{"id":221853,"date":"2023-03-24T04:31:43","date_gmt":"2023-03-23T15:31:43","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=221853"},"modified":"2024-12-03T16:35:41","modified_gmt":"2024-12-03T03:35:41","slug":"financing-franchise","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/","title":{"rendered":"How to Get Funding for a Franchise"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">Whether you are buying your first franchise or are looking to open another new location for your existing business, securing financing is a necessary hurdle for most franchise businesses. As such, it is important to familiarise yourself with the various funding sources available. This article will take you through five ways of sourcing financing for your New Zealand franchise.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Business Loans<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">A business loan is a key way to obtain financing for your NZ franchise. Such a loan may come from a bank or other lender. Business loans may be unsecured or secured, meaning that you do not always have to put forward an asset as security.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Lenders want to ensure that your business is viable. As such, you must propose to a lender why they should give you a loan. This will include showing them the:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">financial records of the business;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">cash flow forecast; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">business plan.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">A franchisor may be able to provide you with these documents to help you secure a loan. Fortunately, existing franchises will have financial data to back up your application. This can make it much easier to secure financing for a franchise rather than for a new business.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In some instances, franchises will have existing relationships with banks. This means that a bank may be able to offer you lower interest rates if they know and trust your franchisor. This makes obtaining a business loan a great financing option for those wanting to purchase a franchise.<\/span><\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <!-- wp:paragraph -->\n<p>Before you start applying to banks and other financial institutions, it is important to seek professional advice. This may include accountants, lawyers and franchise consultants. Such professionals can assist you with:<\/p>\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul class=\"wp-block-list\"><!-- wp:list-item --><\/p>\n<li>reviewing financial agreements;<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>understanding tax; and<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>pointing out the potential financial risks.<\/li>\n<p><!-- \/wp:list-item --><\/ul>\n<p><!-- \/wp:list --><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Asset-Backed Loans<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Another way to get funding for your franchise is to consider an asset-backed loan. Also referred to simply as \u2018asset finance\u2019, this type of funding allows you to free up capital that is tied up in your assets or equipment. For example, you may have assets such as:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>equipment and hardware;<\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">business cars;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">machinery;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">intellectual property;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">inventory; or<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">furniture and fixtures.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p>The bank will evaluate these assets and offer you a loan based on their valuation of these assets. Often, these assets are then registered on the Personal Property Securities Register (or \u2018PPSR\u2019 for short), which allows any potential lenders or business partners to search whether your business\u2019 asset is security for a loan. An asset-backed loan is suitable if you have existing equipment but have cash flow problems. This type of loan is also suitable if you are in the process of scaling, such as opening a second franchise branch.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>However, you will need assets of a certain value to receive a loan, and multiple assets if you are looking to receive several asset-backed loans. As such, this type of funding is not appropriate for those wanting to open their first franchise but is instead suitable for expanding a franchise system. This type of funding might also not be appropriate if your business does not have many capital assets, such as an online business.<\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400;\">You should also be aware that nearly all asset-backed financing involves the lender <\/span><a href=\"https:\/\/legalvision.co.nz\/corporations\/can-i-use-property-security-for-loan-nz\/\"><span style=\"font-weight: 400;\">obtaining a security interest in your assets<\/span><\/a><span style=\"font-weight: 400;\">. This means that if you fail to abide by the terms of the asset financing, the lender may enforce their security over the secured asset and sell it to recover the loan amount.