Franchise lending: the questions we ask before structuring a deal.
Multi-unit operators and first-time franchisees need different things from a lender. We share the underwriting framework we apply across brands and unit economics.
Franchise underwriting is brand math plus operator math. The brand sets the unit economics envelope. The operator decides where inside that envelope the deal actually lands.
For first-time franchisees we focus on capitalization, runway, and the operator's plan for the first eighteen months — the period before any single unit is producing brand-average results. For multi-unit operators we focus on portfolio cash flow concentration, development timing, and the gap between underwritten ramp and actual ramp on prior units.
Both conversations end in the same place: a structure that funds growth without overleveraging the operator into a market they cannot wait out.