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Opening a&nbsp;<a href="https://1851franchise.com/20-fast-food-franchise-opportunities-2024-2725122">fast-food franchise</a> is a well-established path into the restaurant industry, offering the independence of business ownership with the support and recognition of an established brand. Still, one of the biggest hurdles for aspiring franchisees is figuring out how to pay for it all — from startup costs to ongoing expenses. Understanding your financing options is a critical first step.<h2>Understand the Total Cost</h2>Before you apply for any loan or funding, you need a clear picture of how much money you’ll actually need. Most fast food franchises require a total investment ranging from a few hundred thousand dollars to over $1 million, depending on the brand and location.Typical costs include:<ul><li>The franchise fee</li><li>Buildout and construction</li><li>Equipment and signage</li><li>Opening inventory</li><li>Marketing and training</li><li>Working capital to get through the early months</li></ul>The franchisor will outline these numbers in the&nbsp;<a href="https://1851franchise.com/how-to-buy-a-franchise-what-is-an-fdd-2724901">Franchise Disclosure Document (FDD)</a>, so that’s your best starting point.<h2>Financing Options To Consider</h2>Once you have your investment target, the next step is figuring out how to fund it. There are several common paths franchisees take:<h3>SBA Loans</h3>The&nbsp;<a href="https://1851franchise.com/sba-franchise-loans-what-they-are-and-how-to-get-one-2724719">Small Business Administration (SBA) offers loans</a> that are frequently used to fund franchises. The SBA 7(a) loan is especially popular. It can be used for just about anything, from real estate to equipment to working capital, and typically offers favorable terms.Keep in mind that while these loans are partially guaranteed by the government, they still require a strong credit profile and some form of collateral.<h3>Franchise-Focused Lenders</h3>Some lenders specialize in franchise financing. These firms understand the business model and often work directly with franchisors, which can make the process faster and more flexible than going through a traditional bank.Well-known franchise lenders include:<ul><li><a href="https://1851franchise.com/franfund-helping-franchise-owners-secure-smart-funding-solutions-2728639">FranFund</a></li><li><a href="https://1851franchise.com/franchise-bankingfinancing-applepie-capital-emerging-leaders-in-franchise-support-2728670">ApplePie Capital</a></li><li><a href="https://1851franchise.com/meet-the-supplier-guidant-financial-group-inc-2723605">Guidant Financial</a></li></ul>If you’re working with a known fast food brand, these companies may already have financing packages built for it.<h3>Alternative Funding Options</h3>If a traditional loan isn’t the right fit, there are several other ways to finance your fast-food franchise investment:<ul><li>401(k) Business Financing (ROBS):&nbsp;This option lets you use your retirement savings to fund your business without incurring early withdrawal penalties or taxes.</li><li>Home Equity Loans or Lines of Credit:&nbsp;If you own a home, tapping into your equity can provide a low-interest source of capital.</li><li>Equipment Leasing:&nbsp;Instead of purchasing costly equipment upfront, leasing can spread out payments and preserve cash flow during the early stages of your business.</li><li>Friends and Family Loans: Borrowing from loved ones can be a viable option, but it’s important to treat it professionally — always include formal agreements to protect both sides.</li></ul><h2>Strengthen Your Financial Profile</h2>No matter where you apply for funding, lenders will want to see that you’re financially stable and capable of running a business. Here’s what they’ll typically look for:<ul><li>A solid credit score (usually 680+)</li><li>Personal financial statements</li><li>A detailed business plan</li><li>Your own cash contribution, often 10-30% of the total cost</li></ul>Being well-prepared not only improves your odds of approval but also shows the franchisor you’re serious.<h2>Talk to the Franchisor</h2>Before you explore financing on your own, check in with the franchise brand. Many franchisors offer valuable support throughout the funding process — from connecting you with preferred lenders to providing in-house financing options or budgeting tools.When speaking with the brand’s development team, consider asking questions like:<ul><li>What types of financing support do you offer?</li><li>Do you have relationships with specific lenders?</li><li>How have other franchisees successfully funded their locations?</li></ul>You’re not in this alone. Most franchisors have guided plenty of new owners through the same steps and can connect you with helpful resources or contacts to make the process easier.Figuring out how to get financing for a fast-food franchise may feel overwhelming at first — but the good news is, you have options. Whether you’re leaning toward an SBA loan, working with a franchise lender, or considering alternative funding, the most important thing is to be prepared. Know your numbers, understand your costs and put together a strong financial plan.For more info on financing, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/franchise-financing-5-smart-strategies-for-investors-2725473">Franchise Financing: 5 Smart Strategies for Investors</a></li><li><a href="https://1851franchise.com/franchise-financing-secure-funding-for-your-dream-business-2729151#stories">Franchise Financing: Secure Funding for Your Dream Business</a></li><li><a href="https://1851franchise.com/financing-home-service-franchise-2728910#stories">How To Get Financing for a Home Service Franchise in 2025</a></li></ul>

How To Get Financing for a Fast-Food Franchise: A Guide for 2025

How to Get Financing for a Fast Food Franchise.   

1851 Franchise

Looking to open a fast-food franchise but not sure how to fund it? Here’s a practical guide to the most effective financing options and how to prepare for success.

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Minuteman Press International

Minuteman Press Franchise Owner Mike Arndt with his President’s Club Award in Plant City, FL.

Minuteman Press Franchise Review: 20+ Years in Plant City, FL

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KLA Schools

Why Now Is the Moment: 5 Compelling Reasons To Invest in a KLA Schools Franchise

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Beansquad

Beyond the Books: BeanSquad’s Strategic Financial Guidance for Franchise Growth

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Jollibee

Executive Q&A: Beth Dela Cruz, President of JBM LLC, the franchisor of Jollibee in North America

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Top 5 Reasons Jollibee Is the Hottest Franchise Opportunity Right Now

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How To Get Financing for a Fast-Food Franchise: A Guide for 2025

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