Financing for franchises
A franchise pairs a proven brand with the investment each unit demands. We help you explore capital to grow or financing to buy the property where you operate.
GROW™ — capital for your next stage
GROW™: up to $350,000, up to 10-year terms, no prepayment penalty and no specific personal collateral required.
What owners typically invest in
- Initial fees and unit build-out
- Equipment and fixtures per the brand manual
- Opening inventory and working capital
- Hiring and training
- Local opening marketing
OWN™ — buy the building where you operate
The brand gives you recognition, but the location is yours. The build-out the franchisor requires stays with the building, and a lease renewal on bad terms can erase years of work. Buying the space turns rent into equity for your company.
What lenders typically review
Lenders usually review how long the business has operated, its cash flow, the owners’ credit and the franchise agreement and unit performance. For GROW™, reference guidelines include three or more years in operation, a personal FICO of 650 or above, a minimum SBSS score of 165, personal and business debts current, repayment capacity with a minimum DSCR of 1.25x and no bankruptcy in the last seven years. GROW™ does not require specific personal collateral, though limited business collateral requirements may apply. To buy the property through OWN™, your business must occupy most of the building.
Frequently asked questions
Can I finance buying a franchise?
Eligible business acquisitions are considered in specific industries. We review your case before it goes to the lender.
Can it fund an additional unit?
Yes, expansion is a contemplated use, subject to your repayment capacity and lender approval.
What if I am a new franchisee?
Reference guidelines include three or more years in operation; new-unit cases for operators with history are reviewed separately.
Can I buy my unit\u2019s building?
In many cases, yes, if your business occupies most of the property, through OWN\u2122.
Related uses of capital
Every rent payment builds your landlord's equity. With owner-occupied SBA financing, you can buy the building you rent today and turn that monthly payment into an asset you own.
Learn more
Buying a business that already works gives you customers, staff and cash flow from day one. SBA financing can cover the acquisition and, when it applies, the building too.
Learn more
The right equipment lets you serve more customers, work faster and offer new services. With working capital you can invest in it without draining your operating account.
Learn moreIndustries
- Accounting & tax
- Agriculture
- Auto dealerships
- Automotive care
- Broadband
- Dental practices
- Educational services
- Fitness centers
- Franchise restaurants
- Funeral homes & crematories
- Government contracting
- Hardware stores
- Healthcare
- Home care
- HVAC & plumbing contractors
- Insurance agencies
- Investment advisory
- Law firms
- Managed service providers
- Pet care facilities
- Pharmacies
- Professional services firms
- Property management
- Restoration, remediation & cleaning
- RV parks
- Self-storage
- Veterinary clinics
- Other established small businesses
Find out what your business may qualify for
Answer a few questions and an advisor will review your case, with no obligation.
All financing is subject to approval, financial analysis and lender terms.