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Franchise businesses account for more than 800,000 establishments across the United States, generating over $936 billion in economic output annually. For aspiring entrepreneurs, opening a franchise offers something rare: the chance to run your own business with a proven playbook, built-in brand recognition, and support from day one.

But knowing you want to start a franchise and knowing how to start one are very different things. From choosing the right brand to understanding franchise fees, navigating legal documents, and securing financing, the process involves real decisions with real financial consequences. This guide walks you through every step of starting a franchise business, including the costs, the timeline, and the financing options that most guides skip over entirely.

What Is a Franchise and How Does It Work

The Franchisor-Franchisee Relationship

A franchise is a business arrangement where one party (the franchisor) licenses its brand, operating systems, and intellectual property to another party (the franchisee). In exchange, the franchisee pays an upfront franchise fee plus ongoing royalties, typically calculated as a percentage of gross revenue.

The franchisor provides the business model, training programs, marketing support, and operational guidelines. The franchisee invests the capital, manages day-to-day operations, hires staff, and serves customers within their designated territory. Think of it as buying a business-in-a-box, but one that comes with obligations on both sides.

Federal law requires every franchisor to provide a Franchise Disclosure Document (FDD) before any money changes hands. The FTC's Consumer Guide to Buying a Franchise outlines the 23 mandatory disclosure items that every FDD must include, covering everything from the franchisor's financial health to litigation history and franchisee turnover rates.

Types of Franchises You Can Own

Not all franchises look the same. Understanding the different models helps you narrow your search to opportunities that match your goals and budget.

• Business format franchises are the most common type. The franchisor provides a complete operating system, including branding, training, marketing, and ongoing support. Fast food restaurants, fitness centers, and home service companies typically fall into this category.
• Product distribution franchises focus on selling the franchisor's products rather than operating under a full business system. Auto dealerships and beverage distributors are classic examples.
• Management franchises are designed for owners who hire a team to run the business rather than working in it daily. These are common in hospitality, staffing, and commercial cleaning.

Popular franchise industries include food service, health and fitness, home services, automotive repair, education, pet care, and business services. According to the International Franchise Association's 2025 Economic Outlook, personal services franchises are currently the fastest-growing segment, expanding at 4.3% annually.

Pros and Cons of Owning a Franchise

Why Franchise Ownership Appeals to New Entrepreneurs

Franchise ownership offers several advantages that independent startups simply cannot replicate from day one.

• Proven business model. You are buying into a concept that has already been tested, refined, and scaled. The trial-and-error phase that sinks many independent businesses has already been handled.
• Brand recognition. Customers already know and trust established franchise brands. That built-in credibility means you can generate revenue faster than a brand-new, unknown business.
• Training and support. Most franchisors provide comprehensive initial training plus ongoing operational, marketing, and technology support. You do not need industry experience to get started with many franchise systems.
• Easier access to financing. Lenders generally view franchise businesses as lower-risk than independent startups because of the established brand and business model. Franchise financing options are widely available through SBA loans, conventional lenders, and alternative financing providers like Fundwell.
• Peer network. As a franchisee, you join a network of fellow owners who face similar challenges. That built-in community can be invaluable for troubleshooting, benchmarking, and motivation.

Challenges and Limitations to Consider

Franchise ownership is not right for everyone, and it is important to go in with realistic expectations.

• Significant upfront investment. Franchise fees, build-out costs, equipment, and working capital can add up quickly. Total initial investments typically range from $50,000 to well over $500,000 depending on the brand and industry.
• Ongoing royalty payments. Most franchisors charge royalties of 4% to 8% of gross revenue, plus marketing fund contributions of 1% to 3%. These fees apply regardless of whether you are profitable in a given month.
• Limited autonomy. You must follow the franchisor's systems, pricing guidelines, approved suppliers, and branding standards. If you are someone who wants full creative control over your business, franchising may feel restrictive.
• Territorial restrictions. Your franchise agreement typically limits where you can operate, which can cap your growth potential in certain markets.
• Contractual obligations. Franchise agreements are long-term commitments, often 10 to 20 years, with specific conditions for renewal, transfer, and termination.

How Much Does It Cost to Start a Franchise

Franchise Fees, Royalties, and Ongoing Costs

The franchise fee is the one-time upfront payment you make to the franchisor for the right to use their brand and systems. Initial franchise fees typically range from $10,000 to $50,000, though premium brands can charge $50,000 or more.

Beyond the franchise fee, you will also pay ongoing costs throughout the life of your franchise agreement. Here is a breakdown of what to expect.

• Royalty fees typically range from 4% to 8% of gross monthly revenue
• Marketing or advertising fund contributions usually run 1% to 3% of gross revenue
• Technology fees for point-of-sale systems, CRM software, or proprietary platforms may cost $100 to $500 per month
• Insurance premiums including general liability, workers' compensation, and property insurance
• Lease or rent payments for your physical location, if applicable

Total Investment by Franchise Tier

The total investment required to open a franchise varies dramatically based on the industry, brand, and location. Here is a general breakdown by tier to help you set realistic expectations:

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These ranges come from Item 7 of the Franchise Disclosure Document, which every franchisor is required to provide. Always review this section carefully and budget for the high end of the estimate.

Hidden Costs Most First-Time Owners Miss

The FDD gives you a cost range, but first-time franchise owners are often caught off guard by expenses that fall outside those estimates or add up faster than expected.

• Working capital reserves. Most franchises take 6 to 18 months to reach profitability. You need enough cash to cover your personal living expenses and business operating costs during that ramp-up period.
• Professional fees. Hiring a franchise attorney to review your FDD and franchise agreement may cost $2,000 to $5,000. An accountant to set up your books and advise on tax structure adds another $1,000 to $3,000.
• Real estate and build-out overruns. Construction costs, permitting delays, and landlord negotiations can push your timeline and budget well beyond initial projections.
• Grand opening marketing. While some franchisors include marketing support, others expect franchisees to fund their own local launch campaigns.
• Additional staffing before revenue. You may need to hire and train employees weeks before opening day, which means payroll costs without any incoming revenue.

How to Choose the Right Franchise for You

Matching Your Skills, Interests, and Financial Goals

Choosing a franchise is not just about finding a popular brand. The right franchise aligns with your skills, lifestyle preferences, and financial reality. Ask yourself these questions before you start researching specific brands.

