Low Cost Franchises Under £500

Is it possible to start a legitimate business in the UK without spending thousands of pounds? Can a small investment of £500, or even less, really give you access to a proven business model with brand backing, training, and support?

These are valid questions, especially in a market where franchising has long been associated with significant upfront costs. Traditionally, entering the franchise world meant securing upwards of £10,000 to £50,000 just to get started. That investment often covered setup, branding, training, and access to a larger corporate structure.

However, in recent years, the franchise model has evolved. Driven by advances in technology, the growth of remote work, and increasing demand for flexible, scalable business options, a new wave of low cost franchises has entered the market. These options allow aspiring entrepreneurs to start a business for as little as £500 or less, often with minimal overheads and the potential for real growth.

But are these ultra-low-cost opportunities credible? And more importantly, can they be profitable?

Why Are Low Cost Franchises Becoming So Popular in the UK?

Low cost franchises are growing in popularity across the UK for several reasons. Firstly, there is a rising number of people seeking alternative income sources, particularly after economic shifts caused by inflation, cost-of-living challenges, and a more competitive job market.

Franchising offers an attractive route to self-employment without the steep learning curve of building a brand from scratch. The appeal of starting small, both in terms of financial commitment and business scale, makes sense for those with limited capital or time.

These franchises often focus on service-based industries, which do not require a physical storefront, staff, or significant inventory. Businesses in travel consultancy, children’s education, property referrals, and online services are just a few examples that have adapted their models to suit modern entrepreneurs working from home or operating part-time.

The combination of flexibility, low entry cost, and access to established systems makes these franchises particularly suitable for parents, students, retirees, and professionals looking for a side business.

What Kind of Businesses Can You Start with a £500 Investment?

With £500 or less, you’re unlikely to purchase a high-street coffee shop or fast food outlet, but you can certainly tap into digital, service-based, and community-driven businesses. These models rely more on personal involvement, local marketing, and client relationships than on large teams or complex infrastructure.

Many of these businesses are designed to be low-overhead and home-based, which reduces initial costs and risk. They’re also typically flexible, meaning you can operate part-time, evenings, or weekends depending on your availability.

Some examples of the types of businesses available under £500 include:

• Travel booking and holiday consultancy
• Children’s fitness or coding classes
• Property referral and estate agency models
• Arts and crafts education programmes
• Affiliate and referral partnerships
• Pet care and dog-sitting services

These business types often include training, ongoing support, and branded tools or materials to get you started. The main requirement is a commitment to building client relationships and following the franchise system.

Which UK Franchises Can You Start for £500 or Less?

To help you explore this growing sector, here are ten credible low cost franchise opportunities in the UK, all of which are available for £500 or less. These options span various industries and offer flexible models suitable for individuals from a wide range of backgrounds.

1. Mini Athletics

Mini Athletics is a dynamic programme designed to introduce young children to sport through imaginative, structured activities. It combines early years learning with athletics, allowing children aged 2 to 7 to develop physical literacy, coordination, and social confidence in a fun environment.

This franchise is well-suited to individuals who enjoy working with children, particularly those with backgrounds in teaching, coaching, or early years education. However, formal qualifications are not a prerequisite, what matters most is enthusiasm, energy, and commitment to the development of children.

Operating a Mini Athletics franchise offers a flexible schedule that can fit around school hours, weekends, or term-time availability. This makes it an attractive choice for parents or part-time professionals seeking a rewarding business aligned with their lifestyle.

Franchisees receive everything they need to launch successfully, including:

• Initial and ongoing training in class delivery and business management
• Branded sports equipment for class use
• Access to a proven operational platform and booking system
• Marketing tools and support for community outreach

The sessions are designed to be scalable, allowing franchisees to start small and expand as demand grows in their area.

2. HomeXpert

HomeXpert offers a smart entry into the property market without the complexities of becoming a full estate agent. Their model is designed for people who want to leverage their local networks, connect with home sellers or landlords, and earn commission through successful referrals.

This approach is ideal for individuals who enjoy working with people, have strong interpersonal skills, and are comfortable promoting services within their community. Unlike traditional estate agency roles, the HomeXpert model does not require property qualifications or regulatory compliance, making it more accessible.

Franchisees act as connectors between homeowners and licensed property agents within the HomeXpert network. Once a deal is closed, the referrer receives a share of the revenue. This can lead to a flexible, relationship-driven income stream, especially in areas with active housing markets.

Key features of the franchise include:

This franchise is particularly appealing to those already embedded in their communities, such as local business owners, freelancers, or sales professionals.

3. GoCruise & Travel

GoCruise & Travel presents a compelling opportunity for individuals interested in the travel industry but who prefer the flexibility of a home-based model. As part of Fred. Olsen Travel, a long-established and respected name in the UK, this franchise enables partners to operate as personal cruise consultants without needing a physical office or storefront.

