Based on analysis of 192 franchises in FranchiseStack's database, investment requirements vary from $3,000 for eXp Realty to over $4.7 million for Burger King. SBA loans are the most common method for franchisees to bridge this capital gap, offering longer terms and lower down payments than traditional bank loans. Brands like The UPS Store ($178K-$403K) and Anytime Fitness ($398K-$974K) frequently utilize SBA 7(a) loans for their mid-range startup costs.
The SBA Franchise Directory is a list of franchise brands that have been reviewed and approved by the SBA, simplifying the loan process for franchisees of those brands.
Yes, with an investment range of $1,315K to $2,307K, McDonald's franchisees often utilize SBA 7(a) or 504 loans to cover real estate and equipment costs.
While the SBA does not set a hard minimum, most lenders require a personal FICO score of 680 or higher to qualify for franchise financing.
Yes, SBA 7(a) loan proceeds can be used to pay the initial franchise fee, as well as leasehold improvements and inventory.
The timeline typically ranges from 60 to 120 days, depending on the lender's efficiency and whether the brand is already on the SBA Franchise Directory.
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