche, Colors on Parade provides mobile dent and paint repair. This business has benefits similar to Go Oil, with a ready customer base and low overhead and startup costs.
The company was founded in 1991 and has grown to over 200 locations across North America, so you’ll get a proven business model when you become a franchisee. You can start a Unit/Operator Franchise for $50K (or less), and there are also Area Representative options if you want to scale up down the line.
• Franchise Fee: $2,500-$7,500
• Total Investment: $21,450-$97,500
• Net Worth Requirement: $10,000-$500,000
• Cash Requirement: $10,000-$200,000
• Royalty Fee: 7%-30%
• Space Needed: Minimal (mobile-friendly)
• Employees: 1+
• Territories: Exclusive territories available
• Funding Assistance: In-house and third-party financing available
Brightway Insurance franchisees can choose from three levels, letting them tailor their startup costs to their budget and goals.
You also don’t need any insurance industry experience to start a Brightway franchise. The company provides over 150 hours of comprehensive training, along with innovative systems and centralized marketing, customer service, and accounting support.
Brightway’s proven business model is built on partnerships with a wide variety of insurance carriers across all 50 states. This makes owning a Brightway franchise an effective way to earn stable, recurring revenue in any economic climate.
• Franchise Fee: $10,000-$50,000
• Total Investment: $22,000-$159,000
• Cash Requirement: $30,000-$150,000
• Royalty Fee: up to 50%
• Space Needed: 900-1,300 square feet
• Employees: 1-3
• Territories: Available across the United States
• Funding Assistance: In-house and third-party financing available
Surface Specialist is a kitchen and bath repair company that has been franchising since 1982. It has warranty repair agreements with more than 80 bathtub manufacturers, and its variety of restoration options gives franchisees multiple revenue streams.
The kitchen and bath remodeling startup cost is low when you franchise with Surface Specialists. New owners get extensive classroom and hands-on training as well as ongoing marketing and operational support.
• Franchise Fee: $36,000
• Total Investment: $43,200-$56,000
• Net Worth Requirement: $75,000
• Cash Requirement: $25,000
• Royalty Fee: 5%
• Space Needed: 100-2,000 square feet
• Employees: 1+
• Territories: Exclusive territories available across the U.S. and Canada
• Funding Assistance: In-house financing available
The versatility of Champs Chicken makes it one of the best low-cost food franchises under $50K.
The most affordable way to get started is inside another business, like a convenience or grocery store. It’s among the most affordable franchise opportunities in the food industry.
• Franchise Fee: $0
• Total Investment: $9,000-$349,000
• Net Worth Requirement: $35,000-$65,000
• Cash Requirement: $35,000-$65,000
• Royalty Fee: None
• Space Needed: Varies depending on format
• Employees: 2+
• Territories: Exclusive territories available
• Funding Assistance: Third-party financing available
Chefs For Seniors is a food franchise under $50K with a heartfelt mission. The company provides professional in-home meal prep and cooking services for the elderly.
You don’t need to be a chef to have success with a Chefs for Seniors franchise. They provide full training and support, including over 30 hours of on-site instruction at the company headquarters in Wisconsin.
• Franchise Fee: $8,000-$13,000
• Total Investment: $12,575-$29,375
• Royalty Fee: 8%
• Space Needed: Minimal (mobile-friendly)
• Employees: 1+
• Territories: Exclusive territories available across the United States
• Funding Assistance: Third-party financing available
Chester’s is a quick-serve chicken restaurant that has grown to more than 1,300 locations since its founding in 1952. Its franchising business model is similar to Champs Chicken’s above, with most locations operating within businesses like supermarkets or truck stops.
Even though it’s a large company, every franchisee gets access to a single point of contact who guides them through the opening process. Franchisees also get full training in key food industry management concepts, like improving margins and minimizing waste, to help maximize revenue.
• Franchise Fee: Up to $3,500
• Total Investment: $27,500-$296,500
• Royalty Fee: Varies
• Space Needed: Varies depending on format
• Employees: 8
• Territories: Exclusive territories available
• Funding Assistance: Third-party financing available
A brick-and-mortar space is a hefty investment and adds ongoing costs that can be prohibitive if you have a modest budget.
These franchises under $50K can be run as mobile or home-based businesses, giving them low overhead and affordable startup costs.
For animal lovers, Sit Means Sit lets you open a dog training business quickly and at a low startup cost.
Its proven business model starts with a specialized training approach at a three-week event in Las Vegas. They also provide regional seminars for ongoing development.
Sit Means Sits franchises regularly earn $1M or more in annual revenue, so this is definitely a business with high earning potential.
• Franchise Fee: $17,500
• Total Investment: $31,775-$128,850
• Net Worth Requirement: $50,000
• Cash Requirement: $20,000
• Royalty Fee: 9%
• Space Needed: Minimal (mobile-friendly)
• Employees: 1+
• Territories: Exclusive territories available
• Funding Assistance: Third-party financing available
Stratus Building Solutions is the leading green commercial cleaning franchisor. It also regularly ranks on Entrepreneur Magazine’s list of top 100 franchises for less than $50K.