Franchisees provide bespoke holiday planning, particularly for cruise travel, drawing on relationships with major cruise lines and tour operators. The role is consultative in nature, offering clients tailored experiences based on their preferences, budget, and destination choices.

The business is ideally suited for those with a passion for travel, strong organisational skills, and the ability to build long-term client relationships. While sales experience can be beneficial, it is not essential due to the robust training and support structure in place.

Franchise owners benefit from:

• Access to exclusive offers from top cruise and holiday providers
• Full training in systems, sales, and destination knowledge
• Branded marketing materials and support with customer acquisition
• ATOL and ABTA protection for all customer bookings, ensuring compliance and trust

This franchise aligns well with individuals seeking a flexible career path with the potential to grow through repeat customers and referrals.

4. Rugbytots

Rugbytots is one of the most recognised children’s activity franchises, known for delivering rugby-themed sessions focused on fun, coordination, and early skills development. The classes cater to children between the ages of 2 and 7, encouraging them to run, kick, pass, and play in a structured yet imaginative environment.

The franchise model is particularly well-matched to those who enjoy energetic work and engaging with young children. It appeals to individuals with teaching or sports coaching backgrounds but is equally open to career changers with a passion for youth development.

One of Rugbytots’ key strengths is its proven global track record and the systems it provides to support franchisees. This includes well-developed session plans and resources to ensure consistency in delivery across different locations.

Core elements of the Rugbytots franchise include:

With more than 4,000 classes delivered weekly worldwide, the brand has built trust with parents and schools alike. This, in turn, provides a reliable foundation for franchisees entering the business.

5, Crafty Kids

Crafty Kids enables franchisees to run engaging arts and crafts sessions for children, focusing on creativity, motor skills, and imaginative learning. These sessions are held in schools, nurseries, and community spaces, with pre-designed lesson plans and materials provided by the brand.

The model is particularly attractive to individuals looking for a term-time business, such as parents or creative professionals. It doesn’t require teaching credentials, though comfort with leading small groups of children is essential.

The franchise stands out for its ease of setup and the structured support provided, allowing franchisees to start with minimal experience. Sessions can be run solo or expanded with assistants as demand grows, offering a path toward scaling operations.

Key benefits of the Crafty Kids model include:

• Access to a bank of themed and seasonal lesson plans
• Marketing guidance for local promotions and events
• Equipment packs to get started immediately
• Support with venue setup, parent communications, and health and safety
• Flexibility to run sessions weekly, monthly, or during school holidays

By focusing on creativity and community engagement, Crafty Kids delivers a fulfilling business experience with room for both personal and professional growth.

6. Cleaner Planner

Cleaner Planner is a specialist business-to-business software solution designed to help window cleaners and other service-based businesses manage their operations more effectively. It offers features like automated scheduling, payment tracking, customer communication, and route optimisation—all within one user-friendly platform.

The referral partner programme enables individuals to earn commission by recommending the software to relevant businesses. This model is particularly well-suited to those with contacts in the cleaning industry, or with sales and marketing experience. Since the product is software-based, there is no need for physical stock, office space, or direct service delivery, making it a low-maintenance business option.

Franchise partners act as brand ambassadors, introducing the software to new users and helping them get started. All technical support and product training are handled by the parent company, so franchisees can focus solely on promotion and relationship building.

Key aspects of the Cleaner Planner franchise model include:

This model is ideal for individuals looking for a low-cost entry into the SaaS and business services space, particularly those who want to earn passive income without running a hands-on service business.

7. Jam Coding

Jam Coding is an education-focused franchise delivering coding clubs, digital literacy workshops, and e-safety lessons to children, primarily in primary schools and after-school settings. With the growing emphasis on STEM education and digital skills, this franchise meets a critical need in the modern curriculum.

Franchisees take on the role of instructors, delivering lessons using a structured and child-friendly curriculum provided by the brand. The business is ideal for individuals with a passion for education and technology, such as former teachers, IT professionals, or even career changers looking for meaningful work.

No coding experience is required to get started, as Jam Coding provides in-depth training and lesson support. Franchisees benefit from exclusive territory rights and are encouraged to build long-term relationships with local schools, education authorities, and parents.

Core elements of the Jam Coding franchise model include:

• Access to structured lesson plans, teaching resources, and coding software
• Full training in classroom delivery, child safeguarding, and curriculum design
• Marketing and branding tools for local school outreach
• Support with scheduling, invoicing, and customer communication
• Flexibility to scale by hiring additional instructors or running holiday workshops

This business offers a strong blend of educational impact and commercial potential, making it ideal for those who want to build a career in the growing field of digital education.

8. Kumon

Kumon is one of the most recognised names in after-school education, specialising in maths and English tuition. While full Kumon centre ownership can involve a higher financial commitment, the brand also offers an assistant-level franchise pathway that allows aspiring educators to gain experience and grow gradually into full centre management.

