Who we fund
Franchise Financing to Open, Buy, or Expand a Franchise Location
Yes, franchisees can get funding to open a new location, buy an existing one, or add units. SBA loans are a common route because many franchise brands are already familiar to lenders, and equipment financing often covers the brand-required equipment package.
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The reality
Cash-flow challenges we hear every day.
Large upfront costs before opening
Franchise fees, buildout to brand standards, equipment, signage, and opening inventory all come due before you serve a single customer.
Ramp-up period with ongoing royalties
New units take time to build sales, but royalties, marketing fund contributions, and rent start early. Working capital needs are often underestimated.
Required remodels and brand updates
Franchisors periodically require remodels or new equipment to meet updated standards, and these are not optional.
Development schedules for multi-unit deals
Area development agreements commit you to opening several units on a timeline, so financing needs to be lined up for each one.
Best-fit funding
Funding that fits franchises.
SBA 7(a) loans are widely used for franchise startup costs, including franchise fees, buildout, and working capital, with longer terms that ease the ramp-up period.
$50K–$5M‡30–90 days*Brand-specified equipment packages can be financed separately, reducing how much cash you need at opening.
$10K–$5M‡2–5 days*Existing franchisees with operating history can use term loans for required remodels or adding a unit.
$25K–$2M‡2–7 days*If the brand allows owning the property, real estate financing lets you build equity instead of paying rent.
$250K–$10M+‡30–60 days*What lenders look for
Typical profile for franchises.
Lenders typically review the franchise disclosure document, the brand's track record, your liquid capital for a down payment, your credit, and relevant management experience. For existing units, they look at the location's sales history.
Common uses of funds
- Paying the initial franchise fee
- Building out a location to brand standards
- Buying the required equipment package
- Covering working capital during the ramp-up
- Completing a franchisor-required remodel
- Buying an existing franchise unit or adding new ones
How much do I need for a down payment on a franchise loan?
It varies by lender and brand, but most lenders expect a meaningful cash injection from the owner. The franchise disclosure document often lists the estimated total investment to help you plan.
Does the franchise brand affect my chances?
Yes. Lenders often consider the brand's history and unit performance. Brands listed in the SBA Franchise Directory have already been reviewed for SBA eligibility.
Can I finance the franchise fee?
SBA loans and some term loans can include the franchise fee as part of total project costs.
Can I get financing to buy an existing franchise?
Yes, and it can be easier than a new unit because there is sales history. Expect the lender to review the location's financials and the franchisor's transfer approval.
Funding for franchises, matched in minutes.
- Decisions in as little as 24 hours*
- $10K–$5M+ across 10 products
- No hard credit pull to apply
- One dedicated funding advisor