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If you’ve dreamed of owning your own business but worry about startup costs, you’re not alone. Many aspiring entrepreneurs assume that franchise ownership requires hundreds of thousands of dollars to get started. The truth is, there are several high-quality franchise opportunities available for under $75,000 — and with the right financing strategy, business ownership can be within reach sooner than you think.
Low-cost franchises give aspiring business owners a faster, more attainable path to financial independence. They’re ideal for professionals looking to make a career shift into ownership without the burden of heavy overhead costs.
For those with backgrounds in management, sales, or finance, low-cost service-based franchises are particularly attractive. They allow you to use your existing skills in client service, negotiation, and analysis while building a scalable, professional business.
Even if you don’t have the full amount saved, there are multiple ways to fund your franchise investment. Many successful franchisees use a mix of personal funds and financing options to make ownership possible.
Here are some of the most common and practical paths:
Using your own savings avoids debt and interest payments. However, it can tie up personal funds that might otherwise serve as your financial cushion.
Business or Personal Loans
Traditional loans, credit lines, or personal lending options can help bridge funding gaps. Interest rates and repayment terms vary, so compare lenders carefully.
A HELOC allows you to borrow against your home’s equity, typically at a lower interest rate than unsecured loans. This can be a flexible tool, though it carries risk if your equity or debt-to-asset ratio is limited.
The U.S. Small Business Administration (SBA) offers microloans up to $50,000 to help with startup costs or working capital. Not all low-cost franchises qualify, so verify eligibility early.
If you have retirement savings, a ROBS (Rollover for Business Startups) can be a powerful way to fund your franchise without taking on debt or triggering tax penalties.
A ROBS allows you to use funds from your 401(k) or IRA to invest in your own business — all while avoiding early withdrawal fees and taxes. It’s not a loan, but rather a compliant method of investing your retirement assets into a corporation that owns your franchise.
How It Works:
– You form a C-corporation for your new franchise.
– You establish a 401(k) plan under that corporation.
– You roll your existing retirement funds into the new plan.
– The corporation then uses those funds to purchase your franchise.
By doing this, you can invest directly in your business using pre-tax dollars.
– Work with a qualified ROBS provider to ensure compliance with IRS and ERISA rules.
– This structure is typically best suited for franchises with proven business models.
– Many entrepreneurs have successfully transitioned from corporate careers to business ownership using this method.
Building a business takes time, consistency, and focus — which means your income may ramp up gradually. Before you start, take steps to secure your personal finances:
– Create a budget for essential living costs such as rent, utilities, and groceries.
– Build a runway of at least three to six months of living expenses.
– Diversify your funding sources to help manage startup costs and early cash flow.
With thoughtful planning, you can focus on growth and client success without financial stress during your launch period.
If you’re exploring professional, service-based franchises under $75K, Murphy Business Sales is one of the most accessible and respected options available.
Murphy offers a low-cost entry point, comprehensive training to become a business broker and a strong national brand and supportive programs and network. As a Murphy Business franchisee, you can leverage your experience and business acumen to help business owners buy, sell, and value companies, all while building a business of your own backed by trusted systems and support.
The Murphy Business franchise model combines the freedom of entrepreneurship with the security of a proven brand, so you’re in business for yourself, but never by yourself.
Learn more at Murphy Business Sales and discover how affordable franchise ownership can truly be.
Disclaimer:
This article is for informational purposes only and should not be considered financial advice. Always consult a licensed financial professional before making investment decisions.
Individual results vary. Franchise success depends on factors including effort, market conditions, and management skills. This content is for informational purposes only and should not be considered a promise or guarantee of income or success. Please review the Franchise Disclosure Document (FDD) and consult a franchise advisor for full details