• Do you want to work in the business daily, or manage a team from a higher level?
• What industries genuinely interest you? Passion matters when you are building something long-term.
• How much capital can you realistically invest without putting your personal finances at risk?
• What is your target income, and is it realistic for the franchise category you are considering?
• Are you comfortable following someone else's playbook, or do you need creative freedom?

Resources like the Entrepreneur Franchise 500 rankings and the International Franchise Association's directory can help you compare brands across industries, investment levels, and growth trajectories.

Researching Franchise Performance and Reputation

Once you have a shortlist, dig into the details. The FDD is your most powerful research tool because franchisors are legally required to disclose specific financial and operational information.

Pay close attention to these FDD items when you evaluate a franchise opportunity.

• Item 3 (Litigation) reveals any lawsuits filed by or against the franchisor, including disputes with franchisees
• Item 7 (Estimated Initial Investment) provides the full range of startup costs you should budget for
• Item 19 (Financial Performance Representations) is optional, but when included, it shows actual revenue and earnings data from existing franchise locations
• Item 20 (Outlets and Franchisee Information) lists every current and former franchisee, including those who left the system in the past year
• Item 21 (Financial Statements) includes the franchisor's audited financials so you can assess their financial health

Questions to Ask Before Signing Anything

Before committing to any franchise, talk to current and former franchisees. Item 20 of the FDD gives you their contact information. Use it. Here are the questions that matter most.

• How long did it take to break even and become profitable?
• Are the cost estimates in Item 7 of the FDD accurate, or did you spend more?
• How responsive and supportive is the corporate team when you need help?
• Would you buy this franchise again knowing what you know now?
• What is the biggest challenge you did not expect?
• How is the territory? Is there enough demand to sustain the business?
• Has the franchisor made any changes recently that affected your profitability?
• What does a typical day look like as a franchise owner?

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How to Start a Franchise in 10 Steps

1. Assess Your Readiness and Financial Position

Before you research a single brand, take an honest look at your finances. Most franchise opportunities require a minimum net worth (often $100,000 to $500,000) and liquid capital (typically $50,000 to $150,000). Pull your credit report, calculate your available capital, and determine how much you can invest without jeopardizing your financial stability.

This is also the time to have an honest conversation with your family. Franchise ownership demands time, energy, and financial commitment, especially during the first year. Make sure everyone is on the same page.

2. Research Industries and Franchise Opportunities

Start broad and narrow down. Explore different industries, compare investment levels, and identify brands that align with your interests and financial position. Browse the most profitable franchises to see which categories consistently deliver strong returns for owners.

Request FDDs from the brands that interest you. Federal law requires franchisors to provide this document at least 14 calendar days before you sign any agreement or pay any fees. Take that time seriously and read every page.

3. Attend Discovery Days and Talk to Existing Franchisees

Most franchisors host "Discovery Days" where prospective franchisees visit corporate headquarters, meet the leadership team, tour existing locations, and learn about the business firsthand. These events are a two-way interview: the franchisor is evaluating you just as much as you are evaluating them.

Equally important is talking to existing franchisees on your own, without the franchisor present. Ask about their actual experience, costs, revenue, and satisfaction levels. These conversations will give you the unfiltered truth that no sales presentation can provide.

4. Review the Franchise Disclosure Document

The FDD is a dense legal document, but it contains every piece of information you need to make an informed decision. Hire a franchise attorney who specializes in this area to walk through it with you. Key items to scrutinize include the franchise fee structure (Item 5), estimated initial investment (Item 7), territory rights (Item 12), renewal and termination conditions (Item 17), and financial performance data (Item 19, if provided).

5. Write a Business Plan

Even though you are buying into an existing model, you still need a business plan. This document maps out your market analysis, financial projections, staffing plan, and growth strategy. A solid business plan is essential for two reasons: it forces you to think critically about your franchise investment, and it is typically required by lenders if you are seeking a small business loan to fund your franchise.

6. Secure Financing

Most franchise owners do not pay for everything out of pocket. Financing is a normal and expected part of the process. Your options include SBA 7(a) loans, conventional bank loans, revenue-based financing, equipment financing, and in some cases, financing offered directly by the franchisor. We cover financing in detail in the section below.

7. Form Your Business Entity

Before signing your franchise agreement, set up a legal entity for your business. Most franchise owners form an LLC or corporation to protect personal assets from business liabilities. Work with an attorney or accountant to choose the structure that provides the best liability protection and tax advantages for your situation.

8. Sign the Franchise Agreement

The franchise agreement is a binding contract that defines the relationship between you and the franchisor for the life of your franchise, typically 10 to 20 years. It covers your rights, obligations, fees, territorial protections, and the conditions under which either party can terminate the agreement. Never sign without having a franchise attorney review every clause.

9. Build Out Your Location and Hire Your Team

Once the agreement is signed and financing is in place, you move into the execution phase. This includes securing and building out your physical location (if applicable), ordering equipment and inventory, obtaining business licenses and permits, and hiring your initial team. Your franchisor will typically provide site selection guidance, approved vendor lists, and build-out specifications.

10. Complete Training and Open for Business

Most franchisors require new owners to complete a training program before opening. This may include classroom instruction at corporate headquarters, on-site training at your location, and a supported opening period where corporate staff are on-site to help you through the first days and weeks. After that, you are officially open for business.

Financing Your Franchise Purchase

Financing is the step that makes or breaks most franchise dreams. The good news is that franchise businesses are generally easier to finance than independent startups because lenders can evaluate the brand's track record. Here are your primary options.

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SBA Loans for Franchise Buyers

The SBA 7(a) loan program is one of the most popular financing vehicles for franchise purchases. The Small Business Administration does not lend money directly. Instead, it guarantees a portion of the loan made by an approved lender, which reduces the bank's risk and makes it easier for you to qualify.

SBA 7(a) loans can be used for franchise fees, equipment, inventory, working capital, and even real estate. Loan amounts go up to $5 million with repayment terms of 10 to 25 years depending on the use of funds. To be eligible, your franchise must be listed in the SBA's Franchise Directory, which includes most major franchise systems.

The catch? SBA loans can take 30 to 90 days to close and require thorough documentation, including a business plan, personal financial statements, and credit history. Plan accordingly if you are on a timeline set by your franchisor.

Conventional Bank Loans and Lines of Credit

Traditional bank loans and business lines of credit are another option, especially if you have strong personal credit, collateral, and a solid financial history. These loans may close faster than SBA loans and can offer competitive interest rates for well-qualified borrowers.

