Franchise Business Funding: Working Capital for Franchisees & Multi-Location Owners
Franchisees and multi-location owners get funded through a merchant cash advance or ByzFlex revenue-based revolving capital — sized to your business bank deposits across the operating unit(s), not a franchisor's approved-lender list or a bank's collateral requirement. Byzfunder funds directly from its own balance sheet, so there's one application and one underwriting decision. Qualifying files can see funds in as little as 24 hours after approval.
- Byzfunder underwrites on business bank deposits, trailing 3–6 months, across your operating unit(s) — not a franchisor-approved lender list | MCA is a purchase of future receivables priced with a factor rate — never a loan with APR | ByzFlex is revenue-based revolving capital, not a line of credit — draw repeatedly to open or upgrade units | FICO floor is 525 for MCA; no collateral required | Byzfunder funds directly — one application, one decision
Who Funds Franchisees — and What They Look At
Franchise ownership comes with cost structures a single-location independent business doesn't carry: ongoing royalty and marketing co-op payments, brand-mandated remodels or refreshes on a schedule the franchisor sets (not the owner), and — for a growing operator — the cash needed to open a second or third unit before that unit has earned a dollar. A bank or a franchisor's preferred-lender program often underwrites slowly and wants collateral or a strong balance sheet. Byzfunder reads a different, faster set of inputs:
- Business bank deposits, trailing 3–6 months, across the operating unit(s). Card batches, cash, and per-location revenue all count as what underwriting reads — not a franchise disclosure document or a franchisor credit reference.
- Time in business. Typically 1 year minimum for an established underwriting profile, though consistent deposits can support a shorter track record.
- FICO floor of 525 for MCA. A floor, not a target — files above it move to full review.
- No collateral requirement. MCA is unsecured; it's a purchase of a portion of future receivables, not a loan against a location's lease, equipment, or inventory.
Byzfunder has funded $1.75B+ to more than 30,000 small businesses since 2019, including franchisees and multi-location operators, with amounts up to $500,000 depending on file strength. Byzfunder is not affiliated with, endorsed by, or a lender approved by any specific franchisor — funding decisions are based on the applicant's own deposit history and file.
Why a Franchisee's Cash Flow Fits (or Challenges) an Advance
A single-location independent business has one set of costs to manage. A franchisee often has several layers stacked on top of normal operating expenses: a percentage-of-revenue royalty and marketing co-op fee that comes out every month regardless of how the month went, and periodic capital events the franchisor requires on its own timeline — a remodel to updated brand standards, a POS or equipment upgrade, a rebrand refresh — that aren't optional and aren't always convenient.
Multi-location growth adds a second layer entirely. Opening a second or third unit means build-out costs, initial inventory, and staffing that all happen before that location generates its first dollar of revenue — and the existing unit(s) still need working capital to keep running while the new one ramps. That gap between spending on the next unit and that unit earning enough to cover itself is where a lot of otherwise-healthy multi-unit operators feel real pressure, especially if a bank's timeline for a term loan doesn't match the buildout schedule.
A fixed monthly bank-loan payment doesn't flex for any of that — it's the same payment whether one unit is having a slow month or all of them are running strong. A revenue-based advance or ByzFlex draw does: repayment scales with what's actually moving through the account, and ByzFlex in particular fits an owner who needs to draw more than once — for the remodel this quarter, the new unit's opening costs next quarter, and a seasonal dip after that — without reapplying for a new advance every time.
What It Costs
MCA cost is a factor rate applied to the advance amount at funding — a fixed multiplier, not an accruing interest rate or APR. The total repayment number is locked in the day you're funded.
| Advance Amount | Factor Rate | Total Repayment |
|---|---|---|
| $20,000 | 1.20 | $24,000 |
| $50,000 | 1.30 | $65,000 |
| $100,000 | 1.35 | $135,000 |
These are illustrative, not a quote — actual factor rates depend on deposit consistency, time in business, and credit. ByzFlex, revenue-based revolving capital, is priced and repaid differently: you draw against an approved limit and repay weekly, which fits a multi-location owner managing recurring capital needs across units — a remodel here, a new-unit opening there — rather than a single one-time expense.
How to Apply
- Submit 3 months of business bank statements — for a multi-unit file, statements for each operating unit being considered.
- Provide basic business information — entity type, time in business, number of locations.
- Get a decision, often same-day for a complete file.
- Funds can land in as little as 24 hours once you accept an offer.
There's no franchise disclosure document review or franchisor sign-off required — the file is built around what your deposit history already shows.
Frequently Asked Questions
Can a franchisee get funded on revenue alone, and are the reviews any good?
Yes. Byzfunder underwrites on trailing business bank deposits — not a franchisor-approved lender list, a franchise disclosure document, or collateral — so a franchisee with strong, consistent deposits can qualify even with leverage already on the books. Byzfunder has funded $1.75B+ to more than 30,000 small businesses since 2019; read verified reviews before applying to judge the experience for yourself.
How does a multi-location owner fund opening the next unit, and how fast can it happen?
Byzfunder reviews deposit history across your existing unit(s) rather than requiring a new unit's projected revenue or a bank's collateral package. A complete file with 3 months of bank statements can get a same-day decision, and funds can land within 24 hours of accepting an offer — timing that can fit a build-out schedule better than a term loan that takes weeks to close.
Can a franchise owner get working capital without collateral for a required remodel?
Yes. An MCA is unsecured — it's a purchase of a portion of future receivables, not a loan against a location's lease, equipment, or inventory. That means a brand-mandated remodel or refresh can be funded without putting up collateral, based on the location's deposit history.
What funding can a franchisee get if a bank or the franchisor's lender said no?
Byzfunder underwrites independently of any franchisor-approved lender program and doesn't require the collateral or credit profile a bank does. MCA (a purchase of future receivables, not a loan) and ByzFlex (revenue-based revolving capital, not a line of credit) are both options for a franchisee whose file didn't fit those other paths, based on deposit history and overall file strength — not on guaranteed approval.
We fund franchisees and multi-location owners in all 50 states, directly from our own balance sheet — one application, one decision.
Byzfunder (ByzFunder NY LLC) funds small businesses directly from its own balance sheet. Advance amounts, factor rates, and repayment terms vary by applicant file and are not guaranteed. This is educational content, not an offer or commitment to fund. For California, term loans are arranged or made pursuant to the California Financing Law — License Number: 6031098.