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Franchise Equipment and Remodel Financing

Franchisors refresh their brands on a schedule, and when the notice arrives, you're expected to update your location whether sales are booming or not. A reimage might mean new finishes and fixtures, a new equipment lineup to support menu or service changes, or a technology rollout across every unit. These projects protect the value of your franchise, but they can arrive at an awkward time for your cash flow.

We help franchisees finance required remodels and upgrades so the work gets done on the franchisor's deadline without pulling money from payroll or reserves. Equipment financing often handles the bulk of these projects quickly, and SBA loans can step in for larger reimages that include construction.

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Programs that fitEFA$1 Buyout LeaseFMV LeaseSBA Loans

What This Financing Can Cover

  • 01

    Brand Mandated Remodels

    A reimage can range from new paint, lighting, and furniture to a full gut renovation with a new layout, drive through changes, or updated exterior elements. Franchise agreements often require these updates at set points or upon renewal or transfer. Ask the franchisor for the written scope, approved vendors, and deadline, then get firm contractor quotes. Fixtures, furniture, and lighting can often go into an equipment financing package, while structural and finish work usually fits better inside an SBA loan. Some franchisors offer incentives for completing early, so check before you schedule.

  • 02

    Equipment Upgrades

    Menu changes, new service formats, and energy standards frequently require new equipment. For a food concept, that might be high speed ovens, new fryers, or larger refrigeration. Fitness and wellness brands may need updated machines or treatment tables, and service brands may need new vehicles or tools. Equipment financing is often the fastest route because the equipment backs the deal, and it's available from day one for newer owners. Compare energy use and maintenance costs, not just the purchase price. Where the franchisor allows it, refurbished units can cut costs on back of house items.

  • 03

    Technology Refreshes

    Brands regularly roll out new point of sale systems, kiosks, digital menu boards, kitchen display screens, loyalty platforms, and security cameras. Because these tools age quickly, many operators prefer a lease structure that makes it easy to upgrade again at the end. A Fair Market Value lease, which offers lower payments and lets you upgrade, keep leasing, buy, or return the equipment at the end, often suits technology well. Confirm whether software subscriptions, installation, and network wiring can be bundled into the financing, since that depends on the lender.

Why Finance a Remodel Instead of Paying Cash

Remodel deadlines don't wait for your best quarter. Financing lets you complete required work on time while keeping cash available for payroll, inventory, and royalty payments.

Multi unit operators benefit even more. Rolling out a reimage across several stores can add up fast, and financing each unit lets you move on the franchisor's timeline without pausing growth. Upgraded equipment and technology can also start paying for themselves through faster service and lower energy bills, and qualifying equipment may be eligible for Section 179 deductions; check with your tax professional.

What Your Financing Can Include

Depending on the lender, a remodel or upgrade package can include:

  • Freight, delivery, and installation
  • Removal and disposal of old equipment
  • Electrical, plumbing, and gas connections for new units
  • Staff training on new equipment and systems
  • Software licenses and setup for POS and kitchen display systems
  • Interior fixtures, furniture, lighting, and decor
  • Exterior signage and menu boards

Programs That Work Well for Franchise Remodels and Upgrades

  • Program

    Equipment Finance Agreement (EFA)

    You own the equipment from day one and make fixed payments, a clean fit for required equipment you'll use for a long time.

  • Program

    $1 Buyout Lease

    Lease payments, then own it for one dollar at the end, which works well for durable kitchen and fitness equipment.

  • Program

    SBA Loans

    Up to $5MM for larger reimages that combine construction, equipment, and working capital.

New Business or Established, We Can Help

Equipment financing is available from day one, so even newer owners can handle required upgrades. Established operators with at least 1 year in business can also add working capital or a line of credit to cover the downtime during a remodel. Buying a unit that needs a refresh? See franchise acquisition financing or our franchise financing overview.

What You'll Need

Equipment and remodel requests under $150K can often be approved on the application alone. Larger projects may call for financial statements and tax returns. At funding, equipment deals often finalize with just a driver's license and the vendor invoice, plus contractor quotes for any construction.

Frequently Asked Questions

Still have a question?

Talk to a real person. We're happy to walk you through your options.

Can I finance a remodel my franchisor requires at renewal?

Yes. Required remodels are a common reason franchisees seek financing. Equipment financing can cover fixtures and equipment, and an SBA loan may fit a larger project with construction, depending on the lender.

Can I close my store during a remodel and still qualify?

Lenders look at your overall business performance, and a planned closure is usually part of the discussion. Having working capital or a line of credit in place can help cover rent and payroll while the doors are closed.

Is leasing or buying better for new POS and kiosks?

Many operators lease technology because it becomes outdated quickly. An FMV lease keeps payments lower and makes upgrading easier, while an EFA makes sense if you plan to keep the equipment long term.

Can I finance upgrades across several locations at once?

Often, yes. Depending on the lender, you can finance a rollout across multiple units in one package or unit by unit. We'll help you choose the approach that best fits your cash flow.

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