Funding Options
Franchise Funding in the UK – The Complete Guide
Starting a franchise can be one of the most profitable ways to own a business, but securing the right funding is essential.
Whether you need £10,000 or £500,000, there are multiple ways to finance your franchise in the UK.
This guide covers everything from government-backed loans and bank financing to private investors and alternative funding sources.
Understanding Franchise Costs
Before applying for funding, it’s crucial to understand the total investment required. Franchise costs vary by industry, location, and business model.
Breakdown of Initial Franchise Costs
Expense Type Estimated Cost (GBP)
Initial Franchise Fee £5,000 - £500,000
Premises (if required) £10,000 - £150,000
Equipment & Inventory £5,000 - £100,000
Working Capital £5,000 - £50,000
Marketing & Advertising £2,000 - £20,000
Legal & Professional Fees £1,000 - £10,000
Total Investment £25,000 - £750,000
Low-Cost Franchises: Online services, consulting, cleaning franchises (£5,000 - £50,000)
Mid-Tier Franchises: Coffee shops, gyms, small retail stores (£50,000 - £250,000).
High-Investment Franchises: Restaurants, hotels, car dealerships (£250,000+).
Government-Backed Franchise Loans
Start Up Loans (British Business Bank)
💡 Best for new franchisees needing £500 - £25,000 with mentoring support.
Benefits:
Loan amount: £500 to £25,000 per individual (up to £100,000 for partnerships).
Fixed interest rate: 6% per year.
Repayment terms: 1 to 5 years.
Includes 12 months of free business mentoring.
How to Apply:
1. Prepare a Business Plan – Must include revenue projections, market research, and operational plans.
2. Submit Application – Apply through Start Up Loans.
3. Credit Assessment & Business Viability Check – A loan officer will assess financial risks.
4. Approval & Disbursement – Receive funding and begin franchise operations.
🔗 Apply Here: www.startuploans.co.uk
Local Enterprise Partnerships (LEPs) Grants & Loans
💡 Best for franchisees seeking location-based funding & business support.
Key Features:
Offers grants or low-interest loans (varies by region).
Funding for retail, food, fitness, and hospitality franchises.
Business mentoring & networking.
🔗 Find Your LEP: www.lepnetwork.net
High-Street Bank Franchise Loans
Barclays Franchise Loans
Loans up to 70% of the total franchise cost.
10-year repayment period.
Lower rates for British Franchise Association (BFA) accredited franchises.
HSBC Franchise Loans
Loans up to £5 million.
Franchise advisory service for financial planning.
NatWest Franchise Financing
Loans up to £500,000.
Specialist franchise relationship managers.
Alternative Franchise Funding Options
Angel Investors & Venture Capital
Best for high-growth franchises in technology, fitness, and food delivery.
Investors take equity in exchange for funding.
Our Team
At Franchise Hub, our team is dedicated to helping businesses grow and entrepreneurs find the right franchise opportunities. With industry expertise and a passion for success, we connect you to the best franchising options available.
Anique Husson
Managing Director