01/13/2026
Thinking about buying a franchise? Here are 5 essential tips to set you up for SBA loan success:
1️⃣ Use the SBA Franchise Directory – Start with franchises pre-approved by the SBA. It saves time and gets you an instant head start.
2️⃣ 50/5 Rule – If not on the list, look for at least 50 operating units and 5+ years in business. Lenders love stability and a proven track record.
3️⃣ Read the FDD Closely – Focus on Items 19 & 20. Transparent financials are a must; vague numbers = red flag!
4️⃣ Call Real Franchisees – Go beyond the list you’re handed and talk with owners who’ve been in the game for 2-3 years. Ask tough questions!
5️⃣ Know Your Total Investment – The franchise fee is just the beginning. Factor in ALL costs, including working capital and start-up expenses.
For a deeper dive, check out the full article: https://www.linkedin.com/pulse/5-smart-tips-finding-right-franchise-bill-king-cmaa-clfp-urorc
Questions? Let’s talk in the comments or shoot me a DM.
Not financial advice. No commitment to lend. Does not reflect my employer or SBA’s views. For info only. Loans subject to lender approval.