The downside is that conventional loans often require a larger down payment (typically 20% to 30% of the total project cost) and may have stricter qualification criteria than SBA-backed financing.

Alternative Financing Options

Not every franchise buyer qualifies for an SBA or conventional bank loan, and that is where alternative financing comes in. Options to consider include the following.

• Revenue-based financing allows you to borrow against projected or existing business revenue. Providers like Fundwell specialize in flexible working capital solutions that can help cover franchise startup costs, equipment purchases, and initial operating expenses with faster approval timelines than traditional bank loans.
• Equipment financing lets you borrow specifically for the machinery, vehicles, or technology your franchise needs, with the equipment itself serving as collateral.
• 401(k) business financing (ROBS) allows you to use retirement funds to invest in your franchise without early withdrawal penalties. This strategy carries risk and requires careful structuring with a qualified provider.
• Franchisor financing. Some franchise systems offer in-house financing or have partnerships with preferred lenders who understand the brand's financial model.

What Lenders Look for in a Franchise Loan Application

Regardless of which financing path you choose, lenders evaluate similar criteria when reviewing your application.

• Personal credit score. Most lenders want a score of 680 or higher for SBA loans. Alternative lenders like Fundwell may be more flexible, with options for a range of credit profiles.
• Net worth and liquid capital. Lenders want to see that you have enough personal assets to weather the early months of business ownership.
• Business plan. A well-prepared plan demonstrates that you understand your market, competitive landscape, and financial projections.
• Franchise brand strength. Lenders evaluate the franchise system itself, including unit economics, franchisee success rates, and the brand's overall financial health.
• Industry experience. While not always required, relevant industry or management experience strengthens your application.

Red Flags to Watch for in Franchise Opportunities

Warning Signs in the FDD

The FDD is designed to protect prospective franchisees, but you need to know what to look for. Here are warning signs that should make you pause and dig deeper.

• High franchisee turnover. If Item 20 shows a large number of franchisees leaving the system each year, that is a red flag. Some turnover is normal, but a pattern of exits (especially in recent years) suggests systemic problems.
• Significant litigation history. Item 3 discloses lawsuits involving the franchisor. A long list of franchisee disputes may indicate a contentious relationship between corporate and its franchise owners.
• No Item 19 disclosure. While providing financial performance data is optional, franchisors who choose not to disclose it may be hiding underwhelming unit economics. It is not a dealbreaker on its own, but it means you will need to work harder to get real numbers from existing franchisees.
• Frequent changes to the FDD. If the franchisor has made major changes to fees, territory sizes, or operational requirements in recent years, understand why before you commit.

Pressure Tactics and Unrealistic Promises

Reputable franchisors want franchisees who have done their homework. Be cautious of any franchise that does the following.

• Pushes you to sign quickly or claims the territory "will not be available" much longer
• Guarantees specific income levels or promises you will be profitable within a certain timeframe
• Discourages you from speaking with current or former franchisees
• Minimizes the importance of hiring a franchise attorney to review your documents
• Requires large, non-refundable deposits before you have had adequate time to review the FDD

The FTC requires a 14-day cooling-off period between receiving the FDD and signing any agreement. Any franchisor that tries to rush you past that timeline is not acting in your best interest.

How Long Does It Take to Open a Franchise

Typical Timeline From Research to Opening Day

The entire process of starting a franchise, from initial research to opening your doors, typically takes 6 to 18 months. Here is a rough breakdown of what to expect at each stage.

• Research and evaluation: 1 to 3 months. This includes exploring industries, requesting FDDs, attending discovery days, and talking to franchisees.
• FDD review and legal process: 2 to 4 weeks. Your franchise attorney reviews the documents and you negotiate any terms.
• Financing: 2 to 8 weeks. SBA loans take longer (30 to 90 days), while alternative lenders can fund in as little as a few days.
• Site selection and lease negotiation: 1 to 3 months, depending on your market and the franchisor's requirements.
• Build-out and permitting: 2 to 6 months. Construction, inspections, equipment installation, and obtaining all necessary licenses.
• Hiring and training: 2 to 6 weeks. Recruiting your initial team, completing franchisor training, and preparing for launch.

Factors That Speed Up or Slow Down the Process

Several variables can push your timeline in either direction.

• Franchise type. Home-based or mobile franchises can launch in as little as 2 to 3 months. Brick-and-mortar locations with significant build-out requirements take much longer.
• Real estate availability. Finding the right location in a competitive market can add months to your timeline.
• Financing speed. Traditional bank and SBA loans require extensive documentation and underwriting. Partnering with a lender like Fundwell for working capital can help bridge timing gaps while longer-term financing closes.
• Local permitting. Some municipalities process business licenses and construction permits faster than others. Research your local requirements early.
• Franchisor capacity. Popular franchise brands may have a queue for new franchisees, especially in desirable territories.

Franchise Ownership vs Starting a Business From Scratch

Comparing Costs, Risk, and Support

If you are considering entrepreneurship, you are probably weighing whether to buy a franchise or build something from scratch. Both paths have merit, and the right choice depends on your personality, goals, and risk tolerance. Here is how they compare across the factors that matter most:

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Which Path Fits Your Goals

Franchise ownership tends to be the better fit if you want a structured path to business ownership, prefer a proven system over building from scratch, and value the training and support that comes with an established brand. It is especially appealing for first-time entrepreneurs, career changers, and investors looking for a semi-passive business model.

Starting an independent business makes more sense if you have a unique product or service idea, want complete control over every aspect of your company, and are comfortable with a higher level of uncertainty. Independent businesses offer unlimited upside potential but also carry significantly more risk during the early years.

According to data from the U.S. Bureau of Labor Statistics, roughly 20% of new businesses fail within their first year, and about 50% do not survive past five years. While franchise-specific survival rates vary by brand and industry, the structure, training, and brand recognition that franchises provide can help mitigate some of that risk.

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Get Started on Your Franchise Journey

Starting a franchise is one of the most accessible paths to business ownership, but it requires real preparation. You need to understand the costs, evaluate the opportunity with clear eyes, secure the right financing, and go in with realistic expectations about the timeline and commitment involved.

The good news is that you do not have to figure out the financing piece alone. Whether you are exploring startup business loans, SBA-backed financing, or flexible working capital to cover the gaps, Fundwell helps aspiring franchise owners access the funding they need to get started. With fast approvals, flexible terms, and real human support, Fundwell has helped businesses across every franchise industry secure over $1 billion in total funding.

Explore your franchise financing options with Fundwell today.

