Best Franchise Financing (2026)

Buying into a franchise usually means covering a franchise fee, build-out costs and working capital before you’ve made a dollar, and most franchisees don’t cover that entirely out of pocket. The number of US franchise establishments will grow from about 832,500 to 845,000 units in 2026, according to the International Franchise Association’s Franchising Economic Outlook, and lenders have kept pace with dedicated franchise products. Whether you want a lender that does nothing but franchise financing, an SBA specialist or a marketplace that shops your application to multiple funders at once, here’s where to look first.

Best franchise financing

• Best marketplace for comparing SBA and franchise loan offers: Fundera business loans
• Best marketplace for multiple financing types in one application: Lendio business loans
• Best marketplace for a range of credit profiles: Lendzi
• Best for comparing short-term financing offers: BusinessLoans.com
• Best for fast working capital for franchise expenses: Advance Funds Network
• Best lender exclusively focused on franchise financing: ApplePie Core business loans
• Best for SBA loans: Live Oak Bank SBA loans
• Best for funding a franchise with retirement savings: Guidant Financial business loans
• Best for equipment financing: National Funding business loans

Finder Score	Loan amount	Loan term	APR
Best marketplace for comparing SBA and franchise loan offers
9.5 Excellent Fundera business loans	9.5 Excellent	$2,500 – $5,000,000	Varies by lender	Varies by lender	Go to site View details Compare product selection Compare	loading	Why we like it Fundera pairs you with a funding advisor and shops your application across its lender network. It's one of the few marketplaces with a dedicated franchise financing guide on its own site, covering SBA 7(a) and CDC/504 loans specifically for franchise buyers. Pros & cons Pros Dedicated franchise financing guide. Offers a dedicated guide to assist with the financing process. Free service. Fundera says lenders pay for it, not borrowers. Human funding advisor. Fundera pairs you with someone to help compare offers. Cons Not a direct lender. Terms depend entirely on the lender you're matched with. Unpublished loan amounts and APRs. Fundera's own site doesn't disclose matched-lender figures. Possible hard credit check. Accepting an offer may trigger one, depending on the product and lender.
Best marketplace for multiple financing types in one application
9.6 Excellent Lendio business loans	9.6 Excellent	$1,000 – $10,000,000	Varies by lender	Varies by lender	Go to site View details Compare product selection Compare	loading	Why we like it Lendio connects you to a network it describes as more than 75 lenders through a single application, and its own site includes a dedicated guide on getting a loan for your franchise, covering SBA loans, startup loans, equipment loans and commercial real estate loans. Pros & cons Pros Dedicated franchise financing guide. Confirmed on lendio.com. One application, many lenders. Reach its full lender network from one form. No credit score impact to apply. Applying won't affect your credit score. Cons No direct funding. It's a matching marketplace, not a lender.
Best marketplace for a range of credit profiles
9.5 Excellent Lendzi	9.5 Excellent	$5,000 – $20,000,000	6 months to 25 years	Varies by lender	Go to site View details Compare product selection Compare	loading	Why we like it Lendzi is a general small business loan marketplace covering SBA loans, term loans, lines of credit, equipment financing and merchant cash advances — products that can be used for franchise-related costs even though Lendzi's own site doesn't publish franchise-specific content the way some competitors do. Pros & cons Pros Wide range of loan types. SBA, term loans, lines of credit, equipment financing and MCAs are all available through its network. Free to request a quote. There's no cost to get matched. Cons No franchise-specific content. Unlike some competitors, Lendzi's own site doesn't publish dedicated franchise financing guidance. No direct funding. It's a marketplace, not a direct lender for most products.
Best for comparing short-term financing offers
8.8 Great BusinessLoans.com	8.8 Great	$10,000 – $3,000,000	Varies by lender	Varies by lender	Go to site View details Compare product selection Compare	loading	Why we like it BusinessLoans.com runs a dedicated franchise loan page on its own site and matches franchisees with lenders offering short-term loans, long-term loans, lines of credit and merchant cash advances through one application. Pros & cons Pros Wide lender range disclosed on its own site. BusinessLoans.com states its lenders can fund between $5,000 and $3 million. Fast funding. Its own site describes funds landing in as little as a day in some cases. Cons No direct funding. It matches you with lenders rather than lending itself. No lender-specific APR. Its own site gives a general business loan rate range rather than a figure tied to its own matched loans. Modest average loan size. Its own site cites roughly $44,000 as the average loan size across its network.
Best for fast working capital for franchise expenses