Stratus offers two business models for prospective franchisees. The Janitorial Unit franchise is ideal as a home-based business and has a low commercial cleaning startup cost.
Multiple revenue streams make this a very scalable franchise model, as well, with a low overhead that translates to high profit margins.
• Franchise Fee: $3,600-$69,000
• Total Investment: $4,450-$79,750
• Royalty Fee: 5%
• Space Needed: Minimal (mobile-friendly)
• Employees: 1+
• Territories: Available across the United States and Canada
• Funding Assistance: In-house financing and veteran discounts available
Most real estate franchisors require franchisees to have a physical office, but NextHome is different. NextHome franchises can be run from anywhere for a low investment and overhead that makes it super accessible.
The technology at the heart of the NextHome business model is unique among real estate franchise opportunities. NextHome’s streamlined home buying process is designed to appeal to millennial customers, the most active generation in the current real estate market. This gives their franchisees high earning potential while keeping their costs low.
The company also gives franchisees a choice of how to pay ongoing fees and the option of a 1-year or 5-year renewable agreement.
• Franchise Fee: $4,500-$8,750
• Total Investment: $16,250-$220,345
• Royalty Fee: $200-$210 per month
• Space Needed: Minimal (mobile-friendly)
• Employees: 1+
• Territories: Available across the United States
• Funding Assistance: Third-party financing available
In the aftermath of the pandemic and the disruptions it brought to education, at-home tutoring is a booming industry. Club Z!’s in-home and online tutoring is available for students of all grade levels and across subjects, giving franchise owners a potentially broad customer base.
Most franchise owners don’t provide the tutoring themselves. Instead, they manage a team of tutors who offer 1-on-1 instruction and test prep.
More than 350 owners have already put the proven business model of Club Z! tutoring to the test in their area, and there are plenty more territories available. The low franchise costs and strong owner support are what earn Club Z! a spot on our list of the best franchises under $50K.
• Franchise Fee: $19,750-$39,750
• Total Investment: $33,475-$57,425
• Net Worth Requirement: $100,000
• Cash Requirement: $30,000-$50,000
• Royalty Fee: 6%-8%
• Space Needed: None
• Employees: 1+
• Territories: Exclusive territories available
• Funding Assistance: Third-party financing services
TSS Photography specializes in photographing youth athletes and sporting events. It has also expanded its business model to include church groups, families, and other school functions.
The company doesn’t charge royalties on bookings, and franchise owners get territorial rights to an area with at least 100,000 people. It’s also an ideal business for parents since you get full control over your working hours.
For photographers and visual artists, TSS Photography can take your entrepreneurial journey in a new direction. But thanks to the high-quality training that new owners receive, you don’t need to be a pro photographer to start.
• Franchise Fee: $8,500
• Total Investment: $20,415-$74,725
• Net Worth Requirement: $50,000
• Cash Requirement: $10,500-$25,000
• Royalty Fee: None
• Space Needed: Minimal (mobile-friendly)
• Employees: 2
• Territories: Exclusive territories available
• Funding Assistance: In-house and third-party financing available
Founded in 2000, ShelfGenie allows its customers to customize affordable pull-out shelving and cabinets. It’s the only national franchise in this sector and has more than 275 franchises across North America.
Owning a ShelfGenie franchise links you to this supportive network. You’ll also get over 100 hours of training before opening day, along with proprietary software, operational support, and national and regional advertising.
• Franchise Fee: $29,500-$69,500
• Total Investment: $38,700-$133,600
• Cash Requirement: $50,000
• Royalty Fee: 5%-7%
• Space Needed: 100-2,000 square feet
• Employees: 1+
• Territories: Available throughout the U.S. and Canada
• Funding Assistance: Third-party financing and veteran discounts available
Leadership Management International helps people reach their professional and personal goals through programs and courses. With nearly 500 franchises worldwide, its broad private network of franchise owners is an excellent support system for aspiring entrepreneurs.
The company also provides 40 hours of classroom training and ongoing development, so you can count on them to set you up for success throughout your entrepreneurial journey.
• Franchise Fee: $15,000
• Total Investment: $20,000-$27,500
• Royalty Fee: 6%
• Space Needed: Minimal (mobile-friendly)
• Employees: 2-10
• Territories: Exclusive territories available worldwide
• Funding Assistance: In-house and third-party financing available
The turnkey nature of the franchise model can be ideal for entrepreneurs who want to run a business on the side. Here are the best franchises to open as part-time or side businesses.
If you love to travel (or to help other people do it), Dream Vacations is an affordable opportunity to be your own boss in the travel planning niche.
This is the #1 home-based travel franchise business and among the top cheap franchises in any industry. Dream Vacations franchise owners also get travel perks, a proven business model, and the industry’s highest commissions.
Along with its potential as a side hustle, this is another franchise you can open as a home-based business.
• Franchise Fee: $495-$10,500
• Total Investment: $1,795-$21,000
• Royalty Fee: Up to 3%
• Space Needed: None
• Employees: 1+
• Territories: Available throughout the U.S.
