Franchise funding
Speed for card-heavy units, with the debit math done before you sign.
✓ 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
A merchant cash advance from Merchant Fund Express buys a share of a franchise unit's future card and deposit receipts for a lump sum today, repaid by daily or weekly debits until the agreed amount is reached. It is not a loan. It fits card-heavy units such as quick-service, coffee and pizza franchises that need capital fast and land in Tier 2: 6+ months open, FICO 600+, $60K in verifiable revenue.
A drive-through, coffee counter or pizza delivery unit takes most of its sales on cards, settled every business day. That steady settlement stream is exactly what an MCA is built on. The advance is sized from deposits, so a unit open less than three years, or with credit that keeps it out of Tier 1, still has a fast path. Sector guides: quick-service franchises, coffee franchises and pizza franchises.
The generic product explanation is on merchant cash advance. Full franchise requirements are on franchise funding requirements.
This is the question that matters most for a franchise owner. A unit already sends money out on a schedule: royalties, the advertising fund, often a technology fee, plus rent and supplier drafts. An MCA adds a debit on every business day (or once a week). Merchant Fund Express reads the royalty and ad fund debits as normal recurring costs and sizes the advance so the new debit fits after them.
| Debit | Timing | What drives it |
|---|---|---|
| Royalty and ad fund | Weekly or monthly | Fixed percentage of sales, set by the franchise agreement |
| MCA debit | Daily (business days) or weekly | Fixed until the agreed amount is reached |
| Payroll | Weekly or every two weeks | Largest cash outflow most weeks |
| Supplier drafts | Per delivery | Varies with volume |
A hypothetical coffee franchise unit deposits $68,000 a month, almost all card settlements, over about 21 business days.
| Line | Figure |
|---|---|
| Monthly deposits | $68,000 |
| Advance amount | $40,000 |
| Agreed amount (hypothetical factor 1.30) | $40,000 x 1.30 = $52,000 |
| Cost of the advance | $52,000 - $40,000 = $12,000 |
| Daily debit over about 9 months (190 business days) | $52,000 / 190 = about $274 |
| Monthly MCA debits | $274 x 21 = about $5,754 |
| MCA burden on deposits | $5,754 / $68,000 = about 8.5% |
| Royalty and ad fund (hypothetical 9% of sales) | $68,000 x 9% = $6,120 |
| Combined fixed-percentage outflow | $5,754 + $6,120 = $11,874, about 17.5% |
The owner sees both numbers before signing: the MCA on its own, and the MCA plus franchise fees. Run your own on the payment burden 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 side-by-side trade-off is on MCA vs business loan for franchise owners.
Up to 2 current advances are allowed in Tier 2. Existing positions are counted, and a new structure can lower the total payment. Merchant Fund Express looks at every debit leaving the account before sizing anything new. Read lowering your franchise MCA payment if the current debit is too heavy. Terms depend on the business's revenue and history.
An owner with three or four units often has one unit carrying the group: the busiest location deposits the most, so it is tempting to place every advance there. Merchant Fund Express reviews each entity on its own deposits and its own royalty debits, so the advance lands on the unit that can carry it. A newer unit in Tier 2 can take its own advance while an older unit in Tier 1 takes a line of credit. Read multi-unit franchise funding for how entities are kept separate.
No. It is a purchase of future receivables, repaid by daily or weekly debits until the agreed amount is reached.
Same-day decision on a complete file, with funding often the next business day.
They are counted as normal costs and the advance is sized after them. A unit with healthy deposits after royalties is a strong MCA file.
Weekly debits are available on some structures. Ask for them if your royalty and payroll run weekly.
Yes, with extra restrictions in both states. Owners there should expect a few more questions.
The 5-minute application and about 3 months of business bank statements for the unit's entity. See franchise documents.
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.