9.6 Excellent Advance Funds Network	9.6 Excellent	$10,000 – $5,000,000	6–18 months	Varies by lender	Go to site View details Compare product selection Compare	loading	Why we like it Advance Funds Network (AFN) publishes its own franchise-specific blog content covering how franchisees can use unsecured lines of credit to cover franchise fees, equipment, payroll and remodeling costs. AFN also offers term loans, working capital loans, merchant cash advances and equipment financing. Pros & cons Pros Franchise-specific guidance on its own site. AFN publishes dedicated posts on financing franchise fees and equipment through lines of credit. Multiple product types. Term loans, lines of credit, MCAs and equipment financing are all available. Fast approval. AFN's own site describes decisions often within hours. Cons Mostly unpublished loan amounts and APRs. Only discloses its line of credit ceiling. Steep revenue requirements. Some products expect meaningful monthly revenue. Not built for the franchise purchase itself. It targets ongoing working capital, not the initial buy-in.
Best lender exclusively focused on franchise financing
6.8 Standard ApplePie Core business loans	6.8 Standard	$100,000 – $5,000,000	Up to 10 years	Not stated	View details Compare product selection Compare	loading	Why we like it Unlike every other pick on this list, ApplePie Capital does nothing but franchise financing. It offers a proprietary ApplePie Core loan alongside SBA and conventional loans through a partner lender network, and covers the franchise fee, build-out, equipment, inventory and working capital in a single loan. ApplePie's own site says it works with franchisees of 200+ partner brands and will consider other brands case by case. Pros & cons Pros Exclusively focused on franchise financing. It doesn't lend to independent small businesses at all. One loan, multiple costs. The ApplePie Core loan can fund the franchise fee, build-out, equipment, inventory and working capital together. No prepayment penalty. Its own site confirms this for the ApplePie Core loan. A+ BBB rating. It's been accredited since 2015, per bbb.org. Cons Financing tied to brand partnerships. Funding is easiest if your franchise brand is one of ApplePie's partner brands. Down payment required. Its own site lists 15%–20% down depending on the loan product. No fixed published rate. Actual pricing varies by brand, loan type and your credit profile.
Best for SBA loans
8.8 Great Live Oak Bank SBA loans	8.8 Great	$10,000 – $15,000,000	Up to 25 years	Varies	View details Compare product selection Compare	loading	Why we like it Live Oak Bank runs a dedicated franchise lending team and is an SBA Preferred Lender, which means it can approve SBA 7(a) loans without a separate SBA sign-off. It handles new-unit financing, acquisitions, partner buyouts and expansions, and also offers a faster Live Oak Express loan for smaller financing needs. Pros & cons Pros Dedicated franchise lending team. Its own site lists loan officers focused specifically on franchise deals. SBA Preferred Lender. Its own resources describe faster approval timelines for Preferred Lenders like Live Oak. Express loan option. Smaller loans can skip the full SBA process for faster funding. Cons Unpublished APR. Rates depend on the SBA rate cap and your borrower profile. Heavy SBA documentation. The full 7(a) process involves extensive paperwork. Conflicting Express loan range. One page on its site lists $10,000–$350,000, another lists up to $500,000 — worth confirming directly before applying.
Best for funding a franchise with retirement savings
8 Great Guidant Financial business loans	8 Great	$10,000 – $150,000		12% to 18%	View details Compare product selection Compare	loading	Why we like it If you have at least $50,000 in a 401(k) or IRA, Guidant Financial can help you fund a franchise debt-free through a Rollovers as Business Startups (ROBS) structure. Guidant also packages SBA 7(a) loans and offers unsecured loans, and many franchise buyers combine ROBS with an SBA loan to stretch their funding further. Pros & cons Pros No credit score needed for ROBS. Because it's not a loan, there's no credit or collateral requirement. Pairs with an SBA loan. Guidant's own franchise financing page describes pairing ROBS with SBA funding for a higher total and lower payments. Cons ROBS setup fee of $5,495. Plus $149/month for plan administration. Retirement funds at risk. If the business fails, the invested retirement savings go with it. Rate jump after year one on unsecured loans. The introductory rate is 0% before rising above 13%–14%.
Best for equipment financing
9.6 Excellent National Funding business loans	9.6 Excellent	$5,000 – $500,000	4 to 24 months (working capital); 2 to 5 years (equipment)	Not listed	View details Compare product selection Compare	loading	Why we like it Many franchise brands require standardized kitchen, retail or service equipment, and National Funding specializes in financing or leasing that equipment without a down payment. Its own site also publishes franchise-specific guidance, including a guide to expanding a franchise and a piece on evaluating whether franchise ownership is a good fit. Pros & cons Pros Equipment financing with no down payment. Confirmed on its own site. Franchise-specific content. National Funding publishes its own franchise expansion and evaluation guides. Fast decisions. Funding can arrive as soon as 24 hours after approval. Cons Not franchise-exclusive. It's a general small business lender, not a franchise specialist. Unpublished APR. Not listed on its website. Revenue expectations. Its own site lists $250,000+ in annual sales as a general benchmark.

