Franchise Acquisition Financing: SBA Loans, Rollover Equity & Bank Requirements
Updated for 2025–2026 franchise acquisition financing activity, SBA and conventional bank underwriting, franchise transfer requirements, rollover equity, seller notes, DSCR expectations, working capital needs, securities-backed financing considerations, and lender-ready acquisition packages.
Key answer: Franchise acquisition financing is the process of funding the purchase of an existing franchise business, franchise unit, or multi-unit franchise platform using a capital stack that may include buyer equity, SBA financing, conventional bank debt, seller notes, rollover equity, working capital lines, equipment financing, and outside investor capital. The right structure depends on the brand, cash flow quality, buyer experience, unit economics, lease terms, franchisor approval, debt service coverage, and the lender’s view of risk.
Practical implication: A franchise acquisition can look attractive on valuation but fail in financing if the buyer’s capital stack is too aggressive, the seller’s add-backs are weak, the franchisor has not approved the transfer, required remodels are underfunded, or the deal cannot support debt service after closing. Buyers should treat financing as part of the acquisition strategy, not as a back-end task after the letter of intent is signed.
Buyers researching franchise acquisition financing are usually trying to understand how SBA loans, conventional bank debt, seller notes, rollover equity, working capital funding, equipment financing, securities-backed borrowing, DSCR, repayment terms, and lender approval fit into a fundable acquisition strategy. Those financing questions are narrower than broad restaurant M&A, but they connect directly to the buyer-side acquisition process.
This guide focuses on financing strategy and lender readiness. For the full acquisition sequence, see the Restaurant Acquisition Process guide. For franchise deal mechanics, approvals, and transfer issues, see the Franchise M&A Guide and the Restaurant Franchise M&A Playbook. For valuation context, use Restaurant Valuation Multiples and Auxo’s Valuation Services.
Transaction context: Franchise acquisition financing sits inside the broader restaurant and franchise M&A process, but its focus is the capital stack and lender underwriting. Buyers need to understand how acquisition debt, buyer equity, seller financing, rollover equity, working capital, equipment needs, franchisor approvals, and repayment capacity work together before they commit to a purchase price or enter exclusivity.
The core lane is financing readiness: how a buyer moves from a signed or contemplated LOI to a fundable transaction. That includes SBA and conventional debt, buyer equity, seller financing, rollover equity, earnouts, working capital, equipment financing, securities-backed financing considerations, DSCR, repayment terms, lender packages, franchisor approvals, and closing coordination.
Franchise acquisition financing is where good deals either close or stall
Franchise acquisition financing is where promising deals either come together or quietly die. The brand can be strong, unit-level cash flow can look attractive, and the letter of intent can be signed, but if the capital stack is unrealistic or out of sync with lender expectations, the transaction may not reach closing.
Buyers sometimes treat financing as a separate workstream that begins after they find the right target. That is a mistake. Financing affects valuation, LOI terms, seller expectations, due diligence priorities, purchase agreement structure, working capital, and post-close flexibility. A buyer who understands financing early can negotiate with more credibility and avoid agreeing to terms that lenders will not support.
This guide is written for buyers evaluating franchise units, franchise restaurant groups, multi-unit platforms, and franchise-adjacent consumer services businesses. It explains how sophisticated buyers think about SBA loans, conventional bank debt, seller notes, rollover equity, securities-backed financing, DSCR, lender packages, approval timing, and practical financing risk.
Executive summary: financing a franchise acquisition like a professional buyer
Most owner-operators and independent sponsors start a franchise acquisition with a simple question: How do I obtain financing for a franchise acquisition? Lenders ask a more technical set of questions. How reliable is the cash flow? Does the capital stack match the risk profile? Is the buyer capable of operating the franchise successfully? Does the franchisor support the transaction? Are lease, remodel, working capital, and transfer issues properly funded?
In practice, successful franchise acquisition financing usually combines several sources of capital. Smaller acquisitions may rely on SBA loans, buyer equity, and seller notes. Larger multi-unit transactions may use conventional bank debt, sponsor equity, revolving lines of credit, seller financing, rollover equity, and carefully sized working capital reserves. The best capital stack is not necessarily the one with the most debt. It is the one that supports the transaction without leaving the buyer undercapitalized after closing.