• Funding Assistance: In-house financing and veteran discounts available
Jan-Pro consistently ranks among the top 10 franchises under $50K by Entrepreneur Magazine and held the #1 spot on the list in 2023.
Commercial cleaning is a booming industry, and Jan-Pro’s proven track record and dedicated sales team make it easy for new franchisees to attract customers.
This is also a flexible franchise opportunity, with variable franchise costs to match your budget and revenue goals. For those with a modest budget, it has the lowest commercial cleaning startup cost of any franchise opportunity.
• Franchise Fee: $2,520-$44,000
• Total Investment: $4,830-$58,070
• Royalty Fee: 10%
• Space Needed: Minimal (mobile-friendly)
• Employees: 1+
• Territories: Exclusive territories available
• Funding Assistance: In-house financing available, 50% veteran discount
Martinizing is an established name in the dry cleaning industry. Its system was first developed in 1949, focusing on providing fast, full-service dry cleaning at an affordable cost. In the six decades since, it has expanded to 350 U.S. locations and more worldwide.
There are multiple ways to get started with a Martinizing franchise. The most affordable—and flexible—is their Martinizing Delivers route. In this business model, you don’t have to worry about the overhead and staffing of a store; instead, you pick up and drop off laundry for your clients.
You can also open a Satellite Store, a dry cleaning plant with a retail store, or convert an existing dry cleaner to the Martinizing brand.
• Franchise Fee: $25,000-$62,500
• Total Investment: $36,050-$743,622
• Net Worth Requirement: $100,000-$500,000
• Cash Requirement: $40,000-$150,000
• Royalty Fee: 6%
• Space Needed: Varies depending on format
• Employees: 2-4
• Territories: Exclusive territories available
• Funding Assistance: Third-party financing available
Sign Gypsies is a fast-growing yard sign company and one of the most affordable franchise business opportunities. You can get up and running quickly, with most locations open within 4-6 weeks of signing their franchise agreement.
Another unique thing about Sign Gypsies: It charges absolutely no royalty fees. Franchise owners keep 100% of their sales, so the work you do will translate straight to money in your pocket.
• Franchise Fee: $1,000
• Total Investment: $4,150-$9,900
• Royalty Fee: None
• Space Needed: Minimal (mobile-friendly)
• Employees: 1-2
• Territories: Exclusive territories available across the U.S. and Canada
• Funding Assistance: Not available
This company was born in 2008 with a group of moms who decided to run a 5K. It has since expanded to more than 40 franchise locations.
As a Moms on the Run owner, you’ll help motivate women (moms and otherwise) to reach their fitness goals. This mission, along with its super-low startup cost, makes it an ideal side hustle opportunity for parents.
• Franchise Fee: $8,495
• Total Investment: $9,890-$17,095
• Cash Requirement: $10,000
• Royalty Fee: $195+ per month
• Space Needed: Minimal (mobile-friendly)
• Employees: 1+
• Territories: Exclusive territories available across the United States
• Funding Assistance: Third-party financing available
The American Poolplayers Association is the largest amateur pool league in the world. As a franchise owner, you operate a league, organize events, build teams, and spread the love of pool across your area.
Along with a low initial investment, the royalty fees are based on how many teams you manage, which is the ideal cost structure for part-time franchisees.
Franchisees also get marketing support and a private network of APA staff and fellow franchise owners who can share knowledge and help you solve problems.
• Franchise Fee: $10,000-$12,000
• Total Investment: $23,211-$29,026
• Royalty Fee: $2.50+ per team per week
• Space Needed: Minimal (mobile-friendly)
• Employees: 1-3
• Territories: Exclusive territories available worldwide
• Funding Assistance: Third-party financing available
With Skyhawks, you run camps and after-school programs for 4- to 12-year-olds, while SuperTots focuses on programs for kids under 5. Both have low costs, with three levels of initial investment to match your budget and goals.
Skyhawks & SuperTots is a franchise opportunity that lets you make a difference in your community while you grow your own business. It’s among the top franchises to run as a side hustle because the business model gives you complete control to set your own schedule.
• Franchise Fee: $15,000-$42,500
• Total Investment: $30,300-$89,750
• Net Worth Requirement: $100,000
• Cash Requirement: $57,250-$89,750
• Royalty Fee: 5%-9%
• Space Needed: Minimal (mobile-friendly)
• Employees: 1-7
• Territories: Available worldwide, including exclusive territories
• Funding Assistance: Third-party financing and veteran discounts available
For aspiring entrepreneurs who have a bit more wiggle room on their total startup costs, here are some other excellent low-cost opportunities with an initial franchise fee of $50,000 or less.
One way to save on the commercial cleaning startup cost is to operate as a remote business. That’s how Neel Parekh achieved financial independence with MaidThis, a 100% remote cleaning business that today brings in $1.5M in annual revenue.
You can find out how Neel started this business opportunity in his interview with UpFlip:
After seven years of success, MaidThis started offering franchising opportunities in 2020 to help other entrepreneurs become their own bosses with a low investment.
