Based on analysis of 192 franchises in FranchiseStack's database, SBA financing is the most common path for funding initial investments. While low-capital franchises like Jan-Pro ($4K-$56K) often qualify for SBA Microloans, high-investment brands such as Taco Bell ($576K-$3.37M) or Dairy Queen ($1.5M-$2.5M) typically utilize the SBA 7(a) or 504 programs. Eligibility is strictly tied to the SBA Franchise Directory, which verifies that the franchisor's agreement does not impose excessive control over the small business owner.
A franchise is eligible if it is listed on the SBA Franchise Directory, which confirms the brand meets SBA's size and independence standards.
Most lenders require a 10% down payment, though 20% is often required for high-investment brands like McDonald's ($1.3M-$2.3M).
Yes, SBA Microloans are designed for investments under $50,000, making them ideal for brands like Jan-Pro or eXp Realty.
Required documents include the Franchise Disclosure Document (FDD), a detailed business plan, personal financial statements, and three years of tax returns.
The standard SBA 7(a) loan process typically takes 60 to 90 days from application to funding.
FranchiseStack's Deep Dive Report delivers FDD highlights, ROI snapshot, and territory basics for one franchise — under 5 minutes.