MCA funder franchise business rates 2026.

The 60-second answer

Franchise MCAs in 2026 typically price 4–8 basis points better than the equivalent independent business — but with stricter contract constraints around franchisor consent, UCC-1 limitations, and royalty subordination. Pricing by franchise tier:

• Tier 1 brands (McDonald's, Chick-fil-A, Subway, Dunkin', Domino's): 1.18 to 1.26 on 9–15 month terms
• Tier 2 brands (Jersey Mike's, Tropical Smoothie, Wingstop, Sport Clips, Anytime Fitness): 1.22 to 1.30 on 8–12 month terms
• Tier 3 brands (regional or newer national): 1.26 to 1.34 on 6–10 month terms
• Sub-tier or unproven brands: Prices as an independent — 1.30 to 1.42

Why brand tier matters for pricing

MCA underwriters maintain internal brand databases that classify franchises into pricing tiers based on three observable variables:

• Brand survival rate. Franchisor-published or SBA Franchise Registry data on the percentage of units still operating at 5 years. Tier 1 brands typically show 80%+ survival; Tier 3 brands show 55–70%.
• Average unit volume (AUV). The franchisor's average per-unit revenue disclosed in Item 19 of the Franchise Disclosure Document (FDD). Higher AUV brands produce more cash for debt service.
• Franchisor financial strength. Public companies (McDonald's, Restaurant Brands International) and well-capitalized private brands (Chick-fil-A) reduce the tail risk that the franchise system fails.

The franchise agreement constraints to check first

Before submitting an MCA application, the franchisee should re-read these sections of the FA:

• Permitted indebtedness clause. Most FAs cap debt at a multiple of trailing revenue (commonly 50% of trailing 12-month revenue) without franchisor consent.
• Royalty subordination clause. Royalty payments to the franchisor usually have a senior claim on revenue. An MCA contract that purports to take a senior position is unenforceable against the franchise agreement.
• FF&E reversionary rights. Most FAs grant the franchisor a security interest in the unit's furniture, fixtures, and equipment that takes priority over a new lender. A UCC-1 from an MCA funder on FF&E generally cannot prime the franchisor.
• Change-of-control provisions. Some FAs treat a default on a major indebtedness as a change-of-control event triggering franchisor consent or unit termination.
• Approved funder lists. Some franchisors (Subway, Domino's, Sport Clips) maintain pre-approved funding partner lists. Using a non-approved funder may require additional consent.

The SBA-first capital stack for franchises

For most franchise operators, MCA should be the third or fourth capital source, not the first. The recommended stack:

1. SBA Express loan ($500K cap, 25% APR or lower). If the franchise is on the SBA Franchise Registry, SBA Express is the fastest SBA product (30–45 day close, lower documentation). Available at most banks for franchise operators.
2. SBA 7(a) loan (up to $5M, 11–13% APR). Standard SBA for new unit buildouts, acquisitions, or working capital. 45–60 day close. Most franchisors have preferred SBA lender lists.
3. Bank LOC ($100K–$500K, 8–18% APR). For established multi-unit operators with bank relationships, LOC is the cheapest working-capital path.
4. OnDeck or Bluevine LOC. Marketplace LOC at 15–35% APR. Available to single-unit operators with bank-account history.
5. MCA. Only when speed is the binding constraint or when the operator has been declined by all of the above paths.

2026 franchise MCA funder map

• CFG Franchise Desk. Specialty in Tier 1 and Tier 2 brands, multi-unit operators; pricing 1.20–1.28; up to $2M tickets.
• Credibly Franchise. Single-unit and multi-unit franchise pricing; 1.22–1.30; up to $500K.
• Forward Financing. Mid-market franchise focus; 1.24–1.32.
• Kapitus. Multi-unit franchise portfolios; 1.22–1.30.
• Rapid Finance. Larger franchise portfolios ($1M+ tickets); 1.20–1.28 for Tier 1 multi-unit operators.
• OnDeck. Franchise term loan product (not MCA); APR 25–45%.

