# Funding for Multi-Unit Franchise Owners

> How funding works for multi-unit franchise owners: unit-level revenue, one LLC per unit vs one operating company, ownership, personal guarantee and which entity applies.

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

## The short answer

Multi-unit franchise funding is reviewed entity by entity. Merchant Fund Express reads the deposits, royalty debits and existing obligations of the entity that applies, so the structure of your companies decides what counts. If each unit sits in its own LLC, the applying LLC's statements carry the file; if one operating company runs every unit, the combined deposits do.

## How is unit-level revenue read?

A franchisee with four units does not have one revenue figure; it has four, plus whatever the holding structure shows. The review starts with the bank account that receives the sales of the applying entity, over about 3 months.
Card settlements and cash deposits for each unit, in the account that receives them
Royalty and advertising-fund debits per unit (normal recurring obligations)
Transfers between your own entities, which are not revenue (see what deposits count as revenue)
Existing payments drawn from each account
A strong unit can carry a request; a weak unit in the same group does not automatically sink it, unless the weak unit's obligations are paid from the applying account.

## One LLC per unit or one operating company?

Structure | What the review reads | Advantage | Watch for |
One LLC per unit, each with its own bank account | That unit's deposits and obligations | Clean unit-level picture; each unit applies on its own numbers | A single unit may be too small for the amount you want |
One operating company runs all units, one account | Combined deposits of every unit | Larger revenue base | Every unit's obligations are counted together |
Holding company owns several unit LLCs | Usually the operating LLC with the deposits | Flexibility to choose the strongest unit | Holding company itself often has no sales deposits |
Mixed: some units together, some separate | Whichever entity applies | Choose the entity that fits the purpose | Owners must be clear which account pays |
Neither structure is better for funding in general. The point is to apply with the entity that actually receives the revenue and will make the payments.

## Ownership percentage and the personal guarantee

Tier 1 products (line of credit and term loan) need at least 50% ownership of the applying entity. Multi-unit groups often have partners with different stakes in different units, so check your percentage in the specific LLC that applies, not the group overall.
Many funding agreements ask the owner to sign a personal guarantee. When you hold several entities, read who signs and for which entity. A personal guarantee on one LLC's obligation is still your personal obligation, so before you take on another, list every personal guarantee already signed across your entities. Merchant Fund Express asks for an honest picture of the group, because a reviewer who finds an undisclosed obligation later has to start the file over. Your own records of these, along with a business debt schedule, make the review faster.

## How are existing obligations at each entity counted?

Existing positions are counted at the entity that pays them. If Unit 2's LLC carries an advance and Unit 3's LLC applies, Unit 2's payment is not drawn from Unit 3's account, but disclose it anyway. Tier 1 allows at most 2 existing positions; Tier 2 allows up to 2 current advances. A new structure can lower the payment you carry today. See existing positions.

## Which entity should apply?

Name the purpose: a repair at one unit, a remodel, payroll across units, or opening another location.
Pick the entity that owns that asset or pays that cost.
Check that entity's 3 months of statements, ownership and existing positions against the requirements.
If one unit is too small, consider whether the operating company is the more accurate applicant.
Apply once, with that entity, and say plainly that you operate other units.
Merchant Fund Express gives a same-day decision on a complete file; funding often follows the next business day.

## Opening another location as a multi-unit owner

An existing owner opening another unit is reviewed on the current units' deposits, entity by entity. The new site has no history yet, so the request rests on what the operating units already show. Read opening a franchise location and the broader funding for multi-location businesses. If you have no operating unit yet, start with existing vs new.
A practical sequence for multi-unit growth: stabilize the newest unit until its deposits look like the others, keep each unit's bank account separate so its history stays readable, and apply for the next location when the operating entity can carry the payment from current deposits alone. Merchant Fund Express sizes the request from what the statements show today, not from the projected sales of the unit you have not opened.

## Keep reading

Franchise funding hub: all franchise guides
Multi-location business funding: the general guide
Open a franchise location: adding another unit
Franchise funding documents: what to send per entity
Franchise funding requirements: tier minimums

## Common questions

### Can I apply for all my units at once?

You apply with one entity. If one operating company runs every unit, its combined deposits are reviewed. If each unit is a separate LLC, each applies on its own statements.

### Do I need statements for every unit?

You need about 3 months of statements for the applying entity. Mention the other units and their existing positions; the reviewer may ask for more.

### Does a personal guarantee on one LLC affect another application?

It is a personal obligation, so disclose it. Keep a list of each personal guarantee already signed across your entities.

### What ownership do I need?

At least 50% of the applying entity for Tier 1 products. Check the percentage in that specific LLC.

### How much can a multi-unit group get?

Funding runs from $25,000 to $5,000,000, sized from the applying entity's deposits and obligations. Full financials are usually needed only above $250,000.

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