This article explains the financing process from a buyer’s perspective: defining the acquisition thesis, building the capital stack, comparing SBA and conventional bank financing, structuring seller notes and rollover equity, understanding DSCR, funding equipment and working capital, evaluating securities-backed financing, preparing a lender-ready package, and avoiding closing surprises.
The 2026 landscape for franchise acquisition financing
The market for franchise acquisition financing has become more selective. Well-prepared buyers are still getting attractive franchise acquisitions funded, but lenders are scrutinizing cash flow quality, buyer experience, brand health, store-level performance, debt service coverage, and post-close liquidity more carefully than they did in easier credit markets.
That scrutiny is especially important in restaurant and consumer services franchise systems, where labor, food cost, occupancy cost, delivery economics, remodel obligations, and brand-level performance can change quickly. A lender may be comfortable with a strong, mature franchise system and experienced operator, but much less comfortable with a buyer who lacks operating experience or a concept with inconsistent unit-level economics.
The financing market also rewards buyers who present a coherent acquisition thesis. A buyer who can explain why the brand, geography, lease profile, manager bench, unit economics, and capital structure fit together will usually receive more productive lender feedback than a buyer who simply asks how much debt is available. Franchise acquisition financing is not just a loan request. It is a credit story.
What does franchise acquisition financing mean?
Franchise acquisition financing refers to the debt and equity used to buy an existing franchise business. The target may be a single franchise unit, a small group of units, a multi-unit franchisee, or a larger platform operating within one or more franchise systems. Financing may cover the purchase price, equipment, inventory, transaction costs, working capital, remodel obligations, and sometimes related real estate or leasehold improvements.
The word “franchise” matters because the buyer is not only acquiring a cash-flowing business. The buyer is acquiring the right to operate within a franchise system, subject to franchisor approval, brand standards, royalty obligations, advertising fund contributions, training requirements, transfer conditions, and sometimes remodel or development commitments.
That makes franchise acquisition financing different from generic small business acquisition financing. Lenders and investors need to underwrite the buyer, the seller, the units, the franchise system, the lease profile, and the capital stack at the same time. A strong operating business can still be difficult to finance if franchisor approval is uncertain, leases are short, remodel costs are unfunded, or debt service coverage is too thin.
Step 1 — Build the franchise acquisition capital stack before signing the LOI
Before speaking with lenders or submitting a final letter of intent, buyers should map the acquisition capital stack. The capital stack explains how the purchase will be funded and how each source of capital is expected to be repaid or rewarded. It also shows whether the buyer is relying too heavily on debt or leaving enough liquidity to operate the business after closing.
| Capital source | Role in franchise acquisition financing | Key buyer question |
|---|---|---|
| Buyer equity | Cash invested by the buyer or buyer group. | Is the buyer contributing enough capital to satisfy lenders and absorb post-close volatility? |
| SBA financing | Often used for smaller franchise acquisitions and owner-operator transactions. | Does the deal fit SBA lender requirements, buyer experience, repayment capacity, and franchisor approval standards? |
| Conventional bank debt | Common in larger transactions, multi-unit deals, and more established operators. | Can the business support debt service under conservative underwriting? |
| Seller note | Seller-financed debt that can bridge valuation gaps or reduce cash at closing. | Will lenders treat the note as acceptable subordinated capital? |
| Rollover equity | Seller retains ownership in the go-forward company. | Does rollover align incentives and reduce cash needs without creating control issues? |
| Outside investor equity | Capital from family offices, sponsors, partners, or individual investors. | Do investor return expectations match the acquisition strategy and financing structure? |
| Working capital and equipment financing | Supports inventory, payroll, repairs, refreshes, and post-close operations. | Is the buyer funding the business after closing, not just the purchase price? |
Buyers who wait until after LOI signing to build the capital stack often discover problems too late. The purchase price may be too high for the available debt, the seller note may not receive lender credit, projected DSCR may be too thin, or remodel costs may leave the buyer undercapitalized. A financing-ready buyer starts modeling the capital stack before exclusivity begins.
Step 2 — SBA franchise loans: structure, eligibility, and common pitfalls
For many first-time or emerging operators, financing a franchise purchase starts with SBA financing. SBA-backed franchise acquisition loans can be attractive because they may allow buyers to finance goodwill and acquire an existing cash-flowing business with less equity than a purely conventional loan would require. But SBA financing is not automatic, and lenders still underwrite the deal carefully.
