Multi-Unit Franchise Financing: From 2 Locations to Full Portfolio Rollup
Expanding from one franchise location to multiple units requires different capital strategies. PeerSense works with operators from unit 2 through large portfolio transactions, connecting you with SBA specialists, credit facilities, and institutional capital sources that understand franchise economics.
When SBA Gets Complicated at Scale
SBA loans work well for single-unit and small multi-unit operators. But as you scale, new challenges emerge that require different capital strategies.
Aggregate Loan Limits
SBA has aggregate loan limits across all your businesses. As you add units, you may hit these caps, requiring alternative capital sources or creative structuring.
Increased Complexity
Each additional unit adds complexity to underwriting. Lenders need to evaluate consolidated financials, unit-level performance, management depth, and operational systems.
Lender Appetite
Not all SBA lenders are comfortable with multi-unit franchise operators. You need lenders who understand franchise economics and have experience with portfolio growth.
Speed Requirements
Acquisition opportunities don't wait. When you find a good unit to acquire, you need capital that can move quickly — sometimes faster than SBA timelines allow.
The Solution: Diversified Capital Stack
Successful multi-unit operators use a mix of capital sources: SBA for some units, revolving credit facilities for opportunistic acquisitions, and private credit for larger rollups. PeerSense helps you build the right capital stack for your growth trajectory.
Credit Facilities for Expansion
Revolving credit lines allow you to acquire units one at a time without going through a full loan application for each acquisition. Establish the facility once, then draw as opportunities arise.
Revolving Structure
Draw funds as you need them for each acquisition, repay as units generate cash flow, then draw again for the next opportunity. Only pay interest on what you use.
Fast Access
Once the facility is established, you can access capital in days, not months. Perfect for time-sensitive acquisition opportunities.
Flexible Use
Use for unit acquisitions, working capital, equipment, renovations, or seasonal cash needs. One facility, multiple uses.
Scales with Growth
Credit limits can increase as your portfolio grows and cash flow strengthens. Start with $500K, grow to $5M+ over time.
Typical Structure
Who This Works For
Private Credit for Larger Rollups
When you're acquiring 10+ units or need $5M+ in capital, private credit becomes the most efficient path. These lenders understand franchise economics and can structure deals that SBA can't accommodate.
Acquisition Facilities
Structured credit facilities designed for acquiring 10+ franchise units in a single transaction or over a defined acquisition period.
Portfolio Refinancing
Consolidate existing debt across multiple units into a single facility with better terms and more flexible covenants.
Growth Capital
Expansion capital for operators with strong unit economics who want to accelerate growth without diluting equity.
Recapitalization
Take chips off the table while maintaining control. Partial liquidity for founders without selling the entire portfolio.
Why Private Credit at Scale
Typical Terms
Institutional Capital for Franchise Systems
For operators with 10+ units and strong unit economics, institutional capital becomes available. These sources provide larger amounts of capital and can support aggressive growth strategies.
Private Equity Partnership
Sell a minority or majority stake to a PE firm that specializes in franchise platforms. Provides growth capital and operational expertise.
Growth Equity
Minority investment from growth equity firms. Less dilutive than PE, focused on scaling proven operators.
Institutional Credit Facilities
Large credit facilities from family offices, life insurance companies, or private credit funds. Debt-only, no equity.
Debt vs. Equity: The Trade-Off
Debt (Private Credit): You maintain 100% ownership and control. Higher cost of capital (8–14%), personal guarantee often required, stricter covenants. Best when you want to keep full ownership and have strong cash flow to service debt.
Equity (PE/Growth Equity): Lower cost of capital, no debt service burden, operational expertise and network. You give up ownership percentage and some control. Best when you want a partner to help scale faster or take some chips off the table.
PeerSense at Scale
We work with operators from unit 2 through large portfolio transactions. Our network includes both SBA specialists and institutional capital sources that understand franchise economics.
Units 2–5
SBA 7(a) and 504 loans remain the most cost-effective path. We connect you with SBA lenders who specialize in multi-unit franchise operators.
Units 6–15
Mix of SBA and revolving credit facilities. We help you structure a capital stack that balances cost and speed for opportunistic growth.
Units 15+
Private credit, institutional facilities, and equity partnerships. We introduce you to capital sources that understand franchise platform economics.
Not a Broker, Not a Matchmaker — A Capital Advisor
Multi-unit franchise financing requires understanding unit economics, franchise brand performance, operational systems, and management depth. We don't just connect you with lenders — we help you structure the right capital stack for your growth trajectory.
- Evaluate your portfolio and growth plans
- Design optimal capital structure
- Connect with specialized lenders
- Negotiate terms and structure
- SBA lenders who specialize in multi-unit franchises
- Private credit funds focused on franchise platforms
- Family offices deploying in franchise systems
- Growth equity firms and PE shops
Ready to Scale Your Franchise Portfolio?
PeerSense identifies the right capital source from our network of 500+ lenders, private equity firms, and institutional advisors — and makes the introduction. You get a straight assessment of where your deal fits and a direct connection to the source most likely to close it.
We'll connect you with institutional capital sources that understand multi-unit franchise growth and can structure credit facilities for your expansion.
Schedule a Call