# Equipment Financing for Franchise Owners

> Franchise equipment financing: vendor quotes, replacing failed equipment vs equipping a new site, useful life vs term, and an equipment table by sector.

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

## The short answer

Equipment financing pays for a specific machine at a franchise unit, using the vendor's quote and the equipment as the purpose. Merchant Fund Express reviews it for operating units: replacing failed equipment or adding capacity at a location that already has deposits. Equipping a brand-new site needs an operating history first, so that case routes to the existing-vs-new guide.

## Replacing failed equipment or equipping a new site?

These look alike on an invoice but are very different files.
Situation | Operating history | How it is reviewed | Next step |
Replacing a failed walk-in, oven or lift | Operating unit with deposits | Reviewed on the unit's bank statements and existing payments | Apply with the vendor quote |
Adding capacity (a second oven, more treadmills) | Operating unit with deposits | Reviewed the same way; the quote shows the added item | Apply with the vendor quote |
Full equipment package for a site not yet open | No operating history at that site | Needs an operating history; not a startup product | Read existing vs new |
Package for an additional unit by an existing owner | Current units have deposits | Reviewed on the current units' deposits, entity by entity | Read multi-unit funding |
Merchant Fund Express funds operating businesses. If you are buying your first franchise, start with buying a franchise.

## What should the equipment quote show?

A clean quote shortens the review. Most franchise systems publish an approved-vendor or approved-equipment list; get the quote from that vendor so the item matches what the franchisor allows.
Vendor name and address, and the quote date
Make, model and quantity of each item
Price per item, delivery, installation and removal of the old unit
Whether the item is new or used
The vendor's stated service life or warranty period
For a replacement, a technician's note on the failed unit if you have one

## How should the term compare with the equipment's useful life?

The rule of thumb: do not still be paying for a machine after it is worn out. If a vendor states a service life of several years, a term well inside that window leaves room for the next replacement. A short-lived item (small wares, a POS tablet) rarely justifies a long payment.
There are no separate published minimums for equipment financing; we review the quote, the useful life and the unit's deposits together, and size a payment the deposits can carry after royalties and existing positions. Test it with the payment burden calculator.
Ask the vendor whether installation, freight and removal of the old unit are in the quoted price. Those lines are easy to forget and can add a meaningful share to the total. Also ask whether the vendor offers its own lease, and compare its total cost with the payment Merchant Fund Express offers before choosing.

## Equipment by franchise type

Franchise type | Typical equipment | What to watch | Related guide |
Restaurant (sandwich, pizza, wings) | Walk-in coolers, ovens, fryers, slicers, hoods | Failed refrigeration is urgent; spoiled inventory adds to the cost | Refrigeration funding |
Fitness | Treadmills, strength racks, cardio lines | Replacement often happens in batches as a line ages | Fitness equipment |
Salon | Styling chairs, dryers, shampoo stations | Lower ticket per item; many items per refresh | Salon funding |
Automotive service | Lifts, alignment machines, tire changers, diagnostics | Bay downtime costs revenue every day it lasts | Alignment machines |
Print and shipping | Wide-format printers, production copiers, finishing gear | Leases are common; compare total cost | Equipment financing |

## How does the review read a franchise equipment file?

Merchant Fund Express reads the entity that owns the unit: its deposits over about 3 months, its royalty and advertising-fund debits (normal recurring obligations), and its existing positions. Existing positions are counted, and a new structure can lower the payment you carry today.
Bank statements (PDFs from the bank) for the operating entity
The vendor quote
A list of existing payments
If several units: which entity owns the equipment and will make the payments
A complete file gets a same-day decision; funding often follows the next business day. Sector detail lives on the sandwich, fitness and automotive pages.

## Equipment financing or working capital?

If the money buys one identified machine, equipment financing keeps the purpose clear. If the failure also cost you inventory, overtime and lost sales, the extra cash need is better handled as working capital. For a broader rebuild of the space, see remodel financing.

## Keep reading

Franchise funding hub: all franchise guides
Existing vs new franchise funding: if the site is not open yet
Franchise working capital: for the cash around a breakdown
Equipment financing: the general product page

## Common questions

### Do I need to use the franchisor's approved vendor?

That depends on your franchise agreement, not on us. Most owners get the quote from the approved vendor so the item matches what the system allows.

### Can I finance used equipment?

Used equipment can be reviewed. The quote should say it is used, and the term should be shorter to match a shorter remaining life.

### Can I finance the full equipment package for a unit I have not opened?

Not as a startup product. A site with no operating history needs one first; an existing owner opening another unit is reviewed on the current units' deposits.

### Are there minimums for equipment financing?

There are no separate published minimums. The review looks at the quote, useful life and the operating unit's deposits and obligations.

### How fast can a replacement be funded?

Merchant Fund Express gives a same-day decision on a complete file, and funding often follows the next business day.

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