&nbsp;<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar gform;gform||(document.addEventListener(\"gform_main_scripts_loaded\",function(){gform.scriptsLoaded=!0}),document.addEventListener(\"gform\/theme\/scripts_loaded\",function(){gform.themeScriptsLoaded=!0}),window.addEventListener(\"DOMContentLoaded\",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,themeScriptsLoaded:!1,isFormEditor:()=>\"function\"==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(\"The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.\"),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(\"gform_main_scripts_loaded\",()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(\"gform\/theme\/scripts_loaded\",()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(\"DOMContentLoaded\",()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(\"action\",o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(\"filter\",o,r,e,t)},doAction:function(o){gform.doHook(\"action\",o,arguments)},applyFilters:function(o){return gform.doHook(\"filter\",o,arguments)},removeAction:function(o,r){gform.removeHook(\"action\",o,r)},removeFilter:function(o,r,e){gform.removeHook(\"filter\",o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+\"_\"+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){\"function\"!=typeof(t=o.callable)&&(t=window[t]),\"action\"==r?t.apply(null,e):e[0]=t.apply(null,e)})),\"filter\"==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});\n<\/script>\n\n                <div class='gf_browser_gecko gform_wrapper gravity-theme gform-theme--no-framework lawyer-form_wrapper gplaceholder_wrapper form-with-labels-no-asterisks_wrapper has-new-validation-error-styling_wrapper' data-form-theme='gravity-theme' data-form-index='0' id='gform_wrapper_2452' style='display:none'><div id='gf_2452' class='gform_anchor' tabindex='-1'><\/div><form method='post' enctype='multipart\/form-data' target='gform_ajax_frame_2452' id='gform_2452' class='lawyer-form gplaceholder form-with-labels-no-asterisks has-new-validation-error-styling' action='\/api\/wp\/v2\/posts\/221853#gf_2452' data-formid='2452' novalidate>\n                        <div class='gform-body gform_body'><div id='gform_fields_2452' class='gform_fields top_label form_sublabel_below description_below validation_below'><div id=\"field_2452_15\" class=\"gfield gfield--type-honeypot gform_validation_container field_sublabel_below gfield--has-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_15'>Instagram<\/label><div class='ginput_container'><input name='input_15' id='input_2452_15' type='text' value='' autocomplete='new-password'\/><\/div><div class='gfield_description' id='gfield_description_2452_15'>This field is for validation purposes and should be left unchanged.<\/div><\/div><div id=\"field_2452_1\" class=\"gfield gfield--type-text gfield--input-type-text gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_1'>First Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_1' id='input_2452_1' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_12\" class=\"gfield gfield--type-text gfield--input-type-text gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_12'>Last Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_12' id='input_2452_12' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_2\" class=\"gfield gfield--type-email gfield--input-type-email gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_2'>Email Address<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_email'>\n                            <input name='input_2' id='input_2452_2' type='email' value='' class='medium'    aria-required=\"true\" aria-invalid=\"false\"  \/>\n                        <\/div><\/div><div id=\"field_2452_3\" class=\"gfield gfield--type-phone gfield--input-type-phone gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_3'>Phone<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_phone'><input name='input_3' id='input_2452_3' type='tel' value='' class='medium'   aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_14\" class=\"gfield gfield--type-select gfield--input-type-select gfield--width-full custom-select gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_14'>Number of Employees in Your Business<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_select'><select name='input_14' id='input_2452_14' class='large gfield_select'    aria-required=\"true\" aria-invalid=\"false\" ><option value='' ><\/option><option value='0' >0<\/option><option value='1' >1-5<\/option><option value='6' >6-20<\/option><option value='21' >21-50<\/option><option value='51' >51-250<\/option><option value='250' >250+<\/option><\/select><\/div><\/div><div id=\"field_2452_4\" class=\"gfield gfield--type-textarea gfield--input-type-textarea gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_4'>Tell us about your enquiry<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_textarea'><textarea name='input_4' id='input_2452_4' class='textarea medium'     aria-required=\"true\" aria-invalid=\"false\"   rows='10' cols='50'><\/textarea><\/div><\/div><div id=\"field_2452_5\" class=\"gfield gfield--type-html gfield--input-type-html gfield_html gfield_html_formatted gfield_no_follows_desc field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  >By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. View our <a href=\"https:\/\/legalvision.co.nz\/privacy-policy\/\" target=\"_blank\">Privacy Policy<\/a>. <\/div><div