Top 5 Franchise Industries Under $150K for First-Time Business Owners

Investing in a franchise can be a great way to start a business with built-in brand recognition, operational support, and proven business models. Fortunately, many franchises don’t require massive capital. If you have a budget under $150,000, there are plenty of lucrative options in industries with high demand and low overhead. Here are the top five franchise industries that are ideal for novice business owners, along with tips on how to get prepared for franchise ownership.

1. Home Services

Home services franchises—such as cleaning, landscaping, handyman, and home inspection businesses—are some of the most accessible and profitable opportunities under $150K. They require minimal overhead, often allowing franchisees to work from home or a small office. With the continuous demand for home maintenance, these businesses provide stable and recurring income.

Why It’s Great for Beginners:

• No retail space required, keeping costs low
• Essential services with year-round demand
• Training and operational support from franchisors

Example Franchises:

• Molly Maid (cleaning services)
• Lawn Doctor (landscaping and lawn care)
• Mr. Handyman (home repair)

2. Mobile & Automotive Services

Mobile businesses, such as auto detailing, windshield repair, and oil change services, have grown in popularity due to their flexibility and low startup costs. Many franchises in this sector operate as mobile units, eliminating the need for expensive storefronts.

Why It’s Great for Beginners:

• Low overhead with no fixed retail space
• Growing demand for convenient, on-the-go services
• Can start as an owner-operator and expand with additional units

Example Franchises:

• Novus Glass (auto glass repair)
• DetailXPerts (eco-friendly vehicle detailing)
• Oil Butler (mobile oil change service)

3. Health & Fitness

Health-conscious consumers continue to drive growth in fitness, wellness, and nutrition services. Franchises in this sector include personal training studios, weight loss centers, and boutique fitness classes. Many of these businesses operate with small footprints and membership-based revenue models, making them accessible to first-time owners.

Why It’s Great for Beginners:

• Recurring revenue from memberships and subscriptions
• Strong brand loyalty and community-building potential
• Some franchises allow semi-absentee ownership

Example Franchises:

• Jazzercise (dance-based fitness classes)
• GYMGUYZ (mobile personal training)
• The Joint Chiropractic (chiropractic wellness)

4. Business Services & Consulting

For those with corporate experience, business services franchises offer opportunities in areas like business coaching, marketing, tax preparation, and staffing. These franchises typically require a small office or can be run remotely, keeping costs low while leveraging the franchisee’s professional expertise.

Why It’s Great for Beginners:

• Low startup costs with high-profit potential
• B2B focus, leading to repeat clients and steady demand
• Flexible business models, including home-based options

Example Franchises:

• The Alternative Board (business coaching)
• Padgett Business Services (accounting & tax services)
• Express Employment Professionals (staffing & recruitment)

5. Food & Beverage (Small-Format Models)

While full-scale restaurants can be costly, small-format food franchises—such as coffee kiosks, smoothie bars, and food trucks—offer affordable entry into the industry. With lower lease costs and efficient operations, these businesses can generate strong profits.

Why It’s Great for Beginners:

• Simplified menu and operations for easy management
• Brand recognition helps attract customers quickly
• Many concepts allow owner-operators to be hands-on or hire managers

Example Franchises:

• Kona Ice (mobile shaved ice trucks)
• Scooter’s Coffee (drive-thru coffee kiosks)
• Tropical Smoothie Café (small-footprint smoothie shops)

The Importance of Prequalification Before Franchise Shopping

One of the biggest mistakes potential franchise owners make is shopping for a franchise before understanding their financial qualifications. Many franchisors require proof of liquid capital and net worth before approving an applicant. That’s why getting prequalified for funding is essential.

How to Get Prepared for Buying a Franchise

1. Check Your Credit Score – Most lenders look for a score of 680+ for favorable financing options.
2. Assess Your Financials – Review your savings, liquid capital, and net worth to determine what you can afford.
3. Explore Financing Options – Consider SBA loans, franchise financing programs, business lines of credit, or Rollover for Business Startups (ROBS).
4. Get Prequalified – Work with a business financing expert to understand what funding options are available to you.
5. Research and Compare Franchises – Once prequalified, focus on franchises that fit within your financial range and business goals.

Final Thoughts

Starting a franchise under $150K is more accessible than many people think. By choosing the right industry, leveraging franchisor support, and securing financing in advance, you can confidently step into business ownership. If you're considering a franchise, get prequalified first so you can move quickly when the right opportunity comes along.

Need help navigating franchise funding? LENDZEE is here to assist you with prequalification and funding solutions to make your business dreams a reality.