New franchise loans for your first opening

Build an opening budget you can explain

Start with a single schedule of the expenses required to reach opening day. Include the franchise investment information, location costs and supplier or contractor estimates you already have. Mark which amounts are quotes, deposits, paid invoices or preliminary allowances so that the financing request reflects the project's actual stage.

Keep the proposed loan separate from your total budget. Some expenses may need to be paid before financing is available, and different products may treat cost categories differently. A clear budget helps frame those questions before you make commitments.

• Franchise and location commitments, with the expected payment dates.
• Equipment, construction and other opening requirements supported by estimates.
• Owner contributions and the source of those funds.
• Operating cash and a plan for changes to the opening schedule.

Explain the business before it has a trading history

For a new location, your application needs to make the operating plan understandable without relying on that location's past financial statements. Describe your role, relevant experience, staffing plan and the support available from the franchisor. Show why the proposed premises and operating model fit the project.

Our in-house business planning work connects that explanation to a financial forecast. We help distinguish franchisor information from your own assumptions and identify where additional evidence is needed. Projected sales should be clearly presented as estimates, not established results.

Allow room for the period after opening

An opening budget is incomplete if it stops when the doors open. Think through the early operating period: when wages, rent, suppliers and loan payments fall due, and how cash will be available to meet them. BDC's franchise guidance highlights the importance of working capital alongside the acquisition or setup costs.

As a planning exercise, compare the expected opening date with a later opening and compare expected sales with a slower start. This helps you ask more useful questions about reserves, payment scheduling and the size of your financing request.

Choose financing routes that fit a startup

We consider the project's stage when discussing lenders and programs. A bank or credit union application, an eligible CSBFP request and a BDC discussion are not interchangeable. BDC's standard startup financing generally requires an operating history; product-specific requirements and partner options need to be checked for the actual situation.

We do not promise a particular lender or approval simply because the franchise is recognizable. The objective is a well-prepared request supported by the information available for your location and ownership group.

Bring the key decisions into one place

Before an application proceeds, keep a record of the proposed borrower, owners, location, project budget and target opening. If a quote, shareholder contribution or lease proposal changes, update the financing information too. Consistency across the documents reduces avoidable back-and-forth.

Our former banking and franchise ownership experience informs that preparation. Share the brand you are considering, the city and your current progress. We can then help you identify the next documents and financing questions to address.