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One of the many roadblocks that can keep a prospective franchisee from owning a franchise is the amount of money it costs. Without proper funding, a franchisee won’t be able to pay the fees and costs of owning a franchise or purchase the necessary materials and equipment to get started.

Luckily, there are ways for franchisees to gain funding to help afford the franchise that they are interested in. One of those options is receiving financing from your franchisor. It’s important to know that not every franchise will offer this option, but some do.

This blog will explore why franchisor financing is a win-win for franchisees and franchisors, financing amounts and the requirements needed to qualify for financing.

A Win-Win Situation

Receiving funding from your franchisor is a win-win for everyone involved. You as the franchisee will receive the funding necessary to start your business, and the franchisor and franchise will be able to continue to grow with new locations.

A major benefit of going to your franchisor for financing is that they are already familiar with the franchise. They know how much things cost and can help make your job easier as they know the ins and outs of the franchise. Not only that, but there is the chance that this will help the relationship between franchisee and franchisor grow stronger because of their shared goals.


When it comes to the requirements for receiving funding from a franchisor, those requirements are often left up to the franchisor to decide. While some franchisors may look for one type of criteria, another franchisor’s requirements could be completely different. There are a few general requirements.

Your credit will be assessed, and you will be asked for a personal investment of some sort and a developed idea for what you plan to do with the money. Franchisors take a lot of risk by providing you with funding. They want to make sure that it is in good hands.

Potential Financing Amounts

Much like the requirements to receive financing from your franchisor, the amount you receive comes down to the franchisor. The amount you are given is determined by the size of the franchise, your financial background and your desired amount.

Ready to start your franchising adventure? Get in touch today to learn how I can help you!