Quick answer
Buying a franchise with finance usually takes several weeks to a few months. The franchising code sets some fixed steps: you must receive the disclosure document at least 14 days before signing, there's a 14-day cooling-off period, and for a resale the franchisor has up to 42 days to refuse a transfer. Finance can run alongside these steps, so starting your loan early stops it becoming the bottleneck.
Key points
- You must receive the disclosure document at least 14 days before signing the franchise agreement.
- A 14-day cooling-off period applies to new and transferred franchise agreements, with narrow opt-out rules from 1 November 2025.
- For a resale, the franchisor has 42 days to refuse a transfer in writing, counted from the later of the request or receipt of the last information it asked for.
- Finance can usually be assessed in parallel with franchisor approval, so start both at once.
- New sites take longer because fit-out, lease and franchisor site approval all sit on the critical path.
Buying a franchise with finance usually takes several weeks to a few months. Some steps are fixed by the franchising code: the disclosure document at least 14 days before you sign, a 14-day cooling-off period, and for a resale, up to 42 days for the franchisor to refuse a transfer. Finance can run alongside all of these, so start it early.
The mistake most buyers make is treating finance as the last step: find the franchise, agree terms, get franchisor approval, and only then call a lender. That turns finance into the bottleneck at exactly the moment the seller, the franchisor and the landlord all want an answer. This guide maps the timeline so your loan runs alongside everything else. For how lenders assess franchises in general, see our franchise finance page.
What are the fixed timeframes in the franchising code?
The Franchising Code of Conduct sets some dates you can’t shortcut. They’re the backbone of any franchise timeline.
| Step | What the code says | Source |
|---|---|---|
| Disclosure | You must receive the disclosure document at least 14 days before the franchise agreement is signed | ACCC — disclosure document |
| Cooling-off | You can end the agreement within 14 days by written notice; money paid is generally refunded within 14 days, less reasonable expenses set out in the agreement | ACCC — ending an agreement |
| Transfer consent (resale) | The franchisor has 42 days to refuse in writing, from the later of the request or receipt of the last information it asked for | ACCC — selling or transferring |
| Withdrawing consent | A franchisor that gives written consent can cancel it within 14 days, with written reasons, and must not do so unreasonably | ACCC — selling or transferring |
Two details are worth knowing. For a transferred agreement, the ACCC says cooling-off ends at the earlier of 14 days after you become the new franchisee or the day you take possession and control of the business. And from 1 November 2025, a franchisee can only opt out of cooling-off if they have, or recently had, a substantially similar agreement with the same franchisor. For a first-time buyer, the cooling-off period will apply.
How long does a resale franchise purchase take?
Buying an existing outlet is usually the faster path, because the business, the site and the fit-out already exist. A typical sequence:
- Find the outlet and agree a price with the outgoing franchisee, subject to finance and franchisor approval.
- Apply to the franchisor to be approved as the incoming franchisee. This is where the 42-day window starts running, once the franchisor has everything it asked for.
- Apply for finance at the same time. A resale is assessed on the outlet’s own trading figures, so the lender needs the seller’s financials, the sale contract and details of the lease.
- Receive the disclosure document and review it with your advisers.
- Complete franchisor training and any site handover requirements.
- Sign, settle and take over, with the cooling-off period running from that point.
Our business acquisition loans page explains how lenders assess the purchase of a trading business, which applies to most resales.
How long does a new franchise site take?
New sites take longer because more has to be built from scratch, and several of the steps depend on each other:
- Franchisor approval of you as a franchisee.
- Site selection and approval, then lease negotiation with the landlord.
- Fit-out design and construction, often by franchisor-approved builders.
- Equipment ordering and installation.
- Training and staff recruitment.
- Opening.
Finance for a new site is assessed on the brand, your experience and contribution, and the site, rather than on the outlet’s own trading. Because there are no bank statements to size an unsecured loan on, property security is the most common way to fund a new site. Property-secured business loans run from $20k to $5m. Our fit-out finance page covers the build stage.
If you’re about to start either path, get your finance enquiry in early. It costs nothing to know where you stand before the code’s clocks start.
Where does finance usually slow things down?
Delays are rarely about a lender’s process itself. They’re about information:
- Missing seller financials in a resale. Ask for at least two years of accounts and recent BAS before you make an offer.
