Franchise Loan Calculator
Calculate franchise business loan repayments and total costs. Free NZ franchise calculator including franchise fees, fit-out costs, and working capital requirements.
💡 Franchise Financing Tip: Budget 25-30% more than the quoted franchise fee. You'll need working capital, fit-out costs, and initial stock beyond the franchise purchase price.
Franchise Loan Calculator
Calculate your total franchise costs and loan repayments
Franchise Investment Summary
Monthly Loan Payment
$4,255
Total Investment
$300,000
Loan Amount
$200,000
Total Interest
$55,300
Your Contribution
33.3%
Investment Breakdown
Popular NZ Franchise Cost Ranges (2025)
🍔 Food & Beverage
McDonald's
$1.5M - $3M+ total investment
Subway
$250K - $500K total investment
Hell Pizza
$350K - $600K total investment
Columbus Coffee
$400K - $650K total investment
🏠 Home & Property Services
CrestClean
$15K - $80K total investment
Snap-on Tools
$150K - $250K total investment
Hire A Hubby
$60K - $120K total investment
Jim's Mowing
$25K - $60K total investment
🏪 Retail & Services
The Warehouse
$2M - $5M+ total investment
Just Cuts
$150K - $300K total investment
Fastway Couriers
$80K - $200K total investment
NZ Post
$200K - $500K total investment
Franchise Loan Providers in NZ (January 2025)
🏦 Major Banks
🚀 Specialist Lenders
🏢 Franchisor Financing
Some franchisors offer in-house financing or partner with lenders:
- • McDonald's has preferred lenders
- • Subway partners with banks
- • CrestClean offers payment plans
- • Snap-on has equipment finance
Hidden Franchise Costs to Budget For
⚠️ Upfront Costs Often Overlooked
- • Legal & Accounting: $5K-$15K for franchise agreement review, structure setup
- • Training & Travel: $3K-$10K for mandatory training (often interstate/overseas)
- • Marketing Levy: $2K-$20K upfront marketing fund contribution
- • Insurance: $5K-$15K/year (liability, property, business interruption)
- • Technology/Systems: $2K-$8K for POS, inventory systems, software
💰 Ongoing Costs (Monthly/Annual)
- • Royalty Fees: 5-8% of gross revenue (every month, forever)
- • Marketing Levy: 2-4% of gross revenue for national advertising
- • Technology Fees: $200-$1,000/month for franchisor systems
- • Mandatory Supplies: Often required to buy from franchisor at markup
- • Renewal Fees: $10K-$50K every 5-10 years to renew franchise
Reality Check: A franchise advertised as "$150K investment" typically costs $200K-$250K once you include all fees, working capital, and setup costs. Budget 30-50% more than the stated franchise fee.
Franchise vs Independent Business
✅ Franchise Advantages
- ✓ Proven System: Established business model with track record
- ✓ Brand Recognition: Customers already know and trust the brand
- ✓ Training & Support: Comprehensive training and ongoing assistance
- ✓ Easier Financing: Banks prefer established franchises (lower risk)
- ✓ Bulk Buying Power: Lower cost of goods through franchisor
❌ Franchise Disadvantages
- ✗ High Costs: Franchise fee + ongoing royalties (7-12% of revenue)
- ✗ Limited Control: Must follow franchisor rules (menu, pricing, suppliers)
- ✗ Locked In: Long contracts (5-20 years), hard to exit early
- ✗ Brand Risk: National problems affect your local business
- ✗ No Resale Guarantee: Franchisor may block sale or have right of first refusal
Ready to Finance a Franchise?
Get franchise loan quotes from multiple NZ lenders. We'll help you compare rates, terms, and find the best financing for your franchise investment.
Franchise Loan Calculator FAQ
How much deposit do I need for a franchise loan?
Most lenders require 30-40% deposit for franchise loans. For a $300K franchise, you'll need $90K-$120K cash. This is higher than equipment finance (10-20%) because it includes goodwill/intangibles. Some established franchises (McDonald's, Subway) may get 25-30% with strong financials. New/unproven franchises need 40-50%.
What interest rate can I expect for a franchise loan?
Franchise loan rates: 8.5-13% depending on the franchise brand, your deposit, and business experience. Established brands (McDonald's, Subway) get better rates (8.5-10.5%). Less-known franchises pay 11-13%. Your credit score, industry experience, and deposit size significantly affect the rate offered.
What's the true cost of buying a franchise in NZ?
Budget 30-50% more than the advertised franchise fee. If listed as "$150K", expect $200K-$250K total including: franchise fee, fit-out, equipment, stock, working capital, legal fees ($5K-$15K), training costs, insurance, and initial marketing. Then ongoing: 5-8% royalties + 2-4% marketing levy + technology fees. Get full disclosure document.
Is it easier to get a loan for a franchise vs independent business?
Yes, significantly easier. Banks view established franchises as lower risk due to proven systems, brand recognition, and franchisor support. Franchise loan approval rates are 60-70% vs 30-40% for independent startups. However, you'll still need 30-40% deposit, good credit, and industry experience. Unproven/new franchises don't get this benefit.
Should I use the franchisor's recommended lender?
Get quotes from both franchisor partners AND independent brokers. Franchisor lenders understand the brand (faster approval) but may not offer best rates. Compare 3-4 options. Watch for kickbacks - some franchisors get commissions from "preferred" lenders. Banks, specialist lenders, and brokers all compete for franchise loans. Shop around to save 1-2% on rate.
What happens if the franchise fails and I still owe money?
You're personally liable - franchise loans always require personal guarantees. If business fails, you must repay from personal assets (home, savings). Franchise agreements make it hard to exit early - often can't sell without franchisor approval. This is why 30-40% deposit is required - it shares the risk. Consider insurance products that cover loan repayments if business fails.