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How to choose
Financing comes first for franchise owners — SBA 7(a) is the primary vehicle for franchise acquisition (up to $5M, 10-year terms), and the SBA maintains a Franchise Directory that pre-approves lending to verified franchise brands. Verify your brand is on the SBA Franchise Directory before applying. Once funded, choose a POS and accounting software that satisfies franchisor reporting requirements — most franchisors specify formats in the FDD.
What to look for
- SBA 7(a) lender familiar with your specific franchise brand and the SBA Franchise Directory
- POS with multi-location dashboard — see sales and labor across all units in one view
- Payroll that scales from single-unit to multi-unit without switching platforms
- Accounting software in the format franchisors require for royalty and P&L reporting (QuickBooks is standard)
- Business insurance that meets FDD minimum coverage requirements — COIs issued instantly for franchisor compliance
- Business banking that keeps each franchise unit's finances separate — required by SBA lenders
Our picks
Franchise Financing (SBA)
ClearValue Lending — SBA 7(a) Franchise Loans
SBA 7(a) loans are the primary vehicle for franchise financing: up to $5 million, 10-year terms, and FDD-verified lenders on the SBA Franchise Directory. ClearValue matches you to SBA lenders familiar with your specific franchise brand.
Point of Sale (Franchise-Ready)
Clover
Clover's multi-location dashboard lets a franchisee or multi-unit owner see sales, voids, and labor across all locations in one view. Hardware ships pre-configured — faster to open.
Payroll
Gusto
Multi-location payroll with automatic state tax filings and workers' comp integration. Gusto scales from a single franchised unit to a multi-location portfolio without switching platforms.
Accounting Software
QuickBooks Online
Franchisors often require QBO-formatted royalty and P&L reporting. Starting in QBO also means lenders see financials in the format they already know when you apply for a second or third unit.
Business Insurance
Next Insurance
Franchisors typically specify minimum GL and property coverage levels in the FDD. Next Insurance issues COIs instantly online — meeting franchisor requirements without waiting on a broker.
Business Banking
Bluevine Business Checking
A dedicated franchise checking account separates royalty payments, vendor invoices, and payroll from the owner's personal finances — required by most SBA lenders and most franchisors.
Why we built this
Every tool on this page is something the ClearValue Lending team has reviewed and considers genuinely useful for franchise owners and prospective franchisees. The selection starts with our full comparison guides — we built those first, evaluated every major option in each category, and the editorial pick here is the result.
Brian Kim is a CPA with over a decade of experience advising small business owners on finance, tax, and operations. ClearValue Lending focuses specifically on the financing decisions that affect approval odds and borrowing cost — which means we pay close attention to how these tools affect your financial records, your business credit profile, and your lender-readiness.
Affiliate commissions help fund free content like this. They do not affect which product receives the pick. Full comparison guides for every category are linked from each card above.
Frequently asked questions
How do franchise owners finance a franchise purchase? +
SBA 7(a) loans are the most common financing vehicle for franchise acquisitions — they offer up to $5 million, 10-year repayment terms, and lower down payment requirements than conventional loans. The SBA Franchise Directory pre-approves lending to specific brands, which speeds up the underwriting process.
What does the SBA Franchise Directory mean for franchise financing? +
The SBA Franchise Directory lists franchise brands reviewed and approved for SBA lending. If your brand is on the directory, the SBA has already verified the franchise agreement structure — removing a major underwriting hurdle. Always confirm directory status before starting a loan application.
What POS system works best for franchise owners with multiple units? +
Clover's multi-location dashboard allows franchise owners to view sales, voids, and labor across all units in one view. Toast POS is the standard for food-service franchise concepts. Most franchise systems either mandate or strongly prefer a specific POS — check your FDD before selecting a system.
What financial records does a franchise lender need? +
Franchise lenders typically require 2 years of personal and business tax returns, 12 months of business bank statements, a personal financial statement, and a pro forma P&L for the franchise unit. QuickBooks Online in the format franchisors require satisfies most lender documentation requests.
Funding for franchise owners and prospective franchisees
The right tools help you run your business. When you need capital to grow it, these guides explain your options.
The SBA Franchise Directory lists franchise brands pre-approved for SBA 7(a) lending. Franchisees must verify their brand is listed before applying. SBA — Franchise Loans & the SBA Franchise Directory