Franchise Affordability Calculator

The math is simple on purpose. If a lender wants you to put in a set percentage of the project as your own equity, then the money you're willing to inject divided by that percentage is roughly the biggest project a lender might finance. Put in more of your own cash, or accept a smaller build, and the number moves.

How lenders think about your down payment

For an SBA-backed loan, the current rules (SOP 50 10 8) set a floor of 10 percent equity injection on a business acquisition or startup, and in practice many lenders want 15 to 20 percent from a first-time owner with thin collateral. A conventional bank loan for a franchise usually runs 20 to 30 percent down. Those figures are why the default here is 15 percent, not the 10 percent floor. Our guide to SBA loans for a food franchise walks through how the underwriting actually works and cites the current SBA equity-injection rules (SOP 50 10 8). Program terms change, so confirm the current figures with your lender.

Keep a reserve; don't inject every dollar

The reserve field matters more than it looks. Lenders count working capital, but they don't protect your personal runway, and a new location almost never hits its stride in month one. Injecting every dollar you have to buy a slightly bigger concept is the fastest way to run out of cash before the store turns. Our royalty calculator shows the ongoing fees that come out of sales on top of that.

What the tiers mean

The concept tier the calculator names is based on typical total-investment ranges for coffee and food formats, from mobile carts and kiosks at the low end to full drive-thru and sit-down builds at the top. Those are starting brackets, not brand quotes. The real number for any brand lives in Item 7 of its Franchise Disclosure Document; our Item 7 guide explains how to read it. This tool is an estimate to frame your search, not financial advice, and not a promise any lender will approve a given amount. Confirm with a lender and an accountant.