Business Capital
Financing a Franchise Location
Asset-rich and cash-tight is a solvable problem. This guide covers one of the solutions.
Business Capital
The short version, then the substance.
Key Takeaways
- The franchise funding gap
- Asset-based fits the build
- Underwriting the unit
The franchise funding gap. Franchisors sell the playbook but not the capital. Build-outs, equipment packages, and working capital land on the franchisee, and bank franchise lending is slow and selective.
Asset-based fits the build. The equipment package and the real estate, if you are buying it, secure the capital. For multi-unit operators, the existing locations' assets can fund the next one, which is how disciplined franchisees compound.
Underwriting the unit. We look at the location math: the build cost, the brand's unit economics, and your operating history. A proven operator opening unit three is one of the cleanest business loans there is, and it deserves to be funded like one.
The South Texas angle. Averlend underwrites this every week in Corpus Christi and across Nueces County. If you are working a deal in downtown or anywhere else in the metro, the theory above comes with a local desk attached: see our Corpus Christi lending page or send the deal directly.
Questions
Quick answers from the Averlend desk.
The Averlend Promise
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