Which finance for a franchise

2 min read

Fee + fit-out + WCFranchise costs

Right tool per costThe method

Known model helpsThe advantage

The franchise funding mix

Starting or growing a franchise blends several costs: the upfront franchise fee, fit-out and branding, equipment, and the working capital to trade until it stands on its own. Franchises have one funding advantage — an established, proven model — which lenders often view more favourably than a standalone startup. But the costs still suit different tools. See the answer on franchise borrowing.

The routes

Cost	Best finance
Franchise fee	Franchise finance or a business loan
Fit-out / branding	Short-term business loan
Equipment	Asset finance or a loan
Working capital	Loan or revolving line

Some banks offer dedicated franchise finance for recognised brands; a business loan is flexible enough to cover the fee, fit-out and working capital together; asset finance suits the equipment. Match each cost to the right tool. See finance to fit out premises.

Fund the ramp, not just the setup

As with any new venture, budget for the working capital to trade through the ramp-up, not just the setup costs. A franchise still takes time to build revenue; funding only the fee and fit-out can leave it cash-starved. Check the full picture with our affordability guide.

The Credicorp view

A Credicorp business loan is flexible enough to cover a franchise fee, fit-out and working capital together — cash to spend across the setup and ramp, with no personal guarantee — while a Credicorp Flex line covers ongoing swings. Register to apply. Educational content, not financial advice.

Frequently asked questions

Can a franchise get business finance?

Yes. Franchises often find funding more accessible than standalone startups because they run an established, proven model that lenders view more favourably. The costs — franchise fee, fit-out, equipment and working capital — suit different tools, from dedicated franchise finance to a flexible business loan and asset finance.

What finance covers a franchise fee?

Some banks offer dedicated franchise finance for recognised brands, and a general business loan is flexible enough to cover the fee alongside fit-out and working capital. Which fits depends on the brand and how you want to structure the whole setup, but a loan often covers the mix in one facility.

What's the common mistake funding a franchise?

Funding the fee and fit-out but not the working capital to trade through the ramp-up. A franchise still takes time to build revenue, and funding only the setup can leave it cash-starved. Budget for the ramp and check affordability across the whole picture, not just the upfront costs.