One of the best ways to open a small business is by becoming a franchise operator. You may find it easy to grow your business with the recognition and name of a popular brand. However, financial issues and upfront fees turn out to be a challenge to the new franchisees. While your present bank balance does not enable you to start your franchise business, it is better to look for an SBA loan. SBA-backed franchise loan is one of the best sources of funding. You have to check out the eligibility criteria to apply for the franchise loan. 

Do all franchisees get a chance to qualify for the SBA loan?

To identify the eligibility for your business loan, the US agency, SBA has presented you with a Franchise Directory. This Directory lists the SBA-reviewed brands, and you have to check out the listing of your franchise to apply for the loan. The Directory confirms you that you are pre-qualified for the SBA loan. You would be more likely to qualify for an SBA if the franchise belong is the Franchise 500 Ranking below:

In some cases, you may not find the franchise name in the SBA Directory. You have to send an application to add the franchise to the Directory. Moreover, you may also need to submit FDD with other relevant documents. Franchise Disclosure Document needs your business details, including the marketing scheme and financial information.

Thus, you have to go through some additional steps for SBA franchise loan application. 

However, while the franchise name is present in the Directory, your loan application becomes easier. 

Qualifications to get SBA loan as franchise startups

After the approval of the franchisee, you have to fulfill some eligibility criteria. Most of the applicants need to have knowledge of industry and business management. Moreover, you must have the minimum credit score without any past record of bankruptcy. You have to read the SBA guidelines as one of the loan applicants. Your franchise business has to be in the USA, and you should have a positive personal background. It is also essential to prepare financial statements and business schemes. In most instances, the lender will ask you for putting up collateral.

While you have run your franchise for the past two years, it will be easier for you to apply for a loan. It ensures the lender that you will be successful as a franchisee. Most common types of franchise include hospitality, food service, daycare, fitness, and retail industry. 

SBA loans for franchise startups

For funding a franchise, the best two options for you are- SBA 7(a) loan and SBA CDC / 504 Loans. With the minimum business credit score of 150 and a personal credit rating of 680.

A 504 loan is the right choice for buying heavy machinery, refurbishment items, and construction equipment. The standard loan term for a 504 loan can range from 10 to 20 years.

Thus, as one of the franchisees, you may apply for an SBA loan. Check out whether you are eligible for the loan to start and grow your franchise business.