Frequently Asked Questions About Starting a Franchise

Can you start a franchise with no money?

Technically, no. Every franchise requires some financial investment, even low-cost options. However, you can minimize out-of-pocket costs by using financing. SBA loans, franchise financing programs, and alternative lenders can cover a significant portion of your startup costs. Some franchisors also offer in-house financing or deferred fee structures for qualified candidates.

What is the cheapest franchise to open?

The lowest-cost franchises are typically home-based or mobile service businesses with total investments under $25,000. Examples include cleaning services, lawn care, tutoring, and consulting franchises. Keep in mind that lower investment does not always mean lower effort. Many affordable franchises require significant hands-on time from the owner, especially in the early months.

How much do franchise owners make per year?

Franchise owner income varies widely by brand, industry, and location. According to various industry surveys, the median franchise owner earns between $50,000 and $125,000 per year. Top-performing owners in high-revenue categories like fast food, fitness, or automotive services can earn significantly more. The best way to gauge earning potential is to review Item 19 of the FDD (if available) and speak directly with current franchisees.

Do you need business experience to own a franchise?

No. One of the biggest advantages of franchise ownership is that the franchisor provides comprehensive training on how to operate the business. Many successful franchise owners come from completely unrelated industries or corporate careers. That said, skills in management, sales, customer service, and basic financial literacy will serve you well regardless of the franchise you choose.

Is owning a franchise worth it?

For the right person, yes. Franchise ownership offers a structured path to entrepreneurship with built-in support, a proven business model, and access to financing that independent startups often cannot get. It is worth it if you value those advantages and are comfortable operating within someone else's system. It may not be worth it if you need full creative control, want to build a brand from scratch, or are not prepared for the ongoing fee obligations. The key is doing thorough due diligence before you commit.

The franchise industry is on track to exceed $921 billion in economic output in 2026, with more than 845,000 franchise establishments operating across the United States. For aspiring business owners, buying a franchise can be one of the most reliable paths to profitability, but not all franchises are created equal. Some generate millions in annual revenue with strong owner earnings, while others struggle to break even.

At Fundwell, we help franchise buyers secure the financing they need to invest in proven business models. This guide breaks down the most profitable franchises to own right now, organized by industry, investment level, and the metrics that actually matter for your bottom line.

What Makes a Franchise Profitable

Before diving into specific franchise brands, it helps to understand what "profitable" actually means in the franchise world. A franchise with $4 million in annual revenue might sound impressive, but if operating costs eat up 95% of that number, the owner's take-home could be surprisingly modest.

Revenue Versus Owner Earnings

Average unit volume (AUV) is the most commonly cited metric in franchise profitability discussions. It represents the average annual revenue generated by a single franchise location. However, AUV does not equal profit. Owner earnings are what remains after subtracting all expenses from revenue. Those expenses include the following:

• Cost of goods sold (inventory, raw materials, supplies)
• Labor costs (wages, benefits, payroll taxes)
• Occupancy costs (rent, utilities, maintenance)
• Royalty fees (typically 4% to 8% of gross revenue)
• Marketing fees (typically 1% to 3% of gross revenue)
• Debt service (loan payments if you financed the purchase)

A franchise with lower AUV but higher margins can actually put more money in your pocket than a high-revenue brand with razor-thin margins. When evaluating profitability, always look beyond the top-line revenue number.

Key Metrics That Signal Profitability

Several financial metrics can help you compare franchise opportunities effectively. Here are the most important ones to track:

• Return on investment (ROI): Net profit divided by total investment, expressed as a percentage. A strong franchise ROI typically falls between 15% and 25% annually.
• Gross profit margin: Revenue minus cost of goods sold, divided by revenue. Higher margins mean more room to cover operating expenses and still generate profit.
• Sales-to-investment ratio: Total annual revenue divided by initial investment. A ratio above 2:1 is generally considered strong for franchises.
• Break-even timeline: How long it takes to recoup your initial investment through accumulated profits. Most franchises break even within 12 to 36 months, depending on the industry and investment level.

Why Item 19 of the FDD Matters

The Franchise Disclosure Document (FDD) is a legal document that every franchisor must provide to prospective buyers under the FTC's Franchise Rule. It contains 23 items of required information, but Item 19 is the one that matters most for evaluating profitability.

Item 19, called "Financial Performance Representations," is where franchisors can disclose actual financial performance data from existing franchise locations. This may include average revenue, median revenue, revenue by quartile, and sometimes even profit margins or owner earnings. Not every franchisor includes Item 19 in their FDD. When a franchise chooses not to disclose this information, consider it a yellow flag worth investigating further.

Most Profitable Franchise Industries

Franchise profitability varies significantly by industry. Some sectors offer high revenue with tight margins, while others deliver lower revenue with much stronger owner earnings. Here are the industries that consistently produce the most profitable franchise opportunities.

Quick-Service Restaurants

Quick-service restaurants remain the highest-revenue franchise category in the United States. The U.S. QSR market is valued at over $447 billion and continues to grow as consumers prioritize convenience and affordability.

Chick-fil-A leads the pack with an average unit volume of approximately $9.3 million per location, making it the highest-grossing restaurant franchise per unit in the country. McDonald's franchised locations average roughly $3.97 million in annual sales, and Raising Cane's has quickly climbed the ranks with strong per-unit performance driven by a simplified menu.

The trade-off with QSR franchises is the investment required. McDonald's requires at least $500,000 in liquid assets just to apply, with total investments ranging from $1 million to $2.2 million. QSR margins can also be tighter than service-based franchises due to food costs, labor, and real estate expenses. If you are considering a restaurant franchise investment, make sure you understand the full cost picture before committing.

Home Services and Cleaning

Home services and cleaning franchises consistently rank among the most profitable franchise categories relative to investment. These businesses benefit from recurring revenue, low overhead, and the ability to scale by adding service teams rather than building new locations.

Servpro, which specializes in disaster restoration and cleaning, requires an initial investment of $241,000 to $302,000 and has built a strong reputation for consistent demand. The Maids, a residential cleaning franchise, has reported average franchise revenue of approximately $1.1 million with initial investments starting under $125,000. Mosquito Joe and similar home service brands offer even lower entry points with fast break-even timelines.

What makes this category attractive is the margin structure. Without the food costs, heavy equipment, or large retail spaces that other industries require, home service franchise owners often keep a larger percentage of their revenue as profit.

