Loans Hub · Business Finance by Industry
Business Loans for Franchises
Funding for franchisees — franchise fees, fit-outs, equipment, stock and working capital. Compare specialist franchise finance from a whole-of-market UK panel.
Why franchisees borrow
A franchise launch front-loads the costs. Borrowing commonly funds:
- The initial franchise fee.
- Premises fit-out and branding.
- Equipment and opening stock.
- Working capital for the first months of trading.
- Adding further territories or units.
How much can a franchisee borrow?
Because franchises follow a proven model, lenders will often fund a higher share of total cost than for a startup — frequently up to around 70% for an established, reputable franchise brand. The exact figure depends on the brand's track record and your own circumstances.
What lenders look at for franchises
Lenders weigh the strength and track record of the franchise brand alongside your own finances and experience. A well-established franchise with a proven unit-economics model is lower-risk, which is why several major banks have dedicated franchise finance teams.
Best finance options for franchisees
Specialist franchise loans fund fees, fit-out and working capital, often on favourable terms for recognised brands. An unsecured business loan suits smaller launches, and the Growth Guarantee Scheme can back viable franchise investment.
Funding multi-unit expansion
Successful franchisees often expand to additional units or territories. With a track record at your first site, lenders will fund expansion against proven performance — turning one successful unit into a multi-site business.
Compare your finance options
It takes under a minute — and enquiring never affects your credit score.
Frequently asked questions
How much of a franchise can I finance?
For established, reputable franchise brands, lenders will often fund up to around 70% of the total setup cost, because the model is proven.
Can I get a loan for the franchise fee?
Yes. Franchise finance typically covers the initial fee alongside fit-out, equipment and working capital.
Does the franchise brand affect my borrowing?
Yes. A strong, established brand with proven unit economics reduces lender risk and improves your terms.
Can I borrow to open more franchise units?
Yes. With a track record at your first unit, lenders fund multi-unit expansion against proven performance.