Franchise funding
Food, retail goods, parts and supplies for units that buy from approved vendors on the system's calendar.
✓ 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 to stock up? Merchant Fund Express funds inventory for existing franchise units: weekly food and supply orders, promo and limited-time-offer stock builds, holiday inventory, retail goods and parts. For recurring orders a line of credit draw fits best; for a one-time build, working capital; for units with uneven sales, revenue-based financing. Same-day decision on a complete file.
An independent owner picks suppliers and haggles terms. A franchise unit usually buys from an approved vendor list or a commissary, on the vendor's delivery schedule and payment terms, often with little room to shop around. The products are fixed by the brand, so you cannot swap to something cheaper when cash is tight. And promotions are set system-wide: when the national calendar launches a limited-time offer, every unit needs the stock on the same week.
Merchant Fund Express reads those orders the way they appear on your statements: regular debits to the same distributor, royalty and ad fund debits beside them, all treated as normal costs. The generic guide to stocking up is inventory financing for small business; this page covers the franchise version.
| Inventory need | Timing | Product that fits |
|---|---|---|
| Weekly distributor or commissary orders | Every week | Line of credit: draw when needed, interest only on what is drawn |
| LTO or promo stock build | 2 to 4 weeks before launch | Line of credit draw or working capital |
| Holiday stock (retail, gifting, baking) | 6 to 10 weeks before the season | Working capital, repaid as holiday sales come in |
| Parts and supply stock for service units | Ongoing, lumpy | Line of credit |
| Uneven sales with a big stock-up | Before the busy stretch | Revenue-based financing, payments sized to revenue |
| Display fixtures and coolers for the stock | One time | Equipment financing |
Lines of credit run $10,000 to $350,000 with a minimum draw of $10,000, a 2.49% fee per draw, no maintenance fee and no early repayment penalty. They need Tier 1: 3+ years in business, FICO 650+ and $300K a year in revenue. Units open less than three years usually fit working capital or revenue-based financing.
Limited-time offers concentrate cost up front: new ingredients or goods, packaging, menu boards and point-of-sale materials arrive before the first sale. If the promotion works, the stock turns in weeks. That shape fits a short draw better than a long fixed payment.
| Line | Figure |
|---|---|
| Promo stock and packaging | $15,000 |
| Draw fee (2.49%) | $15,000 x 2.49% = $373.50 |
| Interest at 1% per month on $15,000 | $150 for a full month |
| Repaid in 6 weeks from promo sales | Interest stops when the draw is repaid |
| Rough cost of the build | $373.50 + about $225 = about $598.50 |
The same unit could use working capital for holiday stock in the fall and keep the line free for weekly orders.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.
Owners with several units can draw for each unit's orders from its own entity; see multi-unit franchise funding.
Retail units carry stock on shelves for weeks, so holiday builds are larger and slower to turn; retail seasonal inventory financing covers that pattern. Service franchises (auto, repair, cleaning) hold parts and chemicals that turn as jobs close. Food units turn stock in days, so they rarely need more than a line. Terms depend on the business's revenue and history.
Yes. A line of credit is built for it: draw when the order lands, repay when sales settle, and pay interest only on what is drawn.
No. Merchant Fund Express reads required-vendor and commissary debits as normal recurring costs, the same as royalty and ad fund debits.
$10,000 per draw, with a 2.49% fee per draw.
Working capital or revenue-based financing. Tier 2 needs 6+ months in business, FICO 600+ and $60K in verifiable revenue.
Yes. Apply 6 to 10 weeks out with your vendor order; decisions are same-day on a complete file.
No. A merchant cash advance is a purchase of future receivables, not a loan. It fits when speed matters most.
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.
