Feb 15th, 2024

The Most Common Franchise Ownership Expenses You Can Expect with Anchored Tiny Homes

There are few people who start their own businesses purely because they love the budgeting and expense aspects of establishing and growing something on their own. If you’re part of the majority who feel driven by the idea of becoming your own boss and building more wealth than you ever could have in a corporate job but don’t know how to manage business expenses, rest assured that you’re in the right place!

While it may sound like an overwhelming task on the surface, managing your business’s financials can be a simple, streamlined process – if you join a franchise with a support system designed with your success in mind. Let’s take a deep dive into the everyday expenses you can expect as an Anchored Tiny Homes Franchisee and learn about how you can still earn big and become a competent business owner in the ADU industry.

A pair of Anchored Tiny Homes Franchise Owners look over plans for an ADU project and onwership expenses.

The Biggest Expenses You Can Expect as an Anchored Tiny Homes Owner

Initial Franchise Investment

Starting a business, whether you choose to do it on your own or join a franchise, can be an expensive venture because of the upfront funding you need to launch. When you decide to join the Anchored Tiny Homes franchise, the very first financial commitments you can expect will be your franchise fee and all the initial costs needed to get started.

This figure could change depending on whether you qualify for a veteran’s discount or if you want to invest in multiple territories right off the bat, so take our 1-minute qualification quiz and connect with our team for more information on our current investment range.

With Anchored Tiny Homes, your financial investment starts at just $113,750!

If you’ve spent any time looking into franchising opportunities, you’ll be familiar with how massive the initial financial commitment can be, with some franchises requiring $500K+ just to get new Owners started. However, more money upfront doesn’t necessarily mean that you’ll see higher returns. At Anchored Tiny Homes, we took the franchising world by storm because of our impressive economics. While your initial financial investment starts at $113,750, you could see returns as substantial as our $1.3M Franchise Outlet Total Gross Sales!*

As with other franchises on the market, this financial investment will provide you with more than just the Anchored Tiny Homes name and branding to use in your territory. You’ll also receive all the initial onboarding training you need to run your business, your start-up marketing, all the hardware and software you need to launch, your licenses and permits, and even additional funds ready to go for your first three months of operations.

Labor Expenses

When you join the home services and construction industry, labor expenses will by far be your biggest expense. While general contractors can vary in price based on experience, region, market conditions, and more, it’s not uncommon for businesses in this field to see 20 to 55% of their total gross sales go to paying contractors and their workers. As large as this figure may sound, there are many franchise investment opportunities, like Anchored Tiny Homes, that have built an incredibly profitable and successful business on subcontractors.

Conversely, you could consider the nonmonetary things you’re saving by paying subcontractors instead of hiring within, including HR costs, high on-the-job training costs, additional benefits for W2 employees, and the immense amount of time required to manage an internal contractor team. When your bottom line and customer satisfaction rely on high-quality construction, you’ll be glad you paid well for a general contractor team you can trust.

Goods & Materials

As an Anchored Tiny Homes Franchise Owner, your entire business will revolve around building accessory dwelling units (ADUs) for expanding families, conscientious property owners, and forward-thinking real estate professionals. All this requires the right goods, materials, and supplies needed to take an ADU from an idea to a real, tangible living space. After your contractor labor expenses, this is likely the second largest expense you’ll see as a Franchisee, as the wood, hardware, cement, drywall, and many other supplies are what eventually make up the roof, walls, and foundations of your client’s new tiny home.

With our support team at your side, you’ll receive guidance on the average costs involved with building out each ADU model we’ve developed so you can ensure that you’re ordering the best-fit goods in deal quantities – but only when you need them, so you’ll never need to maintain inventory. Plus, all the additional design and engineering the Anchored Tiny Homes provides, including oversight of each stage of the planning process, will help you learn exactly how you’ll need to budget for your goods and materials moving forward as you grow.

Technology for Everyday Operations

No business can expect to operate and compete in today’s modern landscape without the proper technology at its disposal. This could be something as simple as new software for your laptop or cutting-edge, industry-specific hardware to help you in your everyday tasks. With Anchored Tiny Homes, all the initial computers, software, and business management systems you’ll need will be included in your initial investment, and you’ll be trained on everything you need during the onboarding process.

As a home-based business that relies on subcontractors for all your labor needs, you’ll never need to worry about buying any expensive, high-tech construction equipment. Instead, your only additional technology expenses will come as you grow, and you need to order more computers for new hires or pay for extra licenses for the software you need for sales, administrative, or operational tasks.

A Anchored Tiny Homes franchise owner shaking hands with their ideal client.
Marketing Efforts

If there’s one business expenditure that many new business owners think they can underspend, it’s often marketing. Considering that your growth relies heavily on the brand recognition and lead generation that comes from this area, this is easily one of the most essential areas you’ll see your money go toward. However, Franchisees have an advantage over other business owners because they not only receive an established business model as their foundation, but they’ll also benefit from tried-and-true marketing strategies and the support team to help them execute them.

Luckily, when you choose to launch a business by joining a franchise, some of your marketing may be handled for you! Within Anchored Tiny Homes, you’ll simply need to allocate and budget for a certain amount of funds each month for your marketing efforts; from there, our support team will handle certain aspects of your advertising and outreach, leaving you with just local marketing on your plate. Our team will handle everything from setting up your website and social media accounts and providing you with all the professionally designed collateral you need to hand out and make an impact in your community.

Onboarding & Ongoing Support

As a new Franchise Owner, one of your first priorities will be to learn everything you can about the brand you’ve chosen to join so you can effectively launch in your territory. Much of this initial education will be done via onboarding training, which can be online, in-person, or both, depending on the franchise. With many franchises, including Anchored Tiny Homes, you won’t see any expenses for this training except for the cost of traveling to our headquarters in California – which is already included in your initial investment!

However, franchises are growing organizations that pick up new practices and develop new processes as they get bigger and better, so your training won’t stop there. It’s likely that you’ll have the opportunity to attend new training courses that will allow you to stay up-to-date; in these instances, it’s common to only need to budget around the cost of travel and lodging to return to our California office.

Professional Services

Whether you choose to join a franchise to launch your business or not, you’ll always encounter certain tasks that you simply can’t do on your own if you want it done right the first time. While you might be able to get by as your own accountant, contract writer, or secretary for your first few months of operations, you’ll eventually need to find a way to outsource these tasks so you can focus on ramping up your business sustainably.

A succesful ADU build from the experts at Anchored Tiny Homes.

Outsourcing can be done either through full-time employees or contract hires, depending on your needs and the situation. When you’re an Anchored Tiny Homes Franchisee, you’ll have direct access to our Founders and support team so you can get guidance on these types of staffing decisions when the time comes.

If you're ready to become your own boss and you’re prepared to manage all the financial obligations and expenses that come with maintaining and growing your business, then Anchored Tiny Homes is the right place for you. Our proven business model and outstanding financials have shown that Franchisees can reach the wild success they're dreaming of – without the same high price tag of other franchises in the home construction industry. See if you qualify to open our next location by taking our quick qualification quiz now.


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