They’re easier than most small business loans, especially for well-known franchises. The SBA and some banks like them because franchises have proven systems and lower risk but you’ll still need good credit and some money down.

Franchise loans can be easier to get than starting a brand-new business from scratch, especially through the SBA, because lenders see franchises as safer and more predictable. But it’s not “easy.” You still need good credit, a solid business plan, and some money of your own in the game. It can feel stressful, but once you get approved, it’s a huge relief like someone finally saying, “Yes, we believe in you.”

Franchise loans can be more accessible than traditional small business loans, especially when the franchise is with a well-established brand. The U.S. Small Business Administration (SBA) offers programs that often cover franchise financing, providing favorable terms and lower down payments, though the application process can be detailed and requires thorough documentation. Private lenders may also offer loans, sometimes with quicker approval, but often at higher interest rates and stricter credit requirements. While financing is generally feasible, prospective franchisees should carefully prepare a solid business plan and financial statements to improve their chances of approval.