1. Define the franchise transaction
The steps below help you move from an opportunity to a lender discussion without confusing an early indication with an approved loan. FundMyFranchise supports the process with in-house business plans, application preparation and lender coordination across Canada.
Write a short summary of what you want to do: open a location, buy an existing franchise or expand a group. Identify the brand, city, ownership and current stage. If the location, purchase terms or operating company are undecided, say so.
This summary gives the financing work a starting point. Keep it current as decisions change. A lender reviewing one transaction cannot assess a different deal that has only been discussed with the seller or franchisor.
2. Build the full budget and funding request
List the project costs and their payment dates, then identify your available contribution and proposed borrowing. Separate estimates from quotes and amounts already paid. Include the operating cash you expect to need alongside the purchase or setup costs.
Use the franchise loan calculator to explore repayment scenarios, but treat the results as estimates. A calculated payment does not establish the amount a lender will approve or the rate it will offer.
3. Gather the evidence behind the plan
Collect the franchise information, owner details and cost documents that explain the request. For an existing business, organize the available financial records and purchase terms. BDC's franchise guidance identifies the draft franchise agreement, personal financial information and business plan as common lender requirements.
You do not need to guess every eventual lender question. Start with a consistent set of documents and a list of missing items so follow-up work is visible and manageable.
4. Prepare a business plan you can explain
Describe how you will operate the franchise and connect that description to the financial forecast. Identify the assumptions behind the sales, costs and opening timeline. Explain which figures relate to the proposed location rather than the wider franchise system.
We build business plans in-house and help organize those assumptions. Your review matters: the completed plan should describe the project you intend to run, not a generic version of a franchise business.
5. Approach suitable lenders and answer their questions
The relevant financing route depends on the transaction and applicant. We help prepare discussions with suitable banks, credit unions and BDC where appropriate. A program such as CSBFP has its own rules and is not a substitute for the lender's assessment.
During review, keep answers, revised budgets and updated documents consistent. Record what has been supplied and what remains outstanding. Avoid presenting an estimate as confirmed simply to complete a document list.
6. Review the offer and complete the funding conditions
Read the actual written offer, including repayments, security, fees and conditions. Ask which requirements must be satisfied before funds are advanced and how the release of money fits the transaction. Your lawyer and accountant can help assess matters within their professional roles.
If the project changes after the offer, tell the lender before relying on the old terms. FundMyFranchise arranges and coordinates financing; the financial institution approves the loan and controls the conditions for funding.
Your questions, answered
What is the first thing I should prepare?
Start with the brand, location or target area, transaction type and a realistic cost outline. Then identify your contribution and the information you still need. That creates a useful basis for an initial discussion.
How long will the application take?
Timing depends on the lender, transaction, document readiness and outstanding conditions. We can discuss the current stage and required work, but cannot promise a universal approval or funding date.
Can you help if a lender has already asked for more information?
Yes. Share the request and the materials already submitted. We can help organize the response, business plan or supporting information without treating the lender's request as an assurance of approval.