One way Neel grew his business was by niching down on the booming industry of Airbnb cleaning, but there are multiple revenue streams you can explore with a remote cleaning franchise model. That versatility is another reason it made this list.
• Franchise Fee: $39,000
• Total Investment: $50,400-$72,650
• Royalty Fee: 7%
• Space Needed: 100-2,000 square feet
• Employees: 1+
• Territories: Multiple territories allowed
• Funding Assistance: Third-party financing available
Spray-Net’s patented pressure-spray technology provides homeowners and area developers a new way to renovate.
Spray-Net provides multiple services, including exterior painting, kitchen cabinet painting, and roof re-granulation. These multiple revenue streams can boost a franchise’s earning potential.
Franchisees get access to extensive training and the “Spray-Network” of fellow entrepreneurs. Add in the proven track record of success, and it’s clear why this is among the best franchises. You can learn more about Spray-Net in this interview:
• Franchise Fee: $45,000
• Total Investment: $170,825-$241,825
• Net Worth Requirement: $200,000
• Cash Requirement: $100,000
• Royalty Fee: 8%
• Space Needed: 100-2,000 square feet
• Employees: 4-5
• Territories: Exclusive territories available (can buy more than one)
• Funding Assistance: Third-party financing available
Here’s another great service-based franchise with multiple revenue streams. EverLine provides pavement maintenance and line painting services that help businesses and area developers keep their exterior spaces appealing to customers.
It’s the leading parking lot and pavement service company in North America, as well as a regular Award of Excellence winner from the Canadian Franchise association.
The recession-resistant business model and potential for long-term recurring revenue are other advantages of franchising with EverLine. You can learn more about the company from this YouTube interview:
• Franchise Fee: $49,500
• Total Investment: $164,744-$332,443
• Net Worth Requirement: $250,000
• Cash Requirement: $75,000
• Royalty Fee: 9% or $500 per territory + 3% (whichever is greater)
• Space Needed: 100-2,000 square feet
• Employees: 3 per location on average
• Territories: Available across the U.S. and Canada (can buy more than one)
• Funding Assistance: Third-party financing available
Here’s another chance to be your own boss in the home improvement industry. Wise Coatings is among the premier epoxy-flooring and garage-floor-coating businesses in the U.S., and that brand recognition can help you quickly build customer loyalty.
While the initial cost of owning a Wise Coatings franchise is a bit higher than other options on this list, the low ongoing costs give it the potential for high profit margins. It can be run as a mobile business, and you’ll get access to exclusive products and exceptional support as a business owner.
You can learn more about how founder Brandon Vaughn started the company in his interview with UpFlip:
• Franchise Fee: $50,000
• Total Investment: $117,400-$160,000 (including three months working capital)
• Net Worth Requirement: $125,000
• Cash Requirement: $50,000
• Royalty Fee: 5%
• Space Needed: 100-2,000 square feet
• Employees: 2-4 (suggested)
• Territories: Discount for buying multiple territories
• Funding Assistance: Yes, through Benetrends (learn how to qualify)
Papa Murphy’s sells bake-at-home pizzas, a large and growing industry valued at more than $46B.
Restaurant franchises often have startup costs in the seven figures, which is why we still consider Papa Murphy’s a comparatively cheap food franchise. The initial franchise fee is still under $50K, and financing is available to help cover the other expenses.
• Franchise Fee: $25,000
• Total Investment: $308,469-$557,879
• Net Worth Requirement: $350,000
• Cash Requirement: $125,000
• Royalty Fee: 5%
• Space Needed: 1,200-1,400 square feet
• Employees: 12-17 on average
• Territories: Available in 23 U.S. states
• Funding Assistance: Third-party financing available
Graze Craze is a charcuterie franchise that offers takeout, delivery, and catering. What makes it unique from other food franchises is that there’s no on-site cooking, which means no need for expensive kitchen equipment.
As a franchise owner, you get a turnkey process that includes software, equipment, and furnishings, along with a regional representative. You can also scale to a Master License opportunity if you plan to grow your franchise beyond a single store.
• Franchise Fee: $49,500
• Total Investment: $150,000-$200,000
• Royalty Fee: 6%
• Space Needed: 1,000-1,500 square feet
• Employees: 3-5
• Territories: Available in all U.S. states
• Funding Assistance: Third-party financing available
At this point, you should have a good idea of the types of franchises available and which ones interest you.
Make sure to carefully read the franchise disclosure document and other paperwork before buying any franchise. You want to make you’re investing your $50K wisely.
What franchising business interests you?
Brandon Boushy
Want to start earning a passive income? People still need cash and learning how to start an ATM business (ATM means automatic teller machine) can be a great way to make a passive income. Take it from someone who is already an ATM owner.
[su_quote]I was a cop working 60 to 80 hours a week and neglecting my family. My back was really against the wall. I decided to start an ATM business to start earning passive income.[/su_quote]
From starting a side business in 2017, Paul Alex grew to $15 million in annual revenue with his company ATM Together. Now, he helps people automate their own ATM businesses. He makes it easy to:
[su_note note_color="#dbeafc"]
Don’t worry if you don’t know what all these are right now. You will by the time we explain how to own an ATM. We’ll cover all of the following, and you can click to jump to the sections that interest you most:
Starting an ATM business requires a simple seven-step process:
Find out how to start an ATM business by following the steps below.
