Franchise Financing Options for QSRs (Quick Service Restaurants)
Published May 23, 2023, 12:20 p.m. by Arrik Motley
If you're in the quick service restaurant (qsr) industry and are looking for financing to help you expand your franchise, there are a few options available to you. First, you could try traditional bank financing. However, banks can be reluctant to finance qsrs because they are considered high-risk businesses.
Another option is to look for private investors who are willing to finance your franchise expansion. You can find these investors by attending industry events or by searching online.
Once you've found an investor who is willing to finance your franchise expansion, you'll need to put together a business plan and present it to them. This business plan should include your financial projections, your marketing strategy, and your goals for the franchise expansion.
If the investor is interested in your franchise expansion, they will likely want to see some collateral. Collateral is something that you offer to the investor that will secure the loan. This could be property, equipment, or even your personal guarantee.
Once you've secured financing for your franchise expansion, you'll be able to start growing your business. With the help of a good franchise financing option, you can take your qsr to the next level.
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hello and welcome back to another
episode of the investor financing
podcast special edition we're doing
questions and answers and we've got Bill
helping with some of the questions we
have and we're going to get started with
question number one and don't forget to
go to investor
financingpodcast.com forward slash ask
all right Bill fire away
all right this one comes from William
he says I am buying a franchise it is a
qsr or quick service restaurant it does
not appear to be on the approved SBA
financing list any other options that
you can let me know about the total cost
between the franchise fee equipment and
tenant improvements is about three
hundred thousand dollars my credit score
is good 730 plus I have a W-2 job which
I'll I will keep for the next several
years I have about a hundred thousand
liquid and a hundred thousand in a 401k
thanks in advance okay great that's a
good question so let me try to break
this down I have the note in front of me
too so I can look as a reference but
first off uh if it's not on the SBA
approved directory that's okay we have
financing programs a lot of the
equipment financing companies we work
with uh they work with franchises so
they can not only do the equipment they
can do a lot of the tenant improvements
in an equipment Finance deal so when
it's not on the approved SBA register
yes you can potentially get it approved
but it's it's a process so the fast way
of doing this is to use equipment
financing and a lot of times these are
already pre-approved with a lot of the
equipment lenders we work with where
they've Finance these type of franchises
in the past and it's a it's a quicker
process to get the vendor approved or
the franchise or so that's one way the
other thing is you have 100 Grand liquid
you could look at doing a Rob's rollover
that's where you roll over and do a
self-directed vehicle and then you can
use that money for the purposes of
investing in your business
uh the other thing is your credit is
good in your W-2 you can also do an
unsecured term load potentially we work
with a company that goes out and they
they do a soft pull on your credit they
run your dtis and they can get you
anywhere from 25 to up to 450 000
depending on your credit profile
so you can use that for the franchise
fee there's a lot of ways we can layer
and stack
these uh franchise Acquisitions even if
they're not approved by SBA SBA is a
great tool but sometimes
we're gonna have to use it as a
refinance down the road as opposed to
use it now to acquire your franchise so
anyways hope that one helps you can
always book a call we have links below
and we can walk you through uh franchise
financing
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