2020 Franchise 500 Ranking

RanKNameMin InvestmentMax Investment
2Taco Bell5255252956765
4Sonic Drive-In12368003536300
5The UPS Store138433470031
6Ace Hardware2860002110230
7Planet Fitness10846004178000
8Jersey Mike’s Subs237419766971
10Pizza Hut LLC3570002213500
117-Eleven Inc.470501165400
12Kumon Math & Reading Centers74428156590
14Smoothie King263550844485
15Great Clips136900259400
16Dairy Queen10910251849625
17Budget Blinds LLC110340234370
18Tropical Smoothie Cafe246500580500
19HomeVestors of America Inc.56000426,250
20Palm Beach Tan498278802420
22Anytime Fitness76720521437
23Jimmy John’s Gourmet Sandwiches313600556100
24KFC US LLC14425502771550
28Goldfish Swim School Franchising LLC1,370,2833,230,358
29Mathnasium Learning Centers112750149110
30Hampton by Hilton766280020306500
31Snap-on Tools172207375265
32Matco Tools93420272690
33Fyzical Therapy & Balance Centers148750819000
34Jan-Pro Franchising Int’l. Inc.417054700
35The Maids63300141200
36Holiday Inn and Holiday Inn Express7,881,59724,969,320
37Sport Clips224800373300
38Anago Cleaning Systems1126568250
39Huntington Learning Centers127060292940
40RE/MAX LLC40000284000
41Stratus Building Solutions445072850
42Wingstop Restaurants Inc.374089782442
43Orangetheory Fitness5754221497372
44911 Restoration70,100226,900
45Nothing Bundt Cakes431,587600,387
46Cruise Planners229523617
47Keller Williams183947336995
48CPR Cell Phone Repair55650170500
49Bojangles’ Famous Chicken ‘n Biscuits16374342359000
50Pet Supplies Plus4406001315200
51Express Employment Professionals140000211000
52Lawn Doctor100015116065
54Primrose School Franchising Co.6379006375500
55FastSigns Int’l. Inc.197172313136
56European Wax Center359,660564,515
57Valvoline Instant Oil Change1745002538500
58Pearle Vision77695620538
59Firehouse Subs160583995985
60Kona Ice127750151550
61Merry Maids89619125023
62The Learning Experience Academy of Early Education4944193586419
63Ben & Jerry’s149185504300
64Profile by Sanford445,000699,500
65Molly Maid111700156200
66Red Roof1605005444200
67Freddy’s Frozen Custard & Steakburgers5904691986315
68F45 Training227,000315,000
69Club Pilates Franchise167,967280,446
70Jiffy Lube Int’l. Inc.207000500000
72McAlister’s Deli7720002119500
73Dream Vacations179520300
74Chem-Dry Carpet & Upholstery Cleaning67645178907
75Mac Tools131501287630
76Sola Salon Studios531,1501,714,370
77ServiceMaster Clean/ServiceMaster Restore93698294433
78The Joint Corp.182697368497
79Hardee’s Restaurants LLC14540002046000
80Urban Air Adventure Park2,277,7502,956,765
81Cornwell Quality Tools59,525272,825
82Embassy Suites by Hilton1791050085492500
83Marco’s Pizza293515788610
84ASP America’s Swimming Pool Co.108088145343
86Fleet Feet187000413000
88Goddard Systems Inc.653800814500
89Spherion Staffing148025347475
90Golden Corral22865456732615
91Big O Tires LLC3110001133300
92Realty One Group49,250222,500
93Stanley Steemer Carpet Cleaner111665259575
95NextHome Inc.14,500212,600
96Motel 6206,8508,823,850
97Tide Cleaners6821001586700
98Miracle-Ear Inc.119000352500
99Blaze Fast-Fire’d Pizza545,5001,145,500
100Carl’s Jr. Restaurants LLC15850002143000
101Hilton Hotels and Resorts30574200128962000
102Weed Man6979086850
103Doubletree by Hilton2284370079169000
104Baymont by Wyndham2145237155641
105Kilwins Chocolates Franchise Inc.381,290898,274
106Super 8 by Wyndham231,7694,667,834
108Kiddie Academy4250004163000
109Kids ‘R’ Kids Learning Academies4,401,0005,701,000
110Once Upon A Child246700391700
112Travelodge by Wyndham178,0818,077,783
113Home2 Suites by Hilton910230017456500
114Minuteman Press Int’l. Inc.74904180053
115Taco John’s Int’l. Inc.10570001599000
116Novus Glass54500258199
119Transworld Business Advisors7485597185
120Carstar Franchise Systems Inc.298,200804,300
122Walk-On’s Sports Bistreaux1,215,5003,998,700
123Watermill Express Franchising471,800596,400
124CMIT Solutions Inc.127970175350
125la Madeleine French Bakery & Cafe1,249,3623,088,747
126Charleys Philly Steaks253231582318
127Del Taco8597002116500
128Nekter Juice Bar Inc.254,500466,600
129Goosehead Insurance Agency LLC41,500116,500
1301-800 Water Damage132099206728
131Potbelly Sandwich Shop534,950874,000
132Paris Baguette719,2711,401,546
