Franchise Financing in Canada

Starting or expanding a franchise can be an exciting path to business ownership. Whether you’re launching your first franchise location or scaling into multiple units across Canada, securing the right financing is critical. From the busy streets of Toronto and Vancouver to growing markets like Saskatoon, St. John’s, and Winnipeg, entrepreneurs need access to reliable capital to make their franchise dreams a reality.

At Mehmi Financial Group, based in Mississauaga, Ontario, we offer flexible and customized franchise financing solutions for business owners across the Greater Toronto Area (GTA) and nationwide. With years of experience in the small business and franchise lending space, we help entrepreneurs navigate the challenges of financing everything from equipment to real estate.

What Is Franchise Financing?

Franchise financing refers to a range of funding options available to franchise owners. These funds can be used to support the cost of opening a new franchise or expanding existing locations. Common uses include:

• Franchise Fees: The upfront cost to secure your license from the franchisor
• Leasehold Improvements: Renovations or construction to meet brand standards
• Equipment Financing: Machinery, kitchen equipment, tech systems, and other tools needed to run your business
• Working Capital: Payroll, marketing, supplies, and day-to-day expenses
• Commercial Vehicles or Heavy Equipment: For delivery, construction, or service-based franchises

Whether you're opening a restaurant, a retail outlet, or a mobile service franchise, our flexible financing plans can help you get started faster—and with less financial strain.

Common Franchise Loan Types

We offer several funding options to support your growth:

1. Traditional Business Loans

Ideal for established franchisees with a strong financial history, these loans offer longer terms and lower interest rates.

2. Equipment Financing

Used to fund critical assets like kitchen appliances, point-of-sale systems, or industrial equipment. You can own the equipment over time without a large upfront investment.

3. Leasing Options

Finance everything from display units to delivery vehicles without full ownership. Leasing lowers your initial costs and offers flexibility at the end of term.

4. Home Equity Loans

If you’re a homeowner, using your property’s equity may offer better rates and longer terms—ideal for new franchisees with limited commercial credit.

Frequently Asked Questions: Franchise Financing at Mehmi Financial Group

1. What costs are involved in starting a franchise?
   Startup costs may include franchise fees, equipment purchases, leasehold improvements, real estate, and working capital for initial operations.
2. How do I qualify for franchise financing?
   Qualifications vary but typically include credit history, proof of personal or business income, a detailed franchise agreement, and a business plan.
3. What are the advantages of franchise financing?
   Financing preserves your personal capital, improves cash flow, and helps you scale faster while maintaining operational stability.
4. Can I use my home equity to finance a franchise?
   Yes. Home equity loans can provide access to lower interest rates and longer terms, especially helpful for new franchise owners.
5. What is the typical interest rate for franchise loans?
   Rates depend on loan type, credit score, and financial background but generally range between 6% and 12% for secured business loans.
6. Can I finance multiple franchise locations?
   Absolutely. We offer multi-unit financing for entrepreneurs looking to expand into additional territories or reopen underperforming locations.
7. Can I get financing without a personal guarantee?
   In select cases, yes—but most lenders require a personal guarantee, especially for startups or unsecured loans.

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Whether you’re part of a national restaurant chain or an emerging retail brand, we have the funding tools to support your success.

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Ready to launch or grow your franchise? Apply now with Mehmi Financial Group and get tailored financing built to help your business thrive—anywhere in Canada.