Fitness and Wellness

Fitness franchises benefit from a membership-based revenue model that creates predictable, recurring cash flow. Members pay monthly regardless of how often they visit, which provides financial stability that most other franchise categories cannot match.

Planet Fitness has become one of the most recognizable names in the space, with average franchise sales of approximately $1.83 million per location and an investment range of $1.5 million to $5.15 million. Orangetheory Fitness operates with smaller class sizes and premium pricing, while Anytime Fitness offers a 24/7 model with lower staffing requirements. For those exploring fitness industry financing, Fundwell offers lending solutions designed for businesses with recurring revenue models.

Senior Care and Home Health

The senior care industry is one of the fastest-growing franchise sectors, driven by an aging U.S. population that increasingly prefers at-home care over institutional settings. Industry analysts project the global home care services market will reach nearly $950 billion by 2030.

Home Instead is one of the most established brands in this space, with average sales of approximately $2.39 million per franchise and a relatively modest investment range of $98,000 to $125,000. That sales-to-investment ratio is among the strongest in all of franchising. Other strong performers in this category include BrightSpring Health Services and Interim HealthCare, both of which benefit from the combination of consistent demand and essential service status.

Automotive Services

Vehicles in the United States are staying on the road longer than ever, with the average age of cars and light trucks now exceeding 12 years. That trend translates directly into demand for maintenance and repair services, making automotive franchises a strong long-term bet.

Christian Brothers Automotive stands out with average sales of approximately $2.80 million per location and a reputation for high customer satisfaction. The initial investment ranges from $530,000 to $645,000. Meineke and Midas offer lower entry points for investors who want automotive exposure without the premium investment, and both benefit from national brand recognition and repeat service demand.

Business Services and Shipping

Business services franchises may not generate the headlines that restaurant brands do, but they often deliver strong profitability with less operational complexity. These franchises serve both consumers and businesses, providing essential services that remain in demand regardless of economic conditions.

The UPS Store franchise averages approximately $721,000 in annual sales with initial investments ranging from $209,000 to $496,000. FASTSIGNS, which focuses on custom signage and visual communications for businesses, reports average unit volumes of approximately $786,000 to $1 million. Both brands benefit from relatively simple operations, manageable staffing requirements, and steady demand.

Real Estate and Property Management

Real estate franchises generate revenue through service fees, commissions, and ongoing property management contracts. Keller Williams and RE/MAX remain dominant forces in residential real estate brokerage, while property management franchises like Real Property Management offer recurring monthly income from managed properties.

The profitability of real estate franchises can fluctuate with housing market conditions, but the service-based nature of the business means overhead stays relatively low. For franchisees with real estate experience or local market knowledge, these brands can deliver strong returns with moderate initial investments.

Best Low-Cost Franchises With High Returns

Not every profitable franchise requires a six-figure investment. Some of the best returns in franchising come from brands with modest startup costs and business models that can generate revenue quickly.

Under $50,000 to Start

Dream Vacations leads this category with a total investment as low as $2,000 to $21,000, making it one of the most accessible franchise opportunities available. As a home-based travel agency franchise, there are no brick-and-mortar costs, and franchisees earn commissions on travel bookings. Cruise Planners operates a similar model with a low-cost entry point and strong franchisor support.

Jazzercise offers franchise opportunities starting under $40,000, with a proven fitness model that has been operating for over five decades. These ultra-low-cost franchises may not generate the highest raw revenue, but their profitability per dollar invested can be exceptional.

$50,000 to $150,000 to Start

JAN-PRO, a commercial cleaning franchise, offers multiple ownership tiers with investments starting around $50,000 to $60,000. Commercial cleaning provides recurring contract revenue from business clients, which creates a stable income base. Stratus Building Solutions operates a similar model with strong franchisee satisfaction ratings.

Home Instead's investment range of $98,000 to $125,000 also falls in this tier, delivering one of the strongest sales-to-investment ratios in all of franchising at roughly 19:1. For buyers looking to maximize returns relative to their initial capital outlay, this investment range offers some of the most compelling opportunities. Fundwell's small business lending solutions can help bridge the gap if you need financing for investments in this range.

What Low-Cost Franchises Get Right

Low-cost franchises tend to share several characteristics that drive their profitability. They typically operate in the following ways:

• Service-based models with no inventory or minimal physical infrastructure
• Home-based or mobile operations that eliminate real estate costs
• Recurring revenue from contracts, memberships, or repeat customers
• Lean staffing that keeps labor costs manageable
• Fast break-even timelines, often within 6 to 18 months

The trade-off is that lower-investment franchises typically have a lower revenue ceiling than premium brands. However, the return on investment as a percentage of capital deployed can be significantly higher than what a $1 million restaurant franchise delivers.

The following table compares some of the top franchise opportunities across investment tiers:

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How to Evaluate Franchise Profitability Before You Buy

Knowing which franchises are profitable is only half the equation. The other half is learning how to evaluate whether a specific franchise opportunity will be profitable for you, in your market, with your financial profile.

Read the Franchise Disclosure Document

Every franchisor is required by the Federal Trade Commission to provide a Franchise Disclosure Document before you sign any agreement or pay any fees. The FDD contains 23 items of legally required information, but four items deserve the closest attention when evaluating profitability.

• Item 5 (Initial Fees): The franchise fee and any other upfront payments required
• Item 6 (Other Fees): Ongoing royalty percentages, marketing fund contributions, technology fees, and other recurring costs
• Item 7 (Estimated Initial Investment): The full range of startup costs including equipment, build-out, inventory, insurance, and working capital
• Item 19 (Financial Performance Representations): Actual revenue and sometimes profit data from existing franchise locations

If a franchisor does not include Item 19 in their FDD, it does not automatically mean the franchise is unprofitable. Some strong brands choose not to disclose this data. However, the absence of financial performance information means you will need to do more independent research to understand what realistic earnings look like.

Talk to Existing Franchisees

Item 20 of the FDD lists the names and contact information of current and former franchisees. This is arguably the most underused due diligence tool available to franchise buyers. Calling existing owners and asking direct questions about their experience can reveal information that no disclosure document captures.

Questions worth asking include how long it took to break even, what the actual owner take-home looks like compared to what was projected, whether the franchisor delivers on its training and support promises, and what they would do differently if they were starting over. Former franchisees listed in the FDD can be especially candid about challenges they faced.

Analyze Local Market Conditions

National franchise performance averages can be misleading because they do not account for local factors that heavily influence profitability. The same franchise brand can perform very differently depending on population density, local competition, demographic fit, and real estate costs in your specific market.

