Franchise Financing Strategies for Restaurant Investors
Penn Station East Coast Subs
JULY 25, 2025
Franchisees targeting SBA 7(a) loans should expect up to 90% loan-to-cost financing with a debt-to-equity ratio of roughly 9:1 [SBA.gov]. However, industry norms trend closer to a 1:1 ratio for more conservative growth. Equity reduces fixed obligations but dilutes ownership and return.
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