How To Start A Franchise With No Money

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Reading Time: 3 minutesWhen it comes to franchising, many of us feel left out in the cold because we have no money to invest and so stop looking for opportunities.

There is a range of conflicting advice on what the best franchise is and how to get access to it. However, if you don’t have any cash, you can still get your own franchise up and running relatively easily. There are no-cost options as well as financing options that may suit your requirements, but it is important to ensure that whatever you choose, you are fully informed of the implications it will have on your life.

Some of the best ways to get a franchise with no money include:

  • Zero cost franchises
  • Government-backed funding
  • Bank loans
  • Business investors
  • Friends and family

We will take you through all the options open to you so that you can start to make plans to become a business owner!

Zero Cost Franchises

Before you look for financing, it may be worth considering a zero cost franchise. Many people avoid these opportunities as there are some scams out there or franchises that offer no setup cost but expect a huge monthly payment instead.

Zero Cost Franchises

If you have the time and patience, it is worth going through the zero cost options on a trusted franchise website and taking your time to check out all that is on offer. If you find one that looks too good to be true, then it probably is! Make sure you request all the information and read all the fine print before jumping into a contract that won’t work for you.

Many zero cost options are hard work and require you to do a lot of your own marketing and work until such time that you are making enough profit to employ anyone else. However, there are some decent zero cost options on the market, so don’t write them all off too quickly.

Government-Backed Funding

The UK government offer support for those people that want to start their own business. This funding requires you to pass a credit check and have all the relevant business paperwork in place to prove the potential of your new venture.

The upside to this is that you will be offered additional support and have access to a business advisor and mentor to help you grow your enterprise and turn a profit. The downside is that this type of funding can be difficult to get or hard to find. Using the government portal, you will be able to check your eligibility for support and then put in an application for consideration.

Bank Finance

Many banks have good working relationships with franchisors due to the profits they place into their accounts. This means that you may be able to benefit from an already established relationship with the franchisors bank when looking for finance.

Bank Finance

Banks tend to prefer to help people who have some capital available but don’t let this put you off as if you have a good credit rating with minimal debts and financial pressures they will often consider helping you out. If you are a homeowner, then it’s also a good idea to speak to the bank that holds your mortgage as they may be willing to lend you the fees you need against your current property.

Along with any sensible financial advice, we would strongly urge you to consider all other methods of finance before using your home as an asset. There is no guarantee that your franchise will be a success and losing your home would be a devastating blow that will affect the entire family.

Friends and Family

If you are unable or don’t wish to borrow from the bank or government, then it is always worth thinking about asking friends and family for their financial support. By spreading the cost, you are also reducing the risk to yourself but increasing the risk that your loved ones will end up out of pocket.

If you do choose to get help from your loved ones, then it is important that you are as honest as possible about the franchise and the potential issues and successes that may arise. Most people are risk-averse, and so it’s important that you let them know exactly what could happen if they chose to invest in your franchise.

Business Investors

If you are keen to get started and happy to share your ongoing profits then you could always seek out an investor who would allow you to run the franchise and get a portion of the profits – this is sometimes known as a silent investor.

Business Investors

There are many business savvy investors out there that will happily invest their money into your franchise if they can see a potential for growth. You will need to agree on terms and percentages, but this option is far less stressful than asking your loved ones to share their life savings with you.

A business investor will expect to see a profit turnaround and will require ongoing updates and figures to prove their investment is a good one. The risk of this option is that if your investor does not see the profit, they were expecting, then they could pull out at any time.


It’s clear to see that there are many ways of getting your own franchise; financial support, bank lending and zero cost franchises are all potential solutions. What is most important is that you get access to a franchise that you can make work and secure a profit from.

You must remember to do your homework before you sign anything as you risk taking on a business that you can’t afford or won’t make a profit from. There is a wealth of advice and support available to you online and via franchise advisors, so it is well worth spending time discussing and exploring options until you find the right opportunity for you.

Whichever method you choose, we wish you luck in making a profit via your new business. Start browsing our low-cost franchises for sale today.

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