Before investing, research how many competing locations already operate in your target area, whether the local population matches the franchise's ideal customer profile, and what commercial lease rates look like compared to the national average. A franchise that thrives in suburban markets may struggle in dense urban areas, and vice versa.

Watch for Red Flags

Not every franchise opportunity is what it appears to be. Several warning signs should prompt you to proceed with caution or walk away entirely. Keep the following red flags in mind:

• No Item 19 disclosure combined with aggressive earnings claims from sales representatives
• High franchisee turnover visible in Item 20 (many closures or transfers in recent years)
• Excessive litigation listed in Item 3 (lawsuits between the franchisor and franchisees)
• Pressure tactics pushing you to sign quickly or skip due diligence
• Unusually low franchise fees paired with hidden costs buried in Items 6 and 7

According to Bureau of Labor Statistics data, approximately 50% of all small businesses survive to the five-year mark. Franchises generally outperform that average due to their proven business models, but thorough due diligence is still the single best way to protect your investment.

How to Finance a Profitable Franchise

Once you have identified a franchise opportunity that meets your profitability criteria, the next step is figuring out how to fund it. Most franchise buyers use some combination of personal capital and external financing to cover their total investment.

The most common franchise financing options include SBA loans (which offer competitive rates and long repayment terms for qualifying buyers), conventional bank loans, alternative business loans for buyers who need faster approval or have less-than-perfect credit, equipment financing for franchises with significant equipment needs, business lines of credit for working capital, and ROBS (Rollovers as Business Startups) for buyers who want to use retirement funds.

Fundwell helps franchise buyers compare multiple financing options through a single application. Whether you qualify for an SBA loan, need a flexible business line of credit for working capital, or are looking for revenue-based financing, Fundwell connects you with the right lending solution based on your profile. With fast approvals, transparent terms, and real human support, Fundwell has helped deliver over $1 billion in funding to small businesses across the country.

For a complete breakdown of every franchise financing option, including qualification requirements, typical rates, and application steps, read our full guide on franchise financing.

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Frequently Asked Questions About Profitable Franchises

Which franchise makes the most money?

Chick-fil-A generates the highest average revenue per location of any franchise in the United States, with an AUV of approximately $9.3 million. However, Chick-fil-A uses a unique operator model where the company retains ownership of each location and franchisees pay only a $10,000 initial fee but do not build equity. For traditional franchise ownership, McDonald's ($3.97 million AUV), Christian Brothers Automotive ($2.80 million), and Home Instead ($2.39 million) are among the highest earners.

What is the cheapest franchise to own that is profitable?

Dream Vacations offers one of the lowest total investments in franchising at $2,000 to $21,000 and operates as a home-based travel agency. Cruise Planners is another low-cost option in the travel space. For slightly higher budgets, JAN-PRO and Stratus Building Solutions offer commercial cleaning franchise opportunities starting around $50,000 with recurring contract revenue. These low-cost franchises may not generate the highest raw revenue, but their ROI as a percentage of investment can be very strong.

How long does it take for a franchise to become profitable?

Most franchises reach break-even within 12 to 36 months, depending on the industry, investment level, location, and how effectively the owner manages operations. Service-based franchises with lower overhead (like cleaning or home care) tend to reach profitability faster than capital-intensive franchises (like restaurants or fitness centers). The franchisor's Item 19 data and conversations with existing franchisees are the best sources for realistic timeline expectations.

Can you make a million dollars owning a franchise?

Yes, but it typically requires owning multiple units or investing in a high-AUV brand. Single-unit franchise owners in categories like QSR or senior care can generate strong six-figure incomes, and multi-unit operators who own several locations of the same brand often reach seven-figure owner earnings. Building to that level usually takes several years of successful single-unit operation before expanding, along with the operational capacity and financing to support growth. Fundwell's lending marketplace can help existing franchise owners secure capital for expansion.

What franchise has the highest profit margin?

Service-based franchises generally have higher profit margins than product-based or food-based franchises because they carry lower costs of goods sold and often require less physical infrastructure. Home care franchises, commercial cleaning operations, and business consulting services frequently report gross margins above 40% to 50%. By contrast, restaurant franchises may have gross margins of 25% to 35% due to food and labor costs. High margins do not always mean high total profit, however, since lower-margin franchises often compensate with significantly higher revenue volumes.

Buying a franchise is one of the most popular paths to business ownership in the United States. According to the International Franchise Association's 2026 Economic Outlook, the franchise sector is expected to grow to over 845,000 establishments this year, generating more than $921 billion in output. But most aspiring franchisees face the same challenge: figuring out how to pay for it.

Whether you're eyeing a fast-food chain, a fitness studio, or a home services brand, the total investment can range from under $50,000 to well over $1 million. The good news is that multiple financing options exist for nearly every budget and credit profile. At Fundwell, we help franchise buyers navigate their financing options and secure the capital they need to get started.

This guide breaks down the best franchise financing options available, what it actually costs to buy a franchise, and exactly what you need to qualify.

What Is Franchise Financing

Franchise financing refers to any loan, line of credit, or funding method used to cover the costs of purchasing and operating a franchise. Unlike starting a business from scratch, buying a franchise involves specific fees paid to the franchisor, along with buildout costs, equipment, inventory, and working capital to keep the business running until it becomes profitable.

Most franchise buyers cannot cover these costs out of pocket. Lenders who specialize in franchise financing understand this model and evaluate applications based on both the borrower's financial profile and the franchise brand's track record. Franchises with strong unit economics and proven systems tend to get approved more easily than unproven independent startups.

One important distinction is that not all franchises are eligible for every type of financing. The SBA Franchise Directory determines which brands qualify for government-backed loans, and lenders often reference this list during their underwriting process.

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How Much Does It Cost to Buy a Franchise

Before you explore financing options, you need a clear picture of how much capital you'll actually need. Franchise costs vary significantly depending on the brand, industry, and location.

Initial Franchise Fees

Every franchisor charges an upfront franchise fee for the right to operate under their brand. This fee typically ranges from $10,000 to $100,000 or more and covers your license to use the brand name, initial training programs, and access to the franchisor's operating systems. Some well-known brands like McDonald's or Hilton charge premium fees, while service-based franchises like cleaning or tutoring companies may charge significantly less.

