Most new franchisees fund their first location with a mix of personal capital, an SBA loan, and one creative source. Here's how it works — and what you qualify for.
A quick estimate based on standard SBA and lender ratios.
Cash, savings, brokerage, and other accessible funds.
Including home equity and retirement accounts.
This is a typical range you could realistically deploy with a blend of cash + SBA financing. Brands with strong unit economics often qualify for higher leverage.
Estimate only. Final approval depends on credit, business plan, and the brand's Item 7 disclosures.
Most owners combine two of these — for example, ROBS for the down payment plus an SBA loan for the rest.
The default path. Up to $5M, 10-year terms, 10–25% down. Most major franchise brands are on the SBA Franchise Directory, which speeds approval.
Roll an existing 401(k) or IRA into your new C-corp tax-free, with no early withdrawal penalty. Funds the business as equity, not debt.
Tap home equity for a low-interest line of credit. Common as a partial funding source alongside SBA.
Borrow against a non-retirement brokerage account at low rates without selling positions or triggering capital gains.
We'll connect you with vetted SBA and ROBS partners and walk you through your options on a free 30-minute call.
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