133Hilton Garden Inn1304550027123500
134Homewood Suites by Hilton1233770025972000
135Patrice & Associates90,625108,000
136Great American Cookies177700476135
137Wild Birds Unlimited150837260991
138Phenix Salon Suites Franchising LLC3309251380550
140Captain D’s LLC10056001223600
141Interim HealthCare125500198500
142Mountain Mike’s Pizza208,020593,520
143One Hour Heating & Air Conditioning81,805550,862
144Vanguard Cleaning Systems550036600
145Rosati’s Pizza1362001241000
146Papa John’s Int’l. Inc.130,120844,420
147Cookie Cutters Haircuts for Kids132,000339,000
148Crunch Franchise2555002320500
150Pinch A Penny Pool Patio Spa289,375411,200
151Hand and Stone Massage and Facial Spa532563618327
152Qdoba Mexican Eats4755001095000
153Estrella Insurance12,25084,000
154Floor Coverings International154,200222,700
155Labor Finders128525217960
156Home Instead Senior Care108900124910
157Shipley Do-Nuts410,000771,500
159Buffalo Wild Wings19312003750700
160Bloomin’ Blinds62,570137,425
161Grease Monkey Franchising LLC156695342850
163Miracle Method Surface Refinishing84500145000
164Tutor Doctor73295100995
165L&L Hawaiian Barbecue133700535000
166Mr. Rooter74975182140
167Restoration 179100183350
168City Wide Franchise197150359100
169YESCO Sign & Lighting Service65000352200
170Pizza Ranch11275002526500
171Pillar To Post Home Inspectors3710045900
172Round Table Pizza327,3001,071,250
173HoneyBaked Ham291700516500
174Circle K1892501927640
175Two Men and a Truck Int’l. Inc.100000585000
176Spring-Green Lawn Care107115Not Mentioned
178Freedom Boat Club149200458700
179The Little Gym Int’l.186450441500
182Remedy Intelligent Staffing LLC152,010258,450
183Maid Brigade94700116700
184Eye Level Learning Centers59,338126,750
185The Human Bean Drive Thru211625738375
186Rainbow Int’l. Restoration172170278595
188Batteries Plus Bulbs189250366350
189Leadership Management International Inc.20,00027,500
190The Flying Locksmiths181,596426,396
191Visiting Angels122460153310
192TeamLogic IT104,750143,300
193La Quinta by Wyndham3,885,40911,745,002
194Steamatic LLC114411195561
195GNC Franchising149722388630
196System4 Facility Services105,900373,000
197Jackson Hewitt Tax Service45130110255
198Checkers Drive-In Restaurants Inc.203600945000
199Midas Int’l. LLC191650460482
200ProSource Wholesale635,312641,611
201Days Inn by Wyndham2926348281441
202My Gym Children’s Fitness Center36760277200
203British Swim School91275150875
205True Rest Franchising LLC359887778812
206Nurse Next Door Home Care Services105100199300
207Dippin’ Dots Franchising LLC112204366950
208Amada Senior Care87010237054
210Two Maids & A Mop60940144390
212Burn Boot Camp148830353150
213Painting with a Twist118500285500
214The Cleaning Authority71458167834
215Launch Franchising LLC11132852828080
216Postal Annex+155500232450
217Skyhawks Sports & Supertots Sports Academy3000071750
218Mosquito Joe102850148150
219School of Rock192150422100
220Jet’s Pizza437500631000
221College Hunks Hauling Junk & Moving89800208700
222Tuffy Tire and Auto Service224000413500
223USA Insulation149750270000
224AAMCO Transmissions and Total Car Care223600330500
225Scooter’s Coffee331000638000
227FirstLight Home Care Franchising LLC110881167876
228Orion Food Systems LLC59500140000
229Made in the Shade Blinds and More5344961049
232Aqua-Tots Swim Schools5020951150237
233Hungry Howie’s Pizza & Subs290600538400
234Lightbridge Academy5492285054735
235Port Of Subs214500397100
236American Poolplayers Association2052428409
237Mr. Appliance60800139515
238CertaPro Painters133250169500
239Bach to Rock281650519725
240Gyu-Kaku Japanese BBQ Restaurant11844242496498
241Jet-Black/Yellow Dawg Striping55050125340
242NaturaLawn of America Inc.47500112650
243Kolache Factory428900696900
244Cost Cutters Family Hair Care148930316700
245Jazzercise Inc.240517155
246Bin There Dump That73050128250
247Bio-One Inc.80980127480
248Camp Bow Wow7510001458500
249Senior Helpers104800144300
250Wireless Zone160000394500
251Pop-A-Lock Franchise System96904130313
252Sylvan Learning LLC68680159085
253Soccer Shots Franchising LLC4103453950
254Brightway Insurance42300178916
255360 Painting90,455132,500
256Window Gang3440081200