Buildout, Equipment, and Real Estate

For brick-and-mortar franchises, buildout and real estate costs often represent the largest portion of the total investment. This includes leasehold improvements, signage, furniture, kitchen equipment, point-of-sale systems, and technology infrastructure. A restaurant franchise might require $250,000 or more in buildout alone, while a mobile or home-based franchise could require minimal physical investment.

Working Capital and Ongoing Costs

Lenders and franchisors both expect you to have enough working capital to cover operating expenses for the first 6 to 12 months. This includes payroll, rent, utilities, insurance, marketing contributions, and royalty fees paid to the franchisor. Royalty fees typically range from 4% to 8% of gross revenue, and marketing fund contributions often add another 1% to 3%. Underestimating these ongoing costs is one of the most common mistakes new franchisees make.

Total Investment Ranges by Franchise Tier

The following table provides a general breakdown of total investment ranges by franchise category. Your actual costs will depend on your specific brand, location, and buildout requirements.

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Best Franchise Financing Options

There is no single "best" way to finance a franchise. The right option depends on how much you need, your credit profile, how quickly you need funding, and whether your franchise is SBA-eligible. Here are the most common franchise financing options available today.

SBA 7(a) Loans

SBA 7(a) loans are the most popular choice for franchise financing. Backed by the U.S. Small Business Administration, these loans offer amounts up to $5 million with repayment terms of 10 to 25 years and competitive interest rates. The SBA guarantee reduces risk for lenders, which often translates to lower down payments and better terms for borrowers. The catch is that your franchise must appear on the SBA Franchise Directory, and the application process can take several weeks to several months. If you're considering this route, Fundwell's SBA loan program can help streamline the process.

SBA 504 Loans

SBA 504 loans are designed for major fixed-asset purchases like commercial real estate, heavy equipment, and large-scale renovations. They offer fixed interest rates and long repayment terms (up to 25 years for real estate). However, 504 loans cannot be used to cover franchise fees, working capital, or inventory. They work best as a complement to other financing when your franchise requires significant real estate investment.

Conventional Bank Loans

Traditional bank loans offer straightforward financing without the SBA's bureaucratic process. Approval timelines may be faster than SBA loans, but banks typically require stronger credit scores (often 700+), more collateral, and a proven track record. If you have excellent credit and an established banking relationship, a conventional loan can be a solid option. Just be prepared for potentially higher down payment requirements compared to SBA-backed financing.

Alternative and Online Lenders

When speed matters or your credit profile doesn't fit traditional lending criteria, alternative lenders fill an important gap. These lenders, including Fundwell, offer faster approval timelines, more flexible qualification requirements, and a streamlined application process. Interest rates may be higher than SBA or bank loans, but you could receive funding in days rather than months. For franchise buyers working against a timeline or dealing with less-than-perfect credit, alternative lending can be the difference between securing your franchise and losing the opportunity.

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Franchisor Financing Programs

Some franchisors offer direct financing or have partnerships with preferred lenders who specialize in their brand. These programs can simplify the process because the lender already understands the franchise's financial model and success rates. Not all franchisors offer this option, so check your Franchise Disclosure Document (FDD) for details on any financing assistance the franchisor provides.

Equipment Financing

If your franchise requires expensive equipment (think restaurant kitchen systems, commercial vehicles, or specialized machinery), equipment financing lets you spread that cost over time while using the equipment itself as collateral. This means you may qualify even with limited credit history, since the lender's risk is secured by the asset. Fundwell offers small business lending solutions that can cover equipment and other startup costs under one application.

ROBS (Rollovers as Business Startups)

A Rollover as Business Startup, or ROBS, allows you to use funds from your 401(k) or IRA to invest in your franchise without paying early withdrawal penalties or taxes. The process involves creating a C-corporation, establishing a retirement plan under that corporation, and rolling your existing retirement funds into the new plan, which then invests in the business. ROBS is not a loan, so there are no monthly payments or interest charges. However, you are putting your retirement savings at risk, and the setup requires careful compliance with IRS rules. Working with an experienced ROBS provider is essential.

Business Lines of Credit

A business line of credit gives you revolving access to capital that you can draw from as needed, making it ideal for covering working capital, inventory restocking, and unexpected expenses during the early months of franchise operations. Unlike a term loan, you only pay interest on what you actually use. Many franchise owners combine a term loan for the initial purchase with a line of credit for ongoing operational flexibility.

The following table compares these financing options side by side to help you identify which ones fit your situation.

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How to Qualify for a Franchise Loan

Understanding what lenders look for can save you time and improve your chances of approval. While every lender has its own criteria, most evaluate a combination of the following factors.

Credit Score Requirements

Your personal credit score is one of the first things lenders check. For SBA loans, most lenders look for a minimum score of 680, though some may accept scores in the 650 range with other strong compensating factors. Conventional banks typically want 700 or higher. Alternative lenders like Fundwell may work with scores as low as 500, making them a viable option for franchise buyers who don't meet traditional credit thresholds. If your score needs improvement, it may be worth spending a few months addressing outstanding debts and correcting errors on your credit report before applying.

Net Worth and Down Payment Expectations

Lenders want to see that you have skin in the game. For SBA loans, expect to contribute an equity injection of 10% to 20% of the total project cost, though some lenders may require up to 30%. This means for a $300,000 franchise investment, you may need $30,000 to $90,000 in available capital. Beyond the down payment, many lenders also evaluate your overall net worth and liquid assets to ensure you have a financial cushion beyond the initial investment.

Business Experience and Franchise Track Record

While you don't necessarily need direct industry experience, it helps. Lenders feel more comfortable when borrowers have management experience, relevant industry background, or a strong professional resume. Equally important is the franchise brand itself. Established franchises with years of performance data, high franchisee success rates, and strong brand recognition are easier to get financed than newer or unproven concepts. The franchise's Item 19 in its FDD (Financial Performance Representations) can be a powerful tool in your loan application.

Required Documentation

Having your documents ready before you apply can significantly speed up the process. Most lenders will ask for the following items.

• Personal financial statement showing assets, liabilities, and net worth
• Two to three years of personal tax returns
• Business plan with financial projections specific to the franchise
• Franchise Disclosure Document (FDD) from the franchisor
• Proof of liquid capital (bank statements, investment accounts)
• Resume highlighting relevant business or management experience
• Signed franchise agreement or letter of intent

How to Apply for Franchise Financing

Once you understand the costs and your qualification profile, the application process becomes much more manageable. Here is a step-by-step approach to securing your franchise financing.

