Working capital built for
operators, not first-day franchisees.

Let's start with the honest scope of this page. Goliath funds working capital for existing franchisees — operators with at least 6 months of unit-level revenue history, an operating bank account producing real deposits, and a need that fits the working-capital use case. We do not fund the initial franchise fee or the build-out for a brand-new franchise location. That's SBA territory, and the SBA 7(a) program is purpose-built for it: long amortization, low rates, and underwriting designed for a project with no operating history. If you're standing up unit #1 from a green-field site, your fastest path is an SBA preferred lender that specializes in your franchise brand — not a working-capital advance.

Where Goliath fits squarely is the existing franchisee — months 6 through year 20 — with a working-capital need that the SBA can't move fast enough to address. The common scenarios: covering royalty obligations during a slower-than-expected quarter, funding a remodel the franchisor is requiring before a specific deadline, payroll bridge during a peak-season ramp before the busy weeks pay back, equipment replacement that can't wait sixty days for SBA underwriting, marketing co-op contributions that fall on a heavier schedule than monthly cash flow comfortably supports. These are deadline-driven deployments where the existing unit has the deposit history to support the advance and the operator has the visibility to know the capital will earn its keep.

Why franchise underwriting is straightforward for us

Franchised units are the easiest deposit profiles in alternative lending to underwrite. The franchisor has standardized the operating model — point-of-sale, menu pricing or service pricing, daily operating procedures — which means the deposit patterns of a Jersey Mike's in Tampa look remarkably similar to a Jersey Mike's in Phoenix. Four months of bank statements from any decently-run franchise unit show predictable deposit rhythm, identifiable seasonal patterns, and clean separation between unit revenue and personal expenses. The royalty deductions are visible. The credit-card processor deposits land on the same days each week. We can underwrite a franchise unit in roughly the time it takes to read four months of statements, which is much faster than for an idiosyncratic independent business.

For franchise acquisition, build-out, and major capital investments, SBA 7(a) remains the gold standard. The program offers loans up to $5 million, terms up to 25 years for real estate and 10 years for working capital and equipment, with the SBA guaranteeing 75–85% of the loan to the lender. A typical franchise 7(a) wraps franchise fee, build-out, equipment, opening inventory, initial working capital, and closing costs into one loan. Down payment is typically 10–20% of total project cost from the franchisee. Personal credit minimum runs 680 FICO with most preferred lenders. Pricing floats with prime — current 7(a) rates are roughly 10–12% APR. Timeline from application to funding is generally 60–90 days, occasionally faster on smaller SBA Express deals. For a qualifying franchisee buying their first or second unit, it's the cheapest small-business capital in the country.

The SBA Franchise Directory (formerly called the Registry) is the SBA's published list of franchise brands that have been pre-vetted for SBA loan eligibility. If your franchisor appears on the directory, the SBA has already reviewed the Franchise Disclosure Document and confirmed the relationship meets SBA's 'affiliation' rules — which dramatically speeds underwriting. If the franchisor is not on the directory, the lender has to submit the FDD for SBA review at the time of loan application, which adds 30–60 days to the timeline. Before signing any franchise agreement, check sba.gov for the franchise directory status of the brand you're considering; it materially affects both timeline and financing options.

Franchisor-preferred lenders and brand-specific programs

Most large franchisors maintain a list of preferred SBA and conventional lenders who have financed multiple units of that brand and are familiar with the operating model — McDonald's, Subway, Jersey Mike's, Planet Fitness, Anytime Fitness, The UPS Store, Tropical Smoothie, and dozens of others all publish franchisor-preferred lender lists to qualifying candidates. Using a brand-familiar lender removes the learning curve: they already understand the franchise's typical unit economics, royalty structure, AUV (average unit volume) ranges, and ramp-up timelines. It doesn't guarantee approval, but it does mean the underwriting conversation starts at chapter four instead of chapter one. Ask your franchisor's development team for the preferred lender list before applying anywhere else.

Multi-unit expansion beyond the SBA cap

The SBA's $5M aggregate cap (applicant plus affiliates) constrains how many units a single franchisee can stack on SBA financing. Established multi-unit franchisees who hit the cap typically migrate to conventional bank loans, private equity-backed franchise lenders (Pinnacle Bank, ApplePie Capital, Benetrends Financial), or working-capital advances against operating units to fund expansion. Goliath fits into multi-unit expansion as the working-capital layer: we fund operating capital against existing units while the multi-unit operator runs an SBA or conventional acquisition track in parallel. For franchisees running 3+ units with $1M+ in annual revenue per unit, the financing stack typically combines several instruments rather than relying on any single product.