Time in Business
Minimum 6 months operating the franchise location. The franchisor's years in business do not transfer — your location's history is what matters.
Yes. Franchise owners qualify for MCA based on their location's monthly revenue deposits, not the franchisor's balance sheet. Each franchisee is evaluated as an independent business. A single-unit franchisee with $30,000/month in deposits can qualify for $25,000–$45,000 within 24–72 hours.
Industry Authority Center
Royalty fees don't wait for a good month. Required remodels don't come with flexible timelines. Multi-unit expansion requires capital before the opportunity closes. This resource center is for franchise operators who understand their brand obligations — and need capital that moves at franchise speed.
Most franchise funding needs fall into one of five categories.
Three main options available to franchise owners — what each one is actually built for.
| Factor | MCA (Merchant Cash Advance) | SBA 7(a) Loan | Business Line of Credit |
|---|---|---|---|
| Time to Funding | 1–3 business days | 60–180 days | 2–8 weeks |
| Minimum Credit Score | 500 FICO | 680+ FICO | 620+ FICO |
| Collateral Required | None | Yes (personal/business) | Sometimes |
| Revenue Requirement | $4K–$6K+/month deposits | 2+ years, strong P&L | $15K+/month, 1+ year |
| Paperwork | 1-page app + 3 bank stmts | Extensive (months) | Moderate |
| Cost | Higher (1.15–1.45 factor) | Low (prime + 2–3%) | Medium (8–20% APR) |
| Triggers Franchise Agreement Clauses | Typically no (not a loan) | Often yes (check FDD) | Sometimes |
| Best For | Speed-sensitive: royalties, remodels, equipment | Long-term expansion, low-rate capital | Recurring cash flow needs |
Always review your Franchise Disclosure Document (FDD) Items 9 and 10 before seeking outside financing. Most MCA arrangements are not classified as traditional debt and do not trigger loan-specific consent clauses — but franchise agreements vary significantly.
Real use cases from franchise owners across food service, fitness, retail, automotive, and home services.
Weekly or monthly royalties (5–8% of gross sales) and advertising fund contributions (1–4%) are non-negotiable. When one location has a slow stretch, MCA bridges the gap without risking franchise agreement violations.
Most franchise agreements require a remodel every 7–10 years — or sooner if the brand updates its image. Remodels range from $80K to $400K+ and come with franchisor deadlines. MCA closes before the deadline and needs no collateral.
Multi-unit development agreements often require opening new locations on a schedule. The second location's pre-open costs — build-out, equipment, initial inventory, staff training — typically run $150K–$350K before day one of revenue.
New POS systems, kitchen equipment mandated by the brand, or digital ordering technology updates. Franchisors often negotiate brand pricing but still require you to fund the purchase within a specified window.
Food service, fitness, and retail franchise locations often have dramatic seasonal swings. January (post-holiday) and August (back-to-school transition) are common slow periods where expenses exceed revenue for 4–6 weeks.
Staffing for a new location starts 4–6 weeks before opening. Payroll, training materials, uniforms, and pre-open marketing all happen before revenue starts. MCA funds the ramp period without depleting the parent company's reserves.
Evaluated per location. Each unit qualifies independently based on its own deposit history.
Minimum 6 months operating the franchise location. The franchisor's years in business do not transfer — your location's history is what matters.
500 FICO minimum for the business owner. Underwriters look primarily at deposit volume and consistency — a low credit score can be offset by strong monthly revenue.
Minimum $8,000–$10,000 in average monthly deposits per location. Most franchise locations well exceed this threshold. Stronger deposits yield larger advances and better factor rates.
6 consecutive months of business bank statements, all pages. For multiple locations, submit each location's statements separately for maximum per-unit offer.
0–2 NSFs per month is acceptable. More than 3 NSFs in any month raises a flag. Franchise locations often have more stable cash flow than independent businesses, which helps here.
0–1 existing MCA positions is acceptable. 2+ open positions reduces approval odds. If you have an existing advance, mention it upfront — some funders can consolidate.
How underwriters evaluate franchise applications — what moves the needle.