In a franchise acquisition, SBA lenders typically focus on repayment capacity, borrower experience, equity injection, seller note treatment, franchise system eligibility, personal guarantees, use of proceeds, collateral, historical cash flow, and whether the buyer can operate the business after closing. The franchise brand and the buyer’s experience both matter. A buyer with strong operating experience in a stable brand will usually be viewed differently than a buyer with limited experience pursuing a more volatile concept.
Important note: SBA program rules, lender standards, franchise eligibility, and documentation requirements can change. Buyers should work directly with qualified SBA lenders, counsel, accountants, and transaction advisors before relying on any specific structure.
SBA financing is often most useful when the acquisition is smaller, the buyer will be actively involved in the business, the seller’s financials are supportable, and the deal has enough cash flow to cover debt service with cushion. It is less useful when the transaction is too large for the program, the buyer wants a passive investment, the target has inconsistent earnings, or required capex and working capital needs make leverage too tight.
Step 3 — Conventional bank debt, lines of credit, and sponsor capital
As deal size grows or the borrower falls outside SBA criteria, buyers often turn to conventional bank debt, specialty lenders, revolving lines of credit, sponsor equity, or private capital. Conventional lenders tend to be more flexible in some respects but more demanding in others. They may offer larger facilities, but they also expect stronger borrower experience, cleaner reporting, stronger collateral, lower leverage, or a larger equity contribution.
Conventional franchise acquisition financing may include a senior term loan for the acquisition, a revolving line of credit for working capital, equipment financing, real estate financing where applicable, and subordinated seller financing. In larger multi-unit acquisitions, the buyer may also use sponsor equity or investor capital to reduce senior lender risk and support growth after closing.
Buyers pursuing a platform or roll-up strategy should avoid thinking only about the first acquisition. The first capital stack can either support the next acquisition or constrain it. A buyer that over-leverages the first deal may have no room for add-on acquisitions, remodels, new unit development, or temporary performance volatility. Buyers building a repeatable acquisition program should connect financing strategy to their broader Buy-Side M&A Advisory plan.
Can a securities-backed loan help finance a franchise acquisition?
Some buyers explore securities-backed loans or portfolio-backed lines of credit to help fund the equity portion of a franchise acquisition. In this structure, a buyer borrows against an investment portfolio and uses the proceeds as part of the acquisition capital stack. This can be appealing because it may provide liquidity without requiring the buyer to sell securities and trigger taxes or disrupt a long-term investment portfolio.
Securities-backed financing can be useful in limited circumstances, but it must be handled carefully. It usually does not replace acquisition debt at the business level. Instead, it may help fund the buyer’s equity contribution, closing costs, or a portion of the post-close liquidity reserve. Buyers should understand margin call risk, collateral volatility, personal liquidity exposure, lender restrictions, and whether the source of funds will be acceptable to the acquisition lender and any equity partners.
A securities-backed loan can make a buyer appear more liquid, but it can also create hidden fragility if market volatility forces repayment or additional collateral at the wrong time. Buyers considering this structure should coordinate with their wealth advisor, lender, tax advisor, and transaction counsel before treating securities-backed proceeds as acquisition capital.
Step 4 — Seller notes, rollover equity, and earnouts in franchise acquisition financing
In many franchise M&A transactions, the headline price matters less than how the price is paid. Seller notes, rollover equity, and earnouts can bridge valuation gaps, reduce cash at closing, align incentives, and make a transaction more financeable. Used poorly, they can create ambiguity, disputes, or lender concerns.
A seller note is debt owed by the buyer to the seller after closing. It may be subordinated to senior debt and may include repayment restrictions, interest-only periods, or standby terms depending on lender requirements. Rollover equity means the seller retains an ownership stake in the go-forward business, which can reduce cash needs at closing and signal confidence in future performance. Earnouts tie part of the seller’s proceeds to future performance milestones.
| Structure | Why buyers use it | Key risk |
|---|---|---|
| Seller note | Reduces cash needed at closing and helps bridge valuation gaps. | Repayment terms must work with senior lender restrictions and business cash flow. |
| Rollover equity | Keeps the seller economically aligned and reduces upfront cash consideration. | Governance, control, exit rights, and franchisor ownership rules must be clear. |
| Earnout | Allows buyer and seller to share upside if future performance materializes. | Disputes can arise if metrics, control rights, or accounting rules are unclear. |
| Deferred purchase price | Spreads payment timing without necessarily labeling the amount as a seller note. | May still be viewed as debt-like by lenders or affect closing economics. |
Buyers should not use structure to hide a weak deal. If the restaurant or franchise system cannot support the price, a seller note or earnout will not fix the underlying issue. Structure works best when it allocates risk transparently and supports lender comfort, not when it papers over a valuation that cash flow cannot justify.
