Many people are considering starting their own franchise business because of the low startup cost. There are many franchises to choose from, but what if you have a limited budget? The Franchising Business Magazine has come up with a list of 11 franchises that have the lowest startup costs.

1.Pizza Hut

Pizza Hut franchise startup cost is $20,000 to $25,000. This includes the franchiser fee of 2% of the total and an initial franchisee fee of $10,000. A pizza hut franchise can be a great investment because it has more room for growth than other types of fast-food restaurants.

Pizza Hut has a strong brand and an average unit volume (AUV) that is four times higher than that of its closest competition. AUV measures how much money a restaurant makes off each store every month which gives investors an idea of how well the restaurant will perform in different regions around the United States.

2.Subway

The Subway sandwich start up cost is $15,000 to open a franchise. The franchise fee is $15,000. The initial costs are $40,000 and the continuing costs are $6600 per year.

3.Wingstop

Wing stop is a fast-casual restaurant that specializes in chicken wings, fries, and waffles. Wing stop is one of the cheapest franchises to start because you do not need any special skills or experience to operate it.

All you need is honesty and integrity and the desire to be your own boss. Wingstop can be a great business opportunity for people who are passionate about food, providing hospitality services, and welcoming customers into their restaurants.

It can also bring in financial benefits with the low startup costs of only $25 thousand dollars, which includes: a franchising fee of $10 thousand dollars, equipment purchase of $5 thousand dollars, construction cost estimate of $1.5 million dollars for an open building with a 1,000-foot frontage on a major highway or arterial road.

4.Taco Bell

Taco Bell is a Mexican fast food chain, owned by Yum! Brands. The company is famous for their Mexican-style tacos and burritos. It has been estimated to cost between $1 million and $2 million to create a new Taco Bell franchise with an average monthly startup cost of $35,000 per month in 2013.

There are many factors that can change the startup costs for a franchise such as the size of the location that you are renting for your store, what equipment you will need to purchase or lease, how much inventory you will need to purchase before opening your doors, and how much it will cost per square foot of your restaurant space.

5.KFC

There are many different costs that go into starting a restaurant, but KFC is one of the cheapest franchises to start. The initial investment for a franchise can be as low as $1 million and there are no royalties paid to the company. In addition, the cost of food items is purchased wholesale from the parent company so you do not have to worry about those expenses.

Furthermore, all cooking equipment is provided by KFC so again there is no need for upfront investment in this area. Finally, KFC will provide an initial training program and technical support for new franchises which takes away some of the time needed for site preparation before opening KFC has been around since 1930 and was founded in Harlan Sanders’s hometown of Corbin, Kentucky.

They serve many different products such as chicken sandwiches and wraps with beans or potatoes served with them; fried chicken; mashed potatoes; cole slaw; biscuits; corn on the cob; salads such as Grilled Caesar Salad or Garden Side Salad with Ranch Dressing In order to open your own franchise location there are a few steps that need to be taken first.

The most important step is finding an appropriate location because you will want it to be near residential areas where people will stop by during their daily.

6.McDonald’s

The cost of starting a McDonald’s franchise ranges from $1,000 to $2,000 per unit. The total initial investment ranges from $1,035,246 to $2,596,609 for the 40-year life of the average McDonald’s restaurant.

Annual costs are above minimum wage and include $0.02-$0.03 per square foot in rent and utilities as well as an additional 4% of annual net sales provided by area developers or franchisors.

McDonald’s is one of the cheapest franchises to start up with an estimated start-up cost ranging from 1-2 thousand dollars while also requiring annual costs that are above minimum wage which includes 2-5% of annual net sales provided by area developers or franchisors.

7.The Home Depot

The Home Depot is one of the most popular home improvement stores in the United States. It was founded in 1978 and has since grown to over 2,200 stores worldwide.

The initial start-up cost for this franchise is $40,000 with an average annual royalty fee of $4,800 The Home Depot has a low investment start-up cost when compared to its competitors Lowe’s and Walmart which have a higher start-up cost.

However, there are many other things that need to be taken into consideration such as staff salaries, store maintenance costs, and other expenses that can add up quickly.

 8. Joe’s Crab Shack

Joe’s Crab Shack is a seafood chain that has many locations in the United States. The company was founded in Houston, Texas, and became incorporated as Ignite Restaurant Group Inc. in 2006.

This restaurant is considered a low-cost franchise since it has low startup costs. Compared to other restaurants that have higher start-up costs, Joe’s Crab Shack franchises are still able to generate profit for their businesses and customers.

The cost of starting a Joe’s Crab Shack business ranges from $350-$600 thousand dollars if you are an individual who is looking to buy one of the existing locations, or $1 million if you are someone who wants to build a new location from scratch which includes buying land and building the restaurant itself.

When considering these prices, one factor that needs consideration is how much money will be spent on advertising for this business; some advertising methods can cost upwards of $100 thousand per year which would need to be taken into account when deciding whether or not this type of restaurant would be profitable for your situation.

One way that Joe’s Crab Shack saves money on start-up costs is by purchasing their seafood wholesale instead of paying retail prices for it at stores like Costco or Sams Club where they can purchase certain products at discounted rates which makes it easier than ever for new business owners.

 9. Cold Stone Creamery

Cold Stone Creamery was one of the cheapest franchises to start up because it owned a production facility that would process the ice cream.

The company also had a low initial investment cost and there is no royalty fee. Cold Stone Creamery is one of the cheaper franchises to start up because they own a production facility that will process their ice cream and they have no royalty fees.

The company has an initial investment cost of only $10,000, which makes it one of the cheapest deals to get into in terms of franchising.

 10. Baskin-Robbins

Baskin Robbins is a frozen-custard chain that has been around since the 1950s. The company was founded in 1945 by two ice cream enthusiasts with a limited budget who wanted to create their own businesses. From the first store, they have grown to become one of the world’s largest and most recognizable ice cream chains.

Baskin Robins’ start up cost is fairly low due to its international presence, which allows for economies of scale on costs such as marketing and advertising. Company history: Baskin Robbins was founded in 1945 by two ice cream enthusiasts whose only funds were $25,000 from an investor named Mr. Burt Baskin and $2,500 from Mr. Irv Robbins.

They started with a small shop in Glendale called “Mr. B’s Ice Cream” where they sold about 12 flavors of ice cream In 1948, after selling over 1 million gallons of product annually through their franchised stores, they changed the name to “Baskin-Robbins.”

The business expanded internationally when franchises began opening during the 1960s across Europe and Asia. Business model: Baskin Robbins’ franchise model offers entrepreneurs access to its international

 11.Burger King

A new franchise from Burger King is a great opportunity for budget-minded entrepreneurs and small business owners. With the start up costs averaging around $1 million, Burger King offers one of the cheapest franchises to start on average.

Burger King was founded in 1953, and since then has become one of the largest fast food restaurants in the world with more than 18,000 locations in over 100 countries.

In 2013, it had $23 billion in global sales. This fast food franchise has a reputation for being cheap and convenient with its famous Whopper sandwich as well as numerous other meals that are designed to be quick and easy such as cheeseburgers, chicken sandwiches and french fries.

There are three different types of BK franchises available: 1) Restaurant Owner Program: allows someone to own their own restaurant which they manage themselves Area Developer Program: grants someone who has experience managing or franchising restaurants a 20% share in an existing restaurant on location Food Service Supplier Program: guarantees someone a 20% share if they will provide food service solutions.