What documents are needed to apply for a franchise loan?

To get approval for a franchise loan, you need to submit  several documents. Typically, the documents needed to apply for a franchise loan include:

• Business Plan: This document usually provides details on the franchise you wish to open, your goals, target market, competitive analysis, marketing plan, operations plan, management team, and detailed financial projections showing expected revenues, expenses, and profitability.
• Franchise Agreement: You generally need to provide a copy of the franchise agreement with the franchisor that details the terms, fees, and operating requirements. This shows the loan provider specifics on the franchise system you will be entering.
• Tax Return Documents: Your personal and any business tax returns are usually required to showcase your financial stability.
• Financial and Bank Statements: To establish financial health, you are required to typically provide both personal and existing business bank and financial statements.
• Identification Documents: Loan providers generally require personal identification documents like driver's licences or passports.
• Personal Financial Statements: A personal balance sheet, your income statements, and personal asset/liability details are usually needed.
• Collateral Proof: Most franchise loans require pledged business or personal assets as collateral. So, related property, equipment, or other collateral documents can be typically provided.