Frequently Asked Questions

The cash injection required to finance a franchise purchase varies depending on the type of lending product, the individual and the franchise being purchased. Lenders may require anywhere from 0% to 30% cash down, depending on the lending product. As for equipment leasing, the lessor will typically require a deposit of the first and last month's payment or 10% of the amount being financed.

To receive commercial funding, lenders require that you be incorporated. Whether you form a corporation, LLC or other business entity, the best business structure for your new enterprise is going to depend on a number of variables. Once you've determined the most appropriate entity for your operation, FranFund can assist you in the incorporation process.

FranFund is the only solutions provider focused exclusively on franchise capitalization. Just tell us what you need and we'll show you how. FranFund does the homework, the legwork and the paperwork. Plus, with FranFund, you have a financing partner that's with you throughout the life of your business.

FranFund believes in thorough planning prior to implementing a capitalization strategy. The planning process typically takes 3-5 business days once all of your information has been submitted. Implementing the capitalization strategy can take anywhere from two weeks to several months, depending on the source and scope of the project and the source of the funds.

Debt funding is a means by which franchise investors borrow money to capitalize their new enterprise. Debt can consist of an SBA loan, conventional lending or even equipment leasing. How do you know which debt strategy is best for you? FranFund can work with you to discover the most appropriate borrowing strategy and then work as your advocate in the process of securing the necessary funds.

Equity funding is a cash injection into a new business enterprise by the owner(s). Every business purchase requires some type of cash injection from the owner. There is no such thing as a "no money down" deal in franchising. In fact, most franchisors require a minimum investment from a new franchisee. Many people have the majority of their net worth tied up in their retirement accounts and their homes, which can present a problem when trying to capitalize a business. If it is determined through the planning process that retirement funds or home equity is a viable alternative for you, FranFund will assist you by providing ways to utilize retirement money through our FranPlan product, as well as provide access to home equity.

Unlike some lending institutions, we offer our initial consulting services at no charge. Once you engage us as your financing partner and the application process begins, FranFund charges you fees that range from 1% to 9.9%, depending on the size and the complexity of the loan or lease product(s) involved. Additional charges apply for FranPlan. For more details, click here