Buying an Existing Franchise
Buying an established franchise means buying proven cash flow, a trained team, and an existing customer base. CFI Finance can help you make it happen.
Why buy an existing franchise?
Buying an existing franchise gives you a head start. Instead of building from scratch, you're taking over a business that's already trading — with customers, revenue, equipment, and often a trained team in place.
For lenders like CFI, established franchise businesses are easier to assess because there's real trading history to work with. That means we can often offer better terms and faster approvals compared to a brand-new start-up.
CFI Finance has funded hundreds of franchise acquisitions. We understand how franchise businesses are valued, how to structure the deal, and how to preserve your capital so you're not cash-strapped from day one.
Still weighing up whether to buy an existing franchise or start a new territory? See our Build or Buy guide to help you decide.
What can CFI help you fund?
Business purchase price
Finance the goodwill, stock, and assets included in the sale — preserving your savings for working capital.
Equipment upgrades
Need to replace or upgrade equipment as part of the purchase? We can wrap it into the deal.
Store refurbishment
If the franchise needs a refresh, we can fund the fitout alongside the purchase.
Working capital
Keep cash in the business for the transition period while you settle in as the new owner.
What to look for when buying
When assessing a franchise purchase, we look at many of the same things you should be looking at:
Not sure if the deal stacks up? Talk to us early — we're happy to give you a sense of what's financeable before you commit.
Doing your homework
Before you sign anything, make sure you've done thorough due diligence. Buying a franchise is a significant investment — the more you check now, the fewer surprises later.
Franchisor track record
Even with well-known brands, look closely at the franchisor's history, leadership team, and reputation in the industry. How long have they been operating? Have they had any legal disputes? Understanding where the business has come from gives you insight into where it's heading — and you're tying your future to their vision.
Fees, costs & ongoing obligations
Understand both the upfront and recurring costs: franchise fee, royalty fees, marketing contributions, technology fees, and any scheduled refurbishment obligations. These ongoing costs affect your profitability and your ability to service a loan. Make sure you've factored them all into your financial forecast.
Systems & support
One of the big advantages of a franchise is that you don't have to invent everything from scratch. Check what training you'll receive, what operational manuals and procedures are provided, and what marketing, technology, and mentorship support is offered. The more robust the system, the faster you'll be up to speed.
Territory & competition
Do you have exclusive rights to a particular area, or could the franchisor allow other franchisees nearby? Check your territory boundaries, any first right of refusal for neighbouring territories, and the competitive landscape. This matters for both protecting your investment and planning for growth.
Talk to other franchisees
Speaking with current and former franchisees is often the best way to get an honest picture of what it's really like. Ask about their experience, the challenges they've faced, the support they receive, and whether the financial projections they were given held up. A high franchisee turnover rate could be a warning sign — but consider the numbers in context of the overall network size.
Weighing up the purchase
Buying an established business has real advantages — but it's not without pitfalls. Here's a balanced view to help you assess the opportunity.
What makes a good buy
- Proven revenue and a verifiable trading history — far fewer unknowns than a start-up
- An existing customer base and established reputation in the local area
- Equipment and fitout already in place, often at a fraction of what it cost to install new
- Easier to finance — real financial records give lenders confidence and often mean faster approvals
- Cash flowing from day one, which can service the loan and cover your living expenses
Watch out for
- Hidden costs or liabilities — check the financials line by line and cross-reference with bank statements and BAS
- A learning curve if you didn't build it — make sure key processes are documented, not just in the outgoing owner's head
- Inherited relationships that may not transfer smoothly — customers, suppliers, and key staff may react to the change
- The real reason for sale — people sell for all sorts of valid reasons, but dig deeper to make sure there are no red flags
- Lease terms you're inheriting — check the remaining term, rent trajectory, and whether a costly refurbishment is due
Not sure? Talk to us early — we've seen hundreds of franchise acquisitions and we can help you assess whether the numbers stack up. Get in touch.
How lenders assess your purchase
When you apply for finance, lenders are really asking two questions:
How much skin do you have in the game?
This is about how much of your own money you're contributing. There's a real difference between someone who's saved hard and is putting in a meaningful contribution, and someone who has very little of their own funds at risk. Your contribution doesn't always have to be cash — property equity or other assets can count. The more you put in, the less you need to borrow, and the more confidence your lender will have.
Can the business afford the repayments?
Lenders call this "servicing" — can the business generate enough income to pay its bills, cover your living expenses, and still make the loan repayments? For an existing franchise, this is easier to assess because there's real financial history. We'll look at the business's trading records, consider any changes you're planning, and make sure the numbers work. If you have other sources of income, make sure to mention them — it all helps.
Preparing a strong application
Have your personal finances in order — lenders will look at your banking conduct and credit history. Know your numbers: have a clear picture of the purchase price, any additional costs (equipment upgrades, fitout, working capital), and how you plan to fund each component. Be realistic about income and expenses, and consider what happens if things take longer than expected.
A strong application tells us who you are, why this business is right for you, and how all the numbers fit together. Think of it as selling yourself as much as the business opportunity.
What strengthens your case? Relevant experience in the industry (or a plan to retain key staff), clean banking conduct, a clear transition plan, and a meaningful financial contribution. If you've done your homework on the business and can explain your vision for it, that goes a long way.
What you'll need for your application
Having these ready will help us assess your application quickly and avoid back-and-forth:
Don't have all of this yet? That's OK — many people come to us while the deal is still taking shape. Talk to us about where you're at and we'll tell you what's needed for the next step.
How it works
Tell us about the franchise
Share the sale details, the franchise brand, and your financial position. We'll give you an indication quickly.
We assess the deal
We look at the business, the brand, the location, and you. Decisions are made in-house — often within 4 to 48 hours.
Settlement and handover
Once approved, we coordinate with the seller and the franchise network to get the deal done.
Why choose CFI Finance?
Franchise acquisition experts
We've funded hundreds of franchise purchases and understand how these deals work — from valuation to settlement.
Fast, in-house decisions
No waiting for external credit committees. We assess applications in-house — many within 4 to 48 hours.
Flexible structures
We can package the purchase price, equipment, fitout, and working capital into one coordinated finance solution.
Frequently asked questions
How much deposit do I need to buy a franchise?
How do lenders assess whether I can afford the purchase?
Is it easier to get finance for an existing franchise than a new one?
What documents will I need?
Can I finance equipment upgrades as part of the purchase?
How quickly can I get approved?
More questions? See our full FAQ or get in touch.
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Found a franchise you want to buy?
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