Initial franchise fees
Funding towards the fee paid to the franchisor to join the network.
Franchise funding
Fund the franchise and the launch together
For new franchisees and franchisees opening further units. Funding for the fee, the fit-out, the kit and the early months, arranged through Novora Asset Finance™.
Franchise finance works differently from funding a brand-new business. There is a known model, a known fit-out cost and a franchisor behind it, and some lenders treat that very favourably. Knowing which ones is most of the job.
Most franchise launches need more than one kind of funding: a loan towards the initial fee and working capital, asset finance for equipment and vehicles, and sometimes funding for the shopfit. Putting those together in one plan avoids a launch that is funded in the wrong order.
3S arranges franchise funding through our sister business, Novora Asset Finance™, and can also help with the rest of opening: fit-out, systems and start-up set-up.
Why 3S
- One contract, one point of contact
- A plan within 48 hours
- Facility agreed before you commit
- Broad lender panel via Novora Asset Finance™
Franchise funding
What franchise funding can cover
Fit-out and shopfitting
The works to bring premises up to the franchisor's specification.
Equipment packages
Kitchen, gym, salon, retail or specialist kit, usually on asset finance.
Vehicles and livery
Vans and branded vehicles for mobile and service franchises.
Working capital at launch
Cash to cover wages, rent and stock before the unit trades at full speed.
Multi-unit expansion
Funding for a second or further unit once the first is trading.
One plan for the launch
Each cost matched to the right type of funding, so nothing is paid from the wrong pot.
What lenders look for in franchise finance
Lenders look at the franchisor as well as you: how long the brand has operated, how its existing units perform and whether it is a member of the British Franchise Association. A franchisor with a track record and a clear operations manual makes the case easier.
On your side, expect to show a business plan, usually built from the franchisor's own figures, your relevant experience and your personal contribution to the start-up costs. Lenders want to see that you have something at stake.
A common mistake is signing the franchise agreement before the funding is agreed. Where you can, get a funding decision first, and have the franchise agreement reviewed by a solicitor who knows franchising.
How it works
Three steps, one point of contact
Step 1
Share the franchise and the costs
Tell us the brand, the location and the franchisor's cost breakdown. If you are already trading, check your likelihood score in about twenty seconds with no credit footprint.
Step 2
Novora builds the funding plan
Novora splits the costs into what suits a loan and what suits asset finance, then approaches lenders that back franchises. Newer businesses start with a conversation rather than a score.
Step 3
Agree terms before you sign
You see the terms, the total cost and any fees in writing for each part. The funding is agreed before you commit, so you are not locked into a franchise you can't fund.
Next steps
How the funding fits alongside the work
If 3S is also delivering your fit-out, systems or start-up set-up, the proposal comes first and the funder sees a defined scope and a real number. You apply while the proposal is under review, and the facility is agreed before contracts are signed. Finance is subject to status and credit approval. 3S Consult is not a lender and does not give financial advice. Applications are handled by Novora Asset Finance™, who set out the terms, the total cost and any fees before you commit.
Evidence
What you hold before you commit
You end up with a funding plan that matches each launch cost to a facility, and written terms for each one showing the total cost and any fees. That is agreed before you sign contracts, so you can take it to your accountant and your franchisor with confidence.
Questions
Franchise funding: common questions
Can I get franchise finance with no trading history?
Yes, it is common for new franchisees. Lenders then rely on the franchisor's track record, your business plan and your experience, so the conversation starts with us rather than with a score.
Do I need to put money in myself?
Most lenders expect a personal contribution towards the start-up costs. How much varies by lender and franchise, and Novora will tell you what to expect before you apply.
Can the franchise fee itself be funded?
Often, yes, usually as part of a loan alongside asset finance for the equipment. It depends on the lender and the franchise.
Does it matter which franchise I choose?
Yes. Lenders look closely at the franchisor's track record and the performance of existing units. An established brand is generally easier to fund than a new one.
Can you fund a second unit?
Yes. Multi-unit expansion is often easier to fund once your first unit has a trading record to show.
Related services
Often needed alongside this
Start-up set-up
Brand, website, systems and compliance set up in one go, at fixed prices.
Read more →Asset financeFor businesses that need plant, vehicles, IT or equipment without handing over the full price on day one. The cost is spread into fixed monthly payments, arranged through Novora Asset Finance™.
Read more →Business loansFor SMEs that need cash for growth, payroll, stock or a gap between committed spend and income. Loans are arranged through Novora Asset Finance™ from a broad UK lender panel.
Read more →