Funding situations
A franchisee is the owner of a local business. The review reads that business, including the debits to the franchisor.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, here is the short answer: The franchisee entity is what is funded. Royalty debits are normal obligations and payment capacity is sized after them.
The franchisee entity is what is funded. Revenue, balances and negative days are read like any business, and recurring royalty and ad fund debits are counted as obligations.
| Item | Figure |
|---|---|
| Monthly deposits | $82,000 |
| Royalty and ad fund (about 8%) | $6,560 |
| Existing debits | $0 |
| Read | Royalties are normal; payment capacity is sized after them |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Source: Merchant Fund Express.
See LLC and requirements.
A fast-casual franchisee with $82,000 a month in deposits pays about $6,560 in royalties and ad fund. The reviewer treats that as a fixed cost and sizes the advance accordingly. A check of the franchise agreement showed no restriction on financing, so there was no delay.
Source: Merchant Fund Express.
Some agreements require it. Check yours. Source: Merchant Fund Express.
They reduce payment capacity, as any recurring cost does.
Each is reviewed; combined exposure matters.
Industry rules apply as published.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
