Franchise Financing FAQs

Who do you work with?

Typically, we work with experienced multi-unit operators in the nation’s most successful franchised restaurant brands. Most of our clients have three or more stores. We don’t do start-ups. We don’t fund investor-owned companies. We work with franchisees who are actively working in the business on a daily basis.

How much do you lend?

Our loans begin at $200,000 and can go well in excess of $10 million.

How long are the terms?

Equipment loans vary from 5 to 10 year terms. Real Estate loans can be from 5 to 20 years.

What are the rates?

Interest rates are calculated daily and are competitive with other lenders. Interest rates are based on many factors such as the financial strength of the borrower, the term of the loan, and the amount of equity contributed to the project.

What do you take as collateral for your loans?

We require a first lien position on the project to be financed. We do not take an interest in the owner’s personal assets, as is required for an SBA loan.

Do you require real estate appraisals?

Yes, we typically do. In some cases, we may not. It depends upon the amount borrowed as compared to the value of the real estate.

Do you require personal guarantees?

Yes.

Can I prepay my loan?

Yes, although some loan agreements will require a reasonable prepay premium in order to do so. This is structured differently for each of our loans, based on the terms outlined in the loan commitment letter.

Do you sell your loans?

Sometimes, although we retain the servicing — which means the franchisee will continue to work with Pacific Premier until their loan is paid in full.

What else should I know?

Once we have the chance to review the project, we will work with you to creatively structure a loan. All requests and objectives of the franchisees are taken into consideration when we structure your financial package. The more prepared you are to provide information, the smoother the process will go. Go to the Our Process section to get started.