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Help Franchise Finance · Adding units and territories How are multi-unit franchise deals funded?
Help guide · Franchise Finance · Adding units and territories 2 mins read

How are multi-unit franchise deals funded?

Usually through larger business facilities sized on the combined business. A track record of running one unit well is the strongest case for the next ones. Multi-unit ownership is common: in the bfa/NatWest Franchise...

Usually through larger business facilities sized on the combined business. A track record of running one unit well is the strongest case for the next ones. Multi-unit ownership is common: in the bfa/NatWest Franchise Survey 2018, about a third of franchisees ran more than one unit.

What lenders look for

  • Your track record: how your existing units trade, and how you've managed them.
  • Management: who'll run each site day to day.
  • The cost of each new unit, and the timing of openings.
  • Cash across the group: expansion mustn't drain the units already trading.

Ways multi-unit deals are funded

Buying several units at once

Buying units from other franchisees is an acquisition. Lenders look at each business's accounts and price. See Can I get finance to buy an existing franchise? and What is acquisition finance?

Franchisor approval

Most franchisors approve each extra unit or territory. Check what your agreement says.

Last reviewed: 8 October 2026

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