By Mark J. Kane | Founder & CEO, Sunwise Capital | Forbes Finance Council Member 18+ years in business financing · 86,000+ businesses trust us · Boca Raton, FL Key Takeaways Franchise owners face unique cash flow timing challenges — royalties, inventory, and staffing costs hit before revenue peaks. A working capital loan for franchise owners can fund royalties, payroll gaps, marketing co-op fees, remodels, and multi-unit expansion. Sunwise Capital offers working capital loans from $10,000 to $2 million — approval in minutes, funding in as little as 4 hours. Mark J. Kane’s team has worked with franchise owners across food, retail, fitness, services, and B2B verticals since 2010. Ideal candidates have 5+ years in business, $750K+ revenue, and a 680+ credit score — though options exist across a broad range. Owning a franchise gives you a proven business model — but it doesn’t solve the fundamental challenge every business owner faces: cash flow timing. Royalty payments, inventory orders, marketing co-op fees, and seasonal hiring don’t wait for your best revenue months. A working capital loan for franchise owners bridges these gaps so you can meet obligations today and capture growth tomorrow. Whether you operate a single location or are building a multi-unit portfolio, the right working capital structure is the difference between reacting to cash pressure and running a business that’s always a step ahead. This guide breaks down your five best options and how to qualify fast through Sunwise Capital’s working capital loan programs. Table of Contents Toggle Why Franchise Owners Need Working Capital Loans5 Best Working Capital Options for Franchise Owners1. Unsecured Working Capital Loans2. Business Lines of Credit3. Revenue-Based Loans (Merchant Cash Advance)4. SBA Loans for Franchise Expansion5. Equipment Financing for Franchise BuildoutsFind out what your franchise qualifies for.How to Qualify for a Working Capital Loan as a Franchise OwnerTime in BusinessMonthly RevenueCredit ScoreCommon Uses for Franchise Working Capital LoansFrequently Asked QuestionsCan franchise owners get working capital loans without SBA approval?Do I need franchisor approval to take out a working capital loan?How much working capital can a franchise owner borrow?Can I get working capital for a newly opened franchise location?What's the fastest way to get a working capital loan for my franchise?How is a working capital loan different from a franchise loan?Can I use a working capital loan to open a second franchise location?The Bottom LineYour franchise qualified for working capital. Find out how much.About the Author Why Franchise Owners Need Working Capital Loans The franchise model front-loads costs. New unit buildouts, initial inventory, training fees, and grand opening marketing all happen before you’ve served a single customer. Established franchise owners face a different version of the same problem: royalties are due regardless of whether a slow week followed your best month. Traditional banks often struggle to underwrite franchise businesses correctly. They may conflate your personal financial statements with the franchise entity, or require collateral you’ve already pledged to the franchisor. Alternative lenders who understand the franchise model — like Sunwise Capital — underwrite based on unit-level cash flow, not just balance sheet assets. “Working capital isn’t a luxury — it’s the oxygen that keeps a business alive. When an owner calls us and needs $50,000 by Friday to make payroll or restock inventory, we don’t make them wait two weeks. We make same-day funding happen.” According to SBA lending data, franchise businesses account for a significant share of small business loan volume — and access to working capital is the most common use case after real estate acquisition. 5 Best Working Capital Options for Franchise Owners 1. Unsecured Working Capital Loans Fast, flexible, and collateral-free — working capital loans from Sunwise Capital fund from $10,000 to $2 million with same-day decisions. No real estate or equipment pledge required. Approval is based primarily on cash flow and time in business. These loans are ideal for covering royalty payments, payroll timing gaps, inventory replenishment, or marketing fund obligations between strong revenue periods. 2. Business Lines of Credit A revolving line of credit gives franchise owners flexible draw access — borrow what you need, repay it, and draw again without reapplying. Lines from $25,000 to $500,000 work well for multi-unit operators managing variable cash flow across locations. Lines of credit are particularly powerful for seasonal franchise concepts where draw needs fluctuate month to month. 3. Revenue-Based Loans (Merchant Cash Advance) A merchant cash advance — also called a revenue-based loan — advances capital against your future receivables. Repayment is a percentage of daily or weekly deposits. When volume is lower, payments automatically flex down. This option works well for franchise concepts with strong daily transaction volume — fast casual food, fitness, retail — where cash flow is high but lumpy. 4. SBA Loans for Franchise Expansion If you’re acquiring an additional franchise unit or refinancing existing debt, an SBA 7(a) loan offers the lowest available rates for qualified franchise owners. The SBA maintains a Franchise Registry that streamlines approval for pre-approved franchise brands. The tradeoff: 60–120 day close time and extensive documentation. Not for urgent working capital needs. 5. Equipment Financing for Franchise Buildouts New unit buildouts and remodels often require significant equipment investment — commercial kitchen equipment, fitness machines, retail fixtures, or technology systems. Equipment financing through Sunwise Capital covers purchases up to $5 million, often with no down payment, and keeps working capital available for operations. Sunwise Capital Find out what your franchise qualifies for. No commitment. No impact to your credit score until you accept an offer. See My Funding Options → Soft check only · 2 minutes · No obligation How to Qualify for a Working Capital Loan as a Franchise Owner Sunwise Capital underwrites franchise businesses based on unit-level performance — not just your overall balance sheet. Here’s what matters most. Time in Business At least 2 years of operating history at the franchise entity level. Sunwise Capital’s ideal franchise client has 5+ years of proven operations, though options exist for newer units with strong revenue