# Seasonal Franchise Cash Flow Funding

> Seasonal franchise unit? Merchant Fund Express funds the slow months: royalty minimums, ad fund debits, payroll and rent, with payments sized to revenue or LOC draws.

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

## The short answer

Already running a seasonal franchise and facing the slow months? Merchant Fund Express funds seasonal franchise units: ice cream and frozen treat shops in winter, tax-prep offices after April, lawn and pool services in the off-season, beach-area units, tutoring centers in summer. We read the full year of deposits, count royalty and ad fund debits as normal costs, and match the structure to the swing: revenue-based financing with payments sized to revenue, or line of credit draws.

## Which franchise units are seasonal, and when is the gap?

Unit type | Slow stretch | Spend before the rebound |
Ice cream and frozen treats | November to February | Spring opening stock and staff |
Tax-prep offices | May to December | Office rent and core staff year-round, hiring in January |
Lawn and pool services | Late fall and winter | Equipment and chemicals before spring |
Beach and resort-area units | Off-season months | Summer staffing and stock |
School-year tutoring and learning centers | Summer | Fall enrollment marketing |
The general guides are financing a seasonal business and funding with seasonal revenue. What a franchise adds is fixed costs set by the system.

## Why do franchise costs hurt more in the slow months?

An independent owner can cut almost everything when sales drop. A franchise unit often cannot. Many franchise agreements set royalty minimums or fixed advertising-fund contributions, so the debit leaves the account even in a month of thin sales. Technology fees, brand-required software and the lease do not shrink either. The result is a slow month where fixed franchise debits take a much larger share of deposits than in July.
Merchant Fund Express reads those debits as normal recurring obligations and sizes any payment after them, across the whole year rather than the worst month.

## Revenue-based financing or a line of credit for a seasonal unit?

Question | Revenue-based financing | Line of credit |
Payment shape | Sized to revenue: smaller when sales drop | Interest only on what is drawn |
Best for | Units under 3 years or with deep swings | Established units bridging a known gap |
Requirement it leans on | Tier 2: 6+ months, FICO 600+, $60K verifiable revenue | Tier 1: 3+ years, FICO 650+, $300K a year |
Watch for | Minimum daily balance of $800 in the slow months | Minimum draw $10,000, 2.49% fee per draw |
Product page | Revenue-based financing | Line of credit |
Revenue-based financing is not a loan; it is repaid from a share of revenue or fixed payments sized to revenue. For the generic comparison see revenue-based financing vs line of credit.

## Worked example: an ice cream unit through the year

A hypothetical frozen-treat unit with $5,000 a month in fixed franchise and lease costs takes $40,000 of revenue-based financing in October, repaid from 10% of monthly deposits.
Month | Deposits | Payment at 10% |
Jan | $9,000 | $900 |
Feb | $11,000 | $1,100 |
Mar | $22,000 | $2,200 |
Apr | $34,000 | $3,400 |
May | $46,000 | $4,600 |
Jun | $58,000 | $5,800 |
Jul | $62,000 | $6,200 |
Aug | $55,000 | $5,500 |
Sep | $36,000 | $3,600 |
Oct | $20,000 | $2,000 |
Nov | $12,000 | $1,200 |
Dec | $10,000 | $1,000 |
In January the payment is $900 against $9,000 of deposits; in July it is $6,200 against $62,000. A fixed payment of $3,000 a month would take a third of January's deposits on top of the $5,000 in fixed costs. Sizing to revenue keeps the slow months survivable, and the summer months carry most of the repayment, which is when the unit can afford it. A line of credit would suit the same owner differently: draw $20,000 in November, repay it from April and May sales, and pay interest only for the months the money is out.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.

## How should I prepare a seasonal file?

Apply with about 3 months of statements, and keep last year's same-season statements ready so the swing is clear.
Keep the daily balance above $800 through the slow months if you want a Tier 2 product.
Keep negative days and NSFs to 5 or fewer.
List current positions, including any SBA payment.
Apply before the slow stretch, not in the middle of it.
The revenue-based financing calculator runs your own months.

## Can I fund the spring ramp-up too?

Yes. Opening stock, hiring and training before the busy season are the same need as covering the gap. Inventory builds are covered on franchise inventory funding, and the general view of every product is on franchise working capital. Terms depend on the business's revenue and history.

## Keep reading

Financing a seasonal business: The general guide to seasonal funding.
Funding with seasonal revenue: How seasonal deposits are read.
Revenue-based financing for franchise owners: Payments sized to revenue.
Franchise inventory funding: Stocking up before the season.
Franchise funding hub: Every franchise page in one place.

## Common questions

### Will a slow winter on my statements hurt my application?

Not if the pattern is seasonal. Merchant Fund Express reads the year, not one month, and sizes payments after royalty and ad fund debits.

### Do royalty minimums count against me?

They are counted as a normal recurring cost. The payment is sized after them.

### When is the best time to apply?

Before the slow stretch starts, while recent statements show strong months. Decisions are same-day on a complete file.

### Is revenue-based financing a loan?

No. It is repaid from a share of revenue or fixed payments sized to revenue.

### My tax-prep office is busy for four months. Can I apply?

Yes. Seasonal service franchises apply like any other unit; the review reads the full cycle of deposits.

### Is there extra review in California or New York?

Yes. Revenue-based financing carries extra restrictions in those two states.

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