Franchise Funding Options
Complete guide to financing your franchise purchase or expansion
$50K-$5M
Funding Range
680+
Typical Credit Need
20-30%
Down Payment
Typical Franchise Costs
Franchise Fee
One-time fee to franchisor
$20K-$50K
Real Estate & Buildout
Location, construction, improvements
$100K-$500K
Equipment & Inventory
Required equipment and initial stock
$50K-$300K
Working Capital
Operating expenses for first 6-12 months
$20K-$100K
Training & Travel
Required franchisor training
$5K-$20K
Franchise Funding Sources
SBA 7(a) Loan
Amount: Up to $5MRate: Prime + 2.25-2.75%▼
SBA 7(a) Loan
Amount: Up to $5MRate: Prime + 2.25-2.75%
Term Length
10-25 years
Best For
Best rates, established franchises
Down Payment
10-20%
Franchisor Financing
Amount: Varies by brandRate: 6-12%▼
Franchisor Financing
Amount: Varies by brandRate: 6-12%
Term Length
5-10 years
Best For
Easier approval, brand-specific
Down Payment
20-30%
ROBS (Rollover for Business Startups)
Amount: 401k/IRA balanceRate: No interest▼
ROBS (Rollover for Business Startups)
Amount: 401k/IRA balanceRate: No interest
Term Length
N/A
Best For
Use retirement funds tax-free
Down Payment
No loan needed
Equipment Financing
Amount: $50K-$5MRate: 7-15%▼
Equipment Financing
Amount: $50K-$5MRate: 7-15%
Term Length
3-7 years
Best For
Finance franchise equipment separately
Down Payment
10-20%
What You Need to Qualify
💳
Credit Score
680+ for best rates, 620+ minimum
💰
Net Worth
$250K+ (varies by franchise)
💵
Liquid Assets
$75K-$150K available
👔
Industry Experience
Preferred but not always required
📊
Business Plan
Detailed franchise business plan
📝
Franchise Agreement
Signed franchise disclosure document
Popular Franchise Categories
Fast Food/QSR
Investment: $100K-$2M
Examples: McDonald's, Subway
Fitness
Investment: $50K-$500K
Examples: Anytime Fitness, F45
Home Services
Investment: $50K-$200K
Examples: Servpro, Mosquito Joe
Senior Care
Investment: $75K-$150K
Examples: Home Instead, Visiting Angels
Children's Education
Investment: $100K-$400K
Examples: Kumon, Mathnasium
Automotive
Investment: $150K-$500K
Examples: Jiffy Lube, Meineke
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