There are plenty of ways to buy a business with no money. One of the most common strategies is called seller financing—and nearly 80% of business purchases include at least some of it.

We’re going to share some options for buying a business without money, or with very little money, up front. You’ll learn what to look for during a business acquisition and how to negotiate the deal.

[su_note note_color="#dbeafc"]If you’re looking to start buying businesses without money, click on one of the links below—or simply read on—to learn more.

• How can I buy a business without money?
  • Use seller financing
  • Get a Small Business Administration (SBA) loan
  • Bring on investors or partners
• How to buy a business with no money
  • Work with business brokers
  • Identify goals before you buy an existing business
  • Find the right business for sale
  • Value the business
  • Negotiate your deal
  • Close the deal and transition into ownership
• Why start new businesses when you can buy businesses with no money?[/su_note]

How can I buy a business without money?

There are multiple ways to buy an existing business from the current business owners. Using a combination of these strategies can help you buy a business with no money of your own. Some of the most common funding options include:

1. Using seller financing
2. Getting a Small Business Administration loan
3. Bringing on investors or partners

Let’s look into each.

Use seller financing

Seller financing, also called owner financing, is one of the most common ways of transferring ownership from a current owner to a new business owner. According to the mergers and acquisitions firm Morgan & Westfield, 80% of all small business purchases use at least some seller financing.

In deals that use seller financing, sellers fund a portion of the small business purchase in exchange for a percentage of the cash flow for a specific period after the new business owner takes over. The buyer often pays the remaining balance with a down payment and periodic installments.

The terms of the deal may look something like below:

• Percent seller finances: 10% to 20%
• Your down payment: 30% to 80%, but 50% is fairly standard
• Interest rates: 6.6% to 16.5%, comparable to the Small Business Administration's current rates
• Note duration: Three to seven years

When you propose seller financing, you’ll likely have to create and sign a promissory note and agree to a Uniform Commercial Code lien. Most sellers may require you to maintain specific financial benchmarks as well.

Get a Small Business Administration (SBA) loan

The SBA offers small business loans to people buying a small business. 7(a) loans are easier to get when buying an existing business because there is a record of profitability that new ventures do not have.

When applying for a 7(a) loan, apply for enough financing to purchase the existing business and cover expenses for ongoing operations.

Bring on investors or partners

You can also bring on investors or partners when you want to buy a business without money up front. Investors can be a friends-and-family business loan, venture capitalists, or crowdfunding.

How to buy a business with no money

Buying a business with no money is as simple as following the six-step process below:

1. Identify goals before you buy an existing business.
2. Work with business brokers.
3. Find the right business for sale.
4. Value the business.
5. Negotiate the deal.
6. Close the deal and transition into ownership.

Identify goals before you buy an existing business

Before you start looking for business acquisitions, you’ll want to think about what you are trying to achieve by buying an established business. You might buy a business to:

• Hedge risk: Investing in an established, income-generating business can limit risk and provide reliable income, as it has already gone through most of the struggles that upstart companies experience.
• Accelerate your retirement: A leveraged buyout allows you to keep your current financial investments and grow your income, which gets you closer to retirement.
• Finance your growth: Using leverage helps small business owners build their businesses quickly.
• Improve liquidity: Taking out a business loan for a business acquisition will help small business owners increase their cash on hand, which makes it easier to cover business expenses.

In addition to the goals listed above, you may be interested in a specific business model, like an online business or making money with passive income plays.

Work with business brokers

Buying an existing business is a complex task, and you need an experienced broker to help you enter your next business venture correctly. You’ll want a business broker because they:

• Have experience completing deals
• Have tools to help them find and evaluate businesses
• Routinely deal with business acquisition paperwork
• Help you through the process

Next, you’ll establish your business acquisition goals.

Find the right business for sale

Buying a business has never been easier. There are several business listing sites, like:

• BizBuySell
• Biz Scout
• Flippa
• LoopNet

When buying a business, you want to find businesses that can provide a win-win deal. Look for small businesses that have certain qualities. We’ll discuss the essential qualities of a business for sale next.