- The disclosure document arriving late, so the lender can’t see the system’s costs, supply arrangements and expected capital spending.
- Lease uncertainty. Lenders want to know the outlet can trade for long enough to repay. If the lease is being renegotiated, that holds things up.
- Unclear contribution. Where your deposit or contribution is coming from, especially if it’s equity in a home.
- Franchisor requirements on finance, such as consent to security being taken over equipment.
The fix for all of them is the same: start the finance conversation as soon as you’re seriously considering a specific franchise, and send the lender documents as you receive them rather than all at the end.
What should you gather on day one?
A short, complete pack does more for your timeline than anything else. Before or alongside your first finance enquiry, collect:
- Your ID and a short CV, highlighting any management, hospitality, retail or trade experience relevant to the franchise.
- Evidence of your contribution: savings statements, or details of any property you’ll offer as security.
- For a resale: the seller’s last two years of financial statements, recent BAS, the asking price and what’s included (equipment, stock, goodwill).
- The lease, or at least its term, rent and options to renew.
- The disclosure document as soon as you receive it, plus the franchise agreement.
- For a new site: the franchisor’s estimate of setup costs, fit-out quotes and the site proposal.
Lenders don’t need everything on day one to give you an early view. But the more of this you have ready, the sooner that early view can turn into an approval.
How can you run finance in parallel?
A practical way to line up the two clocks:
- Week one: Enquire about finance with the outlet’s details, price and your contribution. Request the disclosure document and seller financials.
- While the franchisor assesses you: The lender assesses the outlet and your position. Any property valuation or security checks happen here.
- Before the 14-day disclosure period ends: Your finance should be approved or close to it, with any conditions clear.
- At signing: Finance documents ready to sign, so settlement isn’t delayed.
- During cooling-off: Don’t draw down until you’re comfortable, and check any conditions in the loan approval line up with the franchise documents.
Illustrative example: buying an existing fitness franchise
Illustrative only. A buyer agrees to purchase an established gym franchise for $350k, with $120k of their own funds. On the day the offer is accepted, they lodge their franchisor application and a finance enquiry at the same time, sending the seller’s two years of accounts and the lease summary.
The lender proposes a loan secured on the buyer’s home for the balance, and the property assessment runs while the franchisor interviews the buyer and arranges training. The franchisor approves the transfer within the 42-day window, finance is formally approved shortly after, and settlement happens about seven weeks from the accepted offer. Because both tracks ran together, neither waited on the other. Our home equity business loans page explains how that kind of security works.
Ready to start the clock on your finance?
Whether you’re buying an established outlet or opening a new site, the fastest franchise purchases are the ones where finance starts on day one. Knowing what you can borrow also makes you a stronger buyer when you negotiate with the seller or the franchisor.
Sending us the basics takes around a minute, and enquiring involves no credit check. Your enquiry isn’t passed around a crowd of lenders; the only call you’ll get is ours. A real person reviews the franchise, the price and your contribution, then phones to talk it through. Accurate answers on the form, especially the purchase price and when you hope to take over, help us get the structure right on the first go.
Frequently asked questions
How long does franchise finance approval take?
It varies with the lender, the deal and how complete your documents are. Unsecured options for an existing outlet can be quicker; property-secured loans need a property assessment and legal documents. The biggest delays usually come from missing paperwork, not the lender's process.
Can I sign the franchise agreement before finance is approved?
You can, but it's risky unless the agreement or purchase contract is subject to finance. The 14-day cooling-off period gives some protection, but it's short. Ideally, have finance approved, or at least well advanced, before you sign.
Does the cooling-off period apply when I buy an existing franchise?
Yes. The ACCC says the cooling-off period also applies to transferred agreements. It ends at the earlier of 14 days after you become the new franchisee or the day you take possession and control of the business.
What if the franchisor doesn't respond to a transfer request?
The ACCC explains that if the franchisor doesn't refuse in writing within 42 days, the franchisee can assume consent. The 42 days start from the later of the request or when the franchisor receives the last information it asked for.
Why does a new franchise site take longer than a resale?
A new site has more steps: finding and approving a site, negotiating a lease, designing and building the fit-out, ordering equipment and training. Finance for a new site is also assessed on the system and your contribution rather than the outlet's own trading.