Franchise locations with brand-name recognition often receive favorable underwriting treatment — a Subway or McDonald's franchisee with consistent deposits is seen as lower-risk than an independent restaurant with similar revenue.
Answers to the most common questions from franchise owners about MCA, SBA, FDD restrictions, and the application process.
Yes. Franchise owners qualify for MCA based on their location's monthly revenue deposits, not the franchisor's balance sheet. Each franchisee is evaluated as an independent business. A single-unit franchisee with $30,000/month in deposits can qualify for $25,000–$45,000 within 24–72 hours.
For MCA, typically no. A merchant cash advance is a purchase of future receivables, not a traditional loan. It typically does not trigger consent clauses in your franchise agreement the way a secured loan would. However, always review your FDD and franchise agreement — some brands restrict debt instruments. Consult your franchise attorney if uncertain.
Single-unit franchisees typically access $20,000–$150,000 depending on monthly deposit volume. Multi-unit operators can apply per location. The general offer is 75–150% of your 3-month average deposit volume per location. A location averaging $50,000/month can typically qualify for $37,500–$75,000.
SBA loans offer lower rates but require 3+ months of paperwork, strong personal credit (680+), collateral, and 60–180 day timelines. MCA closes in 24–72 hours, requires only bank statements, accepts 500 FICO, and needs no collateral. MCA is best for speed-sensitive needs. SBA is best for large expansion capital with longer planning horizons.
Yes, and this is one of the most common uses. Royalty fees are due weekly or monthly regardless of your revenue cycle. When a slow month hits, MCA provides bridge capital to cover royalties, advertising fund contributions, and required purchases — without disrupting operations or risking franchise agreement violations.
Yes. Multi-unit operators can apply for each location separately and often receive separate offers. Some funders will consolidate statements across locations for a combined offer. Strong-performing locations can effectively subsidize a struggling location's qualification.
Required: completed one-page application, 6 consecutive months of business bank statements (all pages), and a voided business check. For multi-unit operators, submit statements for each location separately to maximize per-location offers.
The Franchise Disclosure Document (FDD) is the legal document you received before signing your franchise agreement. Item 10 covers financing arrangements the franchisor offers or arranges. Item 9 covers your obligations. Before seeking outside financing, review Item 9 for any restrictions. Most modern FDDs permit MCA as it is not classified as a traditional loan.
Yes. Brand-mandated remodels are one of the most common reasons franchisees need capital. Banks often won't lend for remodels without extensive paperwork and collateral. MCA closes in 1–3 days with no collateral — making it well-suited for remodel deadlines imposed by the franchisor.
Yes. Franchisees with at least 6 months in business and $10,000+ in average monthly deposits qualify for MCA. The brand recognition and proven business model can also help with some SBA 7(a) programs. For the first 6 months, check your FDD Item 10 for internal franchisor financing options.
The minimum credit score is 500 FICO. MCA underwriters evaluate franchise owners primarily on deposit volume, not personal credit. A location averaging $40,000/month in deposits with a 520 FICO can still qualify. Revenue and deposit consistency matter far more than credit score.
Most franchise owners receive an approval decision within 2–4 hours of submitting 6 consecutive months of bank statements. Funds are deposited within 24–48 hours of contract signing. Same-day funding is available for complete applications received before noon.
T.A.G. works with franchisees across all major brands including food service (fast food, fast casual, pizza, coffee), fitness, childcare, automotive services, home services, healthcare, retail, and hotels. The funding is brand-agnostic — your location's revenue determines qualification, not the brand.
MCA is structured as a purchase of future receivables, not a loan. It typically does not appear as debt on a balance sheet and does not trigger loan-related franchise agreement covenants. That said, franchise agreements vary. Review your FDD Item 9 for any financing restriction clauses. When in doubt, consult a franchise attorney.
One-page application. 6 consecutive months of bank statements. Decision in 24–72 hours.
500 FICO OK · No collateral · Brand-agnostic · Multi-unit OK
Or call/text: 330-238-3003
T.A.G. Business Funding
500 FICO minimum. Bank declines OK. Each location evaluated independently. Most decisions in 24 hours.
500 FICO minimum · $4K–$6K+/month revenue · Funded in 1–3 days
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