What repayment terms should buyers expect in franchise acquisition loans?
Repayment terms depend on the lender, loan type, collateral, buyer experience, target cash flow, and use of proceeds. Acquisition loans are usually repaid from business cash flow, so the most important question is whether the deal can support required payments under conservative assumptions. Buyers should not evaluate repayment terms only by looking at the monthly payment. They should also consider covenants, prepayment terms, collateral, guarantees, working capital needs, and required capex.
In restaurant and franchise transactions, repayment pressure can be compounded by seasonality, labor fluctuations, remodels, lease renewals, delivery mix, franchisor requirements, and integration costs. A repayment schedule that looks manageable in a base case may become tight if same-store sales decline, food costs increase, or a remodel is required sooner than expected.
Buyers should build a model that compares projected debt service against normalized cash flow, not peak or seller-adjusted cash flow. The model should include interest, principal, seller note payments, equipment financing, lease obligations, maintenance capex, and a reasonable working capital reserve. If the acquisition only works under optimistic assumptions, the repayment terms are probably too aggressive.
Do SBA loans and bank loans cover equipment and working capital?
Many buyers focus on financing the purchase price and underestimate the need for equipment, inventory, payroll, training, transition costs, repairs, technology, and working capital. A franchise acquisition can close successfully and still fail operationally if the buyer enters ownership without enough liquidity to run the business.
Depending on the lender, loan program, and deal structure, acquisition financing may include proceeds for equipment, working capital, inventory, closing costs, franchise transfer fees, or limited post-close needs. But buyers should not assume all needs will be funded by the acquisition loan. Some lenders may require separate equipment financing, a working capital line, additional buyer equity, or a seller concession.
| Funding need | Why it matters | How buyers should address it |
|---|---|---|
| Inventory | Restaurants and franchise units need immediate operating inventory after close. | Confirm whether inventory is included in purchase price or funded separately. |
| Payroll and transition | Staff continuity is critical in the first 30 to 90 days. | Maintain liquidity for payroll, onboarding, training, and manager retention. |
| Equipment | Deferred maintenance can create unexpected post-close cash needs. | Review equipment condition and consider separate equipment financing or price adjustment. |
| Remodels and brand refreshes | Franchisors may require updates after transfer or renewal. | Model required capex before finalizing price and debt service. |
| Working capital reserve | Revenue, labor, and food cost volatility can strain cash flow. | Build a liquidity cushion rather than financing only the purchase price. |
A lender-ready capital stack should include the purchase price and the post-close capital required to operate the business. Underfunding working capital is one of the fastest ways to turn a financeable acquisition into an operational problem.
Step 5 — Underwrite cash flow, leverage, and DSCR the way lenders do
Whether a buyer pursues SBA financing or conventional bank debt, the lender will underwrite the transaction based on repayment capacity. Collateral matters, but cash flow usually drives approval. Sophisticated buyers reverse-engineer the capital stack from what a prudent lender would accept.
The lender’s core question is simple: after normal operating expenses, royalties, rent, payroll, taxes, maintenance capex, and reasonable working capital needs, does the business generate enough cash flow to service debt with cushion? If the answer depends on aggressive growth, unsupported add-backs, or perfect execution, the capital stack is too fragile.
| Underwriting factor | What lenders examine | Buyer preparation step |
|---|---|---|
| Normalized earnings | Whether EBITDA or SDE is supported by actual financial records. | Reconcile seller adjustments and identify non-recurring items clearly. |
| Debt service coverage | Whether cash flow covers principal and interest with cushion. | Model DSCR under base case and downside case. |
| Buyer experience | Whether the buyer can operate the business after closing. | Prepare a buyer profile and management plan. |
| Franchisor approval | Whether the brand will approve the buyer and transfer. | Engage early and understand approval conditions. |
| Lease and location risk | Whether locations remain available and economical after closing. | Review lease term, assignment rights, rent burden, and renewal options. |
| Capex and working capital | Whether the buyer has enough liquidity after close. | Fund reserves for remodels, equipment, inventory, payroll, and seasonality. |
Buyers should not wait for lenders to discover weaknesses. If a deal has customer concentration, short leases, pending remodels, weak reporting, or inconsistent unit economics, those issues should be addressed directly in the financing package and reflected in price, structure, reserves, or closing conditions.
