You’ve probably already heard that franchise businesses are great opportunities, but there is one thing you need to know about them: they are expensive. More expensive than traditional businesses, at least at the beginning.
The reason why franchises are always more expensive than businesses, in general, is that the initial investment almost always includes a franchise fee that can go from $1000 to $50,000 or more.
Sometimes, other than the franchise fee, you are required to pay a royalty fee.
Royalty fees are not meant to be paid at the beginning of your activity: they are percentages of your income that you need to pay to your franchisor.
For example, if the franchise fee is $10,000, you need to pay $10,000 to the franchisor at the beginning of your relationship. After that, all the money you earn is yours.
If the royalty fee is 3.8%, you don’t need to pay anything at the beginning, but you’ll need to pay 3.8% of your income to your franchisor forever.
Sometimes, franchisors require both the franchise and the royalty fee.
Because franchises can be this expensive, it’s important to know what are the best options to invest all this money.
In this article, we’re just going to explore the 10 best franchises under $200,000.
They are expensive franchises, but they are all premium and well-known franchises. Even if the initial investment is high, that is, with these franchises, it is always worth it.
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10 Best Franchises Under $200000
1- Norbell Call Center Franchise
| Company Name | Norbell Call Center |
| Founded In | 1998 |
| Started franchising | 2009 |
| Number of locations | 15 |
| Total initial investment | $100,000 |
Norbell Call Center is, as the name suggests, a company that provides call center services to third parties. The company was founded in 1998 but started franchising only in 2009.
Since then, they opened new units across Canada and the United States, and today, they coin 15 locations.
With them, you can start a call center business: the initial required investment is $100,000.
Other than USA and Canada, you can open a Norbell Call Center franchise in Mexico, the Philippines, and India.
2- Coffee Planet Franchise
| Company Name | Coffee Planet |
| Founded In | 2004 |
| Started franchising | 2009 |
| Number of locations | 21 |
| Total initial investment | $100,000-$200,000 |
Coffee Planet is a huge coffee retailer company based in Dubai that allows you to start a coffee shop in the United States but also in Canada, Europe, the UK, and other countries.
The company was founded in 2004 and launched its franchise program in 2009. Today, they count 21 units spread all over the world.
The company follows the production of coffee from the seed to the cup. They produce their own coffee blend and manage coffee stores and bars as well.
The initial investment required goes from $100,000 to $200,000, depending on the dimensions of your Coffee Planet bar.
3- Juice Zone Franchise
| Company Name | Juice Zone |
| Founded In | 2000 |
| Started franchising | 2000 |
| Number of locations | 100 |
| Franchise Fee | $20,000 |
| Royalty Fee | 6% |
| Total initial investment | $100,000 |
If you are interested in opening a bar but want to start with a well-known and successful brand, the Juice Zone franchise is the best option for you.
Founded in 2000, this company was born as a franchise from day 1, and today they can already count 100 locations in Canada and the United States.
Juice Zone’s bars are colored and joyful places where people, including children, can find a happy environment other than good-quality products.
There is an initial franchise fee of $20,000, and the total initial investment is estimated at $100,000. After that, you’ll also have to pay an ongoing royalty fee of 6%.
4- Comet Cleaners Franchise
| Company Name | Comet Cleaners |
| Founded In | 1947 |
| Started franchising | 1967 |
| Number of locations | 147 |
| Franchise Fee | $15,000 – $50,000 |
| Royalty Fee | 5% |
| Total initial investment | $120,000 |
Comet Cleaners is a cleaning company specializing in dry cleaning. The company has been providing this service since 1947, and in 1967, they also started franchises.
Today, they count 147 locations in the United States and more in other countries.
They require an initial franchise fee that is variable and can go from $15,000 to $50,000.
There is also an ongoing royalty fee of 5%. Including the franchise fee, the total initial investment amount at $120,000.
Read In Detailed Comet Cleaners Franchise
5- Daylight Donuts Franchise
| Company Name | Daylight donuts |
| Founded In | 1954 |
| Total initial investment | $150,000 |
Daylight Donuts franchise deals with donut stores. The company was founded in 1954, and today, they are open to franchise applications. The initial investment is calculated at $150,000.
6- Spiffy Franchise
| Company Name | Spiffy |
| Founded In | 2014 |
| Started franchising | 2020 |
| Number of locations | 48 |
| Franchise Fee | $40,000 |
| Royalty Fee | 7% |
| Total initial investment | $150,000 |
Spiffy is a car washing service company founded in 2014. In 2020 they started franchises, and today, only two years later, they already count 48 franchised companies in the United States.
They require a franchise fee of $40,000, and that includes the total initial investment is $150,000. There is also an ongoing royalty fee of 7%.
7- Choupette Franchise
| Company Name | Choupette |
| Founded In | 2007 |
| Started franchising | 2011 |
| Number of franchise locations | 90 |
| Total initial investment | $100,000 |
The Choupette franchise deals with fids’ clothing stores. The first Choupette store opened in 2007, but in 2011 they started franchises.
Today, they can count more than 90 franchise stores, but they also directly own 10 more stores.
Other than selling clothes, they also manufacture their branded clothes.
The total initial investment for this franchise business $100,000.
8- TopFranchises Franchise
| Company Name | TopFranchises |
| Franchise Fee | variable |
| Royalty Fee | 3% |
| Total initial investment | $100,000 |
TopFranchises is a company that provides services to companies that are interested in beginning franchising. They are also a franchising company.
If you have this type of knowledge and want to start providing this service to other companies, you can do it in the name of TopFranchises.
It would be easier than starting this type of activity on your own since they are already well-known and companies interested in franchises usually go to them for advice and support.
The initial investment is $100,000. The franchise fee is variable and customized for each franchisee, and there is a royalty fee of 3%.
9- Halibut House Fish and Chips Franchise
| Company Name | Halibut House Fish and Chips |
| Founded In | 2002 |
| Started franchising | 2014 |
| Franchise Fee | $30,000 |
| Royalty Fee | $2500 per year |
| Total initial investment | $150,000 – $200,000 |
Halibut House Fish and Chips is a restaurant franchise. The first restaurant was opened in 2002, and in 2014 the company started franchising.
Thanks to their franchise program, today, there are 20 Halibut House restaurants in the United States and Canada.
The company requires an initial franchise fee of $30,000 and an ongoing royalty fee of $2,500 per year.
The initial investment, including the franchise fee, is calculated at $150,000, but it could also reach $200,000, depending on the dimensions of your restaurant.
10- Osmow’s Franchise
| Company Name | Osmow’s |
| Founded In | 2001 |
| Started franchising | 2007 |
| Number of locations | 40 |
| Total initial investment | $100,000 – $200,000 |
The Osmow’s franchise is another restaurant franchise company. The first location was opened in 2001, and the franchise program started in 2007.
There are 40 locations active in the United States and Canada at the moment.
Depending on the dimensions of your restaurant, the initial investment can among from $100,000 to $200,000.
Conclusion
A 200K investment is a big one. With this list of the 10 best franchises under $200,000, we’ve just provided you with a guide on how to make a wise investment. Any of the options described ensures a quick return on investment.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.