Franchise systems move fast — your financing should too.
Franchise financing covers the initial franchise fee, leasehold improvements, equipment packages, opening inventory, and the working capital reserve lenders require. We work with both first-time franchisees and multi-unit operators expanding across territories.
Franchise Financing at a glance
- Loan amounts
- $100,000 – $10,000,000
- Term length
- 7 – 10 years, up to 25 with real estate
- Typical pricing
- SBA-backed pricing on most first-unit deals
- Funding speed
- 30 – 75 days to close
- Credit guidance
- Typically 660+ FICO plus liquidity for the injection
Key Benefits
- Financing for franchise fees and build-out costs
- SBA 7(a) structures with as little as 10% down
- Multi-unit and re-image facilities available
- Faster approval for brands on the SBA Franchise Directory
Best Fit For
- First-time franchisees opening a location
- Multi-unit operators funding expansion
- Buyers acquiring an existing franchise resale
- Owners funding a required brand remodel
Why use a broker instead of going to your bank?
Lenders have brand preferences — some franchise concepts are pre-approved and fly through, others get declined outright. We know which lenders are actively funding your brand right now.
Learn more about working with a brokerHow franchise financing compare
We broker every product on this list, so this comparison is about fit — not about steering you toward one option.
Compared with
Business acquisition financing
A franchise resale is underwritten much like any acquisition. A brand-new unit is underwritten on projections and the franchisor's historical unit economics instead of a target's cash flow.
Compared with
Equipment financing
Equipment financing covers only the hard assets. Franchise financing bundles the franchise fee, build-out, signage, inventory, and working capital into one package.
Franchise Financing: frequently asked questions
How much do I need to open a franchise with financing?
Plan on a 10% to 30% equity injection of the total project cost, plus post-closing liquidity. On a $500,000 build-out that generally means $50,000 to $150,000 of your own capital.
Does the SBA finance franchises?
Yes. Brands listed in the SBA Franchise Directory are pre-reviewed for eligibility, which speeds approval considerably.
Can I finance more than one unit at a time?
Yes. Multi-unit development deals are common for operators with a track record, and can be structured as a phased facility that funds each location as it opens.
Can I get funding as a first-time franchisee?
Absolutely. First-timers with relevant management experience, adequate liquidity, and a strong brand are financed regularly.
What is included in franchise financing?
The initial franchise fee, leasehold improvements, equipment and signage, opening inventory, training and travel costs, and a working capital reserve for the ramp-up period.
More answers on the business financing FAQ and in the commercial lending glossary.
Other financing solutions
Working Capital Loans
Cover payroll, inventory, and day-to-day expenses with flexible short-term capital.
Commercial Real Estate Loans
Purchase, refinance, or build commercial properties with structures matched to your project.
Bridge Loans
Move quickly on opportunities while you arrange long-term financing.
Ready to explore franchise financing?
A 15-minute conversation is all it takes to know if this is the right fit. No obligation.