id=\"field_2452_8\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_8' id='input_2452_8' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='http:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/221853' \/><\/div><\/div><div id=\"field_2452_13\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_13' id='input_2452_13' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='generic_form' \/><\/div><\/div><\/div><\/div>\n        <div class='gform-footer gform_footer top_label'> <button type=\"submit\" id=\"gform_submit_button_2452\" class=\"gform_button button\" onclick=\"gform.submission.handleButtonClick(this);\" data-submission-type=\"submit\"><span class=\"gform_submit_button__text\">Submit Now<\/span><\/button> <input type='hidden' name='gform_ajax' value='form_id=2452&amp;title=&amp;description=&amp;tabindex=0&amp;theme=gravity-theme&amp;hash=8d907caff460821c366ed2411b0c45b3' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submission_method' data-js='gform_submission_method_2452' value='iframe' \/>\n            <input type='hidden' class='gform_hidden' name='gform_theme' data-js='gform_theme_2452' id='gform_theme_2452' value='gravity-theme' \/>\n            <input type='hidden' class='gform_hidden' name='gform_style_settings' data-js='gform_style_settings_2452' id='gform_style_settings_2452' value='' \/>\n            <input type='hidden' class='gform_hidden' name='is_submit_2452' value='1' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submit' value='2452' \/>\n            \n            <input type='hidden' class='gform_hidden' name='gform_currency' data-currency='AUD' value='Fo71GVkJS8X4Kd5qPC2F6uziRfE6bRc+CYi8w7mietKRCf60Z6QN2MsxsWdGG6cWvnVGZU8DhLW92qhYgshCoL1vRKCKx+MPQelbPRtPzO6wGoM=' \/>\n            <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' \/>\n            <input type='hidden' class='gform_hidden' name='state_2452' value='WyJ7XCIxNFwiOltcIjIyODY0N2ViMWU3NTcxZjA4YTY4NGJmMDcwMTk3Y2I0XCIsXCJiMzk3YmQ1MDBmMmFjNjk1ODE4MzdmNTBhYTA2MzQ0OFwiLFwiNGYyNGZkZGEwMzlkNDUxMWFhZGE1NGYwZmQwZmNiZTdcIixcIjUyMmJkMDE2M2I2ZmEwOTI3NDZhZjU5YTg0ZmM1NDk5XCIsXCIzODRlNjk1YjQxMTAzMWFiYmQ2ODEyMGYyZWFhMDYyNlwiLFwiYjkzNDcwNTE2MjkxOGRjZWViMjQzNzRjNmE0NGVmNTlcIixcIjQxMTliODZhMzVjYzJiMWViNDZiMmQ4NjRlNGUzZmNjXCJdfSIsIjQ3MjNiMzA2ZDIyZGVkODA2N2YyMjYyOThkYzI1ODVmIl0=' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_target_page_number_2452' id='gform_target_page_number_2452' value='0' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_source_page_number_2452' id='gform_source_page_number_2452' value='1' \/>\n            <input type='hidden' name='gform_field_values' value='' \/>\n            \n        <\/div>\n                        <\/form>\n                        <\/div>\n\t\t                <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_2452' id='gform_ajax_frame_2452' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'><\/iframe>\n\t\t                <script>\ngform.initializeOnLoaded( function() {gformInitSpinner( 2452, 'https:\/\/legalvision.co.nz\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery('#gform_ajax_frame_2452').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_2452');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_2452').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){form_content.find('form').css('opacity', 0);jQuery('#gform_wrapper_2452').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_2452').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_2452').removeClass('gform_validation_error');}setTimeout( function() { \/* delay the scroll by 50 milliseconds to fix a bug in chrome *\/ jQuery(document).scrollTop(jQuery('#gform_wrapper_2452').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_2452').val();gformInitSpinner( 2452, 'https:\/\/legalvision.co.nz\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery(document).trigger('gform_page_loaded', [2452, current_page]);window['gf_submitting_2452'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}jQuery('#gform_wrapper_2452').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_2452').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [2452]);window['gf_submitting_2452'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_2452').text());}else{jQuery('#gform_2452').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger(\"gform_pre_post_render\", [{ formId: \"2452\", currentPage: \"current_page\", abort: function() { this.preventDefault(); } }]);        if (event && event.defaultPrevented) {                return;        }        const gformWrapperDiv = document.getElementById( \"gform_wrapper_2452\" );        if ( gformWrapperDiv ) {            const visibilitySpan = document.createElement( \"span\" );            visibilitySpan.id = \"gform_visibility_test_2452\";            gformWrapperDiv.insertAdjacentElement( \"afterend\", visibilitySpan );        }        const visibilityTestDiv = document.getElementById( \"gform_visibility_test_2452\" );        let postRenderFired = false;        function triggerPostRender() {            if ( postRenderFired ) {                return;            }            postRenderFired = true;            gform.core.triggerPostRenderEvents( 2452, current_page );            if ( visibilityTestDiv ) {                visibilityTestDiv.parentNode.removeChild( visibilityTestDiv );            }        }        function debounce( func, wait, immediate ) {            var timeout;            