Choosing a Low-Cost Franchise That's Right for You Investing in a low-cost franchise can expedite your path to profitability.

If you think you can't afford to buy a franchise business, think again. Investment in a low-cost franchise business is a simple way that aspiring entrepreneurs can start their own business with less debt, make money faster and have a team around them for support.

That's not a bad prospect given current economic conditions that include high inflation, rising interest rates and supply chain issues. Those conditions also happen to be the top concerns of small business owners in 2023, according to a recent study from the U.S. Chamber of Commerce.

Inflation remains the top concern among small business owners surveyed in the Chamber's study, which was released earlier this year. About 53% said it was the biggest challenge they face, which is up 30% from the year before.

"A lot has changed on the business front in the last year for small business owners as inflation climbed," Kumon North America's Vice President for Center Network Development John Collins saYS. "Even in a booming economy, starting your own business is never easy. At Kumon, we know every dollar counts, which is why we work hard to keep our fees low and offer premium incentives for new Instructors. We want our owners to be in the best financial shape when they open their centers. That way, they can focus on what is most important – educating children."

Not everything has to be expensive when it comes to starting a business.

For the last four years, Kumon has ranked No. 1 on Entrepreneur's Top Low-Cost Franchises ranking for franchises that cost less than $100,000. Essentially, it's one of the most affordable and low-cost ways to enter the franchising world as a small business owner.

Entrepreneur's low-cost ranking is based on startup costs as well as inclusion in the magazine's prestigious Franchise 500®, which reflects outstanding performance in areas such as costs and fees, size and growth, support, brand strength and financial strength and stability. 2023 marks the 22nd consecutive year that Kumon has been ranked No. 1 in the education category and the third consecutive year that Kumon has ranked sixth overall on the Franchise 500 listing.

If you want to own your own franchise but are put off by the cost of upfront franchise fees, you might be pleasantly surprised by what you find at Kumon.

That was the case with Paulo Alanes, who opened his new Kumon Center in February. Alanes, whose Center is in Victoria, British Columbia, had researched other education companies but didn't find them suitable for what he was looking for. He didn't want to own just any franchise.

"From a general consumer perspective, it's quite an investment if you are getting into any chain franchise," he says. "If you're getting into a McDonald's or a Tim Hortons, you're talking lots of money upfront.

"But Kumon isn't like that," he adds. "It's low-cost. Besides the rental space, there's little to invest. They have the reimbursement for flooring and paint. That's about 95 percent of what I paid. And then there's your rent and the franchise fee. That's about it."

Alanes is currently building up his clientele and is hopeful the Centre will have a significant impact in his community. And while the cost savings was beneficial, it wasn't the only aspect that attracted him to the franchise.

Freda Jones-Stewart, who opened a new Kumon Center in Georgia this year, agreed that Kumon's cost was a benefit for those getting into the business for the first time.

"I think, looking at the franchisee industry as a whole, yes, it's cheaper to get involved with Kumon," she says. "I've been to the franchise shows and have seen Kumon's competitors. I was just always drawn to Kumon's methodology. I also know I'm not a salesperson. I can't sell something I don't believe in."

Investment starts at less than $65,000, but as the Instructor you aren't shouldering all of that alone. Instructors opening new centers in the U.S. are eligible to receive up to $37,100 in incentives in the U.S. and $29,600 in Canada to help cover the costs for your new Center, like tables, chairs, paint, carpet and signage. The $1,000 cost of your training kit can also be applied to the $2,000 franchise fee, which is one of the lowest in the industry.

"We want our Instructors to have their energy and focus on educating children and running a successful business that helps the community," Collins says. "There are going to be unavoidable upfront costs when starting any business. But we want to minimize their worry about having to keep up with large fees and put the focus back on making their Center the best it can be."

To learn if the Kumon Franchise opportunity is right for you, visit kumonfranchise.com.