Step 6 — Build a financing-ready franchise acquisition package
Banks, SBA lenders, and private capital providers see many acquisition inquiries. The packages that rise to the top are organized, realistic, and easy to underwrite. A strong financing package connects the buyer’s strategy, the target’s financial performance, the franchise system, the proposed capital stack, and the post-close plan.
| Package component | What to include | Why it matters |
|---|---|---|
| Buyer profile | Experience, resume, liquidity, operating partners, investor group, and personal financial statement where required. | Shows the lender whether the buyer can operate the business and support the loan. |
| Deal overview | Brand, unit count, geography, purchase price, structure, use of proceeds, and closing timeline. | Gives credit teams a concise transaction map. |
| Historical financials | P&Ls, tax returns where available, POS data, payroll, royalties, rent, and store-level reporting. | Supports normalized cash flow and debt service analysis. |
| Capital stack | Buyer equity, senior debt, seller note, rollover equity, working capital, and equipment funding. | Shows whether the structure is realistic and properly funded. |
| Forecast and DSCR | Base case, downside case, debt service, capex, and working capital assumptions. | Helps lenders assess repayment capacity and risk cushion. |
| Franchisor and lease status | Transfer approval process, lease assignment, remodel obligations, and training requirements. | Reduces closing uncertainty and late-stage surprises. |
A third-party valuation or market value review can help when buyer and lender need an independent perspective on valuation, normalized earnings, and deal risk. Auxo’s Market Value Study and Valuation Services can support that work where appropriate.
Step 7 — Coordinate lender approval, franchisor approval, and closing timeline
Franchise acquisition financing rarely moves in a straight line. Lender underwriting, franchisor approval, lease assignment, diligence, purchase agreement negotiation, insurance, entity setup, and closing mechanics all need to be coordinated. A delay in one workstream can affect the others.
Buyers should align the LOI with financing reality. If the buyer needs lender approval, franchisor consent, landlord consent, and a quality of earnings review, a short exclusivity period may create unnecessary pressure. If the franchisor requires training or approval before transfer, the buyer should not assume financing can close on a generic small business acquisition timeline.
The strongest buyers run financing, diligence, and approvals in parallel. They do not wait until the end of diligence to speak with lenders or until the loan is approved to speak with the franchisor. That sequencing reduces the risk of late surprises and gives the buyer more options if terms need to change.
Common franchise acquisition financing mistakes
Many franchise acquisition financing problems are predictable. They arise because buyers overestimate available debt, underestimate equity needs, treat seller add-backs as automatic, ignore working capital, or assume franchisor approval is administrative. The earlier those issues are addressed, the easier they are to solve.
| Mistake | Why it creates risk | Better approach |
|---|---|---|
| Signing an LOI before testing financing | The buyer may agree to a price or structure lenders will not support. | Speak with lenders before submitting final LOI terms. |
| Ignoring working capital | The buyer may close but lack liquidity to operate the business. | Fund payroll, inventory, equipment, repairs, and reserves in the capital stack. |
| Over-relying on seller add-backs | Lenders may reject adjustments and underwrite lower cash flow. | Prepare normalized earnings with support for each adjustment. |
| Assuming seller notes count like equity | Lenders may treat seller financing differently depending on terms and subordination. | Confirm lender treatment before relying on the seller note. |
| Treating franchisor approval as a formality | Approval delays can derail closing or change transaction timing. | Understand transfer, training, remodel, and buyer qualification requirements early. |
| Underestimating lease risk | Short or non-assignable leases can weaken lender comfort. | Review lease assignment, renewal options, rent burden, and landlord consent early. |
The lesson is simple: financing should be designed around how lenders actually underwrite franchise acquisitions, not how buyers hope they will. The more transparent and lender-ready the buyer is, the better the chance of closing on workable terms.
Franchise acquisition financing FAQs
How do I obtain financing for a franchise acquisition?
Start by defining the target brand, number of units, markets, purchase price, buyer experience, and proposed capital stack. Most buyers then speak with SBA lenders, banks, or private capital providers while preparing financials, projections, buyer background, source of equity, and a clear deal summary. Financing usually combines buyer equity, acquisition debt, and sometimes seller notes, rollover equity, or outside investor capital.
