How to Finance Your Franchise

Not everyone has the cash on hand to invest in a franchise — but the good news is, funding is easier to obtain than you might think.

Below, we’ve outlined the 4 most common methods to fund a franchise investment.

Click the button below to use our Free Funding Calculator to see how much franchise you can afford.

Most Popular Ways to Finance a Franchise

Investing in a franchise is a major life decision involving significant financial consideration and long-term commitment. It’s also incredibly rewarding and hands-down the best path toward business ownership and building wealth. Here are five reasons you shouldn’t go it alone.

SBA Loans (Small Business Administration Loans)

Why It's Popular: Low interest rates, longer repayment terms, and lower down payments. How It Works: Backed by the U.S. government, SBA loans are offered through banks and lenders.

ROBS (Rollover for Business Startups)

Why It's Popular: Allows you to fund your franchise using retirement savings without paying early withdrawal fees or taxes. No debt option. How It Works: You roll over funds from your 401(k) or IRA into a new corporation, which then invests in your franchise.

Home Equity Loans or HELOCs (Home Equity Line of Credit)

Why It's Popular: Leverages your home's equity to secure low-interest, flexible funding. How It Works: You borrow against the equity in your home, either as a lump sum (home equity loan) or a revolving line of credit (HELOC).

Traditional Bank Loans

Why It's Popular: Offers access to larger funding amounts with fixed interest rates. How It Works: Borrowers apply directly to a bank or credit union. These loans tend to have stricter requirements than SBA loans but may be quicker to process.

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