Franchise funding
For owners who already run a unit and signed for the next one: what the current units carry, what gets funded, and when.
✓ 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 franchise and opening the next unit? Merchant Fund Express funds existing franchise owners for expansion: build-out working capital, brand-standard equipment, opening payroll and first inventory. The review reads the deposits of the units you already operate, entity by entity, because the new unit has no history yet. Amounts run from $25,000 to $5,000,000, with a same-day decision on a complete file.
A unit that has not opened has no deposits, and every product Merchant Fund Express offers is sized from deposits. So the expansion is funded on the strength of what is already open. If Unit 1 sits in its own LLC and has been depositing for four years, Unit 1's LLC is the applicant: its statements, its royalty and ad fund debits, its existing positions. The new unit's LLC is where the money gets spent.
Owners with two or more open units can apply through more than one entity, and each is read on its own statements. That is the core difference from buying a first franchise, which needs an operating history and is covered on existing vs new franchise funding. For how several entities sit together, see franchise units in separate LLCs.
| Cost line | Funded? | Product that fits |
|---|---|---|
| Build-out working capital (contractor draws, permits, signage installs) | Yes | Working capital or a term loan |
| Brand-standard equipment (ovens, coolers, chairs, lifts, POS) | Yes | Equipment financing on the vendor quote |
| Opening payroll (hiring and training weeks before sales start) | Yes | Line of credit draws or working capital |
| Opening inventory and supplies | Yes | Line of credit draw or working capital |
| Pre-opening local marketing | Yes | Working capital |
| Franchise fee for a first unit | No | A first unit needs an operating history first |
| Buying land or a building | No | Real estate is outside the product set |
The generic explanation of opening another location lives on open a franchise location and funding for a second location. This page is the franchise owner's version: development schedules, brand-standard build-outs and a unit LLC with no statements yet.
Franchise expansion runs on a schedule the owner does not fully control: the franchisor approves the site, the landlord hands over the space, the contractor works to brand specs. Money is needed at specific steps, not all at once.
| Step | Typical window | Funding move |
|---|---|---|
| Sign the development commitment | Months 0 to 1 | Nothing yet; keep current units' statements clean |
| Site approval and lease signing | Months 1 to 4 | Security deposit and lease costs come from cash on hand |
| Build-out starts | Months 4 to 7 | Apply here: working capital or a term loan for contractor draws |
| Equipment order | Months 5 to 7 | Equipment financing on the vendor quote |
| Hiring and training | Final 4 to 6 weeks | Line of credit draws for payroll before revenue |
| Opening and first 90 days | Opening onward | Line of credit for inventory and slow first weeks |
Because the decision is same-day on a complete file and funding often lands the next business day, there is no reason to borrow months early and carry the cost while the space sits empty.
A hypothetical owner runs two units, each in its own LLC. Unit 1 is five years old and deposits $55,000 a month. Unit 2 is three and a half years old and deposits $38,000 a month. Unit 3 is in build-out under a new LLC.
| Line | Figure |
|---|---|
| Unit 1 annual revenue | $55,000 x 12 = $660,000 |
| Term loan cap on Unit 1 (15% of annual revenue) | $660,000 x 15% = $99,000 |
| Unit 1 request | $90,000 term loan for build-out draws, weekly payments |
| Unit 3 equipment | Equipment financing on a $70,000 vendor quote |
| Unit 2 request | $40,000 line of credit for training payroll and opening inventory |
| Total expansion capital | $90,000 + $70,000 + $40,000 = $200,000 |
Each request is read on the applying entity's own deposits after its royalty and ad fund debits. Unit 1's term loan sits in first position, so Unit 1 should carry no current advance. Unit 2's line can sit in second position.
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 counts what the group already owes. If Unit 1 takes a term loan for Unit 3, a later request from Unit 2 is sized with that in view. Multi-unit operators planning several openings should read multi-unit franchise funding for how capacity is spread across entities. Terms depend on each business's revenue and history.
Not until it has deposits. Apply through the open unit's entity; once the new unit has a few months of statements, it can apply on its own.
Merchant Fund Express does not fund the franchise fee for a first unit. For an existing owner, capital goes to build-out, equipment, payroll and inventory for the new unit.
They are read as normal recurring costs and the payment is sized after them. They are expected in a franchise file, not a warning sign.
Yes. The equipment is its own purpose on a vendor quote; the term loan covers the build-out. Both are counted when sizing the next request.
No. Real estate is outside what Merchant Fund Express funds. Leased sites are the normal fit.
Same-day decision on a complete file, with funding often the next business day. Apply when the contractor is ready to start.
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.
