Open, Grow, and Scale with Franchise Financing.
Franchise fees, buildout costs, and multi-unit expansion require specialized capital. Our in-house team understands franchise models and deliver funding that helps you leverage the power of proven brands.
Why Franchises Businesses
Need Flexible Capital
Understanding the financial pressures unique to franchises helps us fund you directly with the right products.
Initial Franchise Investment
Franchise fees, buildout costs, equipment packages, initial inventory, and pre-opening expenses can total $250,000 to $2 million+ depending on the brand. This capital must be committed before the location generates any revenue.
Ramp-Up Period Cash Burn
New franchise locations typically take 6-18 months to reach profitability. During this period, rent, payroll, royalties, and marketing fees continue while revenue builds. Insufficient working capital during ramp-up is the leading cause of franchise failure.
Mandatory Brand Upgrades
Franchisors periodically require remodels, technology upgrades, and brand refreshes. These mandatory improvements can cost $50,000 to $200,000 per location, are non-negotiable, and must be completed within strict timelines.
Multi-Unit Expansion Pressure
Franchise agreements often include development schedules requiring you to open additional locations within specific timeframes. Missing development milestones can result in losing territory rights or agreement termination.
Royalty and Fee Obligations
Ongoing royalty fees (4-8% of revenue), marketing fund contributions (1-3%), and technology fees consume cash flow regardless of profitability. These fixed percentage obligations reduce the margin available for debt service and reinvestment.
Territory Protection and Competition
Securing exclusive territory rights and defending market share against competing brands and concepts requires marketing investment and operational excellence that protect your franchise territory.
Funding Products for
Franchises Businesses
Each product is tailored to address the specific capital needs of franchises operations. Click to learn more about terms, eligibility, and the application process.
How We Help Franchises
Businesses Grow
The Challenge
A multi-unit QSR franchisee with four successful locations needed $1.2 million to open two additional locations required by their development agreement. Their existing bank would only finance one location at a time, putting their territory rights at risk.
The Solution
Sunsurf Capital arranged a financing package covering both locations simultaneously, using the existing four locations' performance as evidence of operator capability. The package included buildout costs, equipment, initial inventory, and working capital.
The Result
Both locations opened within 60 days of each other, meeting the development timeline. Location five reached break-even in 4 months, and location six in 5 months. The franchisee negotiated an additional territory expansion based on their proven execution ability.
This example is representative of typical client outcomes and is presented for illustrative purposes.
Common Questions About
Franchises Financing
Ready to Fund Your
Franchises Business?
Apply in 5 minutes and get a funding decision within 48 hours. No upfront fees. No obligation. Just the capital your franchises business needs to thrive.