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How we chose these lenders

We checked each lender’s own website for franchise-specific products or content, then weighed loan amounts, funding speed, credit flexibility and how each fits different stages of franchise ownership — buying in, expanding or covering working capital. We excluded lenders whose own eligibility criteria explicitly bar franchises and marketplaces with no shown franchise fit on their own site.

How to compare franchise business loans

Franchise loans vary widely by lender type, so it helps to look past the headline pitch before applying.

• Check for franchise specialization. Some lenders underwrite franchises specifically; others are general small business lenders.
• Confirm your brand’s eligibility. SBA lenders check the SBA Franchise Directory before approving a 7(a) loan.
• Compare funding speed against your opening timeline. Marketplaces and online lenders tend to move faster than SBA lenders.
• Ask whether rates are published or only revealed after applying. Most of the lenders on this list don’t disclose APRs up front.
• Factor in setup or origination fees. A low headline rate can still come with meaningful upfront costs.
• Consider whether you’ll need more than one type of financing. Many franchisees combine an SBA loan or ROBS with equipment financing.

What is franchise financing?

Franchise financing covers the capital franchisees need to buy into a system and get a location open — the franchise fee, build-out and equipment costs, initial inventory and working capital to cover expenses until the location turns a profit.

It’s not one loan type but a mix: some franchisees use an SBA 7(a) or 504 loan, others use a marketplace to compare online lenders, and some use retirement funds through a ROBS structure to avoid taking on debt entirely. Franchisors sometimes offer their own financing or maintain a list of preferred lenders, which is worth checking before you shop elsewhere.

Pros and cons of franchise financing

Franchise financing can be easier to access than independent startup financing, but it comes with its own trade-offs.

Compare other business loans

If franchise-specific financing doesn’t fit, it’s worth comparing general small business loan options side by side.

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Updated regularly

Finder Score	Min. Amount	Max. Amount	APR	Requirements
Promoted 9.9 Excellent Pinnacle Funding	9.9 Excellent	$10,000	$5,000,000	Varies by loan type	525 credit score, 6+months in business, $180,000+ annual revenue	Apply in minutes with funding as fast as 24 hours and zero impact to your credit score.	Go to siteView details Compare product selection Compare	loading
Promoted 9.6 Excellent Lendio business loans	9.6 Excellent	$1,000	$10,000,000	Varies by lender	Operate business in US for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.	Submit one simple application to potentially get offers from a network of over 75 legit business lenders.	Go to siteView details Compare product selection Compare	loading
Promoted 8.8 Great Fora Financial business loans	8.8 Great	$5,000	$1,500,000	Factor rate of 1.05-1.5	6+ months in business, $240K+ annual revenue, 570 minimum credit score	Get approval decision for funding in minutes for up to $1,500,000 without affecting your credit score. Best for companies seeking large business loans.	Go to siteView details Compare product selection Compare	loading
9.5 Excellent Lendzi	9.5 Excellent	$5,000	$20,000,000	Varies by lender	Minimum credit score of 500, minimum annual revenue of $120,000, preferably one to two years in business	Compare lending options and get funded fast.	Go to siteView details Compare product selection Compare	loading
9.5 Excellent Fundera business loans	9.5 Excellent	$2,500	$5,000,000	Varies by lender	$60,000+ of annual revenue, 600+ personal credit score, in business for 6+ months	Get connected with short-term funding, SBA loans, lines of credit and more.	Go to siteView details Compare product selection Compare	loading
8.8 Great PayPal LoanBuilder	8.8 Great	$5,000	$300,000	Fixed fee (amount not disclosed)	Minimum credit score not disclosed, 9+ months in business, at least $33,300 in annual revenue	Go to siteView details Compare product selection Compare	loading

