Franchise Funding

What is a Franchise?

A franchise business is a business in which the owners, or franchisors, sell the rights to their business model and use of their logos and trademarks to third parties, called franchisees. Franchises are an ever increasing way of doing business. In fact, it's difficult to drive more than a few blocks in most cities without seeing a franchise business. Examples of well-known franchise business models in Australia are seen below and include McDonalds, Subway, Dominos, Gloria Jeans Coffees, Red Rooster, Pie Face, Oporto, Bakers Delight, Michel’s etc , there are franchise business opportunities available across a wide variety of industries

Franchise Finance

Obtaining finance to purchase or to setup a new franchise can be difficult, however with the right guidance and preparations, the possibilities are substantially increased. Frank Sassin was one of the first bankers to fund franchises in Australia. He has had experience as a Franchisee, a Franchisor and 17 years in Banking and Finance specialising in the funding of existing and new Greenfield franchises.

At PROFFIN our Franchise Finance consultants are extremely skilled in securing franchise funding. We have strong business relationships and are accredited with most of financial institutions and banks that can help make your Franchise ownerships investment happen.

We understand what lenders are looking for, and know how to present your loan application and the information that’s required by the lenders in order to ensure that you’re given the best possible opportunity for an approval of your requested funding.

If you are looking to purchase a new or an existing business franchise Business, PROFFIN has well established relationships with a number of lenders that are interested in Funding franchise Businesses. Some of the banks have accredited some of these Franchise systems and are prepared to use the franchise to secure up to 70% of the Establishment or purchase price. This means that your contribution towards the purchase can be as little as 30% of the setup or purchase price. Your contribution can be by way of cash , equity in your property or a combination of both.

IMPORTANT NOTE: On most occasions, our services are FREE to you. We are accredited with most banks who remunerate us for introducing loans to them.


Some Questions you Should Ask yourself:

Why Buy A Franchise?

  • Most franchises provide a positive cash-flow from day one
  • Access to established and recognisable brands
  • Reduced risk of failure, proven business model
  • Lower Capital requirements
  • Perceived resale value of the business
  • Industry experience is not essential , training is provided.
  • Banks are more prepared to lend for a proven franchise business then for an independent business
  • Ability to use an accredited Franchise as security for borrowings.

Which Franchise Is For You?

  • Do you have a passion for the franchise brand and its products or concept?
  • Can you see yourself working in the business for the next 5 to10 years?
  • Do you see Growth Potential in the franchise, and if so are you allowed to grow with it and own multiple outlets?
  • Do you understand & share the same vision, values and work ethic as the franchisor?
  • Are you prepared to comply with the franchisor’s systems & procedures without wanting to make your own changes?
  • How does the franchise impact your current lifestyle? Are these changes acceptable to your and your family?
  • Is the franchise able to provide you with the returns that you are seeking? What input is required from you to achieve these?
  • Is there an available resale market for the franchise? What’s the likely resale value? What are the fees to sell?

What homework should you do on the franchise system

  • How much will you need to invest to buy and operate the franchise?
  • What initial and ongoing training and support will you receive?
  • Does the franchise have the ability to remain competitive and maintain its brand value in a fast moving market?
  • Speak to existing franchisees. Ensure that you choose the franchisees to speak to.
  • Do you get a defined territory to trade in? How is your market protected by the Franchisor?
  • What are the fees payable under the franchise? What is The relevance of these fees?
  • Ensure that you read the franchising Code of Conduct to understand your rights and obligations. See it at