Starting an ATM business will require understanding the ATM industry. We’ve got you covered with the information you need to become an independent ATM deployer. We’ll answer ATM industry questions like:
Starting an ATM business isn’t expensive. Paul told us:
[su_quote]You can start an ATM business for under $6,000.[/su_quote]
He broke the costs down to:
• ATM Cost: $2,100
• Limited Liability Company: Under $1,000
• Business license: Under $1,000
• Internet modem: $150
• Internet service: $7 per month
• Tools: $300-$500
• Gas: 65.5 cents per mile using IRS Mileage Rate
• ATM liability insurance: Under $1,000
Your ATM investment earns approximately $9 to $15 per day according to Paul. That converts to $3,285 to $5,475 annually or $456.25 monthly at $2 per transaction.
Paul also told us:
[su_quote]You can add toppers and sell ad space to earn an additional $50 to $250 per location each month.[/su_quote]
That means to make the $15 million annual revenue he earns, you would need approximately 4,600 ATM machines. Don’t worry, you can start off with one ATM and build from there.
Check out the rest of the interview with Paul.
Running an ATM business will take different amounts of time depending on the strategies you use. If you manage all your ATMs yourself, it will take your drive time plus up to 15 minutes to fill each machine.
But Paul told us you can hire employees or pay other companies to do it for you. That makes owning ATM machines completely passive income.
The average ATM may hold up to $200K, but you might not want that much cash in your ATM at any time. Many machines keep less than $10K in the machine at any time.
Depending on the manufacturer and the bills in the machine, you will have between one and four dispensing cassettes that hold 1,000 to 4,000 bills each. That means in rare scenarios, an ATM could hold up to $1.6M.
Next, you’ll want to create an ATM business plan to document how your ATM company will operate. A successful ATM business plan will include the following sections:
Check out our article on writing a business plan for more information.
There are certain things that every ATM operator will need to do run a successful ATM business. You’ll need to:
Keep reading for more resources about starting an ATM business.
You’ll want to consider the name for your ATM business carefully because it will represent your brand for the lifetime of the company.
Some tips for choosing a memorable name for an ATM business include:
Paul told us:
[su_quote]I wanted to help people build small businesses with ATM machines, so I named it ATM Together because we work together to help the business owners succeed.[/su_quote]
Check out our article about naming a small business for more information on choosing a name.
Next, you’ll need a legal business structure for your ATM business. You’ll go to the Secretary of State and register the business name in each state where you’ll provide ATM machines.
Paul told us:
[su_quote]You want to register as a limited liability company.[/su_quote]
Want to know more about how the business model impacts ATM providers? Consider the following.
While most businesses use these five structures to start an ATM business, there are plenty of other models for your business venture.
Next, we’ll discuss business licenses.
You’ll need an ATM business permit to comply with local requirements and zoning codes. Check with your city for the inspection requirements because each state and municipality has its own requirements. You may also need:
You will also need bank accounts for an ATM machine to accept credit or debit card transactions.
You’ll need a business bank account for your ATM machine to deposit the funds that people transfer from their bank account. Unfortunately, many ATM machine businesses have trouble finding a bank to work with.
That’s because an ATM machine requires lots of cash, which means that the bank has to do more work. The ATM business bank account will also normally have low balances, which makes it harder to earn money on the interest.
ATM Together helps you find banks that are ATM business-friendly, or you can check out the list of banks suggested by ATM Depot.
Using other banking products, like a small business loan, business credit card, and money market account may help convince banks to be more friendly to your ATM business.
You’ll want small business insurance to operate an ATM business. Some of the risks you’ll want to consider include lawsuits and theft of machines or cash. Most of these will be covered in a Business Owners Plan (BOP).
Other common small business insurance policies your ATM business may want include:
You can learn more about small business insurance or reach out to Simply Business to get an insurance quote from 16 small business insurance companies.
You’ll need to find locations to place your ATMs. Some popular places for ATM locations include:
You’ll need to buy ATM machines and other equipment to start an ATM business. Every ATM business will need:
Paul uses Hyosung Halo 2 machines and Bitcoin ATMs. Plus you can buy full routes and add toppers to sell ad space for $50 to $250 per location.
You’ll need to install all your machines in their new locations. Plus you’ll have to operate them by restocking money routinely. We’ll look at each of these next.
To install an ATM machine, you’ll need to:
Buying an ATM will require some learning during the cash machine setup. Paul suggested:
[su_quote]Program the ATM at your home or office so that you can learn what you’re doing privately.[/su_quote]
One of the things you’ll need to consider about how to start an ATM machine business is how you will refill the machines. You have three main options:
Let’s look at each of these to understand how to get ATM machines refilled.
When you first start an ATM business, you’ll want to keep startup costs low. The easiest way to do that is to do all the work yourself. That means you’ll need to learn how to work on ATM machines and how to refill ATM machines.
