Do You Need a Franchise Loan?

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Creative Commons Attribution-No Derivative Works 2.0 Generic License  by  ChicagoGeek
Franchising has really taken off over the last few years.  There are probably many factors for this, retiring boomers wanting to start something new, a lack of good jobs has some people with a little savings or a 401K rolling it over and starting a new career, and just the age old desire to be your own boss.  Start-up financing is available today for franchises where it is almost impossible to get start-up financing for any other business.  Don’t believe the headlines that lending is back, if you are a good mechanic and you want to open a mechanic shop, you WON’T get financing.  You could get a franchise loan for a oil/lube place. That is the market reality.


We Close More Franchise Loans than Anyone. Give us a call today to get your loan closed at 512-650-8630.


This availability of financing for franchises is possibly the biggest driver behind the trend.  I can get start-up financing up to 80% of the total cost today.  Every month I close multiple start-up franchises for franchises like Firehouse Subs, Ace Hardware, Express Lube, Jimmy Johns and more.  What do I mean by 80% of the cost?  Let’s take a typical Firehouse Subs loan.  It costs about $300,000 to open a Firehouse Subs restaurant.  This includes the franchise fee, working capital of $25-40,000, the build-out of the lease space, equipment, opening inventory-everything needed.  If they can put $60,000 into it (20%) they can have their own restaurant opened and even have initial working capital.  The stores that I have personally seen will typically do sales of $700,000 a year and the good ones I have seen can net close to $100,000/yr on just their first store if they run a good ship.  In the early 90’s, you could not start a restaurant for less than $1 million-the few franchises like McDonald’s still required a million dollar net worth to open one.  Now, $60K can get you in to some of them!  Pretty fun!  So here is a quick run down of what is available in franchise financing.. if you know anyone who may be looking to open a franchise or expand their existing business-give me a call at 512-650-8630.  


We are Financing Franchises.  Give us a call today to discuss your deal at 866-400-8630 or 512-650-8630.



-80% financing is available for Start-ups but only SBA.

CONVENTIONAL FINANCING IS GENERALLY NOT AVAILABLE FOR START-UP FINANCING.  SBA has that market cornered.  I had a client demand conventional financing for his start-up business. He was very strong with experience, over $300,000 cash, net worth and perfect credit.  He was so strong, I thought I just might be able to get it done.  We called every bank in that state that was financing franchises-only ONE would consider it.  That one loved it, said they were going to do it. When their approval came out, they said they would loan him $300,000 for his start-up if he put $300,000 on CD with them.  Basically proving to me that franchise start-up MUST go SBA.

-90% second store financing is available but again, only SBA.  This should not scare you though, SBA is not that hard if you know how to do them and I close 4 or 5 a month, so I know how to do them.


 -Conventional financing IS available on select second stores and more readily available on 3rd stores and beyond.


-For deals that have been denied, we are especially strong at getting them done. 90% of my closings are loans that were denied somewhere else but I got them done at normal rates.  For those deals that can not qualify for normal rates, we DO HAVE PRIVATE MONEY FINANCING FOR FRANCHISES.  To my knowledge, we are the only ones in the country giving private financing to business only deals.   


The bottom line to all this, money is available.  You need business plans, which we can help with, you need someone who can help you through the process like us, but in the end, financing IS available.  If you or anyone you know needs financing or has recently been denied, give me a call.  IF WE CAN NOT GET IT DONE, NO ONE CAN!  Call me at 512-650-8630!



Wishing you the best,

 Karen's Signiture

Karen Schimpf


Give us a call today to discuss your deal at 512-650-8630.




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Here’s A Little Bit About Me. 20+ years in the finance industry, I rose to the level of Assistant V.P. with Chase Manhattan. While working for Chase, I decided that I wanted to have residual income without having to quit my job. I bought my first apartment building in 1996, three days before my wedding.

In 2001, I decided I would leave the corporate world and work for myself in a net branch environment.

My passions are helping people get commercial mortgage loans. I also am passionate about investing, working out and being with my family and friends.