Franchise funding
A dead compressor on a Friday and a planned walk-in replacement are two different problems. Here is how each one gets funded.
✓ 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 food franchise and a walk-in, freezer, reach-in or ice machine just failed or is due for replacement? Merchant Fund Express funds existing franchise owners for both: fast working capital for an urgent repair, and equipment financing built around a vendor quote for a planned replacement. We read unit-level deposits, count royalty and ad fund debits as normal costs, and give a same-day decision on a complete file.
Every food concept runs on refrigeration, and most of it is specified by the brand: approved makes, sizes, temperature ranges and sometimes the exact layout of the line. The common pieces in an operating unit:
Because the franchisor usually sets brand-standard specs, the owner rarely gets to buy the cheapest box on the floor. That pushes the replacement price up and makes the funding question more important.
This is the first question Merchant Fund Express asks, because the answer decides the product.
| Situation | Time pressure | Product that fits | Read next |
|---|---|---|---|
| Compressor or condensing unit dies mid-week | Hours to a few days | Working capital or a line of credit draw | Franchise working capital |
| Repair bill plus lost product | Days | Working capital, same-day decision | Emergency refrigeration funding |
| Walk-in at end of useful life, replacement quoted | Weeks | Equipment financing against the vendor quote | Franchise equipment financing |
| Several reach-ins and cases as part of a franchisor-scheduled refresh | Months | Term loan or equipment financing | Franchise remodel funding |
| Repeated small repairs across several units | Ongoing | Line of credit | Franchise lines of credit |
A repeated pattern of service calls on the same unit is often the signal to stop repairing and plan the replacement. The generic guide repair or replace restaurant equipment walks through that call.
When the box is warm, speed matters more than the last fraction of cost. Working capital and a merchant cash advance are built for this: about 5 minutes to apply, a soft credit pull to start, about 3 months of business bank statements, and a same-day decision on a complete file. Funding often lands the next business day.
A merchant cash advance is a purchase of future receivables, not a loan; it is repaid by daily or weekly debits until the agreed amount is reached. It fits card-heavy food units with 6+ months in business, FICO 600+ and $60K in verifiable revenue. Owners with 3+ years and Tier 1 numbers should keep a line of credit open so the next repair is a draw, not an application.
For a planned walk-in, freezer or case replacement, equipment financing is the cleaner fit: the equipment is the purpose, the vendor quote sets the amount, and the useful life frames the term. Send these with the request:
Compare the two routes in equipment financing vs working capital.
A hypothetical quick-service unit loses its walk-in cooler compressor on a Thursday night.
| Line | Figure |
|---|---|
| Product discarded (proteins, dairy, produce) | $4,200 |
| Emergency compressor replacement and labor | $7,800 |
| Rental reefer trailer for 3 days | $900 |
| Lost sales: 1 day closed at $3,100 a day | $3,100 |
| Total hit | $4,200 + $7,800 + $900 + $3,100 = $16,000 |
| If the 12-year-old box is replaced instead (quoted) | $28,000 installed |
The owner can fund the $16,000 hit with working capital and keep running, or treat the failure as the trigger to replace the whole box with equipment financing. If a second compressor failure would cost another $16,000, the replacement starts to look cheaper than repeated emergencies.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.
Merchant Fund Express reads royalty and ad fund debits as normal recurring costs and sizes the payment after them, so a unit that pays its franchisor every week is not penalized for it. We look at the deposits of the entity that owns the unit with the failed equipment; a multi-unit owner with each store in its own LLC applies through that unit's entity (see franchise units in separate LLCs). Existing positions are counted, and a new structure can lower the payment where an older advance is heavy.
Terms depend on the unit's revenue and history. Amounts run from $25,000 to $5,000,000 overall.
Merchant Fund Express gives a same-day decision on a complete file, and funding often arrives the next business day. Have about 3 months of bank statements and the repair quote ready when you apply.
Repair when the box is sound and the failure is a single part. Plan a replacement when service calls repeat, the unit is near the end of its useful life or a franchisor-scheduled refresh is coming anyway.
Fund what your franchise agreement requires. Put the approved make and model on the vendor quote so the request matches the equipment you will actually install.
Yes. Each unit is reviewed through the entity that owns it, so a multi-unit owner may submit one request per entity or a combined plan. See the multi-unit guide.
No. It is a purchase of future receivables repaid by daily or weekly debits. It is fast, which is why it fits emergency repairs, but compare the total cost against a line of credit if you qualify for Tier 1.
Not for a typical first review. About 3 months of business bank statements is the starting point; full financials usually come in only above $250,000.
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.
