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Beginner Franchise Opportunities: The Start of Something Big?

March 02, 2023
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While many people enter the franchise world with at least some experience, others look for opportunities more aligned with their limited skills or resources.

And buying a beginner-friendly franchise is one way to do this.

Defining this type of franchise is difficult and subjective. It depends on your background, needs, and goals, which can vary from one person to another.

Low start-up costs, minimal time requirements, logistics (space, equipment, etc.), and flexibility could all determine how suitable a franchise is for someone just getting started in the franchise business world. Some of these things may be more important to you than others.

For many people, getting into a manageable, minimal-obligation franchise is just a doorway to expanding into something more challenging. Regardless of your experience, finances, or skill set, it may be easier to start than you think.

Let's help you identify what beginner franchise opportunities might look like.

What To Look For in a Beginner Franchise

Low-Barrier to Entry: Franchises with low barriers to entry are better suited for beginners and are usually smaller, lesser-known franchise brands. These franchises make it easier for you to get started.

Some characteristics of low-barrier entry franchises include those mentioned earlier, such as lower start-up costs, flexible rules and regulations, and minimal logistics required.

Big brand franchises, by nature and status, have high barriers of entry, making them harder to purchase and manage.

You may have to have "x" number of years of experience in the industry, meet financial requirements, and undergo extensive testing and background checks to determine eligibility.

For example, did you know that getting a Chick-fil-A franchise is harder than getting into Harvard?

Laptop, Pen, and Paper With Opportunity Written on It Describing How Beginner Franchises Are Big Opportunities
Well-known franchises typically have high operational or rigid contractual obligations, too, with less flexibility, making it difficult for a newbie to meet ownership requirements.

Training and Support: Most franchises offer training of some kind. If you find one that doesn't, it's probably not worth exploring.

Even if you have limited skills or no business experience, adequate training can give you the knowledge and tools necessary for success.

Look for franchises that provide extensive training and ask about ongoing support, which prepares you for obstacles along the way.

The training you get from one franchise not only helps your current situation but also adds to the experience you can use to grow as an entrepreneur.

Turnkey Opportunities: You've probably heard the term "turnkey."

This is a business opportunity that provides you with everything you need to get started as soon as you open the door, including inventory, equipment, training and support, marketing, and more.

And it's usually a part of the initial and recurring costs of owning the franchise.

Flexibility: Some people may be working a full-time job and want to get into franchising to break the 9-5 grind.

They might, however, still need to work while they do it, so finding flexible, easy-to-run, or part-time franchises are ideal.

Keep reading because we'll discuss some ideas for this coming up.

Choosing Your First Franchise

Do your research. If you're here, you're already on the right track. You can browse our website and start your franchise search here to see if any opportunities interest you.

For your first franchise, think about what you're good at. If you have even a little knowledge about an industry or you are passionate about something, use that as a starting point.

The saying, "Do what you love, and you'll never work a day in your life," applies here.

For example, if you are good with computers, consider a franchise that lets you utilize those skills.

Mobile computer repair franchises and electronic repair services can be relatively easy to start and let you maximize your chances of success while minimizing the learning curve of doing something you're not good at or passionate about.

We mentioned easy-to-run and part-time franchises earlier.

Home-based franchises are some of the most accessible models for beginners because they can be affordable and easy to operate remotely.

Person With Laptop in a Coffee Shop, Looking for Franchise Opportunities Incorporating Her Passion and Abilities
They meet the criteria for low-barrier-to-entry ventures because the startup costs are usually low, and since you work from home, you don't have the cost of rental overhead.

These franchises are often more flexible so that you can invest minimal time and still make an income.

Some product-oriented franchises don't even require you to have inventory on hand.

Dropshipping, where products are shipped from a central location with your information/branding on the label, makes getting products to your customers easy, removing some logistical challenges of running the franchise business.

Even some service-based franchises can work this way.

A cleaning service, for instance, can be run from a home office with a remote location for your crew to pick up supplies daily.

This minimizes costs and doesn't require much oversight.

A coin-operated car wash, laundry, or even a vending-machine franchise can be relatively easy to manage and provide flexible work hours.

According to a Grand View Research report, the vending machine market in the U.S. was valued at $13.1 billion in 2021, with expected growth of 10.4% by 2030.

Whether you choose a vending machine franchise opportunity or something in fast food, fitness, home services, personal wellness, etc., here's the point.

A beginner franchise opportunity might have a low investment and require less staff and time needed to operate and manage it. At the end of the day, it's a learning experience.

Go From Beginner to Winner With a Full-Time Franchise

When looking for a starter franchise, think about whether or not it can be expanded once you've gained experience.

Even the simplest franchise teaches you skills and gives you the tools you need to grow.

You'll learn to manage inventory, work with customers, market your business, and manage time. This can help you transition to a more challenging franchise venture later on.

Pencil Tip on Paper Illustrating How Buying One Franchise Helps Prepare You for Future Business Endeavors
When you're ready for that transition, you can convert your existing franchise into a new one.

You've got choices depending on the success of your current business and whether it is a part of your plan to move forward or not. Here are some possible options on what to do with it.

Option 1: Sell or dissolve your franchise. Some franchises can be sold to other potential franchisees and usually require very little franchisor involvement in the transfer.

You can also terminate your franchise agreement as you search for other opportunities. Still, it's important to know the legal stipulations and be aware of potential obstacles that might prevent you from doing so. We have an entire blog dedicated to how to terminate a franchise agreement, explaining what happens if you decide to walk away from your franchise before the contract ends.

Always review a franchise agreement with a lawyer who can explain to you if you can dissolve a franchise without any repercussions.

Option 2: You can keep your franchise as a side hustle while you look into new ventures. If your initial franchise is manageable, takes minimal time, and makes money, take advantage of the extra income to help finance a different franchise opportunity.

Option 3: Consider keeping the current franchise if it's successful and hire someone to operate it while you focus on expansion. Multi-unit franchises allow you to reach more customers and cover more territories, so think about entering different markets and regions. As you grow, you will no longer be able to run individual franchises independently. So think about transitioning to a role that requires less day-to-day operational input and more time to oversee multiple units.

Whatever your goals are, starting small and keeping it simple while you learn is a great way to grow as an entrepreneur and gain the experience you need to advance.

Financing a Franchise

Many first-time buyers look for low-cost franchise ideas or cheap ways to start a business because they know that coming up with start-up costs will be challenging even if they find an opportunity.

Person Holding Cash To Fund Their Franchise in Front of Five Wooden Blocks Symbolizing Business Growth
It's this misconception that stops a lot of potential business owners from moving forward, but don't worry.

If money is an obstacle, there are ways to get the funds you need.

Bank loans, crowdfunding, retirement accounts, and in some cases, even franchise-specific funding, where the franchisor lends you money. For more information on how to get the money you need, check out our blog, "Financing: How To Fund Your Big Dream."

So when you're ready to turn your dream of owning your first franchise into a reality, let All USA Franchises be your starting point.

All USA Franchises Can Help

At All USA Franchises, we know how excited you are to become a franchise owner. We want to be a part of your journey.

Our mission is to provide a directory of all 3,000+ franchises in the U.S., so you can find exactly what you're searching for.

We also offer helpful, informative blogs and franchise news to keep you updated on what's happening in the franchising world.

AUF strives to bring together franchisees, franchisors, and investors all in one place, making us the go-to source for franchise-related topics and resources.

Whether you're a total newbie, or a seasoned pro searching for your next opportunity, we're here to help.

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