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Franchise Funding That Actually Closes

Buying a franchise requires the right capital structure — SBA loans for startups, conventional financing for resales, working capital for operations, and institutional credit for multi-unit operators. PeerSense connects franchise buyers with the sources that fund deals like yours.

How do you finance a franchise?

The most common franchise financing options are SBA 7(a) loans up to $5M with 10% down, ROBS (using retirement funds), conventional bank loans, and franchisor financing. PeerSense matches franchise buyers with SBA lenders who actively finance their specific brand and have a track record of closing similar deals.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 2026.

PeerSense has a background in franchising — we've worked with franchise buyers, multi-unit operators, and franchise systems. Capital is the single biggest obstacle in franchise growth. We solve it.

Opening Your First Franchise

Standard SBA 7(a) franchise loans go up to $5 million. For U.S. manufacturers and select qualifying businesses, the MARC program allows SBA financing up to $10 million. Franchise loans follow standard SBA down payment requirements — typically 10% minimum equity injection at closing. Your brand must be listed in the SBA Franchise Directory (most major brands are). Timeline: 45–90 days from application to close.

Buying an Existing Franchise Location

Treated as a business acquisition under SBA guidelines. Valuation, goodwill treatment, and seller note structuring are all critical. We work with SBA lenders who specialize in franchise resales and understand how to value a transferring franchise.

Expanding to Multiple Units

SBA becomes complicated at scale. For multi-territory or multi-unit expansion, private credit options exist: credit facilities, revolving acquisition lines, and institutional capital for larger rollups. PeerSense can structure both the SBA side and the private credit side depending on deal size and operator profile.

Franchise Working Capital

Fast-funding options for payroll gaps, seasonal inventory, and renovation costs. 24-hour to 5-day funding available. Unsecured lines for strong operators.

What to Expect at Closing

Down payment requirements for franchise financing vary based on whether you are buying an existing location or opening a new one:

Existing franchise location: Typically 10% down, sometimes structured with seller financing to reduce the buyer's out-of-pocket cash to as little as 5% (subject to current SBA seller note rules and lender approval).
New franchise: Typically 10% to 20% or more at closing, depending on the franchise brand's SBA approval status, the strength of the business plan, and lender appetite. Newer brands or less-proven models may require more equity.
Multi-unit or larger acquisitions: Down payment percentage may increase with deal size and complexity. Some deals require 20% to 30% depending on how the capital stack is structured.

The seller, franchisor, or third-party equity can sometimes contribute to the required injection — but structure matters. PeerSense helps you understand what your specific deal requires before you go to a lender. Run the numbers with our SBA Loan Calculator to estimate your monthly payment and total cost before you start the process.

All financing subject to lender approval and current SBA guidelines.

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Frequently Asked Questions

Franchise Clients on Working With Ed

Verified via LinkedInSBA + ROBS Funding
Ed is an exceptional franchise broker. He offers cost-effective 401(k)/IRA ROBS solutions and SBA funding options that set him apart in the industry. Unlike most, he provides these services without any upfront fees — which is VERY rare to find. Ed also brings helpful tax strategies and ideas to the table. His network is another standout feature — connections include franchise and non-franchise attorneys, investment bankers, financial advisors, tax consultants, and private equity investors.
Joshua Malik, Founder & CEO · Joshua Tree Experts — Tree Care FranchiseVerify source →
Verified via LinkedInMulti-Unit Franchise
Ed is as good as they come in his field. He is extremely persistent, knowledgeable and willing to go the extra mile for his clients. I worked with Ed for close to two years trying to find a franchise I thought was right for me. I had nearly given up hope. Then Ed called me at 6:30pm on a Friday night and he had found the perfect fit. I ended up purchasing three territories of the men's health franchise Ed presented to me.
Jerod Wolff, Commercial ManagerVerify source →
Verified via LinkedInSBA + Institutional Capital
Ed's expertise in financial solutions has been instrumental in our franchisee's success. He consistently demonstrates an exceptional ability to provide unique and cost-effective 401(k)/IRA ROBS solutions and SBA funding options. His network spans individuals capable of writing multi-million-dollar checks to entities prepared to invest up to one or two billion dollars. What truly sets Edward apart is his dedication to honest and straightforward communication.
Dylan DeGroat, Director of Operations · Joshua Tree Experts FranchisingVerify source →
Verified via LinkedInMulti-Unit Franchise
Ed is an exceptional leader and consultant in the franchising industry. He is consistent and thorough in his follow up and helped our brand execute our first multi-unit franchisee in the Scottsdale market. He works hard for his clients and provides them with the support and guidance to give them confidence in their decision to invest in a franchise.
Kaitlin Johnson, Franchise Advisor & Development LeaderVerify source →
Verified via LinkedInFranchise Acquisition
Even after I purchased the Franchise, Ed is still a part of my journey — following up to see if he can help in any way, or just being a friend and asking how things are going. I would highly recommend using Ed's company if you are considering purchasing a franchise. No pressure — only good honest information and guidance.
Matt Hamm, Vice President · PharmaneekVerify source →
Verified via LinkedInFranchise Placement
Ed at Peersense was awesome to work with. He has a realistic and no BS outlook on things and he truly cares about finding the right franchise for you. I initially talked to multiple franchise consultants but quickly decided to work exclusively with Ed and he ended up finding the perfect franchise opportunity for me!
Matt Haugen, MS, EntrepreneurVerify source →
Verified via LinkedInMedical Franchise
Mr. Edward Freeman is a self motivated entrepreneur who is a go getter. I have enjoyed working with Mr. Freeman on various projects and found him to be energetic and goal oriented. I highly recommend Mr. Freeman for any projects requiring his expertise.
Dr. Matthew Steiner, MD, Medical Director · Gameday Men's HealthVerify source →

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Ready to Finance Your Franchise?

If you have found a franchise to buy and the deal makes sense, there is likely a financing structure that works. The question is which one — and that depends on your specific situation. PeerSense connects franchise buyers with the right lender for their deal. One conversation. Direct introduction. No runaround.

Or call (317) 452-6990 to discuss your franchise directly.

This is not a franchise offering and does not constitute financial, investment, or legal advice. Data is sourced from Franchise Disclosure Documents (FDDs), public filings, and third-party sources and may contain inaccuracies. PeerSense is not a financial advisor, attorney, or accountant. Always consult the brand's current FDD and seek professional guidance from a qualified attorney, accountant, or financial advisor before making any franchise investment decision. See full Terms & Conditions.