257Concrete Craft135,290227,070
258Spavia Day Spa317,208739,915
259Fish Window Cleaning Services Inc.87300150700
260College Nannies, Sitters and Tutors105000173000
261Christian Brothers Automotive Corp.461250566400
262Fuzzy’s Taco Shop8585001329000
263N-Hance Wood Refinishing51970167023
264Yogi Bear’s Jellystone Park Camp-Resorts620003016000
265RNR Tire Express5000001000000
266Relax The Back Corp.219700391300
267Office Evolution286,8251,485,150
268Pizza Factory Inc.372000562000
269Play It Again Sports268,300391,300
270Totally Nutz59,872216,000
271Penn Station East Coast Subs347955556804
272Lendio Franchising30,150117,100
273Waxing The City127,741410,583
276Ramada Worldwide by Wyndham21297314150558
277Precision Tune Auto Care127,000253,600
279My Salon Suite/Salon Plaza582,1641,479,827
280STEM For Kids19,90048,650
281Property Management Inc.22,750175,100
282Destination Athlete LLC28,300120,110
283The Tutoring Center Franchise Corp.99,500148,200
284Closets By Design Franchising152,000428,000
285Weichert Real Estate Affiliates Inc.62500324700
286Nathan’s Famous Inc.2763601040360
287Drama Kids Int’l.3380068000
288Delta Restoration Services129,675269,475
289Howard Johnson by Wyndham369,8369,603,858
290A&W Restaurants Inc.2690001213000
291Mosquito Hunters70,10785,903
292Sir Speedy Print Signs Marketing227,981277,981
293PostNet Neighborhood Business Centers185617227550
294Color Glo Int’l.5630061375
295U.S. Lawns3980081300
296Conserva Irrigation81,800102,250
299Old Chicago Pizza & Taproom1,401,5002,187,000
300Pure Barre198,650446,250
301Real Property Management86795117795
302Microtel by Wyndham3,964,1376,135,660
303Dale Carnegie108400255800
304Sky Zone13008292765428
305Security 101119,750223,500
306H&R Block31557149398
307Amazing Lash Studio224,659482,528
309Slumberland Franchising Inc.5455001994000
310Mr. Electric98600234750
311Marble Slab Creamery316085409135
312The Lash Lounge Franchise LLC178,471495,152
315Kitchen Tune-Up94973129077
316BrightStar Care101656169414
317Zips Dry Cleaners10157001440000
318Shine Window Care and Holiday Lighting96,090141,600
319HouseMaster Home Inspections61100106150
320DreamMaker Bath & Kitchen136700334925
321Sanford Rose Associates Int’l. Inc.108,250143,580
322Signal 88 Security61950218650
323Pinot’s Palette96800246700
324Gotcha Covered75,65093,855
326AmericInn by Wyndham221,2867,605,378
327Line-X LLC126436366306
328RSVP Advertising96,401265,096
329Capriotti’s Sandwich Shop Inc.375000645413
330Roy Rogers Restaurants767,2501,580,950
331Sunbelt Business Brokers43450104000
334Glass Doctor127300265500
335Golden Chick4433501288640
336Fiesta Auto Insurance and Tax67052120599
337Chop Stop315,000599,000
338Spaulding Decon LLC100,000132,000
339Allegra Marketing-Print-Mail
(Offering resales and conversions only)
340Right at Home LLC80,150147,150
341Enviro-Master Int’l. Franchise LLC180000324130
343My Eyelab407,477585,543
344D-BAT Academies Inc.398,025699,975
345Challenge Island48,30062,950
347Salons by JC722,8751,357,700
348Sandler Training97525114500
349Schlotzsky’s Austin Eatery503814800484
350Aladdin Doors Franchising Inc.32,40099,950
351Workout Anytime 24/7555,500996,400
352ComForCare Home Care96150208650
353Griswold Home Care107350135500
354Uptown Cheapskate302763487763
355Liberty Tax Service5870071900
356Window World Inc.177,400457,250
357Maaco Franchising Inc.362250567250
358Office Pride Commercial Cleaning Services65000107200
359Taziki’s Mediterranean Cafe468,000831,000
360The Melting Pot Restaurants Inc.14043201824210
362Moe’s Southwest Grill4435351005212
363Kampgrounds of America Inc.267504372925
364National Property Inspections Inc.4070043000
365Hawthorn Suites by Wyndham225,69312,785,326
366Merle Norman Cosmetics Inc.39471180888
367Kinderdance Int’l. Inc.1810046750
368Furniture Medic8079990136
369ShelfGenie Franchise Systems LLC4510095000
370Tint World179500259500
371Tailored Living LLC156,430296,295
372JEI Learning Center69500115000
374Sit Means Sit Dog Training49,775145,850
375Plato’s Closet251700390700
376Pet Wants59830202000
377Rocky Mountain Chocolate Factory186517476793
378Mighty Auto Parts154300390600
379The Barre Code198,500418,800
380Pak Mail155,500232,450
