Franchising FAQs

If you want to finance your new business’s purchase, here are some guidelines that may help. We recommend that you speak to your preferred lender early in the process so that you know that finance will be available, as financial institutions typically have different lending criteria for business loans than for home loans.

• Please note that we are not qualified to give you legal or financial advice, and what follows is for general information purposes only. Please consult with qualified professionals before proceeding.

Self-Funding – Cash

The simplest method of financing your business is if you have the available capital to fund it yourself.

This does not need to include purchasing a vehicle, as they can be financed through other means (which, in many cases, may be far more effective. We recommend you discuss this option with your accountant/financial advisor.

In addition to the franchise purchase price, you will have your accounting and legal fees.

GST is payable on the purchase price. This can be claimed back in your first BAS return.

Self-Funding – Equity in Assets

For most people, our available capital is tied up in our property. Spending years paying down our home loans means we are “cash poor” but “equity rich”.

Many business owners evaluate tapping into the equity in their assets and refinancing their house loans to fund the purchase. An advantage of this is that it may have the lowest interest rate.

The interest cost on the business loan portion could be tax deductible; check this with your accountant.

Asking your financial institution will provide some guidelines as to what options may be available.

Business Loans

Many people are surprised that business loans are very different from home loans. Where 20% deposits are normal for home loans, business loans can start from 30% deposits but are more likely to require more than 50%.

And all of this is based on your current financial situation, not on whatever ‘potential’ the business has.

The terms of the loan could be Secured or Unsecured. This will influence the interest rate, LVR (Loan-to-value ratio) and fees you pay. Things to consider are:

• Loan terms of 5 years, linked to the franchise agreement
• Some offer residential property as security for the loan
• Interest rate and fees associated
• Loan flexibility

Your current bank may be your preferred option, as they will have your financial history. Increasing the existing loan may be a simple process if you have a property with an existing mortgage. This will also probably be your lowest interest rate option.

Ask the bank for a list of specific requirements (what they require to assist in processing the loan) and discuss them with us. Various banks will have different requirements.

If you require finance for the business, you may also be able to include the vehicle purchase in the loan. Vehicle finance is generally easier to obtain with many lending institutions available to you. Again, this topic is best discussed with your accountant.

Other franchisees in the group have also borrowed to fund the business and vehicle purchases, and they are trading successfully.  You are not the first to buy a region; most of our franchisees started the same way you will and now have profitable businesses.

A minimum income guarantee is also paid for the first 24 weeks for new Franchise Regions to assist during the start-up phase.

“What an emotional rollercoaster it is to purchase a new business. No one could have prepared us for the excitement and the nerves we felt taking this incredibly large leap. But we don’t regret it for a moment!

“The Pristine Water Systems Australia owners were so accommodating. No questions were too difficult or too silly. They have been overwhelmingly supportive since our very first meeting. We couldn’t be happier with our decision to buy a Pristine Water Systems Franchise.”

Brad & Karina Pike

Franchise Owner, PWS Toowoomba North & South

“It is a really big help knowing that I have over 50 years of experience just a phone call away, whether it’s something technical from Rob or the business side of things from David and Matthew. It was one of the main reasons I bought into this franchise business for the ongoing support.”

Shaun Evison

Franchise Owner, PWS Gold Coast South

“Pristine Water Systems has given me the lifestyle I have always wanted, with the opportunity to grow a business and work hard at something I truly believe in. I am helping so many people get the best quality water possible.

“I am surrounded by people who are always willing to help and be positive, which gives me the confidence to achieve all of my goals (plus a bit of side banter here and there makes for a good laugh).

“I now have time to do some of the things I have always wanted to do, such as owning a dog and having time to walk and play every day.

“I am constantly meeting new people and seeing new country, which is an ongoing adventure; one cannot deny that is a great perk to any venture.”

Chris Kenyon

Franchise Owner, PWS Gold Coast North

Please reach out to us by calling 1300 364 858 or by completing this form