🏪 Franchise Financing

Franchise Financing from $100K to $5M+ — Open Your Next Location

Running an established franchise system means you have the playbook, the brand, and the training. We help you get the capital to execute it — SBA loans, equipment financing, and multi-unit expansion capital.

30–90 days
Typical franchise close
680+
Typical credit floor
$100K – $5M+
SBA franchise loans, equipment packages, multi-unit capital
12+
Years franchise financing
50+
Franchise lenders matched
4
Franchise financing structures
70%+
Approval rate on submitted deals

Four ways to finance a franchise. Match the structure to the opportunity.

Franchise financing isn't one product — it's a combination of real estate, equipment, working capital, and business acquisition debt. We'll put together the right stack for your franchise type and growth goals.

SBA Franchise
$100K – $5M+

SBA 7(a) Franchise Loan

The most common franchise financing vehicle. SBA 7(a) franchise loans go to borrowers buying a new or existing franchise location, or refinancing existing franchise debt. The franchisor must be on the SBA franchise directory or have a standard franchise identifier.

10–12% down typical Up to 10-year term Gov-backed 75% guarantee
Equipment + WC
$100K – $1M+

Equipment + Working Capital Combo

Restaurant, automotive, cleaning, and service franchises all have significant equipment needs. This structure combines equipment financing (collateralized by the equipment itself) with working capital for pre-opening expenses and initial inventory.

Equipment as collateral Includes initial inventory Faster approval than SBA
Multi-Unit
$500K – $5M+

Multi-Unit Expansion Financing

Existing franchisees adding a second, third, or fourth location. Lenders evaluate your current operation's financials, your management track record, and the unit-level economics of the new locations. Typically SBA 7(a) with a portfolio approach.

Existing locations required Portfolio underwriting 1–2 years operating history
First-Time
$100K – $500K

First-Time Franchisee Program

Opening your first franchise location. Many franchisors have preferred lenders and SBA programs designed specifically for first-time franchisees. Lenders review your personal profile, the franchise concept's financials, and your franchisor's track record.

Franchisor's preferred lender often FDD review required Clean personal credit key

What franchise lenders look at.

Franchise financing evaluates you, the franchisor, and the specific location. The combination of these three factors determines your rate, term, and approval odds. Here's what matters.

  • 💳 Personal credit score: 680+ preferred, 640–660 SBA floor. Strong personal credit shows lenders you manage money well — which is especially important for first-time franchisees without a prior business track record.
  • 📋 Franchise Disclosure Document (FDD): Lenders review the franchisor's FDD Item 19 (financial performance representations), their financial strength, litigation history, and franchisee satisfaction scores. A strong, established franchisor makes financing easier.
  • 📊 Unit-level financials: Lenders want to see that the franchise model produces positive cash flow. Item 19 financials from the FDD, your pro forma, and comparable franchisee financials all help tell the story.
  • 💰 Down payment / liquidity: SBA requires 10–12% minimum liquid contribution. Many lenders want 20%+ liquid reserves beyond the down payment. Having 12 months of living expenses + down payment shows you can weather the pre-profit ramp period.
  • 📅 Business or management experience: Not required by all lenders, but strong experience in your target franchise category (restaurant, retail, service) significantly improves your odds. Prior franchise ownership is a major plus.
  • 🏢 Site selection and lease: Lenders want a signed lease or site purchase agreement before funding. Real estate is often the largest variable — having the site locked down before applying speeds everything.

Have a specific franchise in mind?

Tell us which franchise system you're looking at, your target location, and your financial profile — we'll tell you the fastest path to financing. No cost, no commitment.

Get Pre-Qualified → Free Readiness Checklist
Who This Is For

Franchise buyer profiles that get financed.

Franchise financing serves first-time franchisees and experienced operators expanding their portfolio. The profile that gets financed fastest is one with strong credit, documented business experience, and a franchise concept that has a proven unit-level model.

🎯

First-Time Franchisee

Opening your first franchise. SBA programs specifically designed for first-time owners make this achievable with 10–12% down and the right franchise partner.

📈

Multi-Unit Operator

Adding a second, third, or fourth location to your existing franchise portfolio. Lenders love existing franchisees with proven unit financials.

🔄

Conversion Deals

Buying an existing independent business and converting it to a franchise brand. The existing cash flow simplifies the financing equation.

🌱

Emerging Brand Franchisee

Signing with a newer franchise system that may not yet be on the SBA directory. Alternative lenders and SBA small loans work better here.

