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Franchise finance

Funding for your next franchise move.

Starting your first franchise, buying an established business or adding another location? We help you understand the funding options and prepare your next step.

Acquisition finance up to £10m. Start Up Loan options for eligible applicants.

Discuss franchise funding

bizbritain is a finance broker, not a lender. Lenders make their own decisions.

Three situations

Start, buy or expand a franchise

Each situation is funded differently. Here is what changes, and what we will ask you about.

Start a new franchise

You are opening a new unit, so there is no trading history yet. Lenders focus on you, the brand's track record and your plan.

An adviser will ask about

  • The franchise brand and its cost breakdown
  • Your experience and what you can contribute
  • Your own plan and forecast

Buy an established franchise

A resale is a business purchase. Lenders look at the business's trading accounts and the price, as well as you. The franchisor usually needs to approve the transfer.

An adviser will ask about

  • The asking price and what it includes
  • Recent accounts for the business
  • Franchisor approval and any transfer fee

Expand: more units or territories

Adding a unit, a territory or buying several units builds on the franchise you already run. Your current trading helps show what you can manage.

An adviser will ask about

  • How your existing units perform
  • The cost of the new unit or units
  • How the expansion will be managed

Funding routes

Two main ways to fund a franchise

The right route depends on your situation, not only on how much you need. Some people use both.

For eligible applicants

Start Up Loans

  • A government-backed personal loan for business use.
  • £500 to £25,000 for each eligible person, at 7.5% fixed.
  • Up to 4 eligible owners can each apply, up to £100,000 per business.
  • For new businesses, or ones trading for up to 60 months.
  • You repay it personally, whatever happens to the business.

bizbritain is a Start Up Loans Business Support Partner. A bizbritain Business Advisor assesses your application against the scheme's rules. The scheme's finance partner then runs final checks, issues the loan agreement and provides the funds.

Larger or more complex deals

Acquisition and related finance

  • Business borrowing arranged with specialist lenders.
  • Typically £25k to £10m, for resales, extra units and multi-unit deals.
  • Lenders set their own terms. Security, personal guarantees and your contribution vary.
  • Can sit alongside your own funds and other finance.

We are a broker, not a lender. We help you find a suitable route and prepare the application. The lender makes the decision.

Not sure which route fits? Tell us about your plans and we will explain the options.

Discuss franchise funding

The full cost

What a franchise investment can include

The franchise fee is only part of the cost. Work out the full investment first, then how much comes from you and how much needs funding.

Total investment = your own funds + external funding

Not every cost suits every type of funding. We look at each part with you.

Costs a franchise investment can include
Cost What it usually covers
Franchise fee The right to trade under the brand, training and launch support.
Equipment or vehicle What you need to deliver the service, from kit to a branded van.
Premises and fit-out Deposit, rent in advance and shop fitting, where the model needs a site.
Opening stock The stock or supplies you need before the first sale.
Professional fees Legal review of the franchise agreement and accountancy advice.
Working capital Money to cover wages, rent and bills until the business pays its way.

How it works

Three steps from enquiry to application

  1. Step 1

    Understand the opportunity

    We talk through the brand, the location and your situation, and whether you are starting, buying or expanding.

  2. Step 2

    Review the funding requirement

    We look at the full investment, what you can put in and what needs funding. Then we explain the routes that could fit.

  3. Step 3

    Prepare and progress the application

    We help you prepare the plan and documents a lender expects, and keep the application moving with you.

For a Start Up Loan, a bizbritain Business Advisor assesses your application against the scheme's eligibility, affordability and viability rules. Approved applications then go to the scheme's finance partner, which runs final checks, issues the loan agreement and provides the funds. For other finance, the lender makes the decision.

Before you apply

What to have ready

You do not need everything before you talk to us. This is what a lender will usually ask for.

