Opening a franchise is a powerful way to become your own boss while leveraging a proven business model. But whether you’re launching a new location or expanding your portfolio, one challenge remains consistent: finding the right franchise loans or small business financing options. With various options available—from SBA franchise loans to franchisee working capital—it’s critical to know what works best for your growth stage.
In this guide, we’ll walk you through how to fund a franchise in 2025, the types of franchise loans available, and how Purple Tree Funding can help simplify and accelerate the process.
Unlike traditional startups, franchisees often face higher upfront costs—franchise fees, build-outs, training, marketing, and inventory—all before the doors even open. That’s why franchise startup funding must be:
If you're looking to open a location for a major brand like Dunkin’, Subway, or Anytime Fitness, your funding must meet strict deadlines and startup capital requirements. That’s where loans for franchising come in.
Franchise startup costs vary greatly, but here are common expense categories:ExpenseEstimated RangeFranchise Fee$10,000 – $50,000Real Estate & Build-Out$100,000 – $500,000Equipment$20,000 – $150,000Inventory$10,000 – $100,000Working Capital$30,000 – $100,000Total costs for most franchises typically range from $150,000 to $500,000, but some fast-casual food or hotel brands can require $1 million+ in liquid capital.
Let’s explore your most viable funding sources as a franchisee:
If your franchise is SBA-approved, you may be eligible for a Small Business Administration (SBA) 7(a) loan, known for its low rates and long repayment terms.Pros:
Cons:
Tip: Use the SBA Franchise Directory to confirm if your brand qualifies.
For entrepreneurs who can’t afford to wait, alternative lenders like Purple Tree Funding offer franchise startup loans with quick approvals and fewer restrictions. Just like we help startups secure e-commerce business funding, we also offer fast franchise capital.Use Cases:
Key Benefits:
Already own one or more franchise units? You might need capital for:
Franchise business capital loans are specifically designed for existing franchisees who are scaling their operations.Purple Tree Funding offers tailored programs for multi-unit owners, helping you grow without disrupting cash flow.
If you lack real estate or high-value assets, unsecured franchise loans could be a lifesaver. These rely more on your personal and business credit scores than assets.Best For:
Note: Interest rates are typically higher than secured loans, but many franchisees prefer them for speed and ease. If you’re struggling with credit challenges, Purple Tree Funding also offers bad credit business loans that may still help you secure franchise funding without collateral.
Once you're operational, ongoing expenses can add up. That’s where franchisee working capital solutions come in—these loans help you bridge short-term cash flow gaps.Common Uses:
Purple Tree Funding offers daily, weekly, and monthly repayment structures to match your revenue cycle.
Loan TypeSpeedCollateralMax AmountIdeal ForSBA 7(a) LoanSlow (30–90 days)Required$5 millionLong-term investmentUnsecured LoanFast (24–72 hours)None$450,000No collateral, fast cashWorking CapitalFastOptionalVariesShort-term operationsFranchise Startup LoanFastVaries$450,000Brand-new franchiseesEquipment FinancingMediumEquipment itself$100K+Equipment-heavy setups
Here’s what lenders generally look for:
Client Profile:
The Challenge:Traditional banks denied his application due to limited industry experience.The Solution:Purple Tree Funding provided a $275,000 unsecured loan split across:
Within 8 months, he opened his second location and now manages three units with a recurring revenue stream.
Purple Tree Funding isn't just another lender—we specialize in franchise business capital and fast-track your growth through:
Whether you're opening your first franchise or your fifteenth, we’re here to unlock capital without the red tape. From fitness and food to education and retail, explore the full list of industries we fund to see if your franchise brand qualifies for tailored financial support.
Your dream of owning or growing a franchise doesn’t need to be delayed by paperwork, banks, or complicated requirements.Purple Tree Funding makes it fast, simple, and tailored to your needs—so you can focus on building your business, not chasing financing. Apply loan today and get funded in as little as 24 hours.
Q1: What credit score is required for a franchise loan?A: For SBA loans, 680+ is typically needed. Purple Tree Funding can work with scores as low as 600 depending on other factors.Q2: Can I get a franchise loan without experience?A: Yes. Many first-time franchisees qualify, especially if they choose a brand with strong support and submit a solid business plan.Q3: Are there franchise loans without personal guarantees?A: Yes. Some unsecured loans offered by Purple Tree Funding come without a personal guarantee, based on financials and business structure.Q4: What’s the typical loan term?A: It depends—SBA loans may run 10–25 years. Working capital loans and franchise startup loans typically range from 6–36 months.Q5: How fast can I get funding?A: Purple Tree Funding offers next-day approvals and funding within 24–72 hours for qualified applicants.
Clear, honest info about how our funding works. No jargon—just what you need to know.
Most approvals are same day. Once approved, funds usually arrive within 24 hours—no waiting around.
We look at your business performance, not just your credit score. Cash flow and recent bank activity matter most.
Just basic business details and recent bank statements. No long forms—apply online in minutes.
We help all sizes, but you’ll usually need 6+ months in business and $20K+ monthly revenue to qualify.