Can you get a business loan to buy a franchise?
Yes: you can absolutely get a business loan to buy a franchise, and franchises are often easier to finance than independent startups because lenders can underwrite against the brand's established track record. SBA 7(a) loans are the most common route, covering franchise fees, build-out, equipment, and working capital, typically with around 10% down. The catch: total franchise startup costs often exceed what first-time buyers expect, and underfunding the launch is how new franchisees fail. Quordx Capital matches you with lenders experienced in franchise deals so you can fund the whole launch, not just the fee.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
How Franchise Financing Works
Lenders like franchises because the model is proven: they can see how similar units perform before lending on yours. The dominant product is the SBA 7(a) loan: up to $5M, current variable rates roughly 10.5%–14% depending on size, terms long enough to keep early payments survivable, and down payments typically around 10% for startup franchise purchases.
What lenders want from you: personal credit around 650+ for SBA deals, a down payment you can document, relevant work or management experience, and a clear picture of total project costs (franchise fee, build-out, equipment, initial inventory, and working capital reserve). Some franchisors also offer or arrange in-house financing for parts of the package; compare those terms against outside offers rather than assuming they're best.
Funding Options for Franchise Buyers
SBA 7(a) loans: (up to $5M): Best for the full franchise package (fee, build-out, and working capital) in one loan with the lowest long-term cost.
Equipment financing: ($5K–$5M+): Best for kitchen equipment, fitness gear, vehicles, or machinery your concept requires; the equipment is its own collateral.
Working capital loans: ($5K–$500K): Best for the operating cushion in your first months, or for existing franchisees smoothing cash flow.
Business lines of credit: ($10K–$250K+): Best as a standing safety net once you're open; draw only what you need, pay interest only on that.
How Quordx Capital Works
One application, about five minutes, and your documents go through Quordx Capital's matching process once. The platform pulls 3–7 best-fit lenders from a network of 50+ that includes franchise-friendly and specialty lenders, ranked by your likelihood of approval. Lender decisions generally return in 24–48 hours; simpler products fund in 3–7 business days, while SBA franchise deals take longer.
What to Expect
If you're buying a recognized brand with solid unit economics, expect genuine lender interest. If the brand is unproven or your down payment is thin, expect Quordx Capital to tell you so, and to map what's still possible, like financing the equipment separately. Every fee and term gets disclosed up front, the service costs borrowers nothing, and a conversation creates no obligation.
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Apply for Funding
No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
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Important Disclosures
Quordx Capital is a business funding broker, not a lender. We facilitate introductions between U.S. small and medium-sized businesses and lenders or capital providers in our network. All credit decisions, funding amounts, rates, fees, repayment terms, and timelines are determined solely by individual lenders based on their own underwriting criteria.
Funding figures and timelines shown on this page are illustrative and represent ranges within our lender network, they are not guarantees and individual outcomes may vary based on business profile, industry, time in business, revenue, credit history, and lender availability. Not all applicants qualify for every product.
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