Franchise finance in Ireland

Most franchisees combine a term loan for the franchise fee and working capital with asset or fit-out finance for equipment and premises, plus their own contribution. Lenders want the franchise agreement, a business plan with forecasts and evidence of your experience. Start-ups registered as limited companies in Ireland can apply through Welcome Finance, although most lenders look for some trading history, so options may be fewer. The bank, the franchisor and the Local Enterprise Office are also worth talking to.

Yes. Banks and other lenders usually treat franchise finance as standard business lending, sometimes combined with asset finance for equipment and fit-out. They assess the brand's track record, the franchise agreement, your business plan and forecasts, your own experience and how much you are putting in. Some established brands work with particular lenders, so ask the franchisor.

It varies by lender and brand, but expect to fund part of the total cost from the company or its directors. Lenders want to see real commitment, and the franchisor may set its own minimum. Count the franchise fee, fit-out, equipment, opening stock and enough working capital to cover a slower first few months.

Yes, if the company is registered as a limited company in Ireland. Start-ups registered as limited companies in Ireland can apply. Most lenders look for some trading history, so options may be fewer for a new company. Some lenders will consider a new company for a well-known brand, usually with a director contribution and a guarantee, so it is also worth speaking to your bank and the franchisor. Your Local Enterprise Office can advise on business plans, mentoring and supports.

Often, as part of a term loan, because the fee itself is not an asset a lender can recover. Equipment, vehicles and fit-out items are commonly funded separately with hire purchase or leasing, where the asset is the security. Splitting the cost this way can reduce the unsecured amount your company needs to borrow.

The signed or agreed franchise agreement and brand information pack, a business plan with cash-flow forecasts, director CVs and ID, and accounts if the company already trades. Lenders also check the franchisor's record, how many units are trading successfully, and the obligations the agreement places on you, such as ongoing fees and refurbishment requirements.

Possibly, if the spending is an eligible long-term project under the Growth and Sustainability Loan Scheme, such as equipment or premises improvements. Your company would first get an eligibility code from the SBCI and then apply directly to a participating lender, which makes its own credit decision. Our SBCI page explains the scheme's rules.

Yes. Lenders treat this much like a small business purchase. They will want the unit's trading accounts, the franchisor's consent to the transfer, the remaining term of the franchise agreement and your plan for the business. A unit with a trading record can be easier to fund than a new opening, because the lender can see real figures.

Possibly. Your franchise company may need working capital or stock funding, which our panel does cover. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead.