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America Loves Low-Cost Franchises

Would you rather own a franchise that costs $500,000 per unit or $50,000? Every entrepreneur would answer the same. The problem is, the cheaper option isn't always the most profitable one. But it seems a wave of lucrative low-cost franchises is sweeping the nation.

The Wall-Street Journal has written about the rise of these great new low-cost franchises in a recent issue. According to the article, franchisors, perhaps inspired the struggling economy, have began to introduce a tiered structure that allows franchisees to pay what they can afford.

Doc Popcorn is one franchise to advocate this method. They offer franchisees the choice of a full-scale store that costs $150,000, a mall kiosk at a cost of about $100,000, and a mobile cart at a cost of about $70,000. This kind of flexibility has allowed the franchise to prosper. The article profiles other franchises in the education sector that have taken similar steps.

The risks for the franchisor are obvious. They can lose brand control, for one. But such are the times that franchises are willing to risk sacrificing pieces of their identity in order to grow and attract new talent.

It's fascinating trend: of course, you'll find the best low-cost with Franchise Direct.

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