Look for an owner who is ready to get out

Buying a business is easier when the seller is looking for potential buyers and wants to sell the business quickly. You’ll have to find out the seller’s motivations for selling the business, which may include:

• Reaching retirement age
• Moving to care for a family member
• Equipment issues
• Lack of automation
• High churn rates
• Lack of marketing
• Revenue problems
• Employee turnover

Ultimately, each of these is a potential opportunity for a new business owner to get a deal on the small business and dramatically improve the cash flow and profitability. Some may also lower the purchase price or make it easier to receive seller financing.

Look for businesses with growth opportunities

Some businesses provide clear opportunities for growth if purchased. Look for qualities such as:

1. Outdated technology: Just by implementing new tech, business buyers can dramatically improve operating costs. SBA lenders have loans specifically meant to help a business’s success through improving technology.
2. Lack of competition: Business buyers can really benefit when the competition can’t keep up with the improvements you make once it’s your own business.

Look for businesses you’re familiar with

While it’s possible to purchase a business you (or consumers) don’t know much about, searching for the following qualities can help ensure a seamless transition:

1. Age: Old, reputable businesses can provide financial security and provide a brand to build upon.
2. Known business models: Own businesses you understand. Spending money on a business model you must learn adds risk and time to learn the business.

Next, you’ll want to dig into the financial statements and other business aspects to decide on a fair business price.

Value the business

You’ll want to visit the business to check it out. There, you’ll be able to see how it operates, determine where it can improve, and make other observations that can’t be made from afar.

If you like what you see so far, it’s time to send a letter of intent to the business owner so you can start the due diligence process.

You’ll want to understand their financial statements, especially areas like cash flow, operating expenses, accounts receivable, and outstanding debt.

You’ll also want to understand the age of the equipment to determine if you’ll need equipment financing. You may also be able to use the equipment as collateral to secure alternative funding options.

You might want to prepare a list of questions before buying businesses. Then, you’ll want to calculate business valuation, which will guide how much money you’re prepared to spend.

Negotiate your deal

Buying a business will require negotiating a price that’s fair to both business owners. You can negotiate both the purchase price and the sale terms, but you need to decide which is more important to you and which is more important to the seller.

When you have multiple financing options lined up or are using your own money up front, you might find it most beneficial to negotiate the price. But when you seek seller financing, you might just give them their asking price in exchange for more favorable financing options.

Offer a higher interest rate

Seller financing can be made more attractive by bumping up the interest rates.

For instance, let’s assume the buyer wants $500K and you want to pay over seven years. That’s not an attractive deal if you offered to pay $75K annually. To get more favorable payment terms, you can raise the interest rate.

Which offer would you take?

• $500K up front
• $100K up front and $478K over 2 annual payments
• $100K up front and $504K over 3 annual payments
• $100K up front and $528K over 4 annual payments
• $100K up front and $550K over 5 annual payments
• $100K up front and $575K over 6 annual payments
• $100K up front and $630K over 7 annual payments

All except for the last one are paying 10% interest. The last option has a higher interest rate, pays the seller an extra $4K per year, but still allows you to keep more cash on hand each year.

Bring on a silent partner

You can always bring in a silent partner if you don’t have the cash up front. Silent partners contribute monetarily and often benefit from the sale, but they don’t take an active role otherwise.

You might also be able to secure venture capital, though venture capitalists tend to want more involvement. Make sure you negotiate for the venture capitalist to be a silent partner because many actively help investments grow.

Find a secondary source of financing

Seller loans don’t normally cover all the financing when buying a business. Loans like SBA financing or traditional bank loans may be secured by using equipment or accounts receivable (meaning the money you are set to make) as collateral.

Learn about in our article about business loans.

Raise the capital through crowdfunding

Crowdfunding uses alternative financing options to get the money you need. With crowdfunding, you can offer donors incentives (like products or equity) in exchange for contributions, or you can offer to pay them back with just like if you were given a loan.

There are tons of options for crowdfunding. Learn more below:

https://www.youtube.com/watch?v=j7UzP5dVOqA

Use your cash flow

A great way to get a loan to buy a business is using your cash flow or accounts receivable to secure a loan. They’ll want to take a specific amount out each week, but it’s another to purchase a business with no money up front.

Learn more about cash flow loans through National Business Credit.

Finance growth

While deciding how to get financing for a business, don’t forget to give yourself some wiggle room for improvements and operational expenses. You might need to write a business plan to show how the money will be spent. Learn more in our guide to writing a business plan.

