Franchise financing

Franchise financing, from SBA loans to startup capital. — Franchise Capital

Compare every way to finance a franchise — SBA 7(a) franchise loans, conventional debt, startup funding, and working capital — with real requirements and down-payment math before you apply.

Soft inquiry. No borrower fee.

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Inside the file
  • Franchise financing
  • SBA franchise loans
  • FDD
  • Item 19
  • Down payment
  • Franchise startup loans
  • Working capital
  • ROBS 401(k)
  • $75K-$3M Typical loan size
  • 10%-30% Down payment range
  • 24-72 hrs Soft prequal timing

What business owners say

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  • Good service Joseph Krajewski is the best agent ever. He provided excellent service. I strongly recommend working with him if you have the opportunity.
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Deal flow

From franchise plan to funded file

The franchise loan approval process is fit, file, review, and close. If you are learning how to finance a franchise, we sort the deal by brand, liquidity, and timing, then route it to lenders that fit the file.

1
You
Share the deal
Tell us the brand, amount, and opening timeline.
2
Us
Match the path
We sort SBA, bank, and reserve-heavy options.
3
Lender
Review the file
A lender checks cash flow, credit, and collateral.
4
You
Close and fund
You sign final docs, then funds are released.

Soft-pull first

  • Prequal starts with a soft inquiry.
  • No borrower fee; partner lenders pay for referral flow.

SBA and bank lanes

  • We compare SBA 7(a), bank debt, and hybrids.
  • Franchise docs drive the route.

Cleaner file

  • Know the docs lenders want before you apply.
  • Fewer surprises on tax returns and PFS.
Why deals stall

Why franchise startups get declined

Franchise loan eligibility usually comes down to liquidity, debt service, and the franchise package, not just credit score. Missing detail on the deal slows the file.

01

No open-location revenue

A startup franchise has no store history, so banks cannot lean on operating cash flow.

Use franchisor data, owner income, and a 12-month ramp plan.
02

Equity gap

Many deals need 10%-30% down, and some buyers are short on liquid cash.

Compare SBA 7(a), seller note, and cash reserves to close the gap.
03

File is incomplete

Missing FDD, franchise agreement, or tax returns slows the underwriter.

Send a lender-ready packet with the deal summary and documents up front.
Composite files

Illustrative franchise deals that funded

These composite files show franchise debt vs equity funding choices lenders often see. They are illustrative only, not real customers.

Illustrative Texas · SBA 7(a)
$180K-$260K

first-time buyer

Franchise fee, buildout, and six months of working capital

Illustrative Florida · Term debt
$450K-$700K

multi-unit operator

Two-unit opening package with equipment, deposits, and reserves

Illustrative Illinois · Working capital
$120K-$180K

restaurant buyer

Payroll, inventory, and royalty coverage for the first 90 days

Illustrative Arizona · Buyout loan
$300K-$500K

semi-passive owner

Acquisition debt for a transfer with a seller note attached

How we label illustrative scenarios →

Related coverage

Go deeper on franchise financing

Read the full guides on SBA franchise loans, down payments, bad-credit options, veteran programs, and what a franchise really costs before you commit.

Franchise financing basics

How to finance a franchise: common questions

For most first-time buyers, an SBA 7(a) franchise loan offers the best mix of down payment (10-20%), term length, and rates. Stronger files may get conventional bank debt; buyers with retirement savings sometimes use ROBS. Compare at least two lanes before applying.