May 29, 2023

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 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






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