You don’t need half a million dollars to own a franchise. That’s one of the biggest misconceptions holding first-time entrepreneurs back from making a move. The reality? Some of the most profitable franchise models in the country require less than $100,000 to launch, and several of them let you work from home with no inventory, no storefront, and no employees on day one.
The franchise industry added roughly 210,000 new jobs in 2025 and is on pace to surpass $950 billion in total output this year. That growth isn’t being driven solely by fast-food chains and big-box retail. Service-based and advisory franchises are expanding faster than nearly any other segment, and many of them fall well below the $100K threshold.
If you’re evaluating low-cost franchise opportunities for 2026, this guide will walk you through what to look for, which industries offer the strongest returns at lower price points, and why business brokerage has become one of the most attractive options in this category.
What makes a franchise “low-cost”?
There’s no universal definition, but industry analysts and franchise ranking organizations generally classify anything with a total initial investment under $100,000 as a low-cost franchise. That number includes the franchise fee, training costs, initial marketing spend, working capital, and any equipment or build-out expenses.
Some of the cheapest franchises on the market start below $20,000. But cost alone doesn’t tell you much. What matters is the relationship between your upfront investment and the revenue model on the other side. A $15,000 franchise with thin margins and no recurring revenue is a worse deal than a $90,000 franchise with multiple income streams and six-figure earning potential.
When you’re comparing low-cost franchise opportunities, pay attention to three things: overhead structure, revenue diversity, and how fast you can realistically reach profitability. Franchises that don’t require a physical location, employees, or specialized equipment tend to offer the best return at this price point.
Industries with the best low-cost franchise models
Not every industry works at a sub-$100K investment level. The ones that do share common traits: low fixed costs, commission-based or fee-for-service revenue, and demand that doesn’t disappear during recessions.
Business services and advisory
This is where the math gets interesting. Business brokerage, franchise consulting, and M&A advisory franchises typically operate with almost zero overhead. No storefront lease. No product inventory. No fleet of vehicles. Your operating costs are largely limited to technology, marketing, and your own time. And the commissions on a single business sale can range from $10,000 to well over $100,000 depending on the deal size.
The business brokerage industry is also riding a massive demographic tailwind. Roughly 10,000 baby boomers turn 65 every day in the U.S., and many of them own small businesses they’ll need to sell in the next decade. That means the supply of business-for-sale inventory is growing, and the demand for qualified brokers is growing alongside it.
Home services and cleaning
Residential and commercial cleaning franchises are among the most popular low-cost options, with many starting under $50,000. They benefit from recurring revenue through repeat contracts and relatively simple operations. The trade-off is that margins can be tighter once you factor in labor, supplies, and insurance, and the work is physically demanding if you’re owner-operating.
Fitness and personal wellness
Mobile or studio-based fitness concepts have gained ground since 2020, with some franchise models available under $100K. Subscription-based revenue helps with cash flow predictability. But these franchises can be location-dependent and sensitive to consumer spending patterns, so the geographic market matters more here than in services like business brokerage.
Education and tutoring
Tutoring and supplemental education franchises typically operate from small commercial spaces or from home. Demand is steady, and many parents are willing to spend on academic support. The main challenge is hiring and retaining qualified instructors, which can compress margins if you’re scaling beyond a solo operation.
Why business brokerage stands out among low-cost franchises
If you compare the categories above on three dimensions — startup cost, income ceiling, and lifestyle flexibility — business brokerage consistently ranks at or near the top.
A business broker franchise like Transworld Business Advisors can be launched for as little as $90,000 in total investment, which includes a $67,500 franchise fee. There’s no brick-and-mortar buildout. No equipment purchases. No payroll to meet on day one. You can operate from a home office, a co-working space, or wherever you want to work.
But the real differentiator is the revenue structure. Transworld franchisees don’t rely on a single income stream. They earn commissions through four distinct revenue streams: business brokerage (helping owners sell existing businesses), franchise consulting (matching buyers with franchise opportunities), franchise development (helping businesses expand through franchising), and mergers and acquisitions advisory. That kind of diversification is rare at any investment level, let alone under $100K.
What to evaluate before choosing a low-cost franchise
A lower price tag doesn’t automatically mean lower risk. Here’s what to focus on during your research:
Read the Franchise Disclosure Document (FDD) carefully. Every franchisor is required to provide an FDD before you sign anything. Pay close attention to Item 19, which covers financial performance representations. Not every franchisor includes Item 19 data, and that itself is a signal. Transworld includes detailed financial performance data in its FDD, giving prospective franchisees a clear picture of what current owners are earning.
Talk to existing franchisees. Ask them what the first 90 days looked like. Ask what they’d do differently. Ask about the support they received after training. You can read Transworld franchisee testimonials for a starting point, but direct phone calls will tell you more.
Understand the training and support model. Cheap franchises that leave you to figure things out alone aren’t really cheap — they just move the cost from the franchise fee to the mistakes you’ll make without guidance. Look for brands that provide comprehensive initial training and ongoing support, including field support, marketing assistance, and continued education.
Check the brand’s track record. How long has the franchisor been operating? How many units are open? What do their industry rankings look like? A newer franchise at a lower price point might seem appealing, but there’s real value in joining a system with decades of operational data behind it.
How Transworld Business Advisors compares
Transworld has been in business since 1979. It’s the largest business brokerage firm in the world, with over 250 offices and 1,000+ brokers across more than 80 countries. It’s ranked #1 in the business brokerage category of the Entrepreneur Franchise 500 every year since it began franchising.
The total investment starts at approximately $90,000 — comfortably within the low-cost franchise range. But the infrastructure, brand equity, and support system behind that number are what you’d expect from a franchise requiring two or three times the capital. Franchisees get two weeks of intensive training at headquarters, ongoing coaching, proprietary technology for listing and managing deals, and the marketing resources of United Franchise Group, one of the largest franchise organizations in the world.
No prior business brokerage experience is required. Transworld’s ideal candidates tend to come from corporate management, sales, finance, or other professional backgrounds. The training program is built to get people with no industry experience operational and confident within weeks.
Your next step
Finding the right low-cost franchise comes down to matching your budget, your skills, and your goals with a model that can actually deliver on its promises. If you’re drawn to professional advisory work, want to control your schedule, and prefer a business where your income isn’t capped by hourly billing or thin product margins, business brokerage is worth a serious look.
Request more information about the Transworld Business Advisors franchise to see the full investment breakdown, learn about available territories, and connect with our franchise development team.