Restaurant franchising spans every category from quick service (McDonald's, Subway, Wendy's, Taco Bell) to fast casual (Chipotle franchises in select markets, Five Guys, Wingstop) to full-service (Applebee's, IHOP, Denny's, Outback). The franchise model has predictable economics, established systems, and brand recognition that drives traffic — but requires substantial capital for initial fees, build-out, and operations.
Prime Restaurant Capital funds franchise restaurant operators across most major brands. Funding includes initial franchise fees, build-out costs, equipment, training and grand opening costs, and working capital for operations. Funding ranges from $50K (smaller franchise with build-out support from franchisor) to $1M (large QSR or full-service builds).
Franchise-Specific Capital Needs
Initial Franchise Fees
Franchise fees vary widely by brand. Major QSR brands charge $25K-$60K initial franchise fee. Fast casual brands range $30K-$50K. Full-service brands $35K-$100K. Premium brands (some upscale concepts, established mid-scale chains) can charge $100K-$200K+ in initial fees.
Build-Out Costs
Franchise build-outs are highly standardized — required equipment, finishes, and layouts per the franchise standards. QSR builds typically run $300K-$700K. Fast casual builds $400K-$800K. Full-service builds $700K-$1.5M. Smaller footprint formats (smaller QSRs, kiosks) can be $150K-$300K.
Equipment and Technology
Most franchises require specific equipment from approved vendors. Franchisor often provides preferred financing relationships but franchisees can typically use independent financing for better terms. Equipment financing structures these costs over 36-60 months.
Working Capital for Operations
Franchise operations typically need 90-180 days of working capital reserve at opening — covering payroll, inventory, royalties (typically 4-8% of revenue), advertising fees (typically 2-4% of revenue), and rent until revenue stabilizes.
Franchise Funding Qualifications
- Operating franchise restaurant in the US — minimum 6 months for working capital, 12 months for expansion
- Active franchise agreement with major brand
- Monthly revenue $30K+ per unit (varies by brand and concept)
- Credit score 600+ preferred (some brands require higher)
- Franchisor approval for additional unit funding (where required)
