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.
How different costs are often funded
- The franchise fee and working capital: usually a loan, such as a Start Up Loan or a business loan, alongside your own money.
- Equipment and vehicles: often asset finance, secured on the asset. See What is asset finance?
- Fit-out: often part of a business loan.
- Opening stock: your own funds or part of a loan.
Don't underestimate working capital
Many franchises take months, sometimes longer, to cover their costs. Plan for wages, rent and bills until the business pays its way, and for your own living costs too.
What a Start Up Loan can't fund
Start Up Loans can't be used to repay existing debts or for training courses outside the business. See What can I spend a Start Up Loan on?
Where to start
Last reviewed: 8 October 2026