Top 5 Low-Cost Franchise Industries to Watch in 2026

For many hard-working people who dream of business ownership, the cost of opening a business can feel like a barrier to entry. Even in franchising, which is often more cost-effective than starting an independent business, the initial investment can be a million dollars or more. The good news is that many franchises are committed to keeping their initial investment accessible, and these are often franchises in sought-after, stable industries like home services.

Let’s take a closer look at low-cost franchise opportunities for 2026.

Why Choose a Low-Cost Franchise?

First-time business owners and seasoned investors alike can find upside in a low-investment franchise opportunity. Low-cost franchises not only have a lower initial investment; they’re also easier to scale and have lower operating costs over time. In many cases, this helps you increase your profits as the business expands and see a return on your investment faster.

What should I know about profitability?

The process of opening any business, whether it’s an independent business or a franchise, includes quite a lot of due diligence. During your research, you will want to learn more about the growth trends and market share of each industry you’re interested in. One measurement you’ll want to look at is the compound annual growth rate, or CAGR. This figure can help you understand how an investment has performed over time and the stability of its growth. A good CAGR depends on the industry, but in general, higher numbers are better.

The profitability of your individual franchise depends on a number of factors, and reputable franchisors avoid making earnings claims. With that being said, there are publicly available figures that can give you a better picture of the franchise’s performance across the board. For instance, a franchise’s average unit volume (AUV) and earnings before interest, taxes, depreciation and amortization (EBITDA) can both give you an idea of the brand’s annual revenue. Some franchises will also break down AUVs by the top 25%, top 50%, and bottom 25% of their franchise systems.

Affordable Franchise Opportunities in Home Services

The recession-resilient home services industry includes many low-cost franchises. Since this market is multifaceted, you have the opportunity to tailor your investment to your interests, skills, and goals.

1. Contracting

The $2 trillion contracting market is a low-investment franchise mainstay. Depending on your preferences, you can focus on general contracting or choose to specialize in specific products or areas of the home. It’s important to keep in mind that these are popular ventures so you’ll need to differentiate yourself to build your business. Opting to franchise with a trusted brand can go a long way in setting you apart from the competition.

2. Organization

Clutter is inescapable, but the busy lives most homeowners lead don’t leave much time for organizing. Add that to the continuing popularity of organization influencers online, and it has led to the remarkable growth of the organization industry. Its projected CAGR through 2031 is a remarkable 11.61%, proving that this market isn’t slowing down any time soon. Some organization franchise brands also offer custom storage solutions, which adds additional streams of revenue for the franchise owner.

3. Pet Care

Everyone loves their pets, and with a CAGR of 5.1% projected through 2030, it’s clear that more pet owners are seeking out high-quality pet care services than ever. From toys and treats to grooming, there are many ways to enter this thriving industry. Lately, many entrepreneurs are choosing mobile pet grooming, which provides compassionate and experienced grooming services in a more convenient format. Although these brands require the purchase of a custom vehicle, they remain a low-cost franchise opportunity.

4. Damage Restoration

Accidents, extreme weather, and the risks that arise from aging infrastructure are unfortunate facts of life for every homeowner. That’s led to stable growth for the restoration industry, which is projected to have a CAGR of 5.7% through 2034. Damage or property restoration covers a wide range of services, including water and fire damage mitigation, mold remediation, odor removal, and air duct cleaning. Offering diverse services helps franchisees expand their revenue streams while helping their neighbors.

5. Cleaning

Brands that offer cleaning services have long been popular low-cost franchise options, and it’s easy to see why: everyone needs a clean home. From annual refreshes and regular cleaning services to one-time deep cleanings before events or moves, homeowners seek out professional cleaning services they can trust. Being the person in your community that provides those services leads to recurring sources of revenue and an ever-expanding customer base.

The global cleaning services industry (including Window Cleaning, Vacuuming, Floor Care, Maid Services, Carpet & Upholstery), was estimated to have a market size of $415.9 billion for 2024 alone, with a CAGR of 5.6% projected through 2030. Most of the demand for cleaning services comes from residential customers, making a house cleaning franchise a uniquely good investment. As a franchise owner, you won’t be responsible for providing services yourself; instead, you’ll focus on growing your business and building a team of house cleaners to do the physical work.

Two Maids: The Right Low-Cost Franchise Opportunity

Among franchises with low startup costs, Two Maids stands out as a prime opportunity. We’re consistently ranked as one of the best franchises under $100k on Entrepreneur’s Franchise 500® list. Two Maids offers semi-absentee franchise ownership opportunities, a proven business model, and the systems and resources you need to become your community’s go-to cleaning service, allowing you to own a business that’s both profitable and fulfilling.

Ready to get started with a Two Maids franchise? Inquire now and one of our franchise advisors will reach out to set up a short introductory call.