How money moves in this industry
Entry fees, fit-out, equipment, stock and opening costs can fall due before a new location trades consistently. An existing outlet needs its own trading and cash-flow review.
A practical example
A franchisee opens another location and needs to fund the fit-out, equipment and initial stock while preserving cash for wages.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Buying a franchise
- Opening another location
- Franchise fit-out
- Equipment
- Working capital
- Franchise acquisition
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Fit-out and equipment
- Stock
- Business premises
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- What are the franchise agreement and remaining term?
- What fees and fit-out obligations apply?
- How does the specific business perform?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider public liability, property, business interruption cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.