Need a franchisor to approve you, or is the seller taking part of the price later? Get an indicative lending answer within 2 business days.
- Indicative assessment within 2 business days, with settlement typically 1 to 8 weeks depending on the lender
- Loans from $100K to $5M
- New franchisees, buyers of an existing outlet, and buyers whose seller is leaving part of the price in the deal
- Can cover the purchase price, the franchise fee, fit-out and equipment, depending on the lender, sitting alongside any vendor loan
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) options across our 90+ lender panel
You have found the business you want. It might be a new site with a brand you know, an outlet the current franchisee wants to sell, or an independent business whose owner will take part of the price over time. Each one brings a third party into the funding. A franchisor has to approve you, or a seller becomes one of your lenders. Vendor and franchise finance is a business loan for the part of the price that the seller is not carrying. It can also cover the franchise fee, fit-out and equipment that come with the purchase. Joseph Farhat and his team look at the business, the franchisor's or seller's terms and your own position. They then find a lender whose policy fits the way your deal is set up.
Who we can help access finance
- First-time franchisees signing up for a new site, who need the franchise fee, fit-out and opening stock funded.
- Buyers taking over an existing franchised outlet from a franchisee who is selling, subject to the franchisor's consent.
- Current franchisees adding a second or third outlet within the same system.
- Buyers of an independent business where the owner has agreed to take 20% or 30% of the price in instalments after settlement.
- Buyers whose seller wants a lender to fund most of the price at settlement, with the balance paid to the seller over time.
- Buyers who own property and choose to offer it as security alongside the business assets, after getting independent legal advice, because it is at risk if the loan is not repaid.
How Vendor and Franchise Finance Works
Franchise purchases follow the Franchising Code of Conduct. Since 1 April 2025 the Code has been set out in regulations made in December 2024, which replaced the 2014 version. Before you enter a franchise agreement, the Code gives you a waiting period of 14 days, and the disclosure document must state that it is 14 days, not 14 business days. Related agreements, such as a lease, a guarantee or a loan agreement, must also be given to you at least 14 days before you sign, where they are available. Buying an existing outlet needs the franchisor's consent to the transfer, requested in writing. That consent cannot be unreasonably withheld, and one reasonable ground for refusing is a buyer who is unlikely to meet the financial obligations.
Vendor finance works differently. The seller agrees to accept part of the price later, by instalments or as a vendor loan, usually with interest. The lender funds most of the price at settlement and the vendor carries the rest. A lender will want to know the vendor loan's amount, repayments and security. Some lenders require it to be subordinated, which means it ranks behind the lender's loan.
Your lawyer reviews the franchise agreement, the disclosure document or the sale contract, and documents any vendor loan. Your accountant checks the price and whether the business can carry every repayment. We are a finance broker, not a lawyer or accountant. Joseph Farhat and his team review the deal, your contribution and your security, then match it to a lender from a panel of 90+ bank, non-bank, and specialist lenders and manage it through to settlement.
What Lenders Assess for Vendor and Franchise Finance
The franchise system
the brand's record, the support the franchisor gives, and how other outlets in the network trade.
Franchisor consent
for an existing outlet, written consent to the transfer and any conditions the franchisor sets on you.
The vendor loan terms
how much the seller is carrying, the interest, the repayment timetable, its security and where it ranks.
Trading figures
the outlet's own history on a transfer, or for a new site, the franchisor's figures and your own contribution.
Every repayment together
the lender's loan, the vendor instalments, and franchise fees or royalties, all paid from the same earnings.
Security on offer
business assets, property you own, and a personal guarantee from you or the directors. Any property offered is at risk if the loan is not repaid, so get independent legal advice before signing.
Your background
experience in the industry, any franchise training completed, and your credit file.
The Vendor and Franchise Finance Process: What to Expect
- Involve your lawyer and accountant first. Then talk to Joseph Farhat and his team about the business, the price, how much the seller or franchisor is involved, and your timing.
- Send the disclosure document or sale contract, any vendor finance terms, the outlet's financials or the franchisor's figures, your own income records and details of any security.
- We take the deal to lenders on the panel that fund franchise purchases or vendor-financed sales, and set out each one's rate, fees, security and conditions.
- The lender issues a written approval. For a franchise transfer, it usually runs alongside the request for the franchisor's consent. We go through the approval with you before you sign.
- At settlement the lender pays its share of the price, any vendor loan is documented by your lawyer, and repayments begin.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~7.5% p.a. | Business assets and guarantees, plus property where policy requires it | $100K to $5M | 3 to 10 years | 3 to 8 weeks |
| Non-Bank Lenders | From ~10.5% p.a. | Business assets and a personal guarantee | $100K to $2M | 1 to 5 years | 1 to 3 weeks |
| Private Finance | From ~1.2% per month | Property security | $100K to $5M | 3 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for vendor and franchise finance
We represent you, not the lender
Joseph Farhat and his team act in your interest from the first conversation through to settlement.
