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4 fantastic home franchises under $40k

Nick Hall

If you are assessing a business opportunity, the single most influential factor in the decision-making process is price.

Starting a business isn’t cheap by any means, there are a number of external factors that contribute to the overall cost of a prospective venture, and in recent times, it has proven near impossible to launch a business with just the funds in your bank account.

Business loans have become common practise, but as the banking industry evolves and funding becomes increasingly difficult to obtain, entrepreneurs are narrowing their scope, focusing on finding low-investment opportunities that promise big returns.

In the franchise world, fast food chains loom large, but so too do their royalty and investment fees.

For what it costs to enter into a franchise agreement with a major fast-food franchise, prospective partners could afford to purchase a multi-unit network of outlets in a different industry, such as the emerging home-services sector.

Whether it be working from home, or around the home, here’s four fantastic home franchise opportunities you can buy for under $40,000.

Elm Cleaning

Due to its low-initial investment and equipment purchase costs, franchise brands that operate in the cleaning services space have remained some of the most successful in sector, and family owned franchise, Elm Cleaning in no exception.

The Melbourne-based operation has refined its franchise offering to better suit incoming franchisees with limited access to funding.

With an initial investment cost of just $28,500 plus GST, Elm Cleaning franchisees can launch operation quickly and efficiently, making use of the brand’s innovative Four Corner System.

Franchisees pay 10 per cent of their total monthly revenue to the franchisor as an ongoing royalty fee, in addition to a two per cent per month marketing levy cost.

The fees provide Elm Cleaning partners with access to the brand’s established online support services and lead generation tactics.

My Home Watch

The international home-watching industry is experiencing a period of rapid growth, achieving a revenue of over $700m in the U.S. and Canada alone, however in Australia, the market remains captive.

Launched in 2017, My Home Watch is an Australian-first franchise business that provides services for homes, boats, real estate agencies and pets.

Prospective franchisees enter into the business with an initial investment of $25,000 plus GST and pay an ongoing flat fee of $550 per month, providing stability and accessibility into the industry.

With no marketing levy fees, and wealth of ongoing support systems in place, such as online support, a call centre, national conference, mentoring groups and a franchise advisory council, My Home Watch franchisees are provided with a supportive, low cost opportunity in a growing industry.

Ben Fidden, New South Wales-based My Home Watch franchisee said he had always wanted to get into business for himself, however the costs involved had regularly pushed the venture out of reach.

“I always wanted to jump into my own business, but I didn’t know what to do, and with the capital required and the marketing, it wasn’t feasible,” Fidden said.

Now the former training manager is part of the booming home-watching bsuiness, with plans to boost his own personal network.

“It’s niche because we offer a wide range of services. We can pop in on a client on the same contract and do a range of different things while we’re there,” Fidden said.

“What stands out is it is a challenge, and that’s why I wanted to have my own business. It’s very different to most careers. You can choose how to do it, and it’s very rewarding.”

Shoebox Books

Bookkeeping franchise, Shoebox Books provides a number of essential services to small businesses and tradies at affordable, fixed prices, simplifying the often-confusing BAS and Tax statements.

Prospective franchisees are required to pay an investment of $29,990 plus GST, as well as a three per cent cut of gross monthly income towards the marketing levy and a $450 or seven per cent gross monthly income contribution as a royalty fee.

The model is designed for working families with lifestyle commitments, and can be easily scheduled around external arrangements, providing not only a stable income but also flexibility.

Yvette Coad, Shoebox Books founding director said the business is gearing up for growth moving into 2019, with a number of exclusive territories under review.

“Our expansion plans include a further 15 outlets across Australia in 2019,” Coad said.

“Our overall growth has increased by 51.7 per cent from 2017 to 2018 year on year and in 2018 we introduced 13 new territories.”

The business is best suited to women who have childcare commitments and can combine the discipline of working from home alone with being a team player.

Wet Seal

Heritage waterproofing specialist, Wet Seal has taken up the mantle as one of the most affordable trade-based franchise models.

For an initial investment cost of $25,000 plus GST, franchisees can leverage the brand’s 30-year history as an industry-leading service provider to launch operations.

All territories are exclusive, with Wet Seal providing ongoing franchisee support in the form of industry-specific supplier agreements, a call centre, national conference and online support.

Final thoughts

It’s important to remember that no business venture is a sure thing, however entering into a franchise opportunity that has low-investment costs significantly reduces the financial impact on the franchisee should things go sour.

Business opportunities that cater to consumer demand will always stand a positive chance at success, with home service franchises remaining as popular as ever.

Are you ready to take up the challenge? Take a look at these fantastic home-based franchise opportunties.