Franchise Financing
Open Your Franchise With the Right Financing Behind You
Franchise financing structured for new franchisees, multi-unit operators, and resale buyers. SBA loans, conventional financing, and franchisor programs — we find the right fit for your brand and your numbers.
What Franchise Financing Covers
Franchise Financing Programs
SBA 7(a) Franchise Loans
The most popular financing for new franchise locations. Up to $5M, 10-year terms for working capital, 25-year terms for real estate. SBA-registered franchises have streamlined approval.
SBA 504 Franchise Financing
Ideal for franchisees purchasing real estate or major equipment. Below-market fixed rates, 10–25 year terms, and as little as 10% down for qualifying franchises.
Conventional Franchise Loans
Bank financing for established franchisees with strong financials. Faster than SBA in some cases. Preferred for multi-unit operators with proven track records.
Franchisor Financing Programs
Some franchisors offer in-house financing or preferred lender relationships. We help you evaluate franchisor programs alongside third-party options to find the best terms.
Franchise Financing FAQs
Can I use an SBA loan to buy a franchise?
Yes. SBA 7(a) loans are one of the most common ways to finance a franchise. The SBA maintains a Franchise Registry of pre-approved franchise brands — if your franchise is on the registry, the approval process is faster. Non-registered franchises can still qualify but require additional review.
How much do I need to invest to open a franchise?
SBA franchise loans typically require 10–20% equity injection from the franchisee. The total investment varies widely by franchise brand — from $50K for a home-based franchise to $1M+ for a full restaurant or retail concept.
What do lenders look for in a franchise loan application?
Lenders evaluate the franchisee's personal credit (typically 680+), liquid assets, net worth, relevant business experience, and the franchise brand's performance history. The franchise's Item 19 (Financial Performance Representations) in the FDD is a key underwriting document.
Can I finance multiple franchise units?
Yes. Multi-unit franchise financing is available for operators expanding to additional locations. Lenders evaluate the performance of existing units and the operator's capacity to manage growth. SBA and conventional programs both support multi-unit expansion.
How long does franchise financing take?
SBA franchise loans for brands on the SBA Franchise Registry typically close in 30–60 days. Non-registered brands may take longer. Conventional franchise financing can close in 30–45 days for qualified borrowers.
Ready to Open Your Franchise?
Apply today or call Gary Hughey to discuss your franchise and find the right financing to get your doors open.