Franchise financing is a type of business funding specifically designed to support starting, acquiring, or operating a franchise. It helps franchisees cover various costs such as purchasing the franchise, financing real estate or lease payments, remodeling, buying equipment, and covering working capital during the initial months of operation. This financing can come from multiple sources such as banks, Small Business Administration (SBA) loans and other lenders. Franchisees are usually evaluated on credit history, business experience, and their business plan to obtain financing. The goal of franchise financing is to provide franchise owners with the necessary capital to launch and succeed with their franchise business.