Paul told us:
[su_quote]Make sure to switch up your schedule. You don’t want to have a set routine because that makes it where people can plan to rob you easier.[/su_quote]
If you track each machine individually, you should be able to tell when it is getting low and go refill it. Then refill any of the ones that are on the way to it. Next time reverse the order.
Paul told us:
[su_quote]You should hire someone to manage the ATM machines once you get to 10 ATM machines.[/su_quote]
But which option is better: hiring a vaulter or hiring employees?
Vaulting services are companies that manage the refilling of your ATM for you. First National ATM provides a great overview of how to start an ATM business with no money using a vaulter.
They use the following ATM price example:
Monthly Service Fees per ATM
• Cash lending fee: Prime rate + 4 points
• Cash management fee: 3 cents per transaction
• Cash Insurance: $25 insurance on vault cash
• Armored courier: $80 per trip
They subtract those costs from the monthly revenue, which they assume will be $3 per transaction and 500 transactions per month. Effectively, their example means you are paying approximately 17% of revenue to operate the machines. That sounds way better than doing it yourself or managing employees if you want passive income.
But what does it take to hire employees?
If you want to be more active in providing ATM services, you can hire employees. This business strategy would work if you are particularly good at multiple aspects of the ATM business.
For instance, ATM Together helps people get their first ATM machine location, automate the business income, and find ATM technicians.
In general, the operating costs will be higher if you hire employees because you’ll have to implement time tracking, payroll systems, and other types of ongoing expenses.
When you hire employees, you’ll need to:
We go into more detail on hiring in other blogs. Whether you DIY, contract a vaulter, or hire, there’s still a lot to do to become a successful business. Read on for a play-by-play for growing your ATM business.
In addition to the initial equipment costs, finding a financial institution to work with, and placing and supporting your first machine, you’ll want to grow the ATM business because you’ll probably want to build more income than the couple hundred dollars you make on the first machine.
You’ll want to:
At a minimum you’ll want to create an ATM website with the following pages:
These pages will help your target market understand what you do, how you do it, and how much you charge as an independent sales organization. Learn more about website building.
As you make money, you’ll want to find more ATMs for sale so you can buy them and make more surcharges from the transaction fees. You might also want to make an ATM purchase to sell to people who want to manage their own ATM.
ATM Together makes it really easy to make a profit when you buy ATM machines at wholesale and then provide the ATM machine for sale. You can charge a one-time fee or monthly fees if you provide support to your customers.
An ATM topper is a screen that attaches to the top of an ATM to diversify your income stream. With an ATM your primary revenue is from surcharge revenue, but an ATM topper lets you earn revenue from ad views.
You can use the ads to promote your own products and companies, products and services in the store, or even outside businesses that the target market might like.
Paul told us:
[su_quote]You can make $50 to $250 per machine depending on the foot traffic.[/su_quote]
Check out how the Smartcast ATM Topper works.
[su_youtube url="https://www.youtube.com/watch?v=oVzIcWosp3w"]Credit card processing fees are a portion of your ongoing expenses. If you’re doing all this yourself, you could pay as much as 2.9% + 10 cents per transaction fee.
Meanwhile, other processors claim they can provide free payment processing. I assume the credit card costs are baked into the prices of other services they offer. See the picture below to see places where ATM Together might make profits that cover the processing network.
Reducing the fees can impact how much cash you have to buy more ATM machines. There may be other ways to save money, like outsourcing the maintenance of your machines or providing cash to vaulters to earn a percentage of their returns.
Let’s say you’re paying a Stripe processing fee of $2.9% + 10 cents per transaction, but by joining ATM Together, you pay 0% and $0 per transaction.
Number of transactions | 2.9% fee assuming $100 per transaction | 10-cent fee | Total savings by switching |
1 | $2.90 | $0.10 |
$3.00 |
10 |
$29.00 | $1.00 | $30.00 |
100 |
$290.00 | $10.00 | $300.00 |
1000 |
$2,900.00 | $100.00 | $3,000.00 |
10,000 |
$29,000.00 | $1,000.00 | $30,000.00 |
100,000 |
$290,000.00 | $10,000.00 | $300,000.00 |
The change makes it so every 10,000 transactions, you can afford another three machines.
There are numerous ways to market your ATM business including:
Nothing hurts the income of a small business like getting hit with a hefty tax bill for failing to pay your taxes. You especially don’t want to fall behind, given the IRS is charging $450 for failure to file, plus you’ll owe the full tax amount and 4% to 9% interest for failure to pay.
ATM means automated teller machine. An automated teller machine may dispense cash, manage money transfers, accept checks, buy and sell Bitcoin, and facilitate other financial transactions that make accessing funds more convenient for customers.
Next, we answer “How much does an ATM cost?”
ATMs cost between $1,900 and $29,000 depending on the style of ATM, functionality, and security. Some common pricing for ATM machines include:
• New ATMs: $2,700 to $17,000 with an average cost of $6,250
• Used and refurbished ATMs: $1,900+ (or around 80% of the cost of a new machine)
• New wall-mounted ATMs: $6,800 to $12,500
• High-end ATMs: $29,000+
You’ll also have operational costs like cash replacement, data connection, electricity, and receipt paper.
