Franchise Funding — Remodels, Equipment & Multi-Unit Growth Capital
Franchise funding from Y Millennial Funding is working capital for operating franchisees and multi-unit operators in food, retail, fitness, beauty, auto and home-service brands, structured as a merchant cash advance: a purchase of future receivables, not a loan. It is sized to each unit's card settlements and deposits, for operators doing $50,000 or more a month, and remitted as a share of receivables, so it follows how the stores actually sell. Not all applicants qualify.
Owning a franchise means someone else sets part of your spending calendar. Royalties and ad-fund fees come out of gross sales whether the month was good or not, the brand decides when your store gets remodeled, and a development agreement can require you to open units on a schedule. Franchisees use our funding to complete a required remodel, buy brand-approved equipment, open or buy another unit, and cover payroll through a slow season. We are a direct funder and underwrite on unit-level deposits, not credit score or collateral. This is for franchisees already operating, not the initial franchise fee for a unit with no sales.
Get Pre-Qualified
Takes under a minute. No credit pull.
- Can I qualify with bad credit? No. Approval weighs your units' deposits and sales, not your credit score or collateral, so a franchisee with steady sales can qualify despite past credit issues. Not all applicants qualify.
- How fast can I get funded? Eligible applications with complete bank statements can get a same-day decision, with funding commonly within 24 to 72 hours.
- What does it cost? No. This is for franchisees already operating with sales. A first unit with no revenue history does not have the deposits we underwrite.
Industry Snapshot
Established franchisees across food, retail, and service brands; single-unit and multi-unit operators; quick-service and full-service restaurant franchisees; fitness, beauty, and home-service franchisees; emerging-brand operators.
$50K-$3M monthly revenue typical for our applicants; many franchisees in the $70K-$1M monthly range per unit.
$25K-$500K typical advance size; larger advances available for multi-unit operators with strong deposit history.
Why Traditional Lenders Struggle with Franchise Businesses
Banks often decline established franchisees who run good stores. Royalties and ad-fund fees make margins look thin, much of the unit's value sits in the franchise agreement rather than hard collateral, and a lender may want to review the franchise agreement and the brand before it will fund. That review, plus appraisals and committee approval, takes weeks.
A remodel deadline or a development schedule doesn't wait for that, and neither does a seller who has another buyer for the unit.
Why Revenue-Based Funding Works for Franchise Businesses
A merchant cash advance looks at what each unit produces: daily card settlements and deposits. We size funding to that sales history rather than credit score or collateral, and a multi-unit operator can show deposits across locations.
Remittance is a share of receivables, so it moves with sales, and funding arrives fast enough to meet a remodel deadline or close on a unit purchase.
A merchant cash advance is a purchase of future receivables, not a loan. It is for operating franchisees with sales, not start-up franchise fees. Approval depends on underwriting and revenue, and not all applicants qualify.
See if your franchise businesses business pre-qualifies
Checking your options takes under a minute and won't affect your credit. Approved on revenue, not credit score.
Prefer to talk? Call (855) 774-6461Common Uses of Funding
Brand-required remodels and reimaging; approved equipment packages and POS upgrades; opening a new unit under a development agreement; buying an existing unit from another franchisee; transfer fees and closing costs; payroll and working capital across units; local store marketing; bridging a slow season.
Common Challenges
Fees come off the top. Royalties are usually a percentage of gross sales, often in the mid-single digits, plus a brand or advertising fund contribution, and many franchisors draft them weekly or monthly by ACH. They are paid on sales, not profit, so a thin month still pays full fees.
The brand sets the remodel date. Franchise agreements commonly require periodic reimaging or remodeling, new signage, menu boards, POS systems and equipment packages, and the franchisee pays for them on the franchisor's timeline.
Growth has a schedule. Multi-unit operators under a development agreement may have to open units by set dates or lose territory, and buying an existing unit needs franchisor approval, a transfer fee and cash ready to close.
Approved vendors only. Equipment, supplies and even build-out contractors often have to come from the brand's approved list, so you can't shop around to save cash.
Labor is the other big line. Wage increases hit every unit at once, and a multi-unit operator carries payroll for all of them.
How Repayment Works
Daily or weekly ACH remittance set as a percentage of revenue, so remittance flexes with actual sales. Total terms typically range from 6 to 18 months depending on advance size and deposit consistency.
Seasonal Considerations
Depends on the concept. Restaurant and retail brands follow consumer spending and the holidays, fitness peaks in January with new-year sign-ups, tax-prep brands peak from January to April, and home-service brands like HVAC, lawn and pest control follow the weather. Royalties and ad-fund fees stay a fixed percentage all year, so slow months carry the same fee rate on less revenue.
Regulatory Environment
Franchising is governed federally by the FTC Franchise Rule, which requires the franchisor to give you its Franchise Disclosure Document at least 14 calendar days before you sign or pay. Item 7 of the FDD estimates the initial investment and Item 19, if the brand includes it, discloses financial performance. A group of states, including California, New York, Illinois, Maryland and Minnesota, also require franchise registration. The franchise agreement itself controls transfers, remodels and approved suppliers, and each unit carries the licensing for its category, such as health permits for food brands.
Industry Terminology
FDD, royalty, ad fund, multi-unit, area developer, remodel/refresh, brand standards, unit economics, AUV (average unit volume), franchisor approval, territory, conversion.
Nationwide Franchise Businesses Funding
Y Millennial Funding works with franchise businesses businesses across the United States. Because our funding is revenue-based and delivered electronically via ACH, we are able to work with businesses nationwide — not just in a single region. Wherever your business operates, we can underwrite based on your revenue history and get you funded quickly.
Local Markets We Serve
We fund Franchise Businesses businesses nationwide — browse all locations.Frequently Asked Questions
Common questions about franchise businesses business funding.
Related Industries
Helpful Tools
Free resources to help you understand and plan your merchant cash advance.
Eligibility Checker
5-minute pre-qualification assessment with no credit pull.
MCA Calculator
Estimate payments, factor-rate cost, APR, and term length.
Stacking Calculator
Analyze capacity for multiple MCA positions.
How MCA Works
Learn the mechanics and process.
MCA Disclosures
Important terms and information.