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Are you considering launching a franchise but unsure which brands are easiest to finance? Understanding how SBA financing works for franchise startups is crucial to avoid delays—and potentially save thousands. In this post, financing expert Beau Eckstein breaks down what makes certain franchises more lender-friendly and how to navigate the process strategically.
🔍 What Makes a Franchise Easy to Finance?
When it comes to SBA loans, not all franchises are created equal. Lenders typically prefer:
- Established franchise brands
- Brands listed in the SBA Franchise Directory
- Franchises certified by FRANdata
These factors make it easier for banks to underwrite loans because they’ve already evaluated the brand’s viability. Even though the SBA Franchise Directory was officially discontinued, it’s still used informally by many lenders and available online.
“Every bank still looks at the SBA directory—even though it’s discontinued, it’s still up on the SBA site.” — Beau Eckstein
🛠️ FRANdata Certification: Why It Matters
In addition to SBA approval, lenders often look for FRANdata certification. This independent validation confirms the franchise’s business model and financial health.
Banks trust this extra layer of due diligence when approving loans. So, if the franchise you’re considering is on neither list, it doesn’t mean it’s impossible to get funding—it just means your lender will have to go the extra mile to approve it.
“If it's not [on either list], I can still get the deal done—I just need to run it to a bank and get that particular franchise approved.”
🏢 Which Franchises Are the Easiest to Finance?
Easiest-to-finance franchises typically share a few key characteristics:
- Listed on the SBA directory
- Have hundreds or thousands of existing units
- Are well-known national brands
- Show a strong track record of loan repayment
Examples often include:
- Fast food franchises (e.g., Subway, Dunkin’)
- Home services (e.g., Servpro, Molly Maid)
- Senior care franchises (e.g., Home Instead, Visiting Angels)
- Fitness brands (e.g., Anytime Fitness, Orangetheory)
Beau recommends these types of franchises for first-time buyers who want a “cookie-cutter” deal that’s more likely to be approved quickly—assuming you have strong credit and enough liquidity.
💡 The Role of Loan Size and Territory Count
Different banks have different appetites for deal sizes. For instance, some lenders cap loans at $150,000, which might only work if you’re buying one territory.
But many buyers aim to purchase multiple territories, which requires higher loan amounts and more sophisticated lender matching.
“If someone is buying three, four, or seven territories, that small-ticket program won’t work—we may drop from 90% financing to 80% depending on the lender.”
This is where Beau and his team shine—they tailor your loan strategy to the specific lender and franchise you’re considering.
🧠 Expert Tip: Use the Right SBA Lender for Your Industry
Not all lenders are created equal. Some specialize in certain industries—like fitness, food, or home services—and may be more aggressive when funding those types of franchises.
Beau often works with four go-to SBA lenders for franchise startups but is always open to working with others based on your specific needs.
“Certain banks have specialties in different franchise units… some go above and beyond for specific industries.”
📍 Want Help Finding the Right Franchise to Finance?
Instead of endlessly scrolling BizBuySell, Beau recommends a smarter strategy:
✅ Visit FranchiseResaleListings.com
- Get curated franchise resale opportunities
- Receive weekly inventory updates straight to your inbox
- Schedule a customized franchise search