How we make money: The Business Funding Club is a referral service, not a lender and not a broker. We refer businesses that ask for capital to ROK Financial. ROK and the lenders it matches you with make every funding decision. ROK pays us when a business we refer receives funding. It is free to you, and nothing here is an offer of credit. Read the full disclosure.

Illustration of a restaurant interior being fitted out with wrapped equipment

Financing types

The franchisor already told you what it costs to open. Item 7 is where the financing starts.

Franchise financing pays for buying, opening or expanding a franchise unit: the franchise fee, build-out, equipment, opening inventory and early working capital. The Business Funding Club refers you to ROK Financial. ROK and the lenders it matches you with review every request and make every funding decision.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.

By Marcus L. Barber, Publisher · Reviewed by Marcus before publishing · Updated · How we write and check facts

What it is

Franchise financing is not one product. It is a term loan, equipment financing, an SBA loan, or a mix, used for the costs of a franchise. What sets it apart is the paperwork you already have. Under the FTC Franchise Rule, the franchisor must give you a disclosure document with 23 specific items[1], at least 14 days before you sign a contract or pay any money[2]. Item 7 sets out your estimated initial investment[3].

Where it fits

  • A new unit, where the disclosure document gives you the cost categories and ranges a lender will ask about.
  • A second or third location, where your existing unit's track record supports the request[4].
  • Remodels or equipment updates your franchisor requires[4].
  • Buying an existing unit from its current owner.

When it’s the wrong tool

  • Borrowing the whole cost with no cushion. The FTC notes it may take months to open, more than a year to break even, and some franchises never do[2].
  • Financing before you've read the disclosure document and franchise agreement. The debt will outlast a bad fit.
  • Short-term, frequent-payment capital for a build-out that pays back over years.
  • Skipping your franchisor's own financing programs without comparing them. ROK's page suggests checking with your franchisor first[4].

Ask before you sign

  • Does this financing cover the full Item 7 range, including the additional funds for the initial period?
  • Does the franchisor or an affiliate offer financing, and how does its total cost compare? Item 7 must disclose franchisor financing[3].
  • What happens to the loan if the franchise agreement ends or isn't renewed?
  • What collateral is required, and does it include personal assets or a personal guarantee?
  • If I'm considering an SBA loan, is the brand in the SBA Franchise Directory[5]?
  • What is the total dollar cost, and how are payments collected?

Use Item 7 to size the request

Item 7 is a table of what it takes to open. It must list, where they apply[3]:

  • The initial franchise fee
  • Training expenses
  • Real property, bought or leased
  • Equipment, fixtures, construction, remodeling, leasehold improvements and decorating
  • Opening inventory
  • Deposits, business licenses and other prepaid expenses
  • Additional funds for an initial period of operations

Where amounts aren't known, the franchisor gives a low-high range[3]. Plan to the high end. Items 5 through 7 cover the main opening and ongoing costs, and the FTC suggests you also look into costs they leave out, such as accounting and legal help[2].

SBA loans and franchises

Lenders and Certified Development Companies use the SBA Franchise Directory to evaluate the eligibility of businesses that run under a franchise agreement. Being listed is not an endorsement of the brand and doesn't ensure success[5]. 7(a) loans can be used to start a business or acquire one[6], which makes them a common first conversation for a new unit.

What ROK lists for this product

ROK describes franchise financing as funds to buy and run a franchise, including franchise fees, equipment, inventory, working capital and down payments. It notes that owners can sometimes use an existing franchise to support financing for another[4]. ROK's franchise page lists at least six months in business and $10,000 or more in monthly gross sales[4]. ROK's general application lists at least 4 months in business and $10,000 or more in monthly gross sales ($120,000 a year)[7]. ROK and its lenders review every request and make every funding decision. The Club does not.

Lenders commonly review the disclosure document and franchise agreement, a business plan with projections, a personal financial statement, and for an existing unit, its bank statements and profit and loss.

Industries where it comes up

ROK Financial lists this product on its own site. Read ROK’s page

Common questions

Can I finance the franchise fee?

Often, yes. ROK lists franchise fees among the uses for its franchise financing[4], and the fee appears as its own line in Item 7[3]. Check whether the fee is refundable. Item 7 footnotes must say whether each payment is refundable[3].

I'm opening my first unit with no operating history. Where do I start?

ROK's listed minimums assume an operating business[4,7]. For a brand-new unit, SBA 7(a) loans, which can be used to start a business[6], and any franchisor programs are common first conversations. Bring the disclosure document, your plan, and a clear picture of your own finances.

What is the Franchise Disclosure Document, and when do I get it?

It is the document the FTC Franchise Rule requires, with 23 items covering the franchisor, costs, obligations and other franchisees[1]. You must receive it at least 14 days before you sign a binding agreement or pay the franchisor[2]. Read all of it, and have an accountant review the cost items.

What will ROK want to see?

Expect to share business financials[4], plus the disclosure document, franchise agreement, a business plan and, for an existing unit, bank statements and a profit and loss statement. If you already own a unit, its results are the strongest evidence you can bring. ROK and its lenders decide what they need.

Does it cost anything to apply through The Business Funding Club?

No. The Business Funding Club is a free referral club, not a lender or a broker. We refer your request to ROK Financial. ROK and the lenders it matches you with review it and make the decision. ROK pays Digital Solomon when a referred business is funded. You never pay the Club anything, and you don't have to accept any offer.

Sources

  1. Franchise Rule Federal Trade Commission, checked October 16, 2026
  2. A Consumer's Guide to Buying a Franchise Federal Trade Commission, checked October 16, 2026
  3. 16 CFR Part 436 Subpart C: Contents of a Disclosure Document Electronic Code of Federal Regulations (National Archives), checked October 16, 2026
  4. Franchise Financing ROK Financial, checked October 16, 2026
  5. SBA Franchise Directory U.S. Small Business Administration, checked October 16, 2026
  6. SBA lender resources: Partnering with SBA loan programs U.S. Small Business Administration, checked October 16, 2026
  7. Business Financing application (ROK Financial partner page) ROK Financial, checked October 16, 2026

Before you start

What ROK looks for.

Stated plainly so you don’t spend time on a form that isn’t built for your business yet. These are the minimums ROK lists on its partner application. Meeting them is the starting line, not a decision.

  • 4 monthsminimum time in business
  • $10,000minimum monthly gross sales
  • U.S.based and operating

Credit history is one input among several. ROK reviews the whole picture: revenue, deposits, time in business, and what the money is for. What to have ready.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.