Franchise Affordability Calculator
Guidance only. Each lender sets its own contribution and security requirements; confirm your position with a lender or licensed broker.
Why use this tool?
Most first-time buyers overreach on the entry cost and run short of working capital, the number-one cause of early franchise failure. This tool works backwards from your available funds, holds back a buffer for the ramp-up period, and tells you the all-in investment level you can comfortably support, so you shop in the right price band from the start.
Who uses the Franchise Affordability Calculator?
- First-time franchise buyers, who want a realistic budget before they start browsing.
- Redundancy & career-change buyers, deciding how much of a payout or savings to commit.
- Couples & family partnerships, pooling funds and wanting a shared, sensible ceiling.
- Finance brokers, framing an affordable investment range for a client conversation.
How to use it
Find your realistic budget in three steps:
- Enter your available funds. Add your cash savings and any other funds (super rollover, family contribution, redundancy) you're prepared to invest.
- Add your borrowing capacity. Enter how much you could borrow (franchise/equipment loan or a redraw). Be conservative: each lender sets its own requirements and usually expects part of the investment to come from your own funds, so confirm your figure with a lender or licensed broker.
- Set a cash buffer and read your ceiling. Choose how much to hold back for working capital. The tool shows the maximum all-in investment you can afford and suggests matching franchise categories.
Frequently asked questions
How much money do I need to buy a franchise?
It depends on the category: home-based service franchises can start under $50,000, while food, fitness and childcare franchises often need $250,000–$1 million+ all-in. Beyond the purchase price you also need working capital. Use this tool to match a budget to categories you can afford.
How much of a franchise can I finance with a loan?
There's no fixed rule. Each lender sets its own contribution and security requirements, and most expect part of the investment to come from your own funds. What you can borrow depends on your finances, the security you can offer and the franchise system itself. Get a figure from a lender or licensed broker, then enter it here.
Why should I keep a cash buffer?
New franchises rarely turn a profit immediately. A working-capital buffer covers wages, rent and stock while sales build. Running short can force a sale or closure even when the business would have become profitable, so the tool holds a percentage back by default.
What franchise can I afford on $100k?
With around $100,000 all-in you can access most home-based and mobile service franchises (cleaning, lawn, pet, courier) and some lower-cost retail and services formats. Enter your figures for a tailored ceiling, then browse the “under $100K” and low-cost best-of lists.
Is the affordability calculator free and private?
Yes. It is free, runs entirely in your browser, requires no sign-up and stores none of your numbers. It gives guidance only, confirm your position with a licensed finance broker or accountant before committing.
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