Worked example: a 3-unit Wingstop operator

A 3-unit Wingstop operator (Tier 2 brand), 4 years operating, $180K/month combined revenue, owner FICO 690, no open MCAs, needs $200K for a 4th unit working-capital stake.

2026 quote map:

• SBA Express: $200K at 11% interest, 10-year term. Monthly: $2,757. 45-day close.
• Bank LOC (regional bank): $250K line at 10% APR. Interest only on $200K draw: ~$1,667/month. 6-week approval.
• OnDeck term loan: $200K at 28% APR, 24-month term. Monthly: $10,964. 7-day funding.
• CFG Franchise MCA: $200K at 1.24 factor, 12-month term. Total payback: $248K. Daily ACH: ~$984. 5-day funding.
• Credibly Franchise MCA: $200K at 1.27 factor, 10-month term. Total payback: $254K. Daily ACH: ~$1,210. 3-day funding.

The right answer depends on timing. If the new unit buildout has a 60-day buildout window and a fixed opening date, SBA Express or bank LOC will close before the unit needs the cash. If buildout is starting next week, the CFG MCA at 1.24 may be worth the $50K fee premium.

Multi-unit franchise portfolio pricing

Multi-unit franchise operators (3+ units) get specialty pricing because the underwriter sees revenue diversification, system support from the franchisor, and a vested franchisor interest in the operator's success. 2026 multi-unit pricing:

• 3–5 units of a Tier 1 brand: 1.18–1.24 factor on 12–15 month terms
• 3–5 units of a Tier 2 brand: 1.22–1.28 on 10–13 month terms
• 6–10 units of any tier: Up to $2M tickets, weekly ACH standard, reconciliation by default
• 10+ units: Specialty negotiation with CFG's enterprise desk, Rapid Finance, or specialty franchise lenders like ApplePie Capital

Industry-specific franchise pricing notes

QSR (quick-service restaurant) franchises

QSR franchises (McDonald's, Subway, Wingstop, Chick-fil-A) get the tightest MCA pricing because daily card-and-cash revenue is predictable. Specialty funders run dedicated QSR franchise desks.

Fitness franchises

Fitness franchises (Planet Fitness, Anytime Fitness, F45) have recurring monthly membership revenue, which underwrites well for MCA. Pricing typically 1.22–1.30 for established operators.

Service franchises

Service franchises (Servpro, Mr. Rooter, Molly Maid) have project-based revenue that can spike and dip seasonally. Pricing typically 1.24–1.32 with shorter terms.

Retail franchises

Retail franchises (UPS Store, GNC, Great Clips) typically price 1.24–1.32 depending on industry stability and AUV.

Real estate / mortgage franchises

Real estate brokerage franchises (Keller Williams, Re/Max) and mortgage franchises have commission-based revenue with high variance — typically MCA-ineligible at most major funders. Specialty desks may quote at 1.32+ on a case-by-case basis.

Red flags in franchise MCA contracts

• UCC-1 on franchise FF&E. May conflict with franchisor reversionary rights. Negotiate the UCC-1 to be limited to non-franchise assets.
• No royalty subordination acknowledgement. The contract should explicitly subordinate the funder's claim to the franchisor's royalty stream.
• Cross-entity guarantees across non-franchise businesses. Negotiate to limit cross-guarantees to franchise-related entities only.
• COJ in states where the franchise is operated. May trigger change-of-control consequences under the FA.
• Aggressive default acceleration language. May conflict with FA cure periods and franchisor consent provisions.

The bottom line

Franchise MCAs price meaningfully better than independent business MCAs for recognized brands — but the franchise agreement constraints and franchisor consent requirements mean the contract complexity is higher. Most franchise operators should run the SBA-first stack (Express, 7(a), bank LOC) before MCA, and reserve MCA for true speed-bound capital needs. When MCA does fit, work with a franchise-specialty funder (CFG, Credibly Franchise, Kapitus) and have the franchise attorney review the contract before signing.