381Board & Brush Creative Studio62,28989,406
382Sir Grout Franchising78795131530
383The Alternative Board (TAB)4859497819
385Handel’s Homemade Ice Cream224,500666,500
386Discovery Map Int’l. Inc.3595045950
387The Camp Transformation Center167,000326,500
388Closet Factory208500356000
389PIP Marketing, Signs, Print227981277981
390Zerorez Franchising Systems Inc.76,715182,655
391GoliathTech Inc.72,900176,000
392Gloria Jean’s Coffees173,150473,000
393Crown Trophy Inc.168,150227,700
395Motto Mortgage47,80068,100
396Curio Collection by Hilton3,592,500112,436,500
397The Haagen-Dazs Shoppe Co. Inc.164158542768
398Epcon Communities Franchising Inc.3,006,2004,569,000
399Expedia CruiseShipCenters155850275945
400Auntie Anne’s199475385100
401Fresh Coat5394576845
402Wingate by Wyndham375,46510,816,446
403Parker-Anderson Enrichment1598081100
404GradePower Learning99,800270,500
405Mainstream Boutique157,500289,935
406Mr. Handyman117500149100
407HomeTeam Inspection Service5010076800
408Tapout Fitness139,650695,614
409Oxxo Care Cleaners475,500667,000
410Creative Colors Int’l. Inc.95,125122,250
411Assisted Living Locators68,45078,050
412Studio 6206,8509,621,350
413Juice It Up!214375377475
415SpeeDee Oil Change & Auto Service Center197,305522,970
416Floyd’s 99 Barbershop294,000642,000
417AmeriSpec Inspection Services5355072310
418Good Feet Worldwide LLC123770229275
419Pronto Insurance52,925120,950
42030 Minute Hit100,550165,500
421Cousins Maine Lobster175,900828,700
422SuperGlass Windshield Repair1868584205
423Arooga’s Grille House & Sports Bar1,277,0003,629,250
424Parisi Speed School13250155500
425Aire-Master of America Inc.40,484145,900
426Take 5 Oil Change637,004850,488
427Gold’s Gym22182505000500
428Wyndham Garden549,17521,542,524
429Assisting Hands Home Care80,050152,000
430Caring Transitions5891282712
431V’s Barbershop Franchise LLC192500420700
432Creamistry Franchise Inc.224,500576,500
433Metal Supermarkets216,500403,000
434Precision Door Service67355306955
435Padgett Business Services2020099975
436Buildingstars Int’l. Inc.224553200
437Fit Body Boot Camp151,100213,100
438Foliage Design Systems4440064400
439Atax Franchise Inc.17,45076,699
441Class 10145,89063,300
442The Spice & Tea Exchange183,650369,250
443Link Staffing Services112500199000
445Aire Serv82600206400
446Hospitality Int’l. Inc.1336002602000
447All County Property Management Franchise Corp.66,95098,900
448Roosters Men’s Grooming Centers195750334850
449Payroll Vault Franchising LLC49,13574,254
450Window Genie92800172500
451TSS Photography2041574725
452Learning Express Toys189875364150
453Beef Jerky Outlet Franchise Inc.215,750394,900
454Executive Home Care99,650169,900
455Aussie Pet Mobile Inc.151,200159,475
456Elements Massage225350374350
457i9 Sports5990069900
458Color Me Mine Enterprises Inc.165,950228,000
460TGA Premier Sports1875068250
461Teriyaki Madness313,500653,860
462Five Star Bath Solutions75,530141,100
463Computer Troubleshooters1220029400
464Hi-Five Sports Franchising17,900388,225
465Any Lab Test Now133,600214,600
466Amazing Athletes3070061650
467Synergy HomeCare38880159805
468Black Bear Diner1,124,8002,094,200
469Snap Fitness Inc.153980529899
470Deka Lash179,251426,491
471Touching Hearts At Home5290075600
472Surface Specialists4320056000
473Retro Fitness9442501592500
474Big Frog Custom T-Shirts Inc.183,201250,801
475Five Star Painting69700179250
476The Patch Boys45,50066,000
477Cinnaholic Franchising178,000308,500
478PJ’s Coffee of New Orleans188275578000
480Mint Condition Franchising Inc.4,64432,384
481Milex Complete Auto Care/Mr. Transmission204364288067
483InterContinental Hotels & Resorts70,494,125103,087,610
484The Woodhouse Spas654150836000
486Duck Donuts Franchising Co.348,350568,000
487Mr. Sandless/Dr. DecknFence2681087385
488Fully Promoted71934240867
489Mosquito Squad65,80086,925
490Acti-Kare Inc.3190552155
491Club Z! In-Home Tutoring Services3390052850
492Bubbakoo’s Burritos131,500398,000
496Meineke Car Care Centers122758572540
497Wetzel’s Pretzels164950405850
498Brass Tap780,9251,318,525
499UFC Gym1990004213000
500Physical Therapy Now Franchise150,135205,135

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