Not necessarily.

Some people do fund their franchise entirely from savings, but it’s much more normal to use a combination of funding sources.

The important thing is understanding the total investment required and then exploring the options available to you.

At Domestic Angels, the franchise fee is currently £12,500.

However, as we explain in our article on franchise investment costs, you should also consider working capital and personal living costs during the early stages of building your business.

The question isn’t simply “Can I afford the franchise fee?”

It is also “Can I afford to launch my business properly?”

Where Does Franchise Funding Usually Come From?

Everyone’s circumstances are different, let’s run through some common funding sources:

Personal savings

You can use savings built up over time.

This may be enough to cover the entire investment or form part of a wider funding combination.

Redundancy payments

Redundancy often creates an unexpected opportunity.

While losing a job can be unsettling, it’s not unusual for people to use redundancy payments to invest in a business they control themselves rather than searching for another employed role.

Personal loans

Others choose to use a personal loan to fund part of their investment.

As with any borrowing, it’s important to understand the repayment commitments and ensure they are affordable (we have a spreadsheet to help you with that).

Equity in a property

Homeowners sometimes choose to release equity from their property to fund a business investment.

This is a significant financial decision and professional advice should always be sought before proceeding.

Support from family

Occasionally, family members choose to support a business venture, either through a loan or an investment.

This can be an effective route but should always be approached with clear expectations and documentation.

Every situation is different, but many franchise owners use a combination of funding sources. For example, someone might combine savings with a personal loan, use a redundancy payment to cover the franchise fee, or supplement their own investment with family support.

The right approach depends entirely on your circumstances and financial goals.

Can I Get Finance for a Domestic Angels Franchise?

Some lenders are more comfortable supporting franchise businesses than completely independent start-ups because the business model, systems, training, and support structure are already established.

Domestic Angels has relationships with lenders who understand our franchise model and may be willing to discuss finance options with suitable applicants.

As with any lending application, approval is never guaranteed and will depend on factors such as affordability, credit history, personal circumstances, and the lender’s own assessment criteria.

The important thing is not to assume that finance isn’t available. You may be surprised to discover you have more options than you initially thought.

How Much Money Should I Have Available?

This is one of the most important parts of planning your franchise investment.

It’s easy to focus entirely on the franchise fee, but that is only one piece of the puzzle.

You should also think about:

• Working capital to support your business during the early stages
• Personal living costs while you build your client base
• Any borrowing repayments if you are using finance
• A contingency fund for unexpected expenses

Every business grows at a different pace. Some franchisees replace their previous income quickly, while others prefer to build their business more gradually alongside existing commitments.

That’s why we encourage prospective franchisees to look at the bigger financial picture rather than focusing solely on the initial franchise fee.

A realistic plan gives you confidence, reduces stress, and allows you to concentrate on growing your business rather than worrying about day-to-day finances.

If you’d like help understanding the numbers, we’re happy to talk through typical start-up costs and share tools that can help you build a sensible financial plan.

Is the Franchise Fee a Cost or an Investment?

This is where the conversation often changes.

Is the Franchise Fee a cost or an investment?

The more useful question you can address is whether the investment has the potential to help you achieve the income, flexibility, and lifestyle you’re looking for.

For example, if someone spends £12,500 on a franchise and goes on to create a business that provides flexibility, income, and long-term value, they are likely to view that money very differently from someone simply looking at the initial cost.

That’s why it is important to look beyond the fee itself and consider the potential return on your investment.

You can read more about that here:

👉 Return on Your Investment

Don’t rule yourself out too early

It is easy to assume that you can’t afford something before exploring the options properly.

Sometimes that assumption is correct. Sometimes it isn’t. So please do your research and chat this through with one of our team.

The only way to know is to understand what funding options may be available and then decide whether the investment makes sense for your goals, circumstances, and appetite for risk.

Final thoughts

Business owners of all descriptions don’t start with unlimited resources.

They start with a decision.

A decision to explore their options, understand the numbers, and work out whether business ownership is right for them.

If you’re wondering how people fund a franchise, the answer is surprisingly simple:

In lots of different ways.

The important thing is finding the approach that works for you.

Frequently Asked Questions About Franchise Finance

Can I buy a franchise without savings?

Most lenders and franchisors will expect some level of personal investment, but the amount required varies depending on the franchise and funding route.

Can I use a personal loan to buy a franchise?

Some people choose to fund part of their franchise investment using a personal loan, subject to affordability and lender approval.

Can redundancy money be used to buy a franchise?

Yes. Many people use redundancy payments to invest in a business opportunity instead of returning to employment.

Do banks lend money for franchises?

Some banks and specialist lenders offer finance for franchise businesses, although approval depends on individual circumstances.

How much money do I need to start a Domestic Angels franchise?

In addition to the franchise fee, applicants should consider working capital and personal living costs during the early stages of building the business.

Ready to Learn More?

Recommended Next Reading:

👉 How Much Does a Cleaning Franchise Cost in the UK?

👉 Franchise Return on Investment: A More Realistic Look at ROI

👉 Is a Cleaning Franchise Right for You? (Quiz)

👉 Franchise Training and Support: What You Really Get