# Franchise Business Loans for Existing Owners

> Franchise business loans for owners already open: term loans, lines of credit, MCA, revenue-based financing, equipment, factoring, with requirements per product.

Source: https://mfebusinessloans.com/franchise-funding/business-loans/ (Merchant Fund Express, updated 2026-10-21)

## The short answer

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.

## Which product fits my franchise right now?

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.

## How does Merchant Fund Express read a franchise file?

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:
Unit-level deposits: card settlements and cash deposits for the unit, not the franchisor's system sales.
Royalty and advertising-fund debits: read as normal recurring costs. Payment capacity is sized after them, so they never count against you as a warning sign.
The entity: most owners hold each unit in its own LLC. Each entity is reviewed on its own statements (see franchise units in separate LLCs).
Existing positions: current advances, equipment notes and SBA payments are counted, and a new structure can lower the total payment.
Time open: the tier you land in depends mostly on years in business, revenue and credit.

## Tier 1 or Tier 2: which door am I walking through?

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.

## Worked example: one owner, two units, two products

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.

## What do I send to get a decision?

The 5-minute application (soft credit pull to start).
About 3 months of business bank statements for each entity that is applying.
A list of current advances, equipment notes or SBA payments (the business debt schedule format works).
For equipment, the vendor quote. For factoring, the open invoice list.
Full financials only above $250,000.
No tax returns for a typical first review. The franchise documents checklist has the full list.

## Is this for buying a franchise or opening my first unit?

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.

## What about the SBA?

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.

## Keep reading

Franchise funding hub: Every franchise page, sector and brand in one place.
MCA vs business loan for franchise owners: The cost and speed trade-off in detail.
Multi-unit franchise funding: How several units and entities are reviewed together.
Franchise funding requirements: The full Tier 1 and Tier 2 tables.
Apply in about 5 minutes: Soft credit pull to start.

## Common questions

### Do you fund existing franchise owners in every brand?

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.

### Will royalty debits hurt my application?

No. Merchant Fund Express reads royalty and advertising-fund debits as normal recurring costs and sizes the payment after them.

### Which product is cheapest?

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.

### Can I combine two products?

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.

### Can a sole proprietor or ITIN holder apply?

Yes. Sole proprietors are eligible, ITIN applicants are accepted, and Spanish-speaking support is available. Non-profits are not eligible.

### How fast is the decision?

Same-day on a complete file, with funding often the next business day. See fast franchise funding.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=mfebusinessloans.com&utm_medium=franchise&utm_campaign=franchise-funding&utm_content=business-loans