The Pinch Points
Why Restaurant Franchisees Come to Us Instead of Their Bank
A franchise is a proven concept with a capital cost to match, on the franchisor's schedule rather than your cash flow. Sound familiar?
The Franchise Build-Out
A franchise unit built to spec — equipment package, build-out, signage, and opening costs — runs $250K–$1.5M before it opens.
The Multi-Unit Development Schedule
Many franchise agreements commit you to opening multiple units on a timeline; each one is a full build-out carried before it ramps.
The Franchisor-Mandated Remodel
Franchisors require periodic image-refresh remodels — $150K–$500K a unit — a capital demand timed by the franchisor, not by your cash flow.
The Equipment Package
The franchisor-spec equipment package is a fixed, non-negotiable cost — $80K–$300K a unit — required to open and to stay in compliance.
The Ramp & Working Capital
A new unit runs payroll, food cost, and royalties from day one while it ramps to the volume the model promises.
Acquiring a Unit or Territory
Buying an existing unit or a development territory is a $300K–$2M move that won't wait on a slow approval queue.
What an operator said
“Our franchise agreement had us committed to three more units in four years, but self-funding each build-out would've taken twice that long. Financing the development let us hit the schedule — we're a six-unit operator now instead of a one-unit one.”
K. Brennan · multi-unit restaurant franchisee · Columbus, OH
Start Here
See Your Range in 60 Seconds
No credit check, no documents to start, and an estimated funding range on the spot. No one contacts you until you’re ready to move forward.
What Happens When You Start
Estimate Your Capital Range
Slide to your annual gross revenue. We size capital off your top line — not your credit score.
Estimated Capital Range
A conservative range based on 10-15% of annual revenue — many businesses qualify for more with strong receivables or assets behind them. Lenders return real term sheets once they see your file.
60 seconds · No obligation · Estimate only
Built for the Trade
What We Fund for Restaurant Franchisees
Franchise Build-Out & Equipment Financing With §179
Finance the build-out and the franchisor-spec equipment package; §179 writes off the equipment the year the unit opens.
Capital for Multi-Unit Development
Financing each unit's build-out lets you hit the development schedule without funding every opening out of the units already running.
Working Capital Through the Ramp
An unsecured, revenue-based working line carries a new unit's payroll, food cost, and royalties through its ramp to steady volume.
Revenue-Based Acquisition & Territory Capital
Acquire a unit or a development territory on revenue-based, capital-stacked financing — not an SBA queue.
Match Your Situation
The Cash-Flow Gaps We Fund for Restaurant Franchisees
Match your situation to the structure. Every one of these funds on the operation's revenue, not a perfect credit file.
| What It Looks Like | Funding Solution | Amount | Speed | |
|---|---|---|---|---|
| Franchisor pace | The franchisor sets the development and remodel pace | Revenue-Based Financing | $75K–$5M+ | 1–3 days |
| Six-figure build | Each unit's build-out is six to seven figures | Build-Out & Equipment | $75K–$5M+ | 3–7 days |
| Day-one royalties | A new unit ramps while royalties run from day one | Working Capital | $75K–$5M+ | 1–3 days |
The Products
How Restaurant Franchise Financing Is Structured
Most franchise files fund between $75K and $5M+, structured to the build-out and the development schedule in front of you. Larger lines available when revenue, cash flow, and story qualify.
| Amount | Term | Best For | Funding Speed | Typical Structure | |
|---|---|---|---|---|---|
| Equipment Financing | $75K–$5M+ | 3yr–7yr | Franchisor-spec equipment package, build-out | 3–7 days | Equipment serves as collateral |
| Working Capital | $75K–$5M+ | 6mo–10yr | Payroll, food cost, and royalties through the ramp | 1–3 days | Often unsecured, revenue-based |
| Business LOC | $75K–$5M+ | Revolving | Development-schedule draws unit by unit | 1–5 days | Unsecured line, no PG by default |
| Revenue-Based Financing | $75K–$5M+ | 6mo–24mo | Acquiring a unit or a development territory | 1–3 days | Repays as a share of daily card sales |
Tax Strategy
Section 179 on the Franchise Equipment — Worked
If last year was strong and you’re about to write a check to the IRS — stop. Acquire qualifying equipment with as little as 10% down, finance the rest, and write off the full purchase price in year one. Section 179 covers it up to the annual cap; 100% bonus depreciation — made permanent in 2025, with no cap and no income limit — carries the rest.
At the top bracket, that first-year deduction can return meaningful tax savings — and for an established business with strong cash flow, it’s the difference between writing a check to the IRS and putting the same money into your own equipment. Your CPA models the exact numbers for your bracket and structure.
