Franchise funding
When daily advance debits land on top of royalty and advertising-fund drafts, the unit feels squeezed every week. Here is how a new structure brings the payment down.
✓ 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
If a daily merchant cash advance debit is stacked on your royalty and advertising-fund drafts, Merchant Fund Express can review the whole picture and build a new structure with a lower payment: a longer term, weekly instead of daily payments, and a payment sized after royalties. Send the current agreements, balances and about 3 months of business bank statements, and you get a same-day decision on a complete file.
An independent shop has one set of fixed debits. A franchise unit has two that never pause: the royalty draft and the advertising-fund draft, usually pulled on the franchisor's schedule whether the week was strong or slow. Add a daily advance debit on every business day and the bank account sees money leave five times a week before payroll, food or parts orders and rent are even counted.
The result is a pattern any operator recognizes: the balance dips every Monday, a slow weather week triggers a negative day, and the owner starts moving cash between units to cover. The advance itself may have made sense when it was signed. The problem is the payment shape, not the owner.
Merchant Fund Express reads royalty and ad fund debits as normal recurring costs and sizes any new payment after them. Three levers bring the number down:
| Lever | What it does to the payment | Trade-off to weigh |
|---|---|---|
| Longer term | The same obligation spread over more weeks means a smaller payment each week | More total dollars repaid over the life; compare total cost |
| Weekly instead of daily | One debit a week, timed away from the royalty draft | Plan the weekly date around payroll |
| Sized after royalties | Payment fits what is left after royalty, ad fund, rent and labor | The amount can be smaller than the owner asked for |
| Product fit | An established unit with strong history can be reviewed for a term structure with weekly payments | Tier 1 standards apply; see requirements |
Read the general mechanics on the best way to lower a daily advance payment. This page covers what is specific to franchise units.
A hypothetical unit deposits $90,000 a month. Royalty and ad fund drafts total $1,600 a week. The current advance debits $650 every business day.
| Line | Figure |
|---|---|
| Current advance (daily) | $650 x about 21.7 business days = about $14,100 a month |
| Royalty and ad fund | $1,600 x 52 / 12 = about $6,930 a month |
| Fixed debits today | $14,100 + $6,930 = $21,030, about 23.4% of deposits |
| New structure (weekly) | $2,100 x 52 / 12 = $9,100 a month |
| Fixed debits after | $9,100 + $6,930 = $16,030, about 17.8% of deposits |
| Monthly room gained | $21,030 - $16,030 = $5,000 |
The payment drops by about $5,000 a month and the unit gets four fewer debit days each week. The longer term means more total dollars repaid, so the owner should weigh breathing room against total cost with the offer comparison calculator.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.
The faster the full picture arrives, the faster the decision. For a franchise unit, send:
No tax returns for a typical first review. The application takes about 5 minutes with a soft credit pull to start.
The cleanest files share a few traits: the unit has been open long enough to show steady deposits, the advance has been paid on time, and the royalty schedule is visible on the statements. Owners with one advance and a strong unit often have the most room to bring the payment down. Owners carrying two advances should also read franchise funding with existing advances, which walks through how positions are counted.
Do not take a new advance from another funder to cover this week's debits. Every new position makes the payment harder to bring down. Keep deposits flowing into the same business account, avoid moving card settlements to a different bank, and keep the royalty drafts current, because a missed royalty draft is a bigger problem with the franchisor than any funding question. Merchant Fund Express can only size a lower payment on what the statements show.
Yes. Merchant Fund Express reviews the unit's deposits, royalty and ad fund drafts and current advance, then builds a structure with a lower payment, usually a longer term with weekly payments.
Often, yes. A longer term usually means more dollars repaid overall. The point is a payment the unit can carry every week; compare total cost before you sign.
No. They are read as normal recurring costs, and the new payment is sized after them.
Same-day decision on a complete file, with funding often the next business day.
Up to 2 current advances are allowed in the Tier 2 review. Both are counted, and the new structure is sized against the combined burden.
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.