  • The franchise agreement or disclosure pack
  • The franchisor's cost breakdown and forecast
  • Your own business plan and cash flow forecast
  • Proof of identity and address
  • A short summary of your experience
  • Where your own contribution will come from
  • For a resale: the business's recent accounts
  • For expansion: how your current units are trading

FAQs

Franchise funding questions

Can I get finance to buy a franchise?
Often, yes. Lenders look at you, the franchise brand and the numbers behind the opportunity. For a new franchise that usually means your experience, your own contribution and a realistic plan. For an established franchise it also means the business's trading accounts. bizbritain is a finance broker, not a lender, so we help you find a suitable route and prepare the application. The lender makes the decision.
Can I use a Start Up Loan for a franchise?
Yes, if you meet the scheme's rules. A Start Up Loan is a government-backed personal loan for business use, from £500 to £25,000 per eligible person, at 7.5% fixed over 1 to 5 years. It can also help you buy an existing franchise, provided you have not personally owned it for more than 60 months. bizbritain is a Start Up Loans Business Support Partner.

Sources: Start Up Loans: eligibility questions

What if I need more than £25,000?
The £25,000 Start Up Loan limit applies to each eligible person. Up to 4 eligible owners can each apply, up to £100,000 per business. Above that, or where a Start Up Loan does not fit, we look at acquisition and related business finance, typically £25k to £10m. The right route depends on your circumstances, not only on the amount.
How much of the investment do I need to contribute?
There is no single rule. Lenders usually expect you to put in some of your own money, and the amount depends on the brand, the costs, your experience and the security available. Tell us what you can contribute, even if it is nothing yet, and we will explain what that means for your options.
Can funding cover the franchise fee and working capital?
It can, but not every cost suits every route. A franchise investment often includes the franchise fee, equipment or a vehicle, premises and fit-out, opening stock, professional fees and working capital. We look at the full cost first, then at which parts each type of funding can cover.
Can I finance a franchise resale or an additional unit?
Yes, these are common. Buying an established franchise is an acquisition, so lenders look at its trading history and the price. Adding a unit or territory builds on the track record of the franchise you already run. We assess each case with you before suggesting a route.
What information will I need?
Start with the franchise agreement or disclosure pack, the franchisor's cost breakdown and forecast, your own business plan and cash flow, proof of identity and address, and a summary of your experience. For a resale, add the business's recent accounts. You do not need everything before you enquire.
Does the franchisor's forecast replace my own business plan?
No. A franchisor's forecast is a useful starting point, but it is not a guarantee of income or of funding. Lenders expect your own plan, based on your location, your costs and your assumptions. We can help you check the numbers before you apply.

Discuss franchise funding

Tell us about your franchise plans

Sending this form is an enquiry, not a loan application. It does not affect your credit score.

What are you planning?
The numbers, if you know them

Whole pounds. Leave any box blank if you do not know yet.

We do not run a credit check at the enquiry stage. Any later checks are explained before they happen.

For franchisors

Introduce your prospective franchisees

Recruitment teams can introduce candidates who need help with funding. We can give you a referral link, so we know which introductions came from you. Tell us about your network and we will explain how it works.

Contact our team

Representative Example

A £600,000 senior acquisition loan over 5 years at 9.9% APR (variable, illustrative) results in monthly repayments of approximately £12,720 and a total amount repayable of approximately £763,000. Actual rates depend on lender, security, target performance, and credit assessment. This example is for illustration only.

Monthly repayment
~ £12,720
Total repayable
~ £763,000
Representative APR
9.9% var.

bizbritain is a business support partner of the British Business Bank, delivering Start Up Loans and Growth Guarantee Scheme finance as part of a network of business support partners.

BizBritain Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA) for credit brokerage activity (Firm Reference Number: 727207). We are also registered with the Information Commissioner's Office (ICO) for the processing of personal data (Registration Number: ZA062551). BizBritain Finance Limited is incorporated in England and Wales (Company Number: 08354773). Our registered office is Level 18, 40 Bank Street, Canary Wharf, London E14 5NR.

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bizbritain finance acts as a credit broker, not a lender. We do not make credit decisions, and we do not lend to customers directly. Instead, we introduce customers to lenders and other finance providers. Some of the products we offer are regulated by the FCA, while others (such as finance for limited companies) are unregulated. Consumer credit products are subject to FCA rules, while unregulated finance does not offer the same protections.

We may receive a commission or fee from lenders or finance providers for introducing customers. This does not affect the interest rates or terms you are offered. You are under no obligation to use our services or accept any product shown to you.

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