3 Affordable Franchise Business Ideas for Beginners That Are Truly Profitable

Got 10 to 20 million in savings and thinking about starting a franchise business? Don’t be afraid to dream of becoming a food entrepreneur and making real profits in 2024. With the Year of the Wood Dragon approaching, it’s the perfect time to start a new venture. Here are 3 affordable franchise ideas for beginners that you can try.

3 Franchise Ideas: Low Investment, High Profits

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For those of you looking to start a franchise in the culinary industry, here are a few affordable options for beginners. From food to snacks and beverages, these ideas require minimal investment but offer maximum profit potential!

1. Food Franchise

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Indonesia’s culinary scene is incredibly diverse, with many delicious and unique dishes. One of the most popular dishes among Indonesians, and ranked as the best fried chicken globally by Taste Atlas in 2023, is fried chicken.

There are numerous fried chicken franchises in Indonesia, from international brands to local ones. Some affordable options for beginners include Dkriuk Fried Chicken with 1,000 branches in Java, Sabana with 3,000 outlets across Indonesia, and Ayam Gepuk Pak Gembus with 700 branches.

The initial investment for these fried chicken brands ranges from 15 to 35 million rupiah. The revenue potential is impressive, from 38 million to hundreds of millions monthly. Investing in a food franchise like these is very promising for long-term success with a low investment but high returns.

2. Snack Franchise

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Another profitable franchise idea for beginners is the snack business. According to a 2019 survey by Mondelez Indonesia, 77% of respondents preferred snacks over heavy meals.

Research from Databoks (2022) showed that fried snacks are the top choice for at least 45% of Indonesians, far more popular than bread, burgers, pizza, chips, or sweets.

Several affordable snack franchises offer fried snacks, such as Tahu Gila, Tahu Jeletot Taisi, and Tahu Go. These fried tofu brands have gained popularity over the past three years. The initial investment for Tahu Gila and Tahu Jeletot Taisi starts at around 5 million rupiah, with monthly revenues ranging from 3 to 30 million rupiah.

Although the investment for Tahu Go is higher at about 19 million rupiah, the annual revenue can reach 22–65%. Considering the profit potential, investing in Tahu Go is a promising and affordable franchise option for beginners.

3. Beverage Franchise

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According to the Ministry of Health’s 2018 Basic Health Research, 60% of Indonesians love consuming sweet drinks more than once a day. Coffee, milk, and tea are the most popular beverages, consumed consistently for six months straight (Databoks, 2022).

One trending and affordable coffee franchise for beginners is Kopi Susu Nyopee, requiring only a 7 million rupiah investment.

Reports suggest that Kopi Susu Nyopee can sell up to 40 cups per day, translating to around 400 thousand rupiah in daily profits or 12 million rupiah per month.

For those interested in tea, consider Es Teh S.O.L.O or Dum Dum Thai Tea. With an initial investment of around 4 million rupiah, you could earn up to 7 million rupiah per month. Pretty fantastic, right?

Tips for Starting an F&B Franchise

1. Be Smart in Choosing a Franchise

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Aside from considering the initial investment, it’s essential to evaluate the franchise's reputation. Choose a brand with numerous branches and a good reputation. Align with current market interests, future potential, and your interest in the product.

Compare the positive and negative aspects from your research and discussions with franchise owners and other entrepreneurs.

2. Understand the Terms and Conditions

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Before committing to a franchise, read the cooperation documents (MoU) thoroughly to ensure no clauses could disadvantage you as a franchisee.

Ensure there are no doubts in your mind. If you have many questions, ask them upfront to avoid misunderstandings. Clarify the franchise system, profit-sharing, business packages, etc.

3. Improve Your Franchise Business Skills

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Never stop developing yourself. As a food entrepreneur, continually hone and deepen your franchise knowledge. This can be done by discussing with fellow food entrepreneurs, other franchise owners, or joining specific F&B business communities.

Final Thoughts

The affordable franchise ideas for beginners mentioned above are worth trying. Don’t forget to implement the tips shared here as well. Good luck with your profitable F&B franchise business!