🏠

Home-Based Services

Cleaning, pest control, senior care, and home services franchises. Lower build-out cost means lower capital requirements — often $100K–$300K total.

🍽️

Restaurant Franchise

Quick service, fast casual, and full-service restaurant franchises. Equipment-heavy builds need equipment financing layered with working capital.

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Retail Franchise

Convenience, grocery, specialty retail, and franchise convenience stores. Real estate + equipment + working capital is the standard stack.

🔧

Automotive / Trades

Auto repair, tire, transmission, and trades franchise systems. Equipment financing and SBA loans work well for these capital-intensive builds.

Why franchise financing is easier than independent business financing.

01

Proven business model, lower risk profile

You're not inventing anything. The franchise system has already proven the unit-level economics. Lenders have seen hundreds of deals from the same franchisor, which means faster decision-making and better rates for you.

02

SBA 7(a) up to $5M with 10% down

Many franchisors have SBA-approved status, which means the bank already knows the franchise system, has the franchise documentation on file, and can move faster. This cuts 30–60 days off the typical timeline.

03

Equipment financing as separate collateral

Restaurant, automotive, and service franchises can often finance the equipment separately at better rates than the real estate or business acquisition component. This separates the risk profile and speeds approvals.

04

Multi-unit expansion builds fast equity

One successful franchise location is worth 3–5x in refinancing potential. Open one, build the financials, then refinance to pull out capital for location two. The franchise model scales — and so does your access to capital.

Common questions about franchise financing.

Yes. SBA 7(a) loans are one of the most common ways to finance a franchise purchase. The SBA has an approved franchise lender list (SBA Franchise Directory) that streamlines the process for both lenders and borrowers. Most franchise types on the SBA directory can be financed with 10–12% down, up to $5M, with terms up to 10 years. The key is that the franchisor must be on the SBA's approved list.
Most franchise lenders want a personal credit score of 680+. SBA 7(a) lenders typically have a 640–660 floor. Below 680, lenders may require a larger down payment, additional collateral, or a partner with stronger credit. Many franchise finance deals are done with credit scores in the 660–700 range when the franchise concept is strong and the financials are clean.
Franchise financing ranges from $100K to over $5M depending on the franchise type, your experience, and your financial profile. Single-unit new franchise openings typically range $100K–$500K. Multi-unit franchise financing and established franchise acquisitions can reach $2M–$5M+. Equipment-heavy franchises (restaurant, automotive) need more capital than service-based franchises.
SBA franchise loans take 45–90 days on average. Conventional franchise financing can close in 30–60 days. First-time franchisee loans from SBA-approved lenders with strong franchisor documentation can sometimes move faster. Pre-qualifying before you sign a franchise agreement gives you leverage and a cleaner timeline.
Franchise financing evaluates both your personal profile AND the franchisor's track record. Lenders review the franchise disclosure document (FDD), the franchisor's financial strength, the franchise agreement, and the unit-level economics. The franchisor's presence in the SBA directory or their own preferred lender program can significantly simplify the process.
Yes. Equipment financing for franchise builds is a separate product from the real estate and working capital components. Equipment finance companies can fund the build-out, kitchen equipment, POS systems, signage, and furnishings. This separates the equipment from the real estate lease and can sometimes qualify for faster approval since the equipment itself serves as collateral.
Not always, but it helps significantly. Multi-unit franchise financing typically favors existing franchisees with 1–2 open locations who have demonstrated they can run the operation profitably. Lenders want to see unit-level P&Ls, site-level cash flow, and your management track record. First-time franchisees seeking multi-unit deals face a much higher bar — start with one location, build the financials, then expand.
Personal: 2–3 years of personal tax returns, personal financial statement, bank statements. Business: your own business financials if you have them. Franchise: Franchise Disclosure Document (FDD), franchise agreement, franchisor's financial statements, site selection documents or lease agreement. The franchisor often provides a pre-populated SBA addendum that speeds the process.

Tell us about your franchise financing needs.

Under 3 minutes. We'll match you to the right franchise lender and financing structure.

Franchise & Business Funding by Industry

Industry-specific guides for franchise concepts — from restaurant build-outs to service franchise acquisitions.

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Restaurants — $500K
Restaurant & food franchise loans
🤝
Acquisition — $2M
Multi-unit franchise acquisition loans
❄️
Service Franchise — $250K
HVAC & home service franchise startup
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SBA Loans Overview
SBA 7(a) for franchise acquisition & startup
All Industries & Amounts
View the full funding hub

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