Starting a franchise without capital: is it possible?

By Gijs Bodenstaff · Updated: 2026-10-04

Starting a franchise without your own capital is difficult in practice, because lenders want to see that you are taking a risk yourself. With little savings you can still get a long way by combining loans wisely, for example a Qredits microcredit of up to €50,000 (source: KVK) and a bank loan backed by the BMKB guarantee. It also helps to deliberately choose a franchise brand with a low entry cost.

Can you finance a franchise without savings?

Short answer: starting with no money of your own at all rarely works. A lender lends on the basis of confidence in the franchise brand and in you, and your own contribution is the clearest sign that you stand behind your plan. How much of your own contribution a bank asks for differs per bank and per franchise brand.

What does work: starting with a small amount and financing the rest with a combination of loans. Just getting started? Then first read the step-by-step plan for starting a franchise. Still unsure whether running a franchised business suits you? Then read about becoming a franchisee.

Which types of financing are available to new franchisees?

For most starters it comes down to three building blocks: Qredits, a bank loan with a government guarantee and your own contribution. You can often use them side by side.

Types of franchise financing at a glance (sources: KVK, Ondernemersplein, RVO)
Type of financing	Amount	Term	Good to know
Qredits microcredit	up to €50,000	1 to 10 years	Suits a smaller investment
Qredits SME credit	€50,000 to €250,000	1 to 10 years	Suits a larger investment, such as fitting out premises
Bank loan with BMKB	BMKB credit up to €1.5 million	varies per lender	The government guarantees 90% of the BMKB credit
Own contribution	varies per bank and franchise brand	not applicable	Ask in advance what your lender counts

Bar chart showing the maximum amounts of the Qredits microcredit, Qredits SME credit and BMKB credit for financing a franchise — Maximum amount per type of financing: microcredit €50,000, SME credit €250,000 and BMKB credit up to €1.5 million.

Qredits: microcredit and SME credit

The microcredit goes up to €50,000, the SME credit ranges from €50,000 to €250,000. For both you choose a term of 1 to 10 years.

BMKB: a government guarantee

The government guarantees 90% of the BMKB credit, up to a maximum of €1.5 million. Your lender applies for it. The scheme runs until 1 July 2027 inclusive.

How much money do you need to finance a franchise?

A 2025 French market study by IntoTheMinds of 21 franchise brands gives an idea of the range. Note: this is a French sample, and Dutch franchise brands can differ considerably. You will find more on each cost item under what a franchise costs.

On top of one-off costs you pay ongoing royalties and often a marketing contribution from franchisees. You also have to carry those costs while you are not yet making a profit.

Franchise costs according to a French sample of 21 brands (IntoTheMinds, 2025)
Cost item	Range	Typical
Entry fee (initial franchise fee)	€0 to €50,000	€20,000 to €45,000
Royalties	0% to 9% of turnover	4% to 6% of turnover
Marketing contribution	0% to 3% of turnover	varies per franchise brand
Own contribution	varies per franchise brand	€25,000 to €150,000
Total investment, mid-market	€150,000 to €530,000	varies per franchise brand
Break-even	varies per franchise brand	18 to 24 months

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What does a worked example of franchise financing look like?

Take Sanne, a fictional starter with €10,000 in savings who wants to open a service franchise. She stacks two loans on top of her own contribution. All amounts are invented to show the calculation.

Fictional worked example: financing a franchise with little money of your own
Item	Amount (fictional)	Explanation
Entry fee	€20,000	One-off payment to the franchisor
Fit-out and equipment	€35,000	As specified by the franchise brand
Launch marketing	€10,000	Local visibility in the first months
Working capital	€25,000	Buffer for fixed costs until break-even
Total investment	€90,000	Sum of the items above
Sanne's own contribution	€10,000	Savings
Qredits microcredit	€40,000	Within the €50,000 maximum
Bank loan with BMKB	€40,000	Applied for through the bank

What Sanne learns from this

With €10,000 of her own money she finances €90,000. That only works with a credible turnover forecast and generous working capital, because repayments start before turnover is up to speed.

Which franchise brands have a low entry cost?

