Franchise acquisition financing for buying an existing unit or business

Common acquisition scenarios

• Buying a single existing franchise unit from a current franchisee (a resale)
• Buying a group of units from a multi-unit operator
• Buying an independent business or converting it to a franchise
• A partner buy-out where one owner purchases another's share

What lenders want to see

• A signed letter of intent or purchase agreement
• Several years of the seller's tax returns and financial statements
• Your resume and relevant industry or franchise experience
• Your down payment and personal financial statement
• Franchisor approval of the transfer, which the franchise agreement usually requires

How acquisitions are typically financed

Many franchise acquisitions are financed with SBA 7(a) loans, sometimes combined with seller financing or a commercial real estate component. The right structure depends on the price, the cash flow of the business, and whether real estate is included.

How we help

We match the acquisition to lenders that are comfortable with your franchise concept and deal size, assemble the lender package, and keep the file moving through underwriting. You pay only if your loan funds.

Frequently asked questions

Can I finance the purchase of an existing franchise?

Yes. Acquisition loans are commonly used to buy existing franchise units, and many are structured as SBA 7(a) loans. Lenders will underwrite the financial history of the unit you are buying.

Do I need franchisor approval to buy a franchise resale?

Most franchise agreements require the franchisor to approve a transfer or new owner, and lenders will want evidence of that approval during the process.

More answers on our full FAQ, or see how the process works.