Franchise funding
Every way an operating franchise unit gets capital, side by side, with the published requirement each product leans on.
✓ Merchant Fund Express starts with a soft credit pull. Terms depend on your business's revenue and history.
Updated October 21, 2026 · Merchant Fund Express
Already running a franchise and need capital? Merchant Fund Express funds existing franchise owners: business loans, lines of credit, merchant cash advances, revenue-based financing, equipment financing, working capital and invoice factoring. We read your unit-level deposits, count royalty and ad fund debits as normal costs, and size the payment after them. Amounts run from $25,000 to $5,000,000, with a same-day decision on a complete file.
Start with what the money is for and how long it takes to come back. The table lists each product Merchant Fund Express offers to operating franchise owners, the published requirement it leans on, and the job it does best in a franchise unit.
| Product | Best franchise use | Leans on | Shape |
|---|---|---|---|
| Term loan | Remodel, refresh, equipment bundle, a fixed project | 3+ years, FICO 650+, $300K a year revenue, first position only | $10K to $250K, 12 to 18 months, weekly payments |
| Line of credit | Recurring gaps: food orders, payroll weeks, royalty timing | Tier 1: 3+ years, FICO 650+, can sit in second position | $10K to $350K, draw as needed, interest on what is drawn |
| Merchant cash advance | Speed for card-heavy units | Tier 2: 6+ months, FICO 600+, $60K verifiable revenue | Purchase of future receivables, daily or weekly debits |
| Revenue-based financing | Seasonal or uneven units | Tier 2, extra restrictions in CA and NY | Payments sized to revenue |
| Equipment financing | Brand-standard ovens, coolers, lifts, POS | Vendor quote and useful life | The equipment is the purpose |
| Working capital | Short operating gaps | About 3 months of bank statements | Short term, sized to deposits |
| Invoice factoring | Units that bill business customers on terms | Invoices to commercial customers | Advance against open invoices |
Neither an MCA nor revenue-based financing is a loan; both are purchases of, or payments tied to, future revenue. The generic product explanations live on the main site pages such as business term loans and business lines of credit; this page is about how each one fits a franchise unit.
A franchise unit looks different on a bank statement than an independent shop, and the review is built for that. Here is what we read:
Merchant Fund Express publishes two requirement sets. Tier 1 opens the term loan and the line of credit: 3+ years in business, FICO 650+, $300K a year or $25K a month in revenue with 8+ deposits a month, an average balance of $5K or 10% of monthly revenue, negative days at most 3 a month, and at least 50% ownership. Tier 2 opens revenue-based financing and the MCA: 6+ months in business, FICO 600+, $60K in verifiable revenue and a minimum daily balance of $800.
A unit that opened eight months ago fits Tier 2. A ten-year operator with clean statements fits Tier 1 and gets the lowest-cost options. Full details sit on franchise funding requirements.
A hypothetical owner runs two units in two LLCs. Unit A has been open six years and deposits $42,000 a month. Unit B opened ten months ago and deposits $24,000 a month.
| Line | Figure |
|---|---|
| Unit A annual revenue | $42,000 x 12 = $504,000 |
| Term loan cap (15% of annual revenue) | $504,000 x 15% = $75,600 |
| Unit A request | $70,000 term loan for a franchisor-scheduled refresh |
| Unit B tier | Tier 2 (open less than 3 years) |
| Unit B request | $30,000 revenue-based financing for a summer staffing ramp |
Each unit is reviewed on its own deposits and its own royalty debits. Unit A's file does not carry Unit B, and the reverse.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.
No tax returns for a typical first review. The franchise documents checklist has the full list.
No. Merchant Fund Express funds franchises that are already open and depositing revenue. If you are buying your first unit, read existing vs new franchise funding. If you already operate a unit and are adding another, the current units' deposits carry the review; see funding a second franchise location.
SBA programs exist and can carry long terms, but they take longer and need far more paperwork. Merchant Fund Express does not offer SBA loans; we are the fast option for operating owners. If you already carry an SBA loan, apply anyway: the SBA payment is counted like any other obligation. Compare the two on SBA loan vs working capital. Final terms depend on the business's revenue and history.
Yes. Any operating franchise unit in all 50 states can apply. The brand matters less than the unit's deposits, time open and existing obligations.
No. Merchant Fund Express reads royalty and advertising-fund debits as normal recurring costs and sizes the payment after them.
For a Tier 1 owner, the term loan (0% origination) and the line of credit (from 1% per month, interest only on what is drawn) usually cost the least. MCA and revenue-based financing trade cost for speed and looser requirements.
Yes. A common pairing is a term loan for a refresh plus a line of credit for weekly gaps. Every existing position is counted when the second one is sized.
Yes. Sole proprietors are eligible, ITIN applicants are accepted, and Spanish-speaking support is available. Non-profits are not eligible.
Same-day on a complete file, with funding often the next business day. See fast franchise funding.
Merchant Fund Express reviews your location's revenue, deposits and existing payments. Same-day decision on a complete file; funding often the next business day. About five minutes to apply.