Franchise appetite by brand
lenders take different views of different franchise systems, and we know which lenders on the panel are open to yours.
Consent and approval in step
on a transfer, we plan the finance approval around the franchisor's consent request, so neither holds up the other.
Vendor terms a lender can accept
we tell you early what lenders look for in a vendor loan, so the terms you agree with the seller do not stall the main loan.
All repayments counted
the lender loan, vendor instalments and franchise fees are tested against the same earnings before you commit.
Fewer enquiries on your file
each credit enquiry is recorded on your file, so your application goes only to lenders likely to fund it.
One panel, every lender type
90+ bank, non-bank, and specialist lenders, so a well-supported franchise purchase can go to a bank at a sharper rate, and a less standard deal still has options.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the franchisor or seller has set a date to sign, talk to us early, alongside your lawyer and accountant, and we will tell you what is realistically achievable.
Frequently asked questions
What is vendor and franchise finance?
It is a business loan for two kinds of purchase. One is buying a franchise, either a new site from the franchisor or an existing outlet from a franchisee. The other is buying a business where the seller carries part of the price, paid back to them over time. In both cases the lender funds its share at settlement, and the business earnings repay the loan.
How long do I have to review a franchise before I sign?
The Franchising Code gives a prospective franchisee a waiting period of 14 days before entering the agreement. The disclosure document must say that this is 14 days, not 14 business days. Where related agreements such as a lease, guarantee or loan agreement are available, copies must reach you at least 14 days before you sign them. Starting the finance conversation in that window means you know what is fundable before you commit.
Can I change my mind after signing a new franchise agreement?
Under the Code, you can end a new franchise agreement within 14 days of entering it, unless you opted out of that right in writing. The franchisor must then repay your payments within 14 days, less any reasonable expenses the agreement sets out. Renewals and extensions have no cooling-off period. If you buy an existing franchise by transfer, you can unwind it by written notice up to 14 days after becoming the franchisee, or until you take possession and control of the business if that is sooner. Your lawyer confirms how this applies to you.
Does the franchisor have to approve me to buy an existing outlet?
Yes. The buyer of an existing franchise needs the franchisor's consent to the transfer, and the request is made in writing. The franchisor must not unreasonably withhold it. If the franchisor does not refuse in writing within 42 days of the request, or of the last information provided, consent is taken to be given. Consent can be revoked within 14 days, but only on reasonable grounds. Reasonable grounds include a buyer unlikely to meet the financial obligations or not meeting the franchisor's selection criteria. A finance approval helps show the franchisor you can meet those obligations.
How does a vendor loan work alongside a lender's loan?
The lender pays most of the price at settlement and the seller accepts the balance over an agreed period, usually with interest. The vendor loan may be secured by a registration on the Personal Property Securities Register (PPSR), the national register of security over goods, or by a guarantee, and that is negotiated between you and the seller with your lawyers. Some lenders accept a vendor loan only if it is subordinated, meaning the seller is repaid after the lender if something goes wrong. Lenders count the vendor repayments when testing affordability. We tell you what each lender expects before the vendor terms are agreed.
Can the franchise fee and fit-out be funded too?
Often, yes. Some lenders will include the franchise fee, the fit-out and the equipment in the purchase loan. Others prefer the fit-out and equipment on a separate equipment facility, secured over the items themselves. Lenders usually expect some of your own money in a franchise purchase, and how much depends on the lender and the system. Joseph Farhat and his team set out each option and the total repayments.
Can I get vendor and franchise finance on low-doc?
Lenders need the outlet's trading figures or the franchisor's figures, because the business repays the loan. What can flex is the paperwork for your own income. Some lenders on the panel accept BAS, bank statements or an accountant's letter in place of full tax returns. We tell you up front what each lender asks for.
Do you work with borrowers with bad credit?
Yes, we do. A default or past arrears does not rule out buying a franchise or a vendor-financed business, and there is nothing uncomfortable about raising it with us. A listing says little about the outlet's trading, the strength of the franchise system or the security on offer. Several lenders on our panel weigh those more heavily than the credit file and will price for the risk. Franchisors also run their own checks, so tell us at the start and we will approach a suitable lender first without stacking enquiries. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your vendor and franchise finance?
Because one conversation replaces a round of applications. The people we help are mostly self-employed buyers, company directors and existing franchisees with a date in front of them: a waiting period running down, a transfer awaiting consent, or a seller who wants settlement locked in. None of that is unusual to us. Lenders look at the trading figures, the franchise system or the vendor terms, the security, and whether every repayment fits the earnings. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented purchase can go to a bank at a sharper rate, and there are still options when the deal is less standard. We are based in Sydney and work with buyers Australia-wide. Joseph Farhat and his team will tell you early and honestly whether we can help and what your timeline allows.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with vendor and franchise finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges vendor and franchise finance Australia-wide, for outlets and businesses in cities and regional towns. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. The Franchising Code is national, so its timeframes apply in every state. Joseph Farhat and his team will match your purchase to lenders on the panel that suit the brand and location.