The assistant franchisee role involves working under the supervision of an existing Kumon Instructor, supporting student learning, lesson preparation, and parent communication. Over time, franchisees can train to open their own centre, giving them a clear growth trajectory within the brand.

This model is particularly attractive to individuals who want to build a long-term career in education but may lack initial experience or capital. It offers both professional development and a supported entry into self-employment within a globally respected education system.

Key features of the Kumon assistant franchise include:

With its reputation for academic excellence and a model that prioritises long-term growth, Kumon remains a strong contender for those seeking an education-based business.

9. The Good Estate Agent

The Good Estate Agent operates a flexible and innovative model in the property sector, offering franchisees the chance to earn through referrals and lead generation rather than acting as a full-service estate agent. It’s ideal for individuals who want to work in property but without the regulatory and operational requirements typically associated with the industry.

Franchisees refer buyers, sellers, and landlords to licensed agents within the brand’s network. These agents then handle the transactions, and a percentage of the revenue is passed back to the referrer. This means franchisees focus on building local networks, attending community events, or using social media to generate property leads.

The business can be operated part-time or full-time and provides a great entry point into the property market for those who enjoy networking and sales.

Highlights of this model include:

• Dedicated CRM system for managing referrals and communications
• Digital marketing materials and automation tools
• Training in lead generation, social media strategy, and compliance basics
• Opportunities to expand into full agency roles over time
• Local territory branding to help establish market presence

The Good Estate Agent offers a scalable structure with minimal complexity, perfect for people seeking a remote-friendly business in a high-demand sector.

10. PetStay

PetStay provides a home-from-home dog boarding service, matching pet owners with trusted, licensed carers in their area. Rather than operating kennels, franchisees either host dogs in their own homes or recruit a network of carers to do so under their local franchise.

This model is especially well-suited for animal lovers who want a flexible, rewarding business they can run from home. Unlike dog-walking services or pet shops, the focus here is on providing a calm, secure environment for dogs while their owners are away, typically during holidays or business trips.

PetStay has built a strong national reputation by focusing on quality care, pet welfare, and compliance. The brand provides marketing support, booking systems, and all necessary documentation for licencing and insurance.

Key advantages of the PetStay franchise include:

PetStay is particularly attractive to those who want to combine their love of animals with a lifestyle-friendly business model that doesn’t require heavy investment or long hours.

How Do You Choose the Right Franchise Opportunity Under £500?

Choosing a low cost franchise is not simply about affordability. While the low entry point may be appealing, the success of the venture depends on factors such as your skills, interests, available time, and long-term goals. A well-aligned opportunity can provide steady income, professional satisfaction, and scalability. A poor fit, on the other hand, could lead to frustration and wasted effort.

Before committing, it’s important to evaluate what you expect from the business. Do you want something flexible around your existing job or family life? Are you hoping to develop a full-time enterprise over time? Understanding your “why” is essential when filtering through available options.

To assist with your decision-making, here’s a table outlining key considerations:

By aligning the franchise opportunity with your existing strengths and personal circumstances, you greatly increase your chance of building a profitable and sustainable business.

Conclusion: Are Franchises Under £500 Worth Exploring in 2025?

Franchises under £500 offer an accessible entry point into entrepreneurship, particularly for individuals seeking flexible, part-time, or home-based opportunities. While these models differ significantly from traditional brick-and-mortar franchises, they can provide meaningful income, autonomy, and personal satisfaction, if chosen wisely.

From education and pet care to tech, travel, and property services, the scope of low cost franchises continues to grow. These businesses are often designed to operate with low overheads, limited risk, and scalable potential, making them suitable for first-time entrepreneurs and experienced professionals alike.

That said, success depends on your willingness to commit time, apply the training, and actively market your business. The most profitable franchisees in this price range are often those who treat the opportunity seriously, engage with their communities, and follow the proven systems provided by the brand.

If you’re motivated, organised, and clear about your goals, a low cost franchise could offer exactly the springboard you need to build a business, on your terms and within your budget.

Frequently Asked Questions

What types of franchises can I start for under £500?

Most are service-based or home-based in sectors like education, travel, property, pet care, and software referral.

Can I run a low cost franchise alongside a full-time job?

Yes, many are designed for part-time or flexible operation, making them ideal as side businesses.

Do I need experience to start a franchise under £500?

No. Most offer full training and are suitable for beginners.

Are there any hidden costs in low cost franchises?

Some may have optional ongoing fees or upsells. Always check the full breakdown before committing.

How soon can I start earning from one of these franchises?

In many cases, you can begin earning within a few weeks, depending on your marketing efforts and demand.

Can I scale a £500 franchise into a full business?

Yes. Many franchisees start small and grow their operations as demand increases.

What support do franchisors typically offer?

Support usually includes training, branded materials, marketing guidance, and access to operational systems.