4/3/2025
4/3/2025
Setting up and financing a franchise

The franchising market in France is experiencing impressive growth, with over 2,000 franchisors and 92,000 franchisees by 2024. For entrepreneurs looking to get started, financing is often the biggest challenge. How do you structure your project and find the necessary resources? Let's discover the keys to successful financing.
Preparing your franchise project
Starting a franchise requires careful preparation and a thorough understanding of the financial implications. This initial stage largely determines the future success of your business. The best financing options for SMEs will depend on this rigorous preparation.
Evaluate the initial investment accurately
The first step is to determine exactly how much money you'll need to launch your franchise. In 2024, the breakdown of investments shows great diversity across sectors. A recent study by the Fédération Française de la Franchise reveals that 14% of new franchisees invest less than 50,000 euros, while 27% commit between 50,000 and 200,000 euros.
Understanding the different investment items
The network entry fee is your first significant investment. It represents the counterpart of the know-how transmitted and generally includes initial training. The amount varies considerably from brand to brand, ranging from 5,000 to over 50,000 euros. This sum often reflects the network's maturity and reputation.
Fitting out the premises is generally the most important item. It includes work to bring the premises up to standard, specific equipment, as well as furniture and decoration in line with the brand's standards.
The third pillar of your investment consists of two essential elements:
- Stock and merchandise: Building up initial stock represents a strategic investment that needs to be calculated precisely. It includes not only products for sale, but also the consumables needed for the day-to-day running of your franchise.
- Working capital requirements (WCR): A sufficient cash reserve is essential for :
- Cover your fixed costs (rent, salaries, social charges)
- Paying suppliers
- Coping with the unexpected in the early months
Allow for a cash reserve equivalent to 3-6 months' fixed expenses to get you off to a good start.
ℹ️ Concrete example: In the fast-food sector, an average total investment of 430,000 euros typically breaks down as follows: 35,000 euros for the right of entry, 250,000 euros for fittings and equipment, plus 145,000 euros for initial stock and working capital requirements. This structure may vary according to the location and size of the premises.
Explore available sources of financing
The choice of financing must be adapted to your personal situation and the specificities of your project. The best financing options for SMEs are based on several key criteria.

- Personal contribution: This represents your direct commitment to the project and serves as a lever to convince lenders. A substantial down payment, generally between 20% and 30% of the total investment, demonstrates your commitment and significantly improves your borrowing terms. The larger your deposit, the better the interest rates you'll be offered.
- The overall amount of the project: The total sum required determines the financing strategy to be adopted. Projects exceeding 200,000 euros often require a mixed approach, combining different sources of financing. This diversification helps optimize overall costs and spread risks effectively.
- The business sector chosen: This has a direct influence on the financing conditions offered. In 2024, the digital and ecological transition sectors benefit from particularly favorable conditions, with interest rates 0.5 to 1 point lower than traditional sectors.
ℹ️ Trend to note: Innovative franchises, particularly in the digital and ecology sectors, are more attractive to investors and obtain more advantageous financing. A franchisee in these sectors can look forward to optimized financing conditions and shorter lead times.
This preparatory phase requires careful attention to every detail. Not only does it enable you to structure your project, but also to anticipate questions from potential financiers. The best short-term financing solutions can help you optimize your strategy. A well-prepared business case, based on concrete data and in-depth market analysis, significantly increases your chances of obtaining the necessary financing under the best possible conditions.
The pillars of financing
Building up personal capital and mobilizing love money
The personal contribution generally represents 30% of the total project. How can you build up this contribution? Different types of investors can help you top up this sum.
ℹ️ Example: An entrepreneur has managed to raise 100,000 euros of capital by combining his savings (60,000 euros) and the support of his family (40,000 euros) for a fitness franchise requiring a total investment of 300,000 euros.
Understanding bank loan issues
A traditional bank loan is still an essential part of franchise financing. Banks are particularly fond of this business model, which is generally less risky than a start-up from scratch.
What criteria influence your ability to obtain a loan? Your choice of retailer, your professional experience and the soundness of your business plan are all decisive factors.
ℹ️ Revealing statistic: In 2024, 84% of franchisors claim that their franchisees find it easier to obtain bank financing than independent entrepreneurs.
Innovative financing solutions
Discover alternatives to traditional financing
Faced with the growing demands of banks, new financing solutions are emerging. Non-bank financing solutions can complement or replace traditional bank loans.
How can you maximize your chances of obtaining financing? Have you thought about diversifying your sources of financing to optimize your financial structure?
The Karmen solution for franchisees
We have launched our financing solutions to meet the specific needs of entrepreneurs, including franchisees. Karmen offers flexible loans from €30K to €5M with terms from 1 to 24 months, particularly suited to :
- Financing the entry fee
- Space planning
- Building up initial stocks
- Working capital requirements
Building a solid case
Drawing up a convincing business plan
The quality of your business plan is decisive in convincing financiers. It must demonstrate the viability of your project and your ability to generate enough income to repay your loans.
"A well-structured business plan increases your chances of obtaining financing by 60%", according to a study by the Fédération Française de la Franchise.
Mastering best financing practices
- Start looking for financing at least 6 months before the planned opening.
- Put together a complete file with all the necessary documents
- Anticipate questions from financiers about project profitability
- Prepare a plan B in case of refusal by the main bank
A successful launch
Securing your financing
Franchising today represents a particularly resilient business model. In 2024, 78% of franchisees believed they would be more resilient to economic crises than independent retailers. This stability facilitates access to financing, but requires careful preparation of your project.
Financing a franchise requires a methodical approach and a good understanding of the various options available. Combining several sources of financing, together with a solid business plan and the choice of a recognized brand, maximizes your chances of success.
Don't forget that the choice of financing will have a lasting impact on the profitability of your franchise. Take the time to explore all the options and build a financial structure that's right for your project.