How we can help
Facing a required remodel or new equipment package? Our program funds operating franchisees quickly, without waiting months on an SBA loan.
Check if my restaurant qualifies →Key takeaways
- Lenders like established franchise brands because there's performance data, but they still underwrite you as the operator.
- For SBA loans, the brand must be listed in the SBA Franchise Directory, which was reinstated on June 1, 2025.
- Item 10 of the Franchise Disclosure Document tells you whether the franchisor offers or arranges financing.
- Franchisor-required remodels are a common, predictable financing need. Plan for them years ahead.
Market overview
- Common sources
- SBA 7(a), franchise lenders, equipment financing, term loans
- SBA requirement
- Brand listed in the SBA Franchise Directory
- Franchisor financing
- Disclosed in FDD Item 10
- Common needs
- New units, remodels, equipment packages
Typical market ranges, not offers.
Financing a new franchise unit
A new restaurant franchise is usually funded with an SBA 7(a) loan, your own capital (the franchisor typically sets minimum liquidity and net worth requirements), and sometimes equipment financing. Before you sign anything:
- Confirm the brand is listed in the SBA Franchise Directory if you plan to use SBA financing
- Read FDD Item 7 (estimated initial investment) and Item 10 (financing offered or arranged by the franchisor)
- Review Item 19 (financial performance representations), if the franchisor provides one, to build realistic projections
- Check the franchisor's liquidity and net-worth requirements against your own finances
Financing franchisor-required remodels
Many franchise agreements require periodic remodels or image updates, plus new equipment when the menu changes. These are predictable, which makes them easier to plan. Common options:
| Need | Good fit |
|---|---|
| Image remodel / reimage | Term loan or renovation financing; SBA for larger projects |
| New equipment package | Equipment financing |
| Technology (kiosks, POS, digital menu boards) | Equipment lease or short-term loan |
| Drive-thru or patio addition | Term loan or SBA, depending on size |
Multi-unit and development financing
Lenders financing your second, fifth, or twentieth unit look at your whole portfolio: how your existing units perform, how much debt you carry, and your development schedule with the franchisor. Strong existing units are your best collateral for growth.
Facing a required remodel or adding a unit? Get your numbers today.
Check my franchise optionsFrequently asked questions
How do I finance a restaurant franchise?
Do franchisors offer financing?
Can I finance a franchise remodel?
Sources
We cite primary sources: federal agencies, regulations, and official program rules. Rules vary by state and change over time.
General education, not legal, tax, or financial advice. Loan programs, licensing rules, and lender requirements change and vary by state. Disclosures.