With a tight budget, compare brands by their disclosed Item 7 minimum investment, which is the basis for this ranking. Many of the cheapest choices are home-based or licensing-style businesses rather than storefronts that need a build-out.
25 US franchise brands, ranked by FDD Item 7 minimum
| Rank | Brand | Initial investment | Store count |
|---|---|---|---|
| #1 | $1,945–$20,505 | ||
| #2 | $34,080–$158,750 | ||
| #3 | $35,770–$286,100 | ||
| #4 | $37,050–$553,700 | ||
| #5 | $37,100–$336,500 | ||
| #6 | $47,250–$331,950 | ||
| #7 | $49,700–$71,400 | ||
| #8 | $55,800–$183,000 | ||
| #9 | $59,900–$69,900 | ||
| #10 | $60,800–$209,000 | ||
| #11 | $66,000–$111,500 | ||
| #12 | $71,050–$105,000 | ||
| #13 | $81,150–$109,400 | ||
| #14 | $82,200–$194,600 | ||
| #15 | $92,150–$249,500 | ||
| #16 | $92,640–$350,550 | ||
| #17 | $93,440–$149,890 | ||
| #18 | $94,330–$176,239 | ||
| #19 | $97,575–$139,875 | ||
| #20 | $100,500–$211,250 | ||
| #21 | $101,630–$233,780 | ||
| #22 | $104,374–$376,241 | ||
| #23 | $107,650–$252,850 | ||
| #24 | $108,503–$277,118 | ||
| #25 | $109,860–$158,650 |
Frequently asked
What's the actual cheapest franchise to open in the US?
Based on disclosed Item 7 minimums, home-based and licensing-style businesses, including travel advisory and some service brokerages, sit at the bottom of our catalogue at well under $50,000. The ranking above identifies the cheapest brands currently available.
Does a low Item 7 minimum mean low ongoing cost?
No. Royalty and ad-fund percentages apply to revenue regardless of how low the opening cost is. Before assessing total cost of ownership, check each brand page for that brand’s royalty and marketing-fund percentages.