Will a franchisor assist me in securing funding for the business?

Most well-established franchisors, whose own business and those of its franchisees have a track record of successful operation, will have made the franchise sections of the major banks aware of their franchising offer. The banks then take a view on whether or not in principle to lend to new franchisees for that system, and put in place a procedure for the franchisor to introduce candidates to them.  The most important part of the process, once the franchisor has satisfied themselves that a candidate is likely to be able to run one of its franchises and has sufficient collateral to obtain the required funding, is for the franchisee to complete a business plan, usually with some guidance from the franchisor or a third party, and submit this for the bank to consider.  Even if you don’t need to borrow money to acquire and run your franchise, it’s a good idea to discuss your proposed venture with your bank because they can get a view on the system in question from their franchise section. It may be that they wouldn’t lend on it anyway - in which case that’s a warning to you to steer well clear.