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When you decide to buy a franchise and become a part of a franchise brand, you are generally required to pay a franchise fee. This is the fee you pay to join a franchise, use its services and assets, and benefit from its brand reputation.
Starting a business through a well-established brand helps with faster sales and higher revenue right from the start. Opening a franchise and enjoying good profits doesn’t necessarily require a large investment.
Franchise fees are considered a part of the initial investment to start a new business. These fees are paid to the established franchising brand in exchange for access to the brand’s existing market reputation.
While this fee is often easily and quickly recovered through steady sales and a loyal customer base, there are other fees that franchise owners should be aware of. These include the royalty fee and the advertising fee, which is an ongoing charge.
Many brands have chosen to reduce or waive franchise and other fees during this global pandemic to help their franchise stores survive this difficult period.
Successful Franchises with Zero Franchise Fees
A well-established franchise comes with an already-present loyal customer base that ensures faster sales and growth and attracts new customers.
Franchisors may waive franchise fees to offer new stores the chance to reduce their initial startup costs and improve their growth potential.
1. Next Door Photos
Next Door Photos markets itself as “not your typical franchise.” Business owners can partner with this brand to launch a local real estate photography business.
With no franchise fee, the capital needed to launch a Next Door Photos location is approximately $27,500.
Unlike other national brands in the industry, Next Door Photos does not have a minimum net worth requirement. Local franchise owners at different locations are not required to have any experience in photography.
2. Subway
The standard Subway franchise fee is $15,000. However, the brand offers to waive the franchise fee for stores that open near school lunch locations.
This waiver of franchise fees also applies to oil company retailers, who have at least 50 stores and are willing to transition all these stores into operational Subway restaurants. The liquid cash requirement for owning a Subway franchise is a minimum of $30,000.
3. 7-Eleven
Known as one of the world’s most popular convenience stores, 7-Eleven offers special discounts and fee waivers allowing business owners to buy a franchise with zero franchise fee.
Franchisees operate extended-hour retail convenience stores that focus on convenience to customers by providing a wide range of products, including many not traditionally available in other convenience stores.
7-Eleven offers three types of franchises: traditional, business conversion programs, and micro-market stores.
The initial investment cost varies depending on the type of franchise but usually includes an initial down payment on inventory, supplies, business licenses, and permits.
Since special offers on franchising keep changing, be sure to check up on the latest discounts and offers.
4. Marco’s Pizza
Marco’s Pizza is a quick-service pizza-delivery company that has grown consistently over the years. It was founded by Pat Giammarco, who wanted to serve authentic Italian pizza to food lovers in the United States.
While the franchise fee is normally $25,000, it is discounted by $10,000 for veterans and first responders and waived completely for franchise applicants with service-connected disabilities.
5. Papa John’s
Papa John’s is an award-winning pizza chain with a significant presence in major cities around the world.
The company often comes up with limited-time financial support offers to attract new business owners to join the brand.
Among its special offerings to increase franchise units, Papa John’s often waives its franchise fee entirely. Franchisors are, however, still responsible for the costs of setting up the store, including construction costs for new locations.
6. Baskin Robbins
Famous for its ice cream flavors around the globe, Baskin Robbins enjoys a relatively high sales volume compared to several other ice cream chains in the country.
To open a Baskin Robbins store, an interested investor would normally have to pay a franchise fee of $25,000. However, the brand waives this franchise fee for veterans. The retailer also offers discounts for veterans on other fees that store owners are generally liable to pay.
7. Potato Corner
After the COVID-19 pandemic caused worldwide distress among business owners, many franchisors devised new plans to increase business revenue and ensure their franchisees could survive.
Potato Corner waived its franchise fees and royalty fees to help more people earn revenue as business owners. This is a limited-time offer for prospective franchise owners.
Finding a Franchise with Zero Franchise Fees
Many brands in various industries beyond the list above also offer franchise fee waivers and other special discounts. These offers are often only applicable for certain conditions, and other costs like liquid assets requirements, construction costs, permits, bonds, and inventory costs continue to be a factor. Therefore, it is important to do your research and understand all the fees and costs involved before choosing to own a franchise.
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