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How we picked these

What is the Finder Score?

The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.

Read the full breakdown

Types of franchise financing

Here’s a quick breakdown of the main ways franchisees fund their business.

How to qualify for franchise financing

Requirements vary by lender and loan type, but most franchise lenders look at a similar set of factors.

• A qualifying credit score. Often 620 or higher for SBA loans, though ROBS has no credit requirement at all.
• Enough liquidity for your equity injection. Often 10%–30% of the total investment, or 15%–20% for a franchise-specialist loan like ApplePie Capital’s.
• A confirmed franchise agreement or letter of intent. Lenders want to see your relationship with the franchisor formalized.
• A business plan with revenue projections. This shows lenders how you’ll repay the loan.
• Sufficient collateral, if required. Some loan types, like unsecured loans, skip this requirement entirely.

How to apply for franchise financing

1. Confirm your franchise brand’s financing options by checking Item 10 of the Franchise Disclosure Document.
2. Get prequalified with a franchise specialist, SBA lender, marketplace or ROBS provider based on your credit and liquidity.
3. Gather your business plan, franchise agreement and financial documents.
4. Compare offers on rate, term, fees and funding speed before signing.

Alternatives to franchise financing

• Franchisor financing. Some franchisors offer in-house financing or a list of preferred lenders. Ask about Item 10 of the Franchise Disclosure Document before shopping elsewhere.
• SBA microloans. Smaller loans, up to $50,000, from nonprofit intermediary lenders, useful for lower-cost franchise concepts.
• Personal savings or home equity. Using your own cash or home equity avoids interest but puts personal assets at risk if the franchise doesn’t succeed.
• Business line of credit. Useful for ongoing working capital once your franchise is open, rather than the initial buy-in.
• Equipment financing or leasing. A separate way to cover kitchen, retail or service equipment without tying up your main loan amount.

Frequently asked questions

• Can you get an SBA loan for any franchise?

  Only if the SBA lists your franchise brand in its Franchise Directory. If it doesn't, the franchisor can apply to add it, which can add time to your funding timeline.

• How much money do you need to buy a franchise?

  It depends entirely on the brand — some home-based franchises start in the low thousands, while established restaurant and retail brands can run into the millions once you include the franchise fee, build-out and working capital.

• Can you use a 401(k) to buy a franchise without penalties?

  Yes, through a ROBS structure like the one Guidant Financial offers. You roll retirement funds into a new 401(k) tied to a C-corporation that owns the franchise, which avoids early withdrawal penalties and taxes as long as you set it up correctly.

• Do marketplaces like Lendio or Fundera charge franchisees a fee?

  No, the lender you're matched with typically pays these marketplaces, not you, though accepting an offer may still involve lender-specific fees.

To make sure you get accurate and helpful information, this guide has been edited by Richard Laycock as part of our fact-checking process.

Written by

Megan B. Shepherd

Editor, Loans & Insurance

Megan B. Shepherd is a personal finance expert and editor for loans and insurance at Finder. Her personal finance expertise has been featured on Forbes, Nasdaq, MediaFeed, Fox News, Time, Reviews.com, and carinsurance.com, adding invaluable information related to personal loans, financial strategies and smart borrowing tactics. Megan graduated from the University of Texas at Dallas with a BS in Business Administration with an entrepreneurial focus. She's worked as a certified financial adviser and has earned certificates of completion from A.D. Banker & Company. See full bio

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