Franchise Financials

In our experience as consultants in developing franchise businesses, the obstacle that most often nixes the intention to open a franchise business or generally start a business plan and actually implement it is economic. The spirit of initiative, the desire to get involved, the entrepreneurial verve and the innovative idea are not enough if the needed funds to give life to a project are unavailable.

In order start your own business, whether it is a franchise business or a new franchise network, capital is needed. And whoever doesn’t have it must get it. The world of easy finance is a complex field, constantly evolving. Both for grants or funding loans, to obtain benefits the possession of many requirements must occur. As regards franchise loans, consideration is necessary to assess what are the categories of benefits that fall within the costs and those which are not eligible for loans.

How to get funding to open a franchise:

The easy finance channels are essentially:

- loans governed by the laws that facilitate self-employment, through INVITALIA (Italy Development)

- Borrowed capital, as bank loans

- Regional tenders.


Loans for franchise businesses: Legislative Decree 185/2000

Legislative Decree 185/2000 Title II is the law that facilitates self-employment and constitutes a fundamental support for the development of entrepreneurial activities.

The law generically refers to any business and it is managed by INVITALIA, the National Agency for attracting investment and  enterprise development, once called Sviluppo Italia.

INVITALIA provides for granting financial facilities (grants and loans at a subsidized rate) and also technical assistance services for three types of initiatives:·       

  • Franchising (in the form of sole proprietorship or company), to be implemented with Franchisors accredited by Invitalia, the National Agency for attracting investment and enterprise development.     
  • Self-Employment (in the form of sole proprietorship), with total planned investments up to € 25,823·       
  • Micro-enterprise (in the form of a company), with total investments provided up to € 129,114



The basic requirement to have access to the funding available from INVITALIA is that the franchisor who wants to open their own business must be ACCREDITED by INVITALIA.


The franchises currently accredited by INVITALIA are few. The chances of franchising loans are not exclusive to the accredited brands. Also unaccredited ones can request a grant or subsidized loan through the other two channels offered by INVITALIA, loans for self-employment and Microenterprise.

Capital credit

In addition to the public franchise loans from Invitalia it is possible to turn to banks and loan companies that offer some specific investment solutions for franchise businesses.

Funds and loans from regional tenders

Periodically, the regions post tenders for providing financing in support of Small and Medium Enterprises.