Take your time to show you have a plan to turn the funds into new revenue and prove you can pay the loan back.

Close the deal and transition into ownership

Once you’ve secured professional advice, chosen the business you want to buy, done your due diligence, secured a loan, paid the down payment, and signed the contract, you’ll still have to transfer ownership. This step includes:

• Building an operational transition timeline
• Building relationships with employees
• Transferring all authorization, contracts, bank accounts, and other legalities
• Hiring an operator if you plan to be a passive investor

Why start new businesses when you can buy businesses with no money?

Starting a new business can be a real challenge if you don’t have money. You have to learn a lot as you go and may not be able to afford new freelancers or employees until you start earning revenue.

But buying an existing business without money is something that happens all the time. You’ll start with the business’s existing revenue and systems, then turn your focus to fixing areas that you’ve identified as problematic.

Have you ever bought a business without money? How did it go? We want to know.

Marketing is essential for any small business that wants to grow and succeed. We surveyed our large audience and analyzed over a dozen high-impact reports to establish how small businesses approach their marketing.

Our original surveys were presented as multiple-choice questions; each received a minimum of 500 unique responses.

[su_note note_color="#dbeafc"] Table of Contents

• Top Marketing Budget Statistics
• Average American Marketing Spend
• Marketing Budgets Broken Down
• Where Most Companies Draw the Line
• Social Media Marketing
• The Effectiveness of Content Marketing
• Preferred Ad Platforms
• Online vs. Traditional Businesses
• Return on Ad Spend Distribution
• A Reduction in Long-Term Marketing
• Marketing Goods vs. Marketing Services
• B2C vs. B2B
• Methodology [/su_note]

Top Marketing Budget Statistics

• On average, each American business spends $14,575 on marketing per year—$481 billion in total. But 66.3% of small business owners spend less than $1,000 on marketing each year.
• Major outliers drive that average up. The majority of marketing spending is done by just 14.9% to 18% of all businesses.
• 60% of business owners consider social media their best marketing strategy, but 24% are disappointed with its returns.
• Less than 6% of small business owners consider content marketing their best marketing strategy, but 93% of business owners who invest in content marketing are satisfied with their results.
• Marketing a service costs 36.5% more than marketing consumer goods.
• Business-to-consumer (B2C) companies spend 52% to 71% more to earn the same revenue as business-to-business (B2B) companies.

Keep reading for more high-impact marketing statistics, plus cutting-edge marketing strategies you can implement right now.

Average American Marketing Spend

There are over 33 million businesses in the U.S., and they spend a combined $481 billion a year on marketing. This means the average American business spends $14,575 on marketing annually.

But this is a top-heavy figure. Most marketing spending comes from 14.9% to 18% of all businesses (from sole proprietorships to publicly held companies). By comparison, 63.4% of small businesses spend less than $1,000 annually.

The average business spends 12.3% percent of revenue on marketing, with the median rate coming in at 10%.

Marketing Budgets Broken Down

On average, companies spend 53.4% of marketing dollars on their digital marketing budget. Small businesses spend 46.6% of marketing budgets on traditional advertising.

Here's a breakdown by industry:

• Educational companies spend 75.5% of their marketing budget on digital marketing.
• Technology companies spend 65.7% of their marketing budget on digital marketing.
• Healthcare companies spend 64.6% of their marketing budgets on digital marketing.
• Banking, finance, and insurance companies spend 60.7% of their marketing budgets on traditional marketing.
• Real estate companies spend 60% of their marketing budget on traditional marketing.
• Manufacturers spend 56% of their marketing budgets on traditional marketing.

Research-Based Recommendation: Companies should spend between 39.3% and 75.5% of their marketing budgets on digital marketing and 24.5% to 60.7% on traditional marketing, depending on their industry.

Professional marketers who responded to Gartner's 2023 CMO Spend and Strategy Survey intended to spend approximately equal portions of their marketing budgets on labor, paid media, technology, and outsourcing, as seen below:

Paid media spending makes up the largest portion of marketing budgets, with 25.6%, but even the smallest portion is only 2.3% behind.

Where Most Companies Draw the Line

We surveyed 1,800 UpFlip viewers about how much they spend on marketing per year.

