Franchise Financing Loans
Franchise financing loans fund new franchise launches and existing franchise acquisitions. SBA 7(a) up to $5M with 10% down, 10-year terms, and financing for franchisees of nationally recognized brands — from food service to fitness, automotive, and professional services.
About Franchise Loans
Franchise financing provides the capital needed to purchase a franchise — whether launching a new location from scratch or acquiring an existing operating franchise. Most franchise financing flows through SBA 7(a) loans because the SBA maintains a franchise directory of over 4,000 pre-approved brands, dramatically simplifying underwriting. Loans cover franchise fees, build-out, equipment, inventory, working capital, and acquisition cost — everything needed to start operating.
Key Features & Benefits
Everything you need to know about what makes Franchise financing a smart choice.
SBA Franchise Directory
Pre-approved franchise brands streamline SBA underwriting — no separate brand review required.
10% Down Payment
SBA 7(a) franchise loans typically require just 10% down, preserving capital for operations.
Full Cost Coverage
Finance franchise fee, build-out, equipment, signage, opening inventory, and working capital.
10-Year Terms
Long amortization reduces monthly payments and improves cash flow during ramp-up.
Multiple Locations
Finance multiple units via portfolio structure — scale your franchise empire.
Franchisor Support
Established brands with franchisor training and marketing systems reduce underwriting risk.
Who Uses Franchise Financing
- Launching a new quick-service restaurant franchise
- Acquiring an existing multi-unit franchise operator
- Opening a fitness/gym franchise location
- Automotive service or car wash franchise
- Hotel or hospitality franchise development
- Retail franchise (health, beauty, convenience)
- Home services franchise (cleaning, pest, landscaping)
- Professional services franchise (tax, accounting, senior care)
Qualifications & Eligibility
- Franchise must be on SBA Franchise Directory (most major brands are)
- Minimum 10–20% cash injection (higher for luxury/high-risk brands)
- Credit score 680+ preferred
- Personal guarantee from owner(s) with 20%+ equity
- Industry experience helpful but not required for many brands
- Liquid reserves of 3–6 months operating expenses
- Clean criminal background and no SBA defaults
How It Works
Our streamlined process gets you from application to funding quickly.
Franchise Brand Review
Confirm the brand is on the SBA Franchise Directory — if not, we can pursue conventional or SBA with additional review.
Pre-Qualification
We pre-qualify you based on credit, liquidity, and franchise-specific requirements.
Franchise Disclosure Document (FDD)
Provide the FDD, franchise agreement, and pro-forma business plan.
SBA Underwriting
Loan underwritten against SBA 7(a) criteria — typical timeline 45–60 days.
Closing & Funding
Funds disbursed in stages: franchise fee at close, build-out as work progresses, and working capital at opening.
Why Choose Growth Fund Partners for Franchise
Frequently Asked Questions
Common questions about Franchise loans answered.
Which franchises are eligible for SBA financing?
Over 4,000 franchise brands are on the SBA Franchise Directory — including most major QSR, fitness, automotive, and service brands. If not listed, we can pursue conventional financing or request SBA review.
How much can I borrow for a franchise?
Up to $5 million for a single location via SBA 7(a). Multi-unit operators can structure portfolios of 3–5+ units for larger total capitalization.
Do I need franchise experience?
Most SBA franchise loans do NOT require prior franchise or industry experience — the franchisor\u2019s training program is considered sufficient. Some specialty franchises (e.g., medical) may require relevant background.
Can I finance a franchise resale (existing unit)?
Yes — buying an existing operating franchise uses the same SBA 7(a) structure with the added benefit of historical financial performance strengthening the application.
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Ready to Apply for Franchise Financing?
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