Franchise intelligence
Buying a franchise, by the numbers
Looking to buy a franchise? Start with the numbers no franchisor leads with — what a brand really costs to buy, how often its deals fail, and the lenders who already fund it. Find a brand below, then vet and finance it with real SBA data.
Resale vs. opening a new unit
There are two ways to buy a franchise, and lenders treat them differently. A resale— buying an existing location from its current owner — comes with revenue, staff, and a track record the bank can underwrite, which usually means a faster approval. You pay more up front because you're buying proven cash flow. Opening a new unit lets you choose the territory and build it your way, but you carry the ramp-up period while the loan payments start. Either way, the brand must be in the SBA Franchise Directory to finance it with a 7(a).
How SBA financing applies
Most franchise purchases are financed with an SBA 7(a) loan: up to 90% of the purchase or build-out, roughly 10% down, 10-year terms, underwritten on the unit's cash flow. The brand has to clear the SBA Franchise Directory — confirm that before the LOI. A lender that has already funded the brand knows its unit economics and approves faster than one learning it on your file, so it pays to see who funds it on the brand's page.
Where to start
- Franchise finderFilter 3,400+ brands by cost, failure rate, industry, and where they're active.
- Most profitable franchisesBrands with the biggest typical deals whose loans almost never fail — an SBA-data strength proxy.
- Most successful franchisesBrands with 100+ SBA loans and the lowest failure rates on record.
- Franchise failure ratesThe brands and industries whose SBA loans fail the most — vet before the LOI.
- SBA Franchise DirectoryAll 8,400+ SBA-approved brands — confirm a brand is eligible to finance.
- Pre-qualify for financingSee your likely SBA loan size and down payment in minutes, no documents.
Common questions
Should I buy an existing franchise (resale) or open a new unit?
A resale comes with revenue, a customer base, trained staff, and a track record a lender can underwrite — usually a faster, lower-risk SBA approval. A new unit lets you pick the territory and build it your way, but you carry the ramp-up while you pay the loan. Resales tend to cost more up front for the same brand because you're buying cash flow, not a build-out.
How much does it cost to buy a franchise?
It depends entirely on the brand. The most honest number is what buyers actually financed: each brand page shows the typical SBA loan size from real deals. With the SBA's 10% minimum down, that points to the cash you'd need on a typical purchase.
Can I use an SBA loan to buy a franchise?
Yes, if the brand is in the SBA Franchise Directory — most major brands are. The SBA 7(a) program finances up to 90% of a franchise purchase or build-out, with about 10% down, 10-year terms, and underwriting based on the unit's cash flow. Confirm the brand's directory listing before you sign an LOI.
Are these franchises advisor-managed listings?
No. DealRoom is not a franchise broker and these aren't listings. We publish the SBA lending intelligence — verified eligibility, real loan sizes, and failure rates — so you can vet a brand and finance it, whether you buy through a broker, a franchisor's resale desk, or directly from an owner.
AI summary
This page explains how to buy a franchise: the difference between a resale and a new unit, what brands actually cost (the typical SBA loan size from real deals), and how SBA 7(a) financing covers up to 90% with about 10% down on directory-listed brands. DealRoom is not a franchise broker and publishes no listings — it provides SBA lending intelligence so buyers can vet a brand's real cost and failure rate and line up the lenders that already fund it. This is general information, not legal, tax, or financial advice, and DealRoom is not a lender.
Source: DealRoom.so SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. DealRoom is not a lender and does not guarantee financing.
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