• 66.3% of small business owners spend less than $1,000 on marketing each year.
• 15% of small businesses spend over $10K annually on marketing.
• 19% of small business owners spend between $1K and $10K on marketing each year.

That 85.1% of businesses spend less than $10,000 on marketing isn't surprising. According to the U.S. Small Business Administration's Office of Advocacy, 99.99% of U.S. businesses qualify as small businesses.

Research Opportunity: Further research should be done to determine 1) How marketing expenditure correlates to revenue and 2) How marketing expenditure impacts revenue per employee.

Social Media Marketing

Social media marketing uses a combination of organic marketing strategies and paid marketing strategies to build relationships with customers on platforms like Facebook, Instagram, and TikTok.

Our survey found that 60% of small business owners prefer social media marketing over Google Ads, SEO/SEM, print advertising, and content marketing.

While social media marketing dominates the battle of preference, 24% of small business owners say that it's their least successful marketing strategy.

Research Opportunity: Further research should be performed to find what sets successful social media campaigns apart from unsuccessful campaigns.

The Effectiveness of Content Marketing

Content marketing is a strategy that involves creating and sharing blogs, videos, and other useful content to drive awareness of products and services. This strategy can be highly successful because it helps develop authority with both potential customers and search engines.

Just 6% of businesses surveyed use content marketing, but only 7% of businesses surveyed found content marketing to be unsuccessful.

These numbers indicate that small business owners can benefit tremendously by focusing on producing new content.

Research-Based Recommendation: We suggest spending at least a couple of days each month creating new content and scheduling social media posts. If you aren’t confident doing this yourself and don’t have an employee you can assign it to, consider contracting a freelance content creator.

Preferred Ad Platforms

Business owners can choose numerous forms of paid advertisement, but some platforms drive results better than others.

44% of small business owners prefer using Google Ads over Facebook/Instagram ads (32%), YouTube ads (13%), or TikTok ads (11%).

17% of small business owners prefer Google Ads over other forms of marketing, and only 13% of small businesses are not satisfied with the performance of Google Ads.

Research-Based Recommendation: Start by spending your ad budget on Google Ads, then learn how to optimize other ad platforms.

Specific Marketing Campaign Costs

Small business owners need to break their marketing budgets down by campaign. These numbers will help you get a feel for the real-world cost of different marketing tactics and tools.

• Content marketing budget: Expect to spend a minimum of $29 per piece, but know that some of the best content creators have content marketing budgets that cost up to $1,000 per piece. You may also find content creators that charge $.05 to $1 per word.
• Paid digital advertising budget: Small businesses should expect to spend $2.59 per click, $3.12 per 1,000 impressions, $0.66 to $1.23 on remarketing, $15 to $800 on tools, and a minimum of $350 per month on paid digital advertising.
• Monitor ad budget: To pay someone to monitor ads for your small business, include a marketing spend of $350 to $5K per month or 12% to 30% of monthly ad spend—whichever is more.
• Email marketing budget: Your email marketing budget will vary based on the number of email addresses on your list and the features you need, but you should expect to spend around $18 per month for up to 1,000 people on your email list. As you grow, costs may increase up to $540 per month plus related labor expenses.
• Social media marketing budget: Social media marketing in 2023 was expected to reach $72.33 billion, or $2,178.62 per business (calculated by dividing $72.33B by the number of U.S. businesses).
• Sales funnel automation budget: Automations are part of a marketing budget that will fluctuate depending on the number of automations included in your email marketing, social media marketing, and other marketing tactics.
• Marketing tools and software: You might include these in other categories or you might include them in a separate category. Depending on the size of your company and number of customers, you may need a budget ranging from free tools to thousands of dollars per month.
• Traditional advertising budget: Traditional marketing budgets are expected to decrease by 2.6% according to The CMO Survey. This includes print ads, outdoor advertising, radio, and more.

For social media, paid ads, and traditional advertising, you may want to break the marketing budget into specific marketing channels. We recommend utilizing this marketing budget template.

Online vs. Traditional Businesses

Our surveys found that online businesses are 75% more likely to increase their marketing budgets.

• 70.6% of online businesses are either increasing their marketing budgets or keeping them at the same level this year.
• 40% of businesses with less than 10% of revenue from online sales have flat or increasing marketing spending.
• 60% of businesses with less than 10% of revenue from online sales are decreasing their marketing spending.

