Low Cost Franchises: The Pros & Cons of Investing Less


If you are considering business ownership, the franchising arena offers a wide variety of profitable, low-cost franchises that won’t break the bank. Moran Family of Brands can help you understand the pros and cons of investing in a low-cost franchise to help you make the best decision for your future.


Typically, when people think of franchising, they picture a local fast-food restaurant, big-box gym, or roadside motel. In fact, five of the 10 top franchises in Entrepreneur magazine’s Franchise 500 ranking are fast-food restaurants. It comes as a surprise to many fledgling entrepreneurs that franchising offers a wealth of low-cost franchises with a wide variety of investment options.


Pros of Low-Cost Franchises

Owning a franchise doesn’t have to be expensive. Low-cost franchises offer cash-strapped entrepreneurs the chance to own a business without investing a ton of money. A low-cost franchise requires an initial investment of $100,000 or less, according to Franchise Business Review. Here are just a few of the pros of investing in a low-cost franchise.


  • Affordability. Low-cost franchises give people from all walks of life the opportunity to own a business. Lower startup costs make business ownership more accessible. While franchise owners have unlimited earnings potential, the average franchise owner earns between $75,000 to $125,000 per year.


  • Less Debt. High investment franchises, such as restaurants or fitness centers, can take years to recoup your investment. Even if the business is profitable on a monthly basis, high initial startup costs make it difficult for you to reap the rewards of your investment and mean you could be paying back loans for the foreseeable future.


  • Build a Legacy. Owning a low-cost franchise allows you to begin building a legacy for your family. Low-cost franchises are scalable. Owners can start small and expand their business as it starts to generate profits.


Cons of Low-Cost Franchises

It’s important to carefully vet low-cost franchise options. Some low-cost franchises may keep costs down by offering a lower level of support. A lower investment also means lower yields and will require you to work diligently to build consistent clientele. Low-cost franchises are typically newer businesses without a long history of success. However, getting in on the ground floor of an emerging brand can be advantageous.


Pursue Your Passion with Moran

Even though people drove less in 2020, they still took care of their cars, and business at aftermarket auto franchises grew 1.3 percent, the Franchise Times reported. Many franchises were able to quickly implement contactless service to keep employees and customers safe. As the age of cars on the road continues to rise, the market for quality car repair remains strong.


Moran Family of Brands offers a low-cost franchise opportunity with a long history of success in the aftermarket auto repair and window tinting industry. Moran is one of the largest franchisors in the aftermarket auto industry, with 150 franchised locations. The company franchises six different brands, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. The initial franchise cost for a Moran repair shop starts at $118,000, which is considerably lower than other franchises in the aftermarket auto industry. Moran provides a highly efficient franchise model with a focus on strong franchise support and superior customer service. The company values initiative and creativity and prides itself on its family atmosphere.


Franchising Offers Low Investment, High Reward

Small businesses are the backbone of the American economy, and local establishments create community. There are 32.5 million small businesses employing 46.8 percent of the private workforce. Opening a small business is not for the faint of heart. Nearly 32 percent of businesses close their doors after two years, and only 51 percent make it to the five-year mark, the U.S. Small Business Administration reported.


Franchising helps give budding entrepreneurs the confidence they need to put themselves in the driver's seat of their future. It offers entrepreneurs the opportunity to own a business with brand recognition and a proven business model. Many fledgling franchisees discover it is easier for them to secure financing. Franchisees do not have to sell their startup business to investors. Banks are already familiar with your concept and have evidence of its success in other communities, making it a safer investment. In addition, the franchisor provides a wealth of training and ongoing support that doesn’t end at the grand opening, which allows business owners to tackle a new field. In addition to having the experience of the franchisor at their disposal, franchisees also have a peer network they can rely on to exchange best practices.


As labor shortages continue to plague small businesses across the country, franchising offers a bright spot for attracting valuable talent. Franchises offer better pay and benefits for employees. Franchise firms pay 2.2 percent to 3.4 percent higher wages than similar businesses, and more than 65 percent of franchise workers are offered health insurance. At least 76 percent of franchise workers get vacation time and sick leave.


While the outbreak of the pandemic sent the American economy into a tailspin, businesses in the franchising industry were able to bounce back quickly from initial losses. Despite a rocky year, the number of franchise establishments was expected to increase by 1.5 percent to 785,316 in 2020, according to FRANdata, a research and advisory company. Franchise businesses are on track to make a full recovery by the end of 2021, and franchising’s overall contribution to the American economy is on track to increase by 7 percent.


Learn More About Moran

As you decide on the best franchise opportunity for your family, find out more about the benefits of investing in the aftermarket auto and window tinting industry by contacting Moran to request information and connect with a franchise business consultant.




They consistently follow our company’s vision and mission, and fulfill their responsibilities in that role.


People who are polite and well-mannered toward their customers and employees, who go out of their way to make sure others are being treated well.


They uphold the highest standards in ethics and authority, ensuring that the customer’s interests come before their own.


These individuals always look to the future, seeking out ways to improve both themselves and the franchise they run.


Both franchisees and Staff actively participating in the mission and vision of our company.

Get in Touch with Us!

Interested in franchise? Let’s get the conversation started. Let Moran Family of Brands know how they can help you.

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