return function() {                var context = this, args = arguments;                var later = function() {                    timeout = null;                    if ( !immediate ) func.apply( context, args );                };                var callNow = immediate && !timeout;                clearTimeout( timeout );                timeout = setTimeout( later, wait );                if ( callNow ) func.apply( context, args );            };        }        const debouncedTriggerPostRender = debounce( function() {            triggerPostRender();        }, 200 );        if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) {            const observer = new MutationObserver( ( mutations ) => {                mutations.forEach( ( mutation ) => {                    if ( mutation.type === 'attributes' && visibilityTestDiv.offsetParent !== null ) {                        debouncedTriggerPostRender();                        observer.disconnect();                    }                });            });            observer.observe( document.body, {                attributes: true,                childList: false,                subtree: true,                attributeFilter: [ 'style', 'class' ],            });        } else {            triggerPostRender();        }    } );} );\n<\/script>\n<\/div>\n<\/div>\n<div id=\"content-next\"><!-- scroll anchor --><\/div>\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Equity Investors<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Another way to secure finance for your franchise is to find a business partner or investor who will give your business cash in exchange for ownership shares. This<a href=\"https:\/\/legalvision.co.nz\/capital-raising\/debt-investment-vs-equity-investment\/\">&nbsp;share of ownership is often referred to as equity<\/a>. In some cases, equity investors may be \u201csilent investors\u201d. This means they will not be directly involved in the management of your business. However, they will expect a share of the profits. Depending on your projected profit, this arrangement may not align with your financial goals.&nbsp;<\/span><\/p>\n\n\n\n<p>This is also not appropriate if you are not operating as a company and are instead running the business as a sole trader or partnership. Even if the business is a company, this also means that you would be diluting your ownership stake in the business. If your ownership or <a href=\"https:\/\/legalvision.co.nz\/corporations\/voting-rights-shareholder-agreements\/\">voting rights<\/a> fall below a certain threshold, you may lose your ability to make certain critical decisions. Ultimately, raising money through equity is a very useful, but situational tool for your business to raise funds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Franchisor Funding<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Franchisor funding is another way to secure the cash needed to operate your business. Franchises are well-established brands with a history in the market you are entering. As such, they may have significant capital to funnel into opening new businesses. This might mean you can speak to your franchisor about entering into an agreement with them to finance your franchise. Of course, this will differ from franchise to franchise and whether they are open to this. However, asking if your franchisor is open to such financing methods might be worth asking.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Government Grants and Subsidies<\/span><\/h2>\n\n\n\n<p>Government support plans, grants and subsidies are available to help small businesses. Eligibility for different grants and subsidies will differ greatly depending on the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>size of the business;<\/li>\n\n\n\n<li>industry the business operates in; and<\/li>\n\n\n\n<li>purpose of funding.<\/li>\n<\/ul>\n\n\n\n<p>Importantly, not all schemes offered by the New Zealand government provide actual funding such as the <a href=\"https:\/\/www.business.govt.nz\/how-to-grow\/regional-business-partner-network\">Regional Business Partner Network<\/a>. However, in many cases, these schemes provide support and mentorship and establish networks. For example, the <a href=\"https:\/\/www.mbie.govt.nz\/business-and-employment\/business\/support-for-business\/digital-boost\">Digital Boost<\/a> programme offers several financial and educational support packages for businesses looking to digitally transform their operations. Funding can also take significant time and paperwork to materialise, and the bar for eligibility is often quite high. However, it is worth discussing any grants and subsidies available to you with an accountant.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/11\/30121230\/franchisor-toolkit-nz-small.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Franchisor Toolkit New Zealand<\/div>\n            <div class=\"body-text\">\n                <p>This publication provides you with the fundamentals for franchising your New Zealand business, including set up, branding and management.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/franchisor-toolkit-nz.