Worked scenario · top bracket · illustrative
You financed the machine and put down a fraction of its price — but you deduct the full price in year one. The write-off is bigger than your down payment, and the equipment keeps working the whole time.
Scales with your numbers
Illustrative only. Actual savings depend on your tax bracket, entity type, state conformity, and CPA guidance. Section 179 and bonus depreciation are elections your CPA makes for your situation; above the Section 179 cap, 100% bonus depreciation carries the balance.
Terms reflect credit, revenue, time in business, and each lender. Every file is unique — see what the desk structures for yours in the 60-second qualifier.
Bobby’s Take
“A restaurant franchise takes the biggest risk out of opening a restaurant — the concept is proven — and replaces it with a different challenge: capital, on the franchisor's schedule. They decide when you build, when you remodel, and often how many units you commit to, and every one of those is a six- or seven-figure build before it earns a dollar. The franchisees who build empires are the ones who finance the development instead of pacing it to one unit's cash flow. We fund the build-out and the equipment package — §179 returns roughly $82,880 on $224K — and the working capital to carry each unit through its ramp. Hit the development schedule, meet the remodel mandates, and grow the number of units instead of waiting on each one to pay for the next.”
Bobby Friel · Founder · 20+ years in banking and finance
How It Works
From Application to Funded
One application, 70+ lenders competing, a dedicated specialist, and most files funded in days.
60-second estimate
Enter your numbers — no credit check, no documents. You see an estimated funding range on the spot.
A specialist is assigned
A real funding specialist — not an algorithm — reviews your file, usually within 24 hours.
70+ lenders compete
Your application goes to the marketplace. Competing offers typically land 24–48 hours later.
You pick the offer
Compare structures and terms with your advisor. No obligation until you choose to sign.
Funded in days
From same-day working capital to a multi-piece stack, most files fund in days — not the bank’s 60–90.
Underwriting
What Underwriting Looks At
Funding here leads with what your business actually does — your revenue and cash flow. The specialist desk reads the real picture from your statements, then matches it to the lenders most likely to fund it.
How you’re evaluated
Revenue-first
sized off your top line, not just your balance sheet.
Cash-flow driven
your bank statements show how the business really runs.
Bank-statement underwriting
even a down year is read off 4 months of statements.
Story-driven
a big new contract, a seasonal swing, a turnaround in progress: context the raw numbers miss counts too.
What to have ready
↳Had a loss year? It’s read off the bank statements — 4 months, not 6.
Start fast, finish complete
The operators who fund quickest come to the specialist review with these ready — but you don’t need all of it to start. Your signed application and bank statements are what unblock the review; the rest can follow as trailing docs. Real term sheets come once the lenders can see a true business overview, so the move is simple: get the application and statements in right away, and don’t let a missing tax return hold up your term sheets.
Credit, straight
Qualification
Who Gets Funded — and Who’s Not Ready Yet
A straight read saves everyone time — here’s the line between a restaurant franchise file that funds and one that isn’t ready yet.
↳Time in business is a factor, not a gate — newer crews with strong revenue still qualify.
Not ready yet isn’t a no — it’s a checklist. Most of it is fixable in a quarter or two, and your advisor will tell you straight which gaps to fix before a file goes in.
The Operator's Guide
Restaurant Franchise Financing
A Proven Concept With a Capital Cost to Match
A restaurant franchise is a proven concept with a capital cost to match — a turnkey build-out to the franchisor's spec, a fixed equipment package, signage, and opening costs that run six figures before the doors open. Many agreements commit you to opening multiple units on a development schedule and to periodic image-refresh remodels, each a capital demand timed by the franchisor rather than your cash flow. A new unit runs payroll, food cost, and royalties from day one while it ramps. The franchisor sets the pace; self-funding each build paces growth to one unit's cash flow.
One Application, 70+ Lenders
We fund franchisees on the operation's revenue, not a perfect credit file — build-out and equipment financing for the franchisor-spec package with §179 on the equipment, capital to hit the multi-unit development schedule, and a working line to carry each new unit through its ramp. Acquiring a unit or a development territory stacks revenue-based instead of an SBA queue. One application, 70+ lenders, soft-pull review.
Common Questions
Restaurant Franchise Financing — Questions, Answered
Yes — financing covers the build-out and the franchisor-spec equipment; §179 writes off the equipment the year the unit opens.
Yes — financing each unit's build-out lets you hit the development schedule without draining the running units.
Yes — an unsecured, revenue-based line carries payroll, food cost, and royalties until the unit hits volume.
Signed application, four months bank statements, P&L, balance sheet, two years returns; losses → four months statements. Soft credit pull only — zero FICO impact to see your range.
Yes — stacked revenue-based on the operation, not an SBA 7(a) loan.
Recommended Funding