Do you want to invest in a franchise, but are you worried about the high startup costs? Being your own boss doesn’t have to be expensive. In addition to being a great way to start your own business, several established franchises offer investment opportunities for many thousands of dollars less than you might think. In this article, we explore two accessible franchises that offer investments for less than $25K: Card My Yard and Stroll. We’ll discuss its benefits, challenges, and what you need to consider before making a decision. Move forward to find out.
Card My Yard Franchise
Card My Yard is a franchise dedicated to the design and establishment of garden signs for events such as birthdays, graduations, baptisms and business events. Founded in 2004 in Austin, Texas, by two women who were looking for a creative way to supplement their time at church, Card My Yard has grown significantly, boasting 529 units to date.
Advantages of investing in Card My Yard
Card My Yard has shown great potential for growth, especially in 2021, when they added 120 new owners to their network. This is largely due to the affordable initial investment, and its business model that eliminates the need to rent an office.
With a franchise fee of just $8,000 and the ability to operate from home, Card My Yard is attracting investors from all over the world.
In addition, pre-opening marketing costs are low. With $500 dollars you will be receiving the assistance you need and for another $1,000 per person you will get training of your staff.
Disadvantages of Card My Yard
Although Card My Yard offers investments for less than 25K, as with any risky investment you are going to take, there are some points that you should take into consideration. First, the franchise does not offer exclusive territories. This can result in high competition between franchisees. In addition, post-opening marketing support is limited, which means that as a franchisee you will need to handle much of the promotion yourself. Finally, the royalty of 25% of gross sales is quite high compared to other brands, especially if you consider the limited support that the franchise offers you.
Stroll Franchise:
Stroll focuses on creating high-quality magazines for specific communities, publishing articles about local events, resident stories, and local business announcements. Founded and franchised in 2004, Stroll also operates under a model that allows franchisees to work from home.
Advantages of investing in Stroll
The initial investment in Stroll is low, has an inexpensive franchise fee and eliminates the costs of renting premises. The additional costs for the first three months of operation are also modest, between $600 and $1,000. This flexible model can be ideal for those looking for a business that allows them to generate income without demanding a lot of presence.
Disadvantages of Stroll
While Stroll’s proposition seems appealing, operating the franchise presents several challenges. It doesn’t offer exclusive territories, and marketing support is limited, similar to Card My Yard. In addition, the 15% royalty is relatively high given the limited support in terms of customer search and website design.
Now, what’s really troubling is that the franchise has closed more than 100 units per year in the last three years, and its Franchise Disclosure Document contains striking errors that generate mistrust.
Is cheap expensive? Not always. But, if you’re considering acquiring franchises that offer investments for less than 25K, be sure to research them thoroughly and carefully plan your investment.
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