Starting Your First Franchise
You don't need a business background to own a franchise. With the right network and the right finance, you can turn your franchise dream into reality.
Your franchise, your future
Buying into a franchise is one of the most popular and lower-risk ways to start a business. You get a proven system, brand recognition, training, and ongoing support from the franchise network — all while being your own boss.
At CFI Finance, we've helped thousands of first-time franchise owners get started. We understand that most people getting into a franchise aren't coming from a finance background — and that's perfectly fine. We work with you to understand your situation and put together a finance package that works.
Whether it's a coffee shop, a gym, a mobile service, or a retail store — if it's a franchise, we've probably funded it.
Already weighing up whether to buy an existing franchise instead? See our Build or Buy guide to help you decide.
Before you begin: the questions that matter
Starting a franchise is exciting, but it pays to do your homework first. Asking yourself these questions early will set you up for a stronger start — and make the finance process much smoother.
Why this franchise?
Your "why" is the foundation of your business. When you choose the right franchise, it should align with your skills, your interests, and your values. Starting a business is hard work — there will be long hours and challenges along the way. A strong sense of purpose will carry you through. Incidentally, "why" is one of the first things we ask when someone comes to us for finance, because it tells us a lot about how committed you are.
Who are your customers?
No matter what industry you're in, understanding your customers is key. Where will you find them? What drives their buying decisions? A clearly defined target market helps you answer the question: "Will I have enough customers to make this work?" Your franchise network will help with this, but it's worth doing your own research too — especially in your local area.
How will you compete?
Understanding your competitors — their strengths, their weaknesses, and what makes you different — is one of the earliest things you should look at. Check out their online presence, try their product if you can, and think about what sets your franchise apart. Being able to explain clearly why a customer should choose you is powerful.
Do your numbers stack up?
Errors in financial forecasts can cause serious problems before your doors even open. Work with your franchisor to understand the financial model, and check every assumption. Are customer numbers realistic? Is rent accurate? Remember that profit and cash aren't the same thing — make sure you have both a profit & loss forecast and a cashflow forecast. Include a worst-case scenario, not just the best case. It's very common to overestimate revenue and underestimate expenses in the early days, so build in a buffer.
What can CFI help you fund?
Franchise fees
The upfront franchise fee to join the network — we can include this in your overall finance package.
Equipment & fitout
Fit out your new store, office, or mobile unit with everything you need to trade from day one.
Working capital
Cash to cover your early trading costs while the business gets established.
Business loans
A structured business loan to cover the total cost of getting your franchise up and running.
Understanding franchise finance
Most new franchises are funded from a mix of your own money and borrowed funds. Here's how it typically works.
Your contribution (equity)
This is the money you're putting in yourself — from savings, proceeds from selling an asset, or equity in property. It doesn't all have to be cash. Your landlord may also contribute to fitout costs (which reduces what you need to borrow). Lenders will want to see that you have genuine skin in the game.
Borrowed funds (debt)
This could be a business loan, equipment finance, or a combination — structured to match what you're funding. Different types of finance suit different costs: long-term loans for equipment with a long life, shorter-term finance for costs like fitout gaps. The key is matching the finance to the need.
Mapping it all out
One of the best approaches is to lay everything out in two columns: on one side, list all your setup costs (franchise fees, equipment, fitout, lease bonds, legal fees, stock, signage, insurance). On the other side, list your funding sources (savings, landlord contribution, equipment finance, business loan). The gap between costs and funding is your working capital — the cash you need to run the business until it's generating enough to cover its own bills.
Our Cost & Funding Scenario tool can help you map this out, or talk to a specialist and we'll walk you through it.
Getting started
Do your homework
Choose a franchise that fits your skills and interests. Understand the costs, build your financial forecast, and prepare a business plan. Talk to other franchisees if you can.
Talk to us early
You don't need to have everything finalised. An early conversation helps you understand what's possible and what you'll need to prepare.
Apply when you're ready
Share the franchise details, your financial position, and your plan. We assess the whole picture — you, the brand, and the opportunity — not just the numbers.
What you'll need
Don't have all of this yet? That's OK — many people come to us early in their franchise journey. Talk to us about your situation and we'll help you work out the next steps.
Why choose CFI Finance?
Franchise specialists
We've funded thousands of franchise businesses across dozens of networks. We understand how franchises work and what makes them succeed.
Fast, in-house decisions
We make our own lending decisions — no sending your application off to a credit committee in another state. Many applications assessed within 4 to 48 hours.
First-timer friendly
Most of our franchise customers are first-time business owners. We'll guide you through the process and explain everything in plain language.
Frequently asked questions
How much of my own money do I need to start a franchise?
Can I get a franchise loan if I've never owned a business before?
What costs are involved in starting a franchise?
How do lenders decide if I can afford a franchise?
How long does it take to get approved for franchise finance?
Should I talk to a lender before choosing a franchise?
More questions? See our full FAQ or get in touch.
Trusted by leading franchise brands
Ready to start your franchise journey?
Talk to a franchise finance specialist today — no obligation.