New Report: Low-Cost Franchises Offer Great Potential

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Franchise Business Review Study Looks at Investments Under $100K, Names Top 100 Brands

People looking to invest in a “low-cost” franchise—one costing less than $100,000—can make just as much money, find a more flexible lifestyle, and still benefit from some very sophisticated support from the corporate office, according to a new report.

Intended to be a guide for potential franchise investors, Franchise Business Review’s Top Low-Cost Franchises looks at franchisee satisfaction at concepts requiring an average overall investment of less than $100,000 and names the top 100 low-cost franchises for 2014.

To compile the report, researchers at Franchise Business Review looked at more than 135 low-cost franchises, interviewed CEOs and franchisees at many of the leading brands, and surveyed more than 10,000 franchisees. Franchise Business Review does not charge a fee for its base survey or awards. Any franchise company with at least 10 operating franchisees can participate, and the companies listed in the report are based solely on franchisee satisfaction ratings.

Franchisees were asked to rank their franchise system in the areas of financial opportunity, training and support, leadership, operations and product development, core values (e.g., honesty and integrity of franchisor), general satisfaction, and the franchisee community. Franchisees also answered questions about their market area, demographics, business lifestyle, overall enjoyment running their franchise, and role in the franchisee community.

“Our data supports what we’d already been hearing from franchisees—that they are often times more satisfied in a franchise costing less money,” said Franchise Business Review president Michelle Rowan.

Low-cost franchise owners rated their franchise companies higher in every category of the Franchise Business Review survey than did franchisees at brands costing more than $100,000. The most significant difference (4 percentage points) was seen in the area of Franchise Training & Support.

“Just because a franchise investment costs less, franchisees need not sacrifice support from the home office,” Rowan said.

About Franchise Business Review

Franchise Business Review is a national franchise market research firm that performs independent surveys of franchisee satisfaction and franchise buyer experiences. The firm’s services include commissioned franchise research projects, as well as industry-wide studies of franchisee satisfaction. Franchise Business Review is headquartered in Portsmouth, NH, and can be reached at (603) 433-2270. Visit for more information.

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Molly Rowe
Franchise Business Review
+1 (603) 433-2270
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