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Key Takeaways&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Whether you are buying your first franchise or are looking to open another new location, securing financing is almost always a necessary obstacle for your franchising journey. Some key ways that you can secure funding for your franchise include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">business loans;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">asset-backed loans;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">investors;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">franchisor funding; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">government grants and subsidies.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">If you need assistance understanding how to fund your New Zealand franchise, our experienced <\/span><a href=\"https:\/\/legalvision.co.nz\/franchise-lawyers-lp\"><span style=\"font-weight: 400;\">franchise lawyers<\/span><\/a><span style=\"font-weight: 400;\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a>\u00a0or visit our <\/span><a href=\"https:\/\/legalvision.co.nz\/membership\/\"><span style=\"font-weight: 400;\">membership page<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1679584983782\"><strong class=\"schema-faq-question\"><strong><strong>How long does it usually take to secure funding for a franchise?<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">The timeline for securing funding for your franchise can vary widely. Often, it depends on the type of funding you are seeking and the particular requirements involved. For example, a traditional business loan from a bank might take anywhere from a few weeks to a few months to be approved. This will depend on the bank\u2019s processing time and the completeness of your application. Alternatively, franchisor funding could potentially be quicker if they have streamlined processes in place for franchisees.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1679585002172\"><strong class=\"schema-faq-question\"><strong>How do I secure a business loan?<\/strong><\/strong> <p class=\"schema-faq-answer\">Different lenders will have different criteria when assessing who to loan money to. However, lenders primarily want to ensure that your business is viable. Therefore, you must propose to a lender why they should give you a loan. This will include showing them financial records of the business, cash flow forecast and a feasible business plan.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/221853\" \/>            <input value=\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How to Get Funding for a Franchise\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Whether you are buying your first franchise or are looking to open another new location for your existing business, securing financing is a necessary hurdle for most franchise businesses. As such, it is important to familiarise yourself with the various funding sources available. This article will take you through five ways of sourcing financing for<a href=\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\">Continue reading <span class=\"sr-only\">&#8220;How to Get Funding for a Franchise&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13513,"featured_media":215631,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"204924,1456,202186,212616,203798,218280","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[7],"tags":[54,292,542,1836],"class_list":["post-221853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchising","tag-medium-business","tag-franchisor","tag-franchise","tag-financing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tips for Financing a Franchise | LegalVision NZ<\/title>\n<meta name=\"description\" content=\"This article will take you through five ways of sourcing financing for your New Zealand franchise so you can adequately plan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tips for Financing a Franchise | LegalVision NZ\" \/>\n<meta property=\"og:description\" content=\"This article will take you through five ways of sourcing financing for your New Zealand franchise so you can adequately plan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalVision New Zealand\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalVision\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-23T15:31:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-03T03:35:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"861\" \/>\n\t<meta property=\"og:image:height\" content=\"565\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Panayiotis Xenos\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:site\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Panayiotis Xenos\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\"},\"author\":{\"name\":\"Panayiotis Xenos\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/66731858cf6afb48b2a440e3358f4917\"},\"headline\":\"How to Get Funding for a Franchise\",\"datePublished\":\"2023-03-23T15:31:43+00:00\",\"dateModified\":\"2024-12-03T03:35:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\"},\"wordCount\":1130,\"publisher\":{\"@id\":\"https:\/\/legalvision.co.nz\/#organization\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg\",\"keywords\":[\"medium business\",\"franchisor\",\"franchise\",\"financing\"],\"articleSection\":[\"Franchising Articles\"],\"inLanguage\":\"en-NZ\"},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\",\"url\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\",\"name\":\"Tips for Financing a Franchise | LegalVision NZ\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.nz\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg\",\"datePublished\":\"2023-03-23T15:31:43+00:00\",\"dateModified\":\"2024-12-03T03:35:41+00:00\",\"description\":\"This article will take you through five ways of sourcing financing for your New Zealand franchise so you can adequately plan.