This is consistent with consumer trends, as online sales are increasing their overall percentage of sales by approximately 1% per year.

Research-Based Recommendation: Even if you’re saving money by decreasing your digital marketing budget, foregoing an online marketing strategy may mean poor performance in the future. We recommend maintaining a digital marketing budget comparable to industry benchmarks.

Return on Ad Spend Distribution

One of the metrics small businesses use is return on ad spend (ROAS), which is defined as revenue from ads divided by cost of ads, but many business owners implement a modified ROAS calculation that uses this formula:

(Revenue - Cost of Good Sold)/Cost of Ads

893 people responded to our questions about their ROAS. Here’s what the survey showed…

• 67% of small business respondents make less than $3 for every dollar spent on ads.
• 14% of small business respondents make $3 to $6 for every dollar spent on ads.
• 3% of small business respondents make $6 to $9 for every dollar spent on ads.
• 15% of small business respondents make less than $3 for every dollar spent on ads.

Numbers From Real Business Owners

Some of our original survey respondents provided more detailed information that you can use to determine what you might aim to spend in your industry.

eCommerce

As stated earlier, 70.6% of online businesses are either increasing their marketing budgets or keeping them at the same level, while 60% of businesses with less than 10% of revenue from online sales are decreasing their marketing spending.

@bobsimpson9228 told us:

[su_quote][We are in] Ecommerce and average about 3-4 ROAS) with a break-even [point] of 2.2 [ROAS].[/su_quote]

Learn more about how small business owners start online businesses.

Car Detailing

@josh3.064 gave an example of what to expect in car detailing:

[su_quote]I detail cars and I average about $5-8 [in revenue] per ad [at the moment][/su_quote]

Want to learn more about car detailing? See our comprehensive blog and YouTube video.

Automotive Repair

@allaboutdiy1375 provided information about car shops:

[su_quote]I don’t advertise at all with my Mercedes Benz repair shop. It turns out that if you are honest, fair, and have integrity, word of mouth and reputation is all you need. I’ve got more work than I can even get done in five, 9 hour days.[/su_quote]

Want to know more about automotive repair? Check out our how-to blog and in-depth interview.

House Painting Business Marketing

@kdp9607 had the best performance with a nearly 22x return on ad spend in the painting industry.

[su_quote]Housepainting business here. I spent $1.5k on Google ads this year. The return is between 35 / 40k gross profit.[/su_quote]

Coffee Shop Advertising

@stoneroastery disclosed:

[su_quote]I’m in the hole. Lost money[/su_quote]

Coffee mogul Wes Herman confessed that 19-location Woods Coffee doesn’t actually spend a lot on marketing. Read about how he runs his coffee shops.

A Reduction in Long-Term Marketing

Growth in customer relationship management, customer experience spending, and brand building is expected to slow by 50% in the next year.

There are some exceptions:

• Communications companies expect to increase their spending on customer relationship management, customer experience spending, and brand building by 19.1%.
• Pharmaceutical and biotech companies expect to increase their spending on customer relationship management, customer experience spending, and brand building by 13.4%.
• Professional service companies expect to increase their spending on customer relationship management, customer experience spending, and brand building by 10.3%.

These three industries are spending nearly double what other industries are spending.

Marketing Goods vs. Marketing Services

Interestingly, marketing consumer goods costs 36.5% less than marketing services.

As such, the U.S. Small Business Administration (SBA) suggests different marketing budgets for different types of small businesses.

• Business-to-business (B2B) companies spend 6.3% of revenue on marketing if they offer a product.
• A good marketing budget for B2B service companies is 6.9% of revenue.
• Consumer product companies spend 9.6% of revenue on marketing.
• B2C service companies spend 11.8% on marketing.
• B2B companies spend 9.5% more to market a service than a product.
• B2C companies spend 36.5% more to market a service than a product.

Research-Based Recommendation: Effectively, this shows that small business owners should expect to spend between 10% and 40% more when they are selling services instead of a product.

B2C vs. B2B

Business-to-consumer companies spend 52% to 71% more to earn the same revenue as B2B companies.

This may be because since the 1970s, productivity has grown eight times as fast as wages. GDP has increased by a multiple of 8.7x before inflation.

Businesses have more spending power today than they did in the past, but consumers have similar spending power than they did in 1979.

