A number of the Banks have specific Franchise lending policies to support Franchised Businesses.
These policies can enable the Franchisee to use their Franchise Business as Security for any Business Lending they require.
The Lending Value Ratio (LVR) can often be between 30%-70% of the market value of the business, therefore other Security (ie Property) and or Cash is often required to support a transaction.
Note: Not all Franchise Systems are accredited with the Banks, there are between 50-70 accredited and this is always subject to change based on the ongoing performance of the Franchise System (based on various factors, including: Financial Performance, Compliance, Governance and other factors).
Find us on the Franchise Council of Australia website as a service provider member
Franchise Council of Australia. Franchise.org.au
Buying A Franchise Business. Business.gov.au
Buying a Franchise Business gives you the right to run an established business and sell a prescribed product or service. Before you buy a franchise, you should consider the same issues as when purchasing any other business in addition to the specific issues of franchising.
Business Franchise Australia.com.au
