Taking on a franchise usually means paying a single, sizeable fee before you earn a penny from it. The initial franchise fee, the cost of a new territory or licence, and the first fit-out all land up front, while the revenue that justifies them arrives over the months that follow. For a limited-company franchisee, a Credicorp facility lets you cover that one-off cost now and repay it over an agreed term, so the timing of the spend does not hold the opening back.
Why this is a strong case for borrowing
A franchise fee is a planned, defined cost with a clear purpose: it buys the brand, the operating system, the training, and the right to trade in a specific area. Because the amount is known in advance and the return is reasonably predictable, it sits naturally with a fixed-instalment product. The aim is simple — match the repayments to the income the unit is expected to generate once it is open and running.
What the funding can cover
- The initial franchise or licence fee paid to the franchisor.
- The cost of acquiring or expanding into a new territory.
- Opening costs such as fit-out, signage, stock, and launch marketing.
Which product fits
A franchise fee is typically a one-off, fixed cost, which is exactly what Credicorp Slice is built for — a single sum repaid in set instalments. If you are weighing Slice against a flexible facility for the wider opening budget, our guide to choosing Flex or Slice for a defined purchase walks through the trade-offs. Where the fee is payable to a named franchisor, it can be settled in the same way Slice pays a supplier directly.
Matching repayment to payback
A franchise model should produce a fairly steady return once the unit is trading, so aim to align the repayment term with how quickly that income is expected to build. Be realistic about the ramp-up period before a new site reaches its expected turnover, and leave room in your forecast for the franchisor's ongoing management service fees, which are separate from the initial fee you are funding.
How we lend
Credicorp lends only to UK limited companies and LLPs for business purposes, never to sole traders or individuals. You apply as the company for the business purpose of taking on the franchise, and if we make an offer you repay over the term and at the rate shown in your offer document. We do not take a personal guarantee from directors.
Credicorp is an exempt business lender and sits outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS protection do not apply. You can read more about what that means for a Slice facility before you commit.
See also: Can business finance help bridge a short-term cashflow gap?, Bridging a late CIS or VAT refund, Bridging an R&D tax credit claim.