Research-Based Recommendation: Marketing a B2B product is the least costly form of marketing. If you’re trying to decide on a type of business to start or exploring new ways to increase revenue, consider selling products to companies instead of individual consumers to maximize your marketing effectiveness.

Methodology

These statistics were gathered by reviewing literature, surveying our audience, and using the combined statistics to help small business owners understand the marketing landscape and highlight opportunities to improve their marketing results.

Literature Review

We studied numerous reports and blogs on marketing statistics, marketing budgets, and other economic data to gather statistics obtained and published by other companies and organizations.

We used these statistics to better understand how UpFlippers' survey responses compare to the findings of larger companies and organizations regularly published in annual reports and other research.

UpFlip Surveys

UpFlip surveys were conducted on our YouTube channel. Due to the limited nature of YouTube surveys, it is impossible to tie every answer to a specific respondent unless they leave additional comments.

Nor could we establish whether there were correlations between ad spending and successful results with each type of marketing expense. In the future, we will update this piece with long-form surveys that will provide additional insights into how small businesses use their marketing.

Combining Statistics

In some scenarios, we compared two statistics to gain more insight into a subject. Combining two statistics was useful for gaining insights about content marketing being underutilized, selling products requiring less marketing than selling services, and B2B marketing being more cost-effective than marketing to consumers.

Operating based on these conclusions may have different results for different companies, and they should always use metrics to measure the success of their results.

Closing

These small business marketing budget statistics can help small business owners create an informed marketing budget, especially when you keep in mind that online marketing is steadily gaining traction over traditional marketing channels like print and radio advertising.

Whether you’re a small business owner or work with them, you can use the information in this report and our marketing budget template to create a balanced small business budget. What’s the biggest pain point in creating your marketing budget breakdown, and what new marketing strategy are you going to try next?

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.

[su_note note_color="#dbeafc"] Click on any of the links below to just to the section you are interested in, or just continue reading.

• Best Low-Cost Franchises (Total Initial Investment Less Than $50K)
• Cheap Food Franchises for $50K or Less
• Best Home-Based Franchises Under $50K
• Best Franchises Under $50K to Own as a Side Hustle
• Best Low-Cost Franchises (Franchise Fee $50K or Less)
• Which franchise business do you like? [/su_note]

Best Low-Cost Franchises (Total Initial Investment Less Than $50K)

The franchise opportunities below can all be started with a total initial investment of $50,000 or less.

1. Brown’s Pressure Washing

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:

https://www.youtube.com/watch?v=hDVizUeYuIU&

• 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

2. H&R Block

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

3. Realty One Group

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

4. Augusta Lawn Care Services

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:

https://www.youtube.com/watch?v=C8MyjkibCxk

• 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

5. Go Oil

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

6. Colors on Parade

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

7. Brightway Insurance

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

8. Surface Specialists

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

Cheap Food Franchises for $50K or Less

9. Champs Chicken

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

10. Chefs For Seniors

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

11. Chester’s

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

Best Home-Based Franchises Under $50K

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.

12. Sit Means Sit Dog Training

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

13. Stratus Building Solutions

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

14. NextHome

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

15. Club Z! In-Home Tutoring Services

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

16. TSS Photography

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

17. ShelfGenie

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

18. Leadership Management International

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

Best Franchises Under $50K to Own as a Side Hustle

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.

19. Dream Vacations

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

20. Jan-Pro Cleaning and Disinfecting

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

21. Martinizing

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

22. Sign Gypsies

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

23. Moms on the Run

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

24. American Poolplayers Association

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

25. Skyhawks & SuperTots Sports Academy

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

Best Low-Cost Franchises (Franchise Fee $50K or Less)

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.

26. MaidThis

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:

https://www.youtube.com/watch?v=kVyLriqFVdc

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

27. Spray-Net

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:

https://www.youtube.com/watch?v=va7wL-C_kxg

• 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

28. EverLine Coatings

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:

https://www.youtube.com/watch?v=8eCkpEh3B9I

• 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

29. Wise Coatings

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:

https://www.youtube.com/watch?v=q6mghjqijuU

• 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)

30. Papa Murphy’s Take ‘N’ Bake Pizza

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

31. Graze Craze

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

Which franchise business do you like?

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?