Financing to buy an existing franchise

Clarify what the purchase includes

FundMyFranchise helps you organize the transaction for lender review: what you are buying, how it will operate under your ownership and how you plan to fund it. We work with franchise buyers across Canada, from a first resale purchase to an additional location.

Begin with the proposed transaction structure and a breakdown of the purchase price. The financing discussion changes depending on whether you are buying business assets or shares. Identify equipment, inventory, goodwill and any other amounts included, together with required upgrades or costs outside the purchase price.

The distinction matters for program eligibility. Under the Canada Small Business Financing Program, eligible assets of an existing business may qualify, while share purchases do not. That does not decide the wider financing options; it means the request must be matched to the actual transaction.

Connect the asking price with the available evidence

A recognizable brand does not explain the performance of an individual location. Obtain the seller's financial records and make a list of questions about the figures. BDC's acquisition guidance recommends financial and legal due diligence with appropriate professional support.

For the financing file, we help organize the information and distinguish historical results from proposed changes under your ownership. If the plan assumes a new menu mix, different staffing or longer opening hours, show those assumptions separately rather than treating them as established earnings.

Budget for the handover as well as the price

Your cash requirement may extend beyond the amount paid to the seller. Build a transition budget so that required work, professional costs, opening stock and operating reserves are visible in the plan. Ask which commitments fall before closing and which arise afterward.

Discuss the handover with the relevant parties: the seller, franchisor, landlord and your professional advisers. Track approvals or consents that remain outstanding. Your financing application should use the same transaction details and target dates as the documents being negotiated.

Prepare a plan for your ownership

We build acquisition business plans in-house around the specific franchise you intend to purchase. The plan should explain your operating role, continuity arrangements, proposed changes and financial assumptions. It should also show the funds you are contributing and the borrowing requested.

Bring your accountant into questions about the seller's earnings and purchase structure. Bring your lawyer into the purchase agreement and contractual obligations. Our financing preparation complements that work by keeping the lender-facing request clear and consistent.

• A current purchase summary and draft terms, where available.
• Seller financial information and explanations for material changes.
• Franchise and lease information relevant to the proposed transfer.
• A complete project budget, buyer contribution and operating plan.

Coordinate the funding conditions before closing

An agreement to purchase and an approval to finance are separate matters. We help coordinate the application with suitable lenders and organize follow-up information. The lender remains responsible for its decision, and a written offer may contain conditions that must be satisfied before money is released.

Avoid treating a preliminary discussion as a completed financing arrangement. Share the purchase deadline early and keep us informed when the price, structure or timing changes. A current file makes the next financing discussion more productive.