After two days at the International Franchise Show, one thing stood out immediately, most of the people we spoke to weren’t experienced operators looking to expand, they were new buyers taking their very first step into business ownership.
That’s an exciting position to be in. But it also comes with a lot of unknowns.
From funding questions to uncertainty about risk, the same themes came up again and again. So rather than simply recapping the event, we wanted to share the most useful insights from those conversations, especially if you’re currently exploring whether a franchise is right for you.
The Most Common Questions
How much do I need to get started?
This was by far the most frequent question, and understandably so.
Many new buyers focus on the franchise fee itself, but the reality is that your total investment is often higher. Beyond the initial fee, you may need to factor in fit-out costs, equipment, legal fees, and, crucially, working capital to support the business in its early months.
Having a clear picture of the full investment requirement early on can prevent delays later in the process.
Can I get finance if I’ve never run a business before?
Yes, this is more common than many people think.
Lenders don’t necessarily expect you to have prior business ownership experience. What they do look for is how well your business plan demonstrates a viable, repayable business.
Lenders typically look for clear and realistic financial forecasts, sufficient working capital to support the early stages, and a strong personal financial position. They also want to see that you understand how the franchise operates and what will drive performance. At Moorgate Finance, we support clients in shaping business plans that are not only accurate but structured in a way that gives lenders confidence.
What Many First-Time Franchise Buyers Don’t Realise
The total cost is often underestimated
It’s easy for new buyers to focus on the headline investment figure, but underestimating working capital is one of the most common pitfalls. Having a financial buffer isn’t just helpful, it’s essential.
Not all franchises are funded the same way
Some brands are more established and widely supported by lenders, while others may require a different approach. Choosing a franchise isn’t just about what appeals to you, it can also influence how straightforward the funding process will be.
How to Prepare Financially Before You Apply
If you’re a new buyer, there are a few practical steps that can put you in a stronger position:
- Understand your personal financial position – This includes your available deposit, credit profile, and existing commitments.
- Research total investment requirements – Look beyond the franchise fee to get a realistic view of costs.
- Be clear on affordability – Consider how the business will support repayments, especially in the early stages.
- Choose the right franchise – A well-established brand with a proven model can make a significant difference when it comes to funding options.
Taking the time to prepare properly can make the process smoother and significantly improve your chances of securing the right finance.
Funding Your Franchise
If there’s one takeaway from the International Franchise Show, it’s this: there’s no shortage of people ready to take the leap into franchising, but the ones who succeed are those who take the time to understand the financial side properly.
Getting clarity on funding early doesn’t just save time, it helps you make better decisions about the type of franchise you pursue.
If you’re currently a new buyer exploring your options, having an informed conversation about finance can be a valuable next step, whether you’re ready to move forward or still weighing up your choices.
At Moorgate Finance, we offer more than finance, we offer a team of experts who understand your franchise, your goals, and how to help you grow. We can provide tailored solutions and clear guidance to help make your franchise a success.
Looking to get started? Give us a call on 01908 92 62 62 or Apply Now to start the conversation.