How to start and finance a franchise in NSW |

Starting a franchise in NSW

Everything you need to know about obtaining franchise finance in New South Wales.

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The most populated state in Australia, New South Wales has the highest amount of franchising activity in Australia, with approximately 34% of all franchises being located within NSW. Approximately 62 per cent of the population of New South Wales live in Sydney, with other highly populated areas including Coffs Harbour, Wollongong and Newcastle. With an impressive record of 26 years of uninterrupted economic growth, New South Wales credits high levels of investment and equally high government support for its ongoing economic success.

Sydney is renowned for its strong financial and professional services sector, as well as its broadcasting, publishing, and communications technology industries. Further afield, Wollongong is known for agriculture, aquaculture, engineering and manufacturing, while Newcastle excels at coal mining and winemaking.

The New South Wales government has been focused on infrastructure spending in recent years, which has further boosted New South Wales's economic growth. In addition, the state government has been focused on job creation and incentivising small businesses for hiring new workers.

What type of franchises could be successful in New South Wales?

In contrast to Sydney's bustling city centre, regional areas of New South Wales are taking longer to catch up and provide services that have been readily available in Sydney for years. Franchise opportunities exist in a variety of industries in Sydney and throughout other areas of New South Wales.

People looking to purchase a franchise in New South Wales could look towards extending a successful city franchise into a regional area of NSW.

Franchise financing options to compare in NSW

Data updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Moula Business Loan
1 to 2 years
2% Establishment fee
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
Zip Business
6 months to 3 years
No Establishment fee
Borrow up to $500,000 with loan terms of up to 3 years. Flexible weekly, fortnightly and monthly repayment options available with no early repayment fees.
ebroker Business Loan
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
Lumi Unsecured Business Loan
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
Max Funding Unsecured Business Loan
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Valiant Finance Business Loan Broker
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
Octet Trade Finance
1 month to 2 years
Transaction fee 2.5%
Access a line of credit to pay suppliers in over 65 countries. Borrow from $200,000 up to $7 million.
OnDeck Business Loans
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.
Heritage Bank Fully Drawn Business Loan
No maximum amount
1 to 25 years
Application fee is available upon application
Get access to a loan from $20,000 with no maximum limit with Heritage Bank. Loans can be secured by residential and non-residential property and have terms of up to 25 years.
Prospa Business Loan
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $300,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary.
Westpac Business Loan
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.
ANZ Secured Business Loan
Up to 15 years
Benefit from a low rate when you secure this loan with property and/or business assets. Loans from $10,000 available.
ANZ Unsecured Business Loan
Up to 15 years
Apply for a loan from $10,000 with no security required and benefit from flexible repayment terms.

Compare up to 4 providers

Laws relating to business and franchising in NSW

All businesses in New South Wales are subject to both federal and state laws. The Competition and Consumer Act 2010 (CCA) is federal legislation administered by the Australian Competition and Consumer Commission (ACCC). The CCA ensures that business trading is fair for customers and business owners alike.

The Franchising Code of Conduct is prescribed under the CCA and relates specifically to franchise businesses. In New South Wales, the ACCC is located at Level 7, Angel Place, 123 Pitt Street, Sydney. The relevant state legislation in New South Wales is the Fair Trading Act 1987.

Costs of starting a franchise

Example initial costs of franchises currently available in New South Wales are as follows:

  • The Cheesecake Shop, a food retail shop selling handcrafted and customise cakes with quick turnaround, requires an initial investment from $400,000.
  • Kwik Kopy is a printing and design franchise with an initial investment from $210,000 for a new franchise.
  • GO SUSHI is an Australian owned sushi franchise that claims to give a western twist to eastern cuisine. Initial investments of at least $180,000 are required to purchase a new franchise.

Finding finance

How can I finance the purchase of a franchise in New South Wales?

Once you've decided that you are ready to start a franchise in New South Wales, the next step is to compare your franchise finance options.

Secured business loan.

This will vary depending on your chosen franchise and the individual lender. All secured business loans require a residential or commercial property to be put up as security for the loan. Depending on the strength of the property, a lender will offer anywhere between 50 and 100% of the value of the loan. Some lenders will also require additional security like a director's guarantee or a fixed and floating charge over commercial property.

Unsecured business loan.

A unsecured business loan is type of loan does not require you to attach a residential or commercial property as security. You can generally borrow up to $250,000 although some lenders will lend up to $500,000. Terms vary, but you may be able to choose terms of between three months and five years. Your eligibility will depend on how long your business has been operating and the amount of annual turnover you can demonstrate.

Franchise loan.

A franchise loan is similar to a business loan, with the main difference being the loan term. The loan term of a franchise loan is linked to the length of the franchise agreement and is generally capped at 10 years. Franchise loans are generally only available for reputable, accredited franchises. However, there is no pre-set lending criteria and an application for a franchise loan will be looked at on a case-by-case basis by each lender. As such, the amount of the loan will vary, with some lenders only lending up to 50% of the amount required. Franchise loans can involve a smaller deposit or lower amount of equity. Note that franchise loans will not include an amount for working capital.

Franchisor finance.

Some franchisors run their own schemes whereby franchisees can finance the purchase of a new franchise directly through the franchisor. For example:

  • Bakers Delight offers a Kick Start franchise program, whereby trainees make a financial commitment at the outset and then work full-time within a franchise for 6 to 12 months. At the end of the training, the initial commitment goes towards the purchase of the bakery.
  • Snap-On Tools offers loans through Snap On finance for potential franchisees, provided they can make a $50,000 deposit towards the cost of their franchise fee, stock, training and working capital.

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