How you finance a franchise depends on your situation: starting a new franchise, buying an established one, or adding units or territories. Each is funded differently, and the right route depends on your situation, not only on how much you need.
The three situations
- Starting a new franchise: there's no trading history yet, so lenders focus on you, the brand's track record and your plan. A Start Up Loan may fit. See Can I use a Start Up Loan for a franchise?.
- Buying an established franchise: a resale is a business purchase, so lenders look at the business's trading accounts and the price, as well as you. See Can I get finance to buy an existing franchise?.
- Adding units or territories: this builds on the franchise you already run, and your current trading helps. See How do I fund adding a franchise unit or territory?.
The two main routes
- Start Up Loans, for eligible applicants: £500 to £25,000 per person, and up to £100,000 per business with up to four owners.
- Acquisition and related finance, for larger or more complex deals: typically £25,000 to £10 million, through specialist lenders.
Some people use both.
Work out the full cost first
The franchise fee is only part of the cost. See What does a franchise cost in total?.
How we help
bizbritain is a credit broker, not a lender, and a Start Up Loans Business Support Partner. We help you understand your options and prepare your application. Find out more on our franchise finance page.
Last reviewed: 8 October 2026