1. Determine How Much You Need

Start with the total investment listed in your franchise's FDD. Subtract whatever personal capital you plan to contribute, and the difference is your financing gap. Be sure to include working capital for the first 6 to 12 months of operations, not just the initial franchise fee and buildout costs. Underestimating your capital needs is one of the fastest ways to create cash flow problems after opening.

2. Check If Your Franchise Is SBA-Approved

If you're considering an SBA loan, verify that your franchise brand is listed on the SBA Franchise Directory. This directory confirms that the franchise agreement meets SBA requirements. If your brand isn't listed, the lender will need to submit the franchise agreement for review, which can add weeks to the process. As of early 2026, the SBA has extended the re-certification deadline for previously listed brands, so it's worth double-checking the current status. If your franchise isn't SBA-eligible, Fundwell and other alternative lending paths remain available.

3. Compare Lenders and Loan Types

Don't apply to the first lender you find. Use the comparison table above to match your profile (credit score, available capital, timeline) to the right loan type. Then research lenders who specialize in that category. According to the Federal Reserve's 2024 Small Business Credit Survey, applicant satisfaction with lenders declined year over year, which underscores the importance of choosing a lender who is transparent about rates, terms, and timelines from the start.

4. Gather Your Documents and Apply

Use the documentation checklist from the qualification section above to prepare your complete application package before submitting. Incomplete applications are one of the most common causes of delays and denials. Most SBA lenders will take 30 to 90 days to process your application, while alternative lenders like Fundwell can often provide decisions within days.

5. Review Terms and Close

Before signing any loan agreement, review the total cost of borrowing carefully. Look beyond the interest rate and examine the annual percentage rate (APR), prepayment penalties, personal guarantee requirements, and any collateral obligations. If anything is unclear, ask. A reputable lender will be transparent about every aspect of the agreement. Once you sign, funding can happen quickly, and you'll be on your way to franchise ownership.

What to Do If Your Franchise Loan Gets Denied

A denial doesn't mean the end of your franchise ownership goals. It means you need to adjust your approach.

Common Reasons for Denial

Understanding why you were denied is the first step toward getting approved. The most common reasons lenders decline franchise loan applications include the following.

• Low personal credit score falling below the lender's threshold
• Insufficient cash reserves or inability to meet equity injection requirements
• Weak business plan with unrealistic financial projections
• Franchise not listed on the SBA Franchise Directory (for SBA loans)
• Too much existing debt relative to income (high debt-to-income ratio)
• Limited business or management experience

Alternative Paths Forward

If traditional lending doors close, you still have options worth exploring.

• Try an alternative lender. Companies like Fundwell work with borrowers who may not qualify for SBA or bank loans, offering faster timelines and more flexible requirements.
• Consider ROBS. If you have significant retirement savings, a Rollover as Business Startup lets you fund your franchise without a loan at all.
• Bring on a partner. A co-investor or business partner with stronger financials can strengthen your application and share the risk.
• Build your credit first. If credit is the issue, spending 6 to 12 months improving your score can dramatically change your options. Check out Fundwell's guide on how to start building business credit.
• Choose a lower-cost franchise. If the total investment is the barrier, consider a franchise with a smaller initial investment that fits your current financial profile.

Tips for Getting Approved Faster

Whether you're applying for an SBA loan or working with an alternative lender, these strategies can improve your odds and speed up the process.

• Start building personal credit early. Pay down credit card balances, resolve any collections, and avoid opening new credit lines in the months before applying.
• Create a detailed franchise business plan. Include market analysis, financial projections based on the franchise's FDD data, and a clear explanation of how you'll use the funds. SCORE's franchise planning guide can help you get started.
• Show liquid reserves beyond the down payment. Lenders want to see that you won't run out of cash the moment the business opens. Having 3 to 6 months of operating expenses in reserve strengthens your application.
• Choose an SBA-approved franchise with proven unit economics. Franchises with strong Item 19 disclosures and high franchisee satisfaction scores are easier to finance.
• Work with lenders experienced in franchise financing. A lender who understands the franchise model can evaluate your application faster and more favorably than a generalist. Fundwell's team has helped thousands of franchise businesses secure financing.

Find the Right Franchise Financing for Your Business

Franchise ownership is within reach for more people than ever, but the financing piece has to be right. The best approach is to understand your total costs, know your credit profile, and match yourself to the financing option that fits your timeline, budget, and goals.

If you're ready to explore your options, Fundwell offers multiple financing solutions for franchise buyers, from SBA loans to flexible revenue-based financing. With fast approvals, transparent terms, and real human support throughout the process, Fundwell has helped deliver over $1 billion in funding to small businesses across the country.

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Frequently Asked Questions About Franchise Financing

Can you get a loan to buy a franchise?

Yes. Franchise buyers can access SBA loans, conventional bank loans, alternative business loans, equipment financing, and business lines of credit. The type of loan that's right for you depends on your credit score, how much you need, and how quickly you need the funds. Many franchise brands are also SBA-eligible, which opens the door to government-backed loans with favorable rates and terms.

How much money do you need to put down on a franchise?

Most lenders require a down payment (called an equity injection) of 10% to 30% of the total franchise investment. For a $200,000 franchise, that means you may need $20,000 to $60,000 in personal capital. Some alternative lenders may require less, and ROBS allows you to use retirement funds without a traditional down payment. Your total liquid assets and net worth also factor into what lenders will accept.

What credit score do you need for a franchise loan?

For SBA loans, most lenders want a personal credit score of at least 680. Conventional bank loans may require 700 or higher. If your credit score is below these thresholds, alternative lenders like Fundwell may approve applicants with scores as low as 550, depending on other factors like revenue and available collateral.

Can you buy a franchise with no money?

It's very difficult to buy a franchise with absolutely no personal capital. Most lenders require some equity injection to demonstrate your commitment to the investment. However, a ROBS arrangement lets you use existing 401(k) or IRA funds without taking a loan, and some low-cost franchises have total investments under $20,000. In rare cases, franchisor financing programs may cover a larger portion of the startup costs. The most realistic path for buyers with limited cash is combining a small personal investment with creative financing like ROBS or a line of credit.

How long does it take to get approved for franchise financing?

Approval timelines vary widely depending on the lender and loan type. SBA loans typically take 30 to 90 days from application to funding. Conventional bank loans may take 2 to 8 weeks. Alternative lenders like Fundwell can often provide decisions within 24 to 48 hours, with funding in as little as a few business days. Having your documents organized and your application complete before submitting is the single best way to speed up the process regardless of which lender you choose.