10 Profitable Low-Cost Franchise Business Ideas

In today's era, many individuals are keen on starting their own businesses, including franchise businesses. Franchising has become a method of granting permission to others to use an idea or product. In simpler terms, franchising is like selling the right to operate our business to others. 

This makes starting a business easier because we don't need to worry about the product brand. We simply pay the franchise owner for the license, and then we can immediately run the business with an existing system. The fees can vary, ranging from payments for raw materials, and equipment, to royalties. In Indonesia, there are numerous franchise options available, so owners usually offer various packages at different prices.

Many people are interested in trying out franchise businesses but sometimes hesitate due to capital issues. While some franchises require significant investments, there are also franchise business ideas with relatively small capital but high profitability.

Here, we will outline some examples of low-cost franchise business ideas that you can consider starting! Read on to learn more!

10 Recommended Low-Cost Franchise Businesses

1. Chicken "Geprek"

Source: Travelkompas.com

First on the list is the chicken "geprek" business, which requires a small capital but can yield significant profits! Chicken "geprek" remains a favorite food in Indonesia. Chicken coated with crispy flour and served with specially prepared "geprek" chili sauce is one of the franchise business alternatives you can choose.

Example: Among the many chicken "geprek" franchises in Indonesia, "Geprek Bensu" is a well-known brand. If you want to venture into the chicken "geprek" franchise business, you can choose between profit-sharing cooperation or pure franchising. You can opt for a mid-range business name to keep the capital relatively low.

2. Bubble Tea

Source: GoBiz.com

Bubble tea with its various flavors is a highly popular franchise business, especially among young people who enjoy flavored drinks.

Example: Brands like HAUS, Xing Fu Tang, and others are in high demand due to their delicious taste and thirst-quenching properties. Setting up a booth is the most affordable option for starting a bubble tea business. With an investment of around Rp. 70,000,000 for a booth measuring 4-6 meters and offering 15 types of drinks, you can choose a suitable location to start your franchise business.

3. "Seblak"

Source: Wikipedia.com

"Seblak," a Javanese snack made from tapioca, typically topped with various ingredients and varying levels of spiciness, has become popular nationwide.

Initially available only in West Java, "seblak" is now found in various cities across Indonesia. The capital required to start a "seblak" business is relatively small, ranging from Rp 2,000,000 to Rp 4,000,000. Locations near campuses or office buildings are ideal for starting a "seblak" franchise business.

4. Sugarcane Juice

Source: SemarangAyoindonesia.com

You may have seen roadside stalls selling sugarcane juice in your area. This business is suitable as one of your franchise recommendations! One of the factors contributing to the popularity of this business is the direct processing of sugarcane on-site, followed by crushing with specialized machines. A cup of sugarcane juice usually costs around Rp 5,000, which is very affordable. You don't need a large outlet; a small space is sufficient for selling sugarcane juice.

5. Kebab

Source: indofrozenfood.com

Kebab outlets are often found on the roadside, in malls, or front of supermarkets. Apart from Indonesian cuisine, Middle Eastern cuisine like kebabs is also popular here and can be a profitable franchise business choice. Kebabs, consisting of meat and vegetables wrapped in bread, can be found in many places in Indonesia.

Example: Kebab Baba Rafi is a well-known kebab franchise in Indonesia. With just Rp 3,000,000, you can start a kebab franchise business! You can also choose a business name that fits your available capital.

6. Coffee Shop

Source: Freepik.com

Coffee shops seem to be a favorite franchise business in Indonesia. The widespread appeal of coffee makes it a promising franchise business. Even in major cities like Jakarta, Depok, Surabaya, and others, milk coffee shops can be found in every area. You can choose from investments ranging from millions to billions of rupiah for your franchise business.

7. Water Refill

Source: Tanindo.com

Who doesn't need water every day? This business is sought after by many people. Given the perceived health benefits of drinking water, many are eager to open water refill franchise businesses. You can open this franchise business in rural areas or large cities.

8. Mini Gas Stations

Source: entrepreneur.bisnis.com

Not only water refill businesses are popular! Mini gas stations are also a suitable choice for a profitable franchise business. Since rural areas are far from gas stations, owning a mini gas station can be profitable for the surrounding community.

9. Crepes & Waffles

Source: kids.grid.id

Favorite snacks for both children and adults, such as crepes and waffles, can be your franchise business idea! Typically, businesses like this operate in malls. Since these foods are very popular in Indonesia, it's no wonder many successful brands have opened franchise businesses. You can start this franchise business in a residential area as well!

10. Ice Cream

Source: Wiratech.com

You've probably seen various brands of ice cream freezer boxes in stores or shopping centers. This type of business is popular due to the high demand for ice cream. Ice cream can quench thirst on hot days and serve as a light snack during leisure time. You can look for renowned brands selling their franchises to start your potential business.

So, those are 10 franchise business ideas worth trying! Hopefully, the recommendations above can inspire you to increase your income or start generating passive income!