Yes, but you can use a home office and the costs will help pay for your mortgage or rent.
When you’re looking for ATM machines for sale, one option is to buy ATM businesses. You’ll want to:
Starting an ATM business can be a highly profitable venture. It’s similar to starting a vending machine business that provides money to customers. Check out our extensive resources on vending to see how you can apply them as you learn how to start ATM business operations.
Have you seen unique ATM strategies? Share them in the comments.
Did you know that 69 million vehicles need to be towed each year?
That’s nearly 190K people who call up a towing business every day.
We talked to Vanice and Vincent Serrano, founders of ASAP Towing, to find out how to start a tow truck business that makes more than $10M each year. They provide insights on how towing services make money, how to hire employees, how to become a tow truck driver, and more.
[su_note note_color="#dbeafc"] We’ll share insights, strategies, and tips. Click on one of the links below to learn more about starting a tow truck business, or just continue reading.
Vincent grew up working in auto repair shops owned by his dad, but he wanted to have a business to call his own. They already owned a tow truck and had land, so they decided to start a new tow truck company.
The business venture was mostly Vanice and one employee during its first year. About 18 months in, Vincent had to quit his day job and work at ASAP full time because it was making $250K per year.
The local tow truck company offers towing services for breakdowns, lockouts, accidents, impounds, and more. Check out our interview with Vincent and Vanice below.
Before we discuss how to start a towing company, it’s important to learn all about towing and how the industry operates. We’ll discuss:
Vincent told us starting your own towing company requires around $10,000 to get a truck, licenses, and towing equipment. We’ll discuss individual costs more in other sections.
As of January 26, 2024, the average salary for a U.S.-based tow truck driver is $44,198, with a range of $38,820–$50,211, and an average hourly rate of $18.54.
You’ll normally want to pay yourself this salary in addition to some profits from the business when you are an owner-operator.
Your location, experience, employer, skills, and education may impact the pay for tow truck driver jobs. Some drivers will also get bonuses and tips.
According to Indeed, the tow truck driver salary is highest in the following cities:
Transportation businesses normally make 30.59% gross margins and 5.91% net margins. Some people who own towing companies make up to 33.65% profit, which means that the Serranos are likely bringing in somewhere between $700K and $4 million in profits.
Because many tow truck businesses are privately held companies, it is difficult to find accurate revenue numbers for the largest towing businesses. Along with ASAP Towing, some other large tow truck businesses include:
IBIS World values the U.S. towing industry at $12.5B and expects it to grow around 2.9% in 2024. They expect it to continue growing at a faster rate after inflation settles down.
Any industry that exceeds the GDP growth in the U.S. is a great one to enter as a business owner.
Before starting a tow truck company, you will need various tools, permits, and licenses. Consult your local small business office, the DMV, or a lawyer who specializes in tow truck businesses.
A tow trucking company will normally need:
To drive a truck with below a 26,000-pound towing capacity, you only need a regular driver’s license. You’ll need a commercial driver’s license (CDL) for anything bigger.
That means you’ll need to take a CDL course, which takes about a month. Then you’ll need to pass the DMV test.
Next, we’ll look at how to start a tow truck business.
Starting a tow truck business requires special considerations because of the nature of dealing with vehicular accidents and repossessions. You’ll want to follow the process below to start a successful towing business:
1. Identify your target market.
2. Research local regulations.
3. Create a business plan.
4. Consider a startup loan.
5. Register your business.
6. Get the required licenses and permits.
7. Buy equipment and tools.
8. Develop a marketing strategy.
9. Get liability insurance.
10. Open a business bank account.
11. Provide excellent customer service.
Keep reading to learn how to start a towing business.
Tow truck companies use multiple business strategies to bring in revenue. An indispensable strategy is identifying your target market. Potential customers include:
Every towing business needs to understand the local, state, and federal laws that the automobile towing industry operates under. Make sure to check the regulations for all levels of government based on the towing services you provide.
A tow truck operator will normally be governed by federal law in two scenarios:
States and local governments will often have laws and regulations that govern the tow truck industry, including minimum tow truck insurance and CDL requirements.
You don’t have to write a towing business plan, but it won’t hurt. It will help you keep track of how your towing company is progressing toward its goals. Tow truck business plans should follow a process similar to this:
Download our business plan template, then check out our interview with Mike Andes on how to write a business plan below:
Starting a towing business isn’t cheap. With the cost of a flatbed truck, tow truck insurance, commercial auto insurance, and small business insurance, you can expect to spend $10K to start a towing company. Other sites estimate the tow truck business startup cost can range from $62 to $2M.
The Small Business Administration (SBA) offers free courses on financing options and funding programs. For info on using personal funds to start a business, check out this article from The Hartford.
Registering a tow truck business will require you to:
Having an open bank account for your business is crucial to keeping your personal finances and tow truck business finances separate. If you have a limited liability company or a corporation, you’ll also need it to get business loans and personal liability protection.
