Franchise New Zealand | Summer 2026 | Year 34 Issue 04
34
Buying & Running a Franchise
MAKING
FRANCHISE
FUNDING
SIMPLE
Westpac’s Sujam Ratnayake shares funding
insights for new and growing franchisees
Owning a business is a dream for many, an opportunity to build something
meaningful, gain independence, and create long-term value. While some
entrepreneurs successfully take that leap, others find themselves held back
by one of the most common challenges, which is securing funding. Whether
you are buying your first business or expanding your existing portfolio,
understanding your funding options and building the right support team can
make the journey far more achievable.
This journey becomes even more accessible when investing in a well-
established franchise. Franchising provides a structured pathway into
business ownership, offering a proven model, strong brand recognition, and
ongoing operational support. These elements can significantly reduce the
risks compared to launching an independent venture. However, long term
success still depends on thoughtful planning, sound financial management,
and the guidance of trusted professionals such as specialist bankers,
franchise accountants, legal advisors, and industry experts who understand
the unique needs of franchise businesses.
Understanding franchise lending
Franchise lending differs significantly from traditional business lending.
Banks evaluate not only the financials of the individual applicant but also the
strength and credibility of the franchise system itself. Key factors include the
franchise brand’s reputation, operational systems and the training and support
provided by the franchisor.
This is particularly beneficial for first time
business owners who may not have direct
experience in the industry. When purchasing
a franchise, banks often view applications
favourably due to the structured training
and ongoing support provided by most
franchise systems. These elements help
mitigate the risks associated with limited
prior experience and build confidence in the
franchisee’s ability to succeed.
If you’re setting up a greenfield site (a new
location with no trading history), securing
funding can be challenging because there’s
no historical data to validate your forecasts
and demonstrate the viability of your proposal.
However, specialist franchise bankers can
leverage benchmark data from existing outlets to assess your projections more
confidently and support your funding application more effectively.
Funding options for franchisees
Secured Loans:
Many franchisees choose to use home equity to fund their business, as
it often offers longer loan terms and lower interest rates. This strategy is
Sujam Ratnayake, Westpac
Franchise Relationship Manager
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