How to apply for franchise finance

Follow these steps once you're ready to apply for franchise finance, and make sure you have the standard requirements ready.

How to apply for franchise finance
Most franchises will require you to invest at least 50% of the entire investment needed for the franchise by using your own unencumbered funds. You can then apply for finance for the remainder of the investment.

What are unencumbered funds?  

Unencumbered funds refer to free cash that is not bonded or borrowed from anyone. This could include the proceeds of a pension payment, money in the bank, an investment available for drawing or cash from selling another asset.  

Once you have decided on a franchise and applied successfully with the franchisor, the next step is to contact Capitec Business to apply for franchise finance. Follow these steps to make sure you submit a complete application: 

1. Contact us 

Get in contact with the Capitec Franchise team by emailing 

2. Application 

Submit your application pack with the required supporting documents for review to the Capitec Franchise Team.

3. Legal matters 

Upon approval of the franchise funding, finalise your legal agreements by signing the lease and franchise agreements, provided that you had 14 days to review the franchise agreement and Disclosure Document (read more about the legalities of franchising).

4. Start operating 

Hire staff and prepare to run your franchise. 


Standard requirements for franchise applications  

The following information must accompany all applications, whether for a new or existing franchise purchase:  

  • Confirmation from the franchisor of their conditional approval of the applicant as a new franchisee
  • A summary of the owner’s background, experience and planned involvement in the business
  • Details on the location of the business, including competition in the area, parking accessibility and visibility
  • CIPC documents and confirmation of group structure (to include shareholding and directors)
  • A comprehensive breakdown of the setup cost
  • Details on the funding requirement and the whole investment required for the franchise (including working capital required, rental and stock guarantees)
  • Proof, source and amount of own contribution, which is money put into the business from own funds
  • A personal balance sheet of all shareholders/owners – this must include all assets and liabilities or money that you owe
  • Copies of identity documents of all shareholders/owners
  • Documented proof of residential address of all shareholders/owners
  • A projected monthly cash flow forecast for at least three years  

Your franchisor should be able to assist you with the information needed to supply the funding requirement and the cash flow forecast to the bank.  


Financing an existing franchise  

If you are buying a franchise that is existing and operational, you need to supply the following additional information with your application:  

  • Copy of the sale agreement
  • Latest annual financial statements and management accounts for the business
  • Fixed asset register
  • Reason for sale
  • How long has the business been trading
  • When the last revamp was done, when the next revamp is due and what the estimated cost would be  

Submitting a complete application with all the required information will shorten the application process considerably, bringing you another step closer to owning your franchise.