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Franchise Financing for New Owners

From franchise fee to build-out to working capital — compare franchise financing offers from multiple lenders and get your new location funded.

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What Is It
What is franchise financing?

Franchise financing covers the costs of opening and running a franchise: the initial franchise fee, build-out, equipment, inventory and opening working capital. Because many franchise systems are SBA-approved, franchise loans are often the most structured path to small business ownership.

Lenders look at the franchise's performance record, your experience and the total investment the franchisor outlines in the FDD. Through BidMyCapital you can compare franchise funding options from multiple lenders.

How It Works
How franchise funding works
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Pick a franchise

Most systems are pre-approved or eligible for SBA financing.

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Fund each cost bucket

Fee, build-out, equipment and working capital are financed separately.

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Open and repay

The location's revenue services the loans as it matures.

Costs
Franchise financing costs

SBA franchise loans carry capped rates with long terms: 10 years for working capital, 10 to 25 years for real estate. Non-SBA franchise loans cost more but fund faster. Equipment and leasehold portions are financed separately for better pricing.

Eligibility
Franchise loan requirements

SBA-approved franchise

Systems on the SBA franchise directory are easiest to finance.

20% to 30% of investment

Franchise loans typically require a meaningful down payment.

Strong credit

Personal credit 650+ is usually expected.

Franchisor approval

Lenders confirm the franchisor approves the financing structure.

Related
Related funding guides
FAQ
Frequently asked questions
How do I finance a franchise?

Franchise financing usually combines SBA loans, equipment financing and a working capital line, structured around the investment the franchisor lists in the FDD.

Can I get a startup franchise loan?

Yes. Franchises are among the few business models that can secure startup funding, because lenders can underwrite the system's track record rather than your business history.

Is an SBA franchise loan right for me?

If your franchise is on the SBA directory, it unlocks the lowest rates and longest terms for the franchise fee, build-out and equipment.

How much money do I need to open a franchise?

Franchise lenders typically require 20% to 30% of the total investment in cash, with the rest financed.

What can franchise financing cover?

The franchise fee, leasehold improvements, equipment, initial inventory and opening working capital.

See what lenders will offer you

2 minutes to apply. Free. No credit impact.

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