What is franchise acquisition financing?
Franchise acquisition financing is the debt and equity used to purchase an existing franchise business or franchise group. It may include SBA loans, conventional bank debt, buyer equity, seller financing, rollover equity, equipment financing, working capital lines, or investor capital.
Can SBA loans be used to finance a franchise purchase?
Yes, SBA financing may be available for certain franchise acquisitions if the buyer, brand, transaction structure, use of proceeds, equity injection, repayment capacity, and lender requirements are satisfied. Buyers should consult qualified SBA lenders because program rules and lender requirements can change.
How much equity do I need to finance a franchise acquisition?
Equity requirements vary by lender, deal size, buyer experience, franchise system, collateral, and cash flow quality. Smaller SBA-backed transactions may require less buyer equity than conventional multi-unit acquisitions, but lenders generally expect the buyer to have meaningful capital at risk and enough liquidity for post-close operations.
What repayment terms should I expect on franchise acquisition loans?
Repayment terms depend on the loan type, lender, use of proceeds, collateral, amortization, interest rate, buyer profile, and target cash flow. Buyers should evaluate not only the monthly payment, but also covenants, guarantees, prepayment terms, working capital needs, equipment needs, and whether the business can support debt service under conservative assumptions.
Do SBA loans cover equipment and working capital for franchisees?
Depending on the lender, program, and deal structure, acquisition financing may include funds for equipment, working capital, inventory, transfer costs, or related business needs. Buyers should confirm exactly what the loan will and will not cover before finalizing the purchase price and capital stack.
Can a securities-backed loan be used to help buy a franchise?
A securities-backed loan may be used by some buyers to fund part of the equity contribution or liquidity reserve, but it does not usually replace acquisition debt at the business level. Buyers should understand margin call risk, collateral volatility, lender restrictions, and tax or wealth-planning implications before using portfolio-backed borrowing in a franchise acquisition.
What is DSCR and why does it matter in franchise acquisition financing?
DSCR, or debt service coverage ratio, compares cash flow available for debt service to required loan payments. Lenders use DSCR to evaluate whether the business can repay debt with cushion. A deal that only works under optimistic projections may be difficult to finance, even if the buyer likes the brand and purchase price.
Can seller notes or rollover equity reduce the debt I need?
Yes. Seller notes and rollover equity can reduce cash at closing, bridge valuation gaps, align incentives, and improve lender comfort when structured properly. However, lenders may treat seller notes differently depending on subordination, standby terms, repayment timing, and the overall capital structure.
What do lenders look for in a franchise acquisition loan?
Lenders usually focus on repayment capacity, buyer experience, equity contribution, historical cash flow, normalized earnings, franchise system quality, lease terms, collateral, working capital, capex needs, and franchisor approval. A clean lender package helps the credit team understand the deal faster.
When should I bring in an M&A advisor to help with franchise financing?
Buyers should consider advisor support when the acquisition is larger, multi-unit, competitive, highly structured, or dependent on outside capital. An advisor can help pressure-test valuation, organize diligence, structure seller notes and rollover equity, coordinate lender conversations, and align LOI terms with financing realities.
How does franchisor approval affect acquisition financing?
Franchisor approval can affect timing, lender confidence, buyer qualifications, training requirements, transfer fees, remodel obligations, and closing conditions. Buyers should understand franchisor requirements early because lender approval and franchisor approval often need to move in parallel.
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Auxo Capital Advisors provides commentary on franchise acquisition financing, SBA and bank debt, restaurant acquisitions, franchise transfers, restaurant valuation, buyer decision-making, food and beverage M&A, consumer products and services M&A, and lower-middle-market transaction strategy. Members of the media, podcast hosts, industry writers, and conference organizers can contact Auxo through the contact page.
Important disclosure
This article is for informational purposes only and does not constitute legal, tax, accounting, valuation, investment, lending, franchise, securities, or transaction advice. Franchise acquisition financing terms vary based on lender requirements, borrower qualifications, SBA program rules, franchise system eligibility, deal structure, jurisdiction, lease terms, buyer experience, collateral, transaction documents, and market conditions. Buyers and sellers should consult their own legal, tax, accounting, lending, franchise, securities, financial, and transaction advisors before signing a letter of intent, purchase agreement, franchise transfer document, financing agreement, securities-backed loan agreement, or lease assignment.