If you have a business bank account, you can also get a business credit card and potentially commercial truck financing.
You’ll want a variety of insurance policies when you own tow trucks. You’ll want:
When you own tow truck company assets, you’ll also want various types of business insurance, like general liability, a business owner's policy, and commercial property insurance. Try Simply Business to get quotes from many of the best business insurance companies.
As stated, tow trucks may require you to apply for additional permits and licenses. We suggest anyone who wants to tow vehicles reach out to a local business law attorney to verify that they have complied with all laws and regulations.
One of the major business expenses for a successful towing company is the cost of flatbed trucks for hauling wrecked vehicles. Some of the places you can find the different types of tow trucks include:
You’ll want to focus on marketing when starting a tow truck business. Vincent suggests using the following marketing for tow trucks:
Creating a website helps people get the information they need about the services you offer, how much they cost, and where your business is located.
Some services you might list on your website include:
Tow places should optimize their website for search engines for search engines. For example, adding a Google Map location to their website’s footer can help it show up higher on Google.
Vincent told us he has one company that does his videos, another that does search engine optimization, and a third that does social media. You can find all-encompassing services, as well.
Your business budget should include some expenses for advertising on Google. Vincent told us:
[su_quote]We’re spending a little over $1,000 per month on Google right now.[/su_quote]
Vincent told us that he is fairly new to Instagram, but it is starting to provide some returns. He said he has found success on Facebook.
Like many business owners, Vincent is starting to get into video marketing.
When you start a tow truck business, you can create videos about the common types of calls a tow operator gets. You can also explain how to do things like change a battery, replace a tire, and what to do in an accident—but make sure not to give any legal advice.
Established tow truck companies should spend between 2% and 10% of desired revenue on marketing, depending on whether they are marketing their towing business to businesses or consumers. Business-to-consumer companies normally spend more on marketing.
According to entrepreneur Thomas Minieri, new companies should spend up to 20% of their target revenue on marketing to help them grow faster. You will normally want to spend between 15% and 20% of your budget on advertising costs.
Despite the suggestions, many small business owners spend much less on marketing. For instance, both Kenneth and Vanice spend less than 1% of their revenue on marketing.
Tow companies need to provide great customer service. Whether you’re towing for law enforcement, a business, or people in need of repairs, you should try to be compassionate.
Towing companies often provide emergency roadside assistance, but some partner with other businesses to transport vehicles that are (often unintentionally) parked illegally. When someone gets their car towed, remember they may not have known that their car was parked improperly.
Now that you know how to start a tow truck business, let’s look at some frequently asked questions about the industry.
We’ll start with the question on everyone’s mind:
There are a few different types of trucks:
In most cases, expect to spend $25K or more.
You have to start somewhere. Kenneth suggested the following solutions:
He also told us:
[su_quote]I went looking for a loan so I could buy a tow truck and found out that you can’t get a loan to start a business unless you’ve been in business for two years.
I wound up going into it on a lease, rent to own. The truck sold for $50,000. By the time I’m done paying for the truck, it’ll be $106,000.[/su_quote]
He went on to say:
[su_quote]The benefit of leasing is you can get into a vehicle with a limited amount of money. The downfall of it is, if you don’t find the right leasing company, you’re gonna be paying them to double whatever the original amount was. So do a little diligence and find out. If they say there’s no puny penalty for prepayment, make sure that the amount is going to be adjusted.[/su_quote]
There are more ways to fund a towing company.
Common funding paths include:
The SBA offers free courses on financing options and funding programs. For info on using personal funds to start a business, check out this article from The Hartford.
Running the tow truck company is what you will spend most of your time doing. This includes aspects like hiring employees, helping customers, keeping inventory in stock, accounting, and payroll.
Kenneth had a lot to say about hiring drivers. He said the most important aspects of drivers are:
Without the required licensing, they won’t be able to earn money. But the other aspects are more important to focus on for the bigger picture. Here’s what he had to say about communication:
[su_quote][An employee is valuable] when they stay in contact with you and they keep you aware of what’s going on with your vehicle. If they’re having any problems, just tell me what your problem is. And I will give you the answer, ’cause my job is to help you.[/su_quote]
He also emphasized the importance of being mechanically inclined:
[su_quote]I’ve hired three people in the last month. I had to fire one quick because I explained to ’em, you know, the truck needs maintenance. I can’t be driving 16 hours a day and work on my truck, your truck, and everybody else’s truck.
It’s just not gonna happen. You have to take care of the truck. So, if you don’t know how to be a car mechanic, that probably is a tough spot to begin with.
I’m even willing to teach you what you need to know. I don’t have a problem with that because we succeed together as a team or we fail as a team.[/su_quote]
Find out what other people in the industry are doing:
We’ve covered how to start a tow truck company; now it’s your turn to get the licenses and permits, find some customers, get a truck, and start towing.
If you’ve already started one, what has been the most challenging part of starting an independent towing service?
ok, it is very mich. https://cncpartsxtj.com/
ok, thank you very much. it is good idea, https://www.freewing.co.uk
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