If you are thinking about starting a franchise or buying an existing franchise, the price of the franchise itself should be factored into the buying process. Franchise prices can vary from a few thousand dollars to over a million. What separates these franchises from one another, and should the price be a major factor in your decision.

Most franchises that sell for a large amount have proven track records and can almost guarantee success. Think McDonalds or Pizza Hut. These franchises sell for a lot because they have nearly perfected their business systems. They know exactly where a store should be located, what traffic that store should expect, and what that store will gross. That being said most of these higher priced franchises are out of reach of most would-be business owners. In addition, higher prices do not mean you are guaranteed a higher profit. Stone Cold Creamery charged a great deal for their franchises and now they are being sued by their franchisees because of inflated income promises.

Enter the cheap franchise. Most cheap franchise opportunities are cheaper because they can be operated as home-based businesses with minimal labor. Carpet cleaning and janitorial businesses are prime examples. These can be run as owner operated businesses and still be quite successful. This does not mean they can not be grown into larger businesses. Many successful companies have started off as one man operations and grown large.

In addition, many low cost franchises can be operated part time. This is great for someone who wants to keep the security of their full time job while they work themselves into a full time business owner. Many types of franchises can be operated after hours and on the weekends allowing great flexibility.

Not all low cost franchises are small operations. Some such as tax services can employ many people for a short time each year. Others like real estate firms such as Remax and United Country can grow very large with several agents.

The cost of the franchise really has nothing to do with how successful that franchise can be. That is up to the owner.