We do not name brands, because the entry cost differs per franchise brand. The NFV figures for 2025 do show where locations are smaller: in services an average of 3.8 people work per location, in hospitality 26.8 (calculated from NFV data). Fewer staff and no large premises usually mean lower fixed costs. Always check the investment per franchise brand. You can read about brands without retail premises under a home-based franchise.

Is a franchise takeover with an earn-out an alternative?

In a takeover you buy an existing location. Sometimes buyer and seller agree an earn-out: you pay part of the purchase price later, depending on the results. Whether that is possible is decided jointly by the seller, your lender and the franchisor. Read more under taking over a franchise.

What information does a franchisor give you for your financing?

The Dutch Franchise Act has applied since 1 January 2021. Article 7:911 of the Dutch Civil Code defines franchising as the right and the obligation to operate a franchise system in return for a fee. The franchisor must inform you in advance about, among other things, fees and required investments (Articles 7:913 and 7:916 of the Dutch Civil Code). This is followed by a four-week standstill period before you sign: ideal for finalising your financing. Have your contract reviewed by a franchise lawyer; this is not legal advice.

Also ask how the franchise brand handles local marketing for each location. In our Local SEO Benchmark Franchise Chains 2026, only 40% of 500 Google Business Profiles were fully completed: local visibility for every location is therefore not a given.

Checklist: documents for your financing application
Document	Why your lender wants to see it
Pre-contractual information from the franchisor	Shows fees and required investments
Draft franchise agreement	Term, obligations and exit
Business plan with turnover forecast	Shows how you will repay the loan
Monthly cash flow forecast	Shows whether you can bridge the period to break-even
Overview of own contribution	Proves you are taking a risk yourself

Frequently asked questions about starting a franchise without capital

What is the minimum amount of your own money needed for a franchise?

There is no fixed minimum. How much of your own contribution a lender asks for differs per bank and per franchise brand, so check with your bank and with the franchisor. Also plan for a buffer to cover the months before your location turns a profit.

Can I start a franchise with a Qredits loan?

Yes. Qredits offers a microcredit of up to €50,000 and an SME credit from €50,000 to €250,000, both with a term of 1 to 10 years. Whether you get the loan depends on your business plan, your experience and a well-supported turnover forecast for your location.

What is the difference between the microcredit and the SME credit?

The difference lies in the size of the loan. The Qredits microcredit goes up to €50,000, while the SME credit ranges from €50,000 to €250,000. Both have a term of 1 to 10 years. Which one suits you depends on the investment your franchise brand requires.

How does the BMKB scheme work for franchisees?

The government guarantees 90% of the BMKB credit you take out with a lender, up to a maximum of €1.5 million. This reduces the lender's risk and makes them more willing to lend. You do not apply for the guarantee yourself: your bank or other lender does that.

Until when can you apply for a BMKB credit?

According to RVO, the BMKB scheme runs until 1 July 2027 inclusive. Start your application in good time and allow for the four-week standstill period under the Dutch Franchise Act, as well as the time a lender needs to assess your plan.

Does a loan from family count as your own contribution?

That is up to your lender. Some forms of money from family or friends are counted, others are not. Raise it with your bank in advance and put the arrangements with your family in writing, so that everyone knows exactly where they stand.

What is an earn-out in a franchise takeover?

An earn-out is an arrangement in which you pay part of the purchase price later, depending on the results after the takeover. This means you need less money at the start. Whether it is possible depends on the seller, your lender and the franchisor.

Does a franchisor help finance a location?

That differs per franchise brand. Under the Dutch Franchise Act, the franchisor must inform you in advance about fees and required investments, among other things. You need that information for your application. Also ask whether other franchisees will tell you how their financing went and which lender they used.

Which documents does a bank want to see for franchise financing?

Usually a business plan with a turnover forecast, a monthly cash flow forecast and an overview of your own contribution. Also bring the franchisor's pre-contractual information and the draft franchise agreement. The lender can then see exactly which fees and investments come with the franchise brand.

How long does it take for a franchise to make a profit?

A 2025 French market study of 21 franchise brands puts break-even at typically 18 to 24 months. Dutch franchise brands may turn out differently. Ask the franchisor about the experience of existing locations and include enough working capital in your financing to bridge that start-up period.

Sources

Gijs Bodenstaff
Franchise marketer, local SEO and GEO specialist, author

Not sure whether your plan can be financed? Check your figures against the checklist above and discuss them with your lender.