performance. Monthly Revenue Consistent monthly deposits of at least $20,000 per month in the last 3 months. The sweet spot for Sunwise Capital’s franchise clients is $750K+ in annual unit revenue. Multi-unit operators often qualify for larger amounts by consolidating entity cash flows. Credit Score A 680+ personal credit score opens the most options. Revenue-based products are accessible down to 580 in many cases. Strong business cash flow often compensates for credit scores below ideal thresholds. Loan Type Best Franchise Use Case Speed Amount Range Working Capital Loan Royalties, payroll, inventory 4–24 hours $10K–$2M Line of Credit Seasonal gaps, flexible access 1–3 days $25K–$500K Revenue-Based Loan High-volume, variable revenue 24–48 hours $10K–$1M SBA 7(a) Unit acquisition, refinance 60–120 days Up to $5M Equipment Financing Buildouts, remodels, equipment 1–5 days Up to $5M Common Uses for Franchise Working Capital Loans Mark J. Kane works with franchise owners across food service, fitness, automotive, retail, home services, and B2B verticals. Common working capital uses include: Royalty and marketing fund payments during slow periods Payroll during seasonal dips or pre-grand-opening ramp periods Inventory replenishment ahead of peak season Required remodel or refresh capital (mandated by franchisor) Multi-unit acquisition deposits or franchise fees Technology upgrades (POS, loyalty programs, digital ordering) Working capital bridge during SBA loan processing The NFIB small business economic trends data consistently shows that cash flow timing — not profitability — is the most common operational challenge for franchise owners. The right working capital structure solves this problem at the source. Frequently Asked Questions Can franchise owners get working capital loans without SBA approval? Yes. Most of Sunwise Capital’s working capital products are non-SBA products that close in hours or days, not months. SBA loans are excellent for large transactions or acquisition financing — but for day-to-day working capital needs, alternative lending is faster and simpler. Do I need franchisor approval to take out a working capital loan? It depends on your franchise agreement. Some agreements include lender approval requirements or restrictions on pledging franchise assets as collateral. Review your FDD (Franchise Disclosure Document) before applying. Unsecured working capital loans from Sunwise Capital typically don’t trigger these restrictions because no franchise assets are pledged. How much working capital can a franchise owner borrow? Sunwise Capital offers unsecured working capital loans from $10,000 to $2 million. Multi-unit operators with multiple revenue streams may qualify for higher amounts by combining entity cash flows in the underwriting. Can I get working capital for a newly opened franchise location? Lenders generally want to see at least 2 years of business history. For new locations under an established multi-unit entity, the existing entity’s track record may support additional financing. Options depend on the specific structure and revenue history. What’s the fastest way to get a working capital loan for my franchise? Complete Sunwise Capital’s 2-minute funding qualifier at sunwisecapital.com/funding-qualifier. Approval decisions come in minutes. Have your last 3 months of business bank statements ready for the full application. Funding can happen the same day for amounts under $250K with strong documentation. How is a working capital loan different from a franchise loan? A “franchise loan” typically refers to SBA loans used to purchase a franchise unit. A working capital loan is for operating costs within an existing business — payroll, inventory, royalties, marketing. They serve different purposes and have very different timelines and qualification criteria. Can I use a working capital loan to open a second franchise location? Working capital loans are best for operational needs, not unit acquisition. For opening a second location, equipment financing covers buildout costs and an SBA loan or business acquisition loan is better suited for the franchise fee and tenant improvement costs. Sunwise Capital can help structure the right combination. The Bottom Line A working capital loan for franchise owners isn’t about borrowing to survive — it’s about having the liquidity to operate confidently and grow strategically. Whether you’re covering royalties during a slow quarter, stocking up ahead of your busiest season, or bridging the gap while an SBA loan processes, having fast access to working capital changes what’s possible. Since 2010, over 86,000 businesses have trusted Sunwise Capital — including franchise owners at every stage of growth. Mark J. Kane and the Sunwise team deliver approval decisions in minutes and funding in as little as 4 hours across 700+ industries nationwide. The Rate Match Guarantee means you’ll always get competitive terms. See your working capital options in 2 minutes — no commitment, no hard credit pull. What business owners say about Sunwise Capital Trustpilot Find. Fund. Fuel. Your franchise qualified for working capital.Find out how much. See your funding options in 2 minutes. No commitment. No impact to your credit until you accept an offer. Since 2010, over 86,000 businesses have trusted Sunwise Capital. See My Funding Options → ⭐ 4.9/5 Trustpilot · Forbes Finance Council Member · NEFA & AACFB Member · Funding in as little as 4 hours About the Author Mark J. Kane is the Founder and CEO of Sunwise Capital, a small business lending company based in Boca Raton, Florida. With more than 30 years of experience in business finance and executive leadership, Mark has helped business owners access the capital they need to grow, adapt, and compete. Before founding Sunwise Capital, Mark held senior leadership roles across capital markets, securities, healthcare, and internet finance. His background includes building high-growth financial platforms, expanding investment banking operations nationwide, training thousands of sales professionals, and scaling ventures from startup stage to multimillion-dollar revenue. Mark holds a B.S. in Psychology from the University of Massachusetts Amherst and a Master’s Degree from the University of Chicago. Through Sunwise Capital, Mark and his team have helped more than 86,000 businesses pursue funding solutions designed to support growth, cash flow, equipment purchases, and long-term success. Ready to apply? See your funding options in minutes at Sunwise Capital.
