BiggerPockets Money Podcast · Tuesday, September 8, 2026
For a $500,000 franchise investment, the typical cash requirement is 10-20%, translating to $50,000-$100,000. The remaining 80-90% can be financed using sources like SBA loans, ROBS (Roll Over for Business Startups), home equity, or seller financing. A $400,000 SBA loan over 10 years at 8% interest would result in a monthly payment of approximately $5,000.
“So the typical upfront cost for a franchise is anywhere from 10% to 20% of the total investment. So for a $500,000 investment, that would be anywhere from $50,000 to $100,000 of cash that you'd need to put down. And then the remaining 80% to 90% can be financed.”
“And that's where people use SBA loans, you know, they use their retirement accounts through ROBS, which is a roll over for business startup, and then they can leverage their home equity, and then there's seller financing.”
“For a $400,000 SBA loan, over a 10-year term, at, let's say, an 8% interest rate, that would be about a $5,000 monthly payment.”