\",\"breadcrumb\":{\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#faq-question-1679584983782\"},{\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#faq-question-1679585002172\"}],\"inLanguage\":\"en-NZ\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#primaryimage\",\"url\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg\",\"contentUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg\",\"width\":861,\"height\":565,\"caption\":\"Master Service Agreement Review: Key Legal Issues | LegalVision New Zealand\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/legalvision.co.nz\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\/\/legalvision.co.nz\/articles\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Franchising Articles\",\"item\":\"https:\/\/legalvision.co.nz\/category\/franchising\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"How to Get Funding for a Franchise\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/legalvision.co.nz\/#website\",\"url\":\"https:\/\/legalvision.co.nz\/\",\"name\":\"LegalVision New Zealand\",\"description\":\"LegalVision is a commercial law firm in NZ with a commitment to innovation\",\"publisher\":{\"@id\":\"https:\/\/legalvision.co.nz\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/legalvision.co.nz\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-NZ\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/legalvision.co.nz\/#organization\",\"name\":\"LegalVision New Zealand\",\"url\":\"https:\/\/legalvision.co.nz\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png\",\"contentUrl\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png\",\"width\":400,\"height\":400,\"caption\":\"LegalVision New Zealand\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/LegalVision\",\"https:\/\/x.com\/LegalVision_law\",\"https:\/\/www.linkedin.com\/company\/legalvision-group\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/66731858cf6afb48b2a440e3358f4917\",\"name\":\"Panayiotis Xenos\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/legalvision.com.au\/wp-content\/uploads\/2024\/07\/Panayiotis-Xenos-96x96.png\",\"contentUrl\":\"https:\/\/legalvision.com.au\/wp-content\/uploads\/2024\/07\/Panayiotis-Xenos-96x96.png\",\"caption\":\"Panayiotis Xenos\"},\"url\":\"https:\/\/legalvision.co.nz\/author\/panayiotisxenos\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#faq-question-1679584983782\",\"name\":\"How long does it usually take to secure funding for a franchise?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The timeline for securing funding for your franchise can vary widely. Often, it depends on the type of funding you are seeking and the particular requirements involved. For example, a traditional business loan from a bank might take anywhere from a few weeks to a few months to be approved. This will depend on the bank\u2019s processing time and the completeness of your application. Alternatively, franchisor funding could potentially be quicker if they have streamlined processes in place for franchisees.<br\/>\",\"inLanguage\":\"en-NZ\"},\"inLanguage\":\"en-NZ\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#faq-question-1679585002172\",\"name\":\"How do I secure a business loan?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Different lenders will have different criteria when assessing who to loan money to. However, lenders primarily want to ensure that your business is viable. Therefore, you must propose to a lender why they should give you a loan. This will include showing them financial records of the business, cash flow forecast and a feasible business plan.\",\"inLanguage\":\"en-NZ\"},\"inLanguage\":\"en-NZ\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Tips for Financing a Franchise | LegalVision NZ","description":"This article will take you through five ways of sourcing financing for your New Zealand franchise so you can adequately plan.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/","og_locale":"en_US","og_type":"article","og_title":"Tips for Financing a Franchise | LegalVision NZ","og_description":"This article will take you through five ways of sourcing financing for your New Zealand franchise so you can adequately plan.","og_url":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/","og_site_name":"LegalVision New Zealand","article_publisher":"https:\/\/www.facebook.com\/LegalVision","article_published_time":"2023-03-23T15:31:43+00:00","article_modified_time":"2024-12-03T03:35:41+00:00","og_image":[{"width":861,"height":565,"url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg","type":"image\/jpeg"}],"author":"Panayiotis Xenos","twitter_card":"summary_large_image","twitter_creator":"@LegalVision_law","twitter_site":"@LegalVision_law","twitter_misc":{"Written by":"Panayiotis Xenos","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#article","isPartOf":{"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/"},"author":{"name":"Panayiotis Xenos","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/66731858cf6afb48b2a440e3358f4917"},"headline":"How to Get Funding for a