Last Updated: 31st May, 2021

It’s arguably the most recognisable bakery brands in Australia but how do you qualify for a Bakers Delight franchise loan?

With help from a specialist mortgage broker, you can borrow the amount you need.

How much can I borrow?

If you can present a strong case to the lender, you generally have the following available to you:

  • New or existing bakery: Borrow up to 50% of total business costs or 100% with an existing residential property as security.
  • Bakers Delight holds head lease: You can potentially borrow up to 65% of the franchise business value.
  • Loan term: Typically 10 years or the length of the franchise agreement.
  • Loan term with property as security: 25 to 30 years (standard loan term).
  • A business plan and profit forecasting will be required for approval.
  • Low doc options not available.
  • Negotiated nterest rates available.

Can I borrow more than 65% of the business value?

It really depends on your personal financial situation, your past experience and whether you’re buying an existing Bakers Delight franchise with good fundamentals.

Not all lenders are the same!

Please call us on 1300 889 743 or complete our free assessment form to find out if you’re eligible for a Bakers Delight franchise loan.

How do I present a strong case?

Overall, it all comes down to your character so, as a general rule, the bank wants you:

  • To be in a good financial position: You can show this with your last 2 years personal tax returns and/or business transaction statements if you’re currently running a similar-size operation.
  • To have a clear credit history: The lender will run a credit check to ensure your credit file is free of blemishes.
  • To have previous business experience: Ideally, this would be as an owner or manager of a bakery but operating a store in a similar industry may be accepted.
  • To have a good security to support the loan: Specifically, cash or equity in a existing residential property such as your home or an investment property.

If you’re buying an existing store, the bank will generally want to see the following as a basic requirement:

  • For New South Wales and Victoria: 2.25x earnings before interest, tax, depreciation and amortization (EBITDA).
  • For Western Australia, South Australia and Queensland: 1.65x EBITDA

While these are basic requirements, providing a business plan and profit forecasting to show how you plan to build a viable business is key.

The bank wants you to stay profitable so you can continue to make repayments on your Bakers Delight franchise loan.

For example, with the help of an accountant, you can explain in your assessment of the existing store that it is in a prime shopping location and that management and some of the existing staff will remain on board even after the business changes hands.

Our mortgage brokers are Bakers Delight franchise loan specialists so let us help you to build a strong case.

Should I run the business as a partnership?

Partnerships can be a risk for not only you and your business but franchisors are generally weary of them as well.

Speak to a solicitor about putting a partnership agreement in place that sets out the rights, duties and obligations of each partner.

It may be that you provide the majority of the investment capital but don’t invest much in the way of daily operations.

Other questions to ask include:

  • How will profits be shared?
  • Disputes over important business decisions.
  • What if one of the partners want to leave the arrangement or unfortunately passes away?

Is a Bakers Delight franchise a good investment?

Although it provides no surety of future success, it’s important to note that Bakers Delight is a two-time winner of the Franchise Council of Australia’s ‘Franchise of the Year Award’.

It’s generally regarded as a solid franchise in the business community because of the low start-up costs, the comprehensive training and support that’s provided and the fact that the company owns more than 14 per cent of the Australian bread market.


The great thing about Bakers Delight is that it provides a lot of autonomy for you to grow and market the business as you see fit.

Successful stores have been known to clear $10,000 in sales every week but these are usually stores in prime metro locations with plenty of foot traffic.

The potential revenue you can generate will depend on your research on the local market including existing competition, your marketing and sales skills and you business expertise keeping costs down, particularly in the early months of running the venture.

The great news is that you have the support there from Bakers Delight if you need it including business development managers (BDMs) and fellow franchisee contacts.

What can I expect to pay for the franchise?

Costs will vary depending on the size and location of the store but, as a general rule, capital investment is around 30% of the business value or $150,000, whichever is greater.

There may be other costs involved including those related to advertising, marketing, administration, fit-out costs and other royalties but you should find all of this out with the franchise kit you’ll be given when you make an enquiry to buy a Bakers Delight franchise.

As minimum requirement for instance, they require that you have $10,000-$15,000 with minimal to no debt for working capital purposes.

Why is the UFOC so important?

A franchisor is legally required to provide a franchise kit or Uniform Franchise Offering Circular (UFOC) before signing you up to buy the franchise.

This will lay out the full costs of purchasing a Bakers Delight franchise and even potential revenue. Sometimes these costs are hidden in the detail.

If you’re buying an existing store, it’ll even give you the details of current owners so take the opportunity to find out why they sold the business in the first place.

This should form part of your due diligence process when deciding whether to buy a franchise in the process.

You can request a UFOC by visiting but it’s essential you seek advice from your accountant, financial and even the skills of a solicitor to look over the franchise agreement before you sign.

Why wouldn’t I just start my own bakery?

There’s nothing stopping you from starting your own independent bakery but what you have with a Bakers Delight franchise is the support and networking resources of a large company with big brand.

This can help free up some of your cashflow and make the right business decisions as you build your business. This is crucial in the very early stages of your franchise.

Some of the benefits of a Bakers Delight franchise is that:

  • You get access to individual bakery results to benchmark your business performance.
  • Help with identifying a suitable bakery location and fit out costs.
  • Comprehensive training including a 16-week competency-based course that covers operational management, full baking training and financial, business and people management.
  • You’ll have an area manager that will support you every step of the way.
  • National marketing support.

You just don’t get this when you’re starting a new business because getting finance can be tough and you need to put up a large amount of security in order to even be considered for a commercial loan.

Want to qualify for a Bakers Delight franchise loan?

Call us on 1300 889 743 or complete our free assessment form today to speak with a Bakers Delight franchise loan specialist.

We’re experts in commercial loans and know exactly what a lender is looking for in a franchise finance application.

Let us help you get approved for a loan in which you can borrow up to the maximum Loan to Value Ratio (LVR) for your situation and qualify for a competitive interest rate.