CASE STUDY: Loan Solutions for Buying a Café Franchise
- Commercial Finance Advisor
- Aug 9, 2025
- 2 min read
Updated: Dec 31, 2025
A Sydney-based barista identified an opportunity to acquire a franchised café. While highly experienced in day-to-day café operations, they had not previously owned or managed a business.
The Business Challenge
A barista identified a franchise opportunity that was not on the approved franchise panels of the major banks which typically provide preferential lending terms for these franchises.
Under standard unsecured business lending criteria, the borrower would normally need prior business ownership or substantial experience, and to contribute at least 50% of the investment. In this scenario, the individual only had around 30% of the required funds, leaving a financing gap.
The Funding Solution
A specialist business acquisition lender was approached to assess the opportunity.
After reviewing the franchisor’s operational model and support systems, the franchise was added to the lender’s panel, enabling the borrower to access franchise-specific financing.
Key features of the funding solution included:
Borrowing up to 70% of the total acquisition and establishment costs
Recognition of operational experience as a barista only instead of previous ownership
Acceptance of a 30% equity contribution (not 50%), supported by a clear business plan
An unsecured loan structure, with the option to provide real estate security later to optimise terms
Potential Benefits
With this funding approach, a first-time business owner could transition from employee to café owner with limited upfront capital, and access franchise lending terms not typically available through the major banks.
Why This Works
The scenario demonstrates how specialist lending can accommodate first-time business owners by:
Considering operational experience rather than ownership history
Validating a franchise through lender panel approval
Structuring equity and finance to reduce barriers to entry
Considering funding for a business or investment?
Explore practical funding options and speak with a specialist who understands commercial and investment finance.
DISCLAIMER: This case study is illustrative only and may be hypothetical or partially fictitious. Details may be modified to preserve confidentiality and should not be relied upon as a representation of any actual client outcome. Finance options are subject to individual lender credit criteria, approval, and applicable terms and conditions. This content is general information only and does not constitute financial, legal, tax, or accounting advice. Our firm provides business consulting and finance broking services only and recommends that readers seek independent professional advice tailored to their specific circumstances.