Franchise","datePublished":"2023-03-23T15:31:43+00:00","dateModified":"2024-12-03T03:35:41+00:00","mainEntityOfPage":{"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/"},"wordCount":1130,"publisher":{"@id":"https:\/\/legalvision.co.nz\/#organization"},"image":{"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg","keywords":["medium business","franchisor","franchise","financing"],"articleSection":["Franchising Articles"],"inLanguage":"en-NZ"},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/","url":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/","name":"Tips for Financing a Franchise | LegalVision NZ","isPartOf":{"@id":"https:\/\/legalvision.co.nz\/#website"},"primaryImageOfPage":{"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#primaryimage"},"image":{"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg","datePublished":"2023-03-23T15:31:43+00:00","dateModified":"2024-12-03T03:35:41+00:00","description":"This article will take you through five ways of sourcing financing for your New Zealand franchise so you can adequately plan.","breadcrumb":{"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#faq-question-1679584983782"},{"@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#faq-question-1679585002172"}],"inLanguage":"en-NZ","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/"]}]},{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#primaryimage","url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg","contentUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25002237\/business-image-0522197.jpg","width":861,"height":565,"caption":"Master Service Agreement Review: Key Legal Issues | LegalVision New Zealand"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.nz\/"},{"@type":"ListItem","position":2,"name":"Articles","item":"https:\/\/legalvision.co.nz\/articles\/"},{"@type":"ListItem","position":3,"name":"Franchising Articles","item":"https:\/\/legalvision.co.nz\/category\/franchising\/"},{"@type":"ListItem","position":4,"name":"How to Get Funding for a Franchise"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.nz\/#website","url":"https:\/\/legalvision.co.nz\/","name":"LegalVision New Zealand","description":"LegalVision is a commercial law firm in NZ with a commitment to innovation","publisher":{"@id":"https:\/\/legalvision.co.nz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.nz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-NZ"},{"@type":"Organization","@id":"https:\/\/legalvision.co.nz\/#organization","name":"LegalVision New Zealand","url":"https:\/\/legalvision.co.nz\/","logo":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/","url":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","contentUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","width":400,"height":400,"caption":"LegalVision New Zealand"},"image":{"@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalVision","https:\/\/x.com\/LegalVision_law","https:\/\/www.linkedin.com\/company\/legalvision-group"]},{"@type":"Person","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/66731858cf6afb48b2a440e3358f4917","name":"Panayiotis Xenos","image":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/image\/","url":"https:\/\/legalvision.com.au\/wp-content\/uploads\/2024\/07\/Panayiotis-Xenos-96x96.png","contentUrl":"https:\/\/legalvision.com.au\/wp-content\/uploads\/2024\/07\/Panayiotis-Xenos-96x96.png","caption":"Panayiotis Xenos"},"url":"https:\/\/legalvision.co.nz\/author\/panayiotisxenos\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#faq-question-1679584983782","name":"How long does it usually take to secure funding for a franchise?","acceptedAnswer":{"@type":"Answer","text":"The timeline for securing funding for your franchise can vary widely. Often, it depends on the type of funding you are seeking and the particular requirements involved. For example, a traditional business loan from a bank might take anywhere from a few weeks to a few months to be approved. This will depend on the bank\u2019s processing time and the completeness of your application. Alternatively, franchisor funding could potentially be quicker if they have streamlined processes in place for franchisees.<br\/>","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/franchising\/financing-franchise\/#faq-question-1679585002172","name":"How do I secure a business loan?","acceptedAnswer":{"@type":"Answer","text":"Different lenders will have different criteria when assessing who to loan money to. However, lenders primarily want to ensure that your business is viable. Therefore, you must propose to a lender why they should give you a loan. This will include showing them financial records of the business, cash flow forecast and a feasible business plan.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/221853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13513"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=221853"}],"version-history":[{"count":8,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/221853\/revisions"}],"predecessor-version":[{"id":228245,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/221853\/revisions\/228245"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/215631"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=221853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=221853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=221853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}