Last updated: May 2025
A bridge loan for franchise expansion is a short-term commercial loan that provides fast capital to secure locations, complete buildouts, or cover startup costs.
Franchise operators often use bridge loans when long-term financing, such as an SBA loan, is delayed or unavailable. Hard money bridge loans are a subset used when speed or asset-based approval is critical.
Related questions you might be asking:
- Can I use a bridge loan to pay my franchise fee?
- Are bridge loans available to first-time franchisees?
- Do I need to own real estate to qualify for a bridge loan?
- Can I refinance a bridge loan with an SBA loan?
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What is a bridge loan in franchise financing?
A bridge loan provides short-term capital designed to bridge the gap between immediate capital needs and long-term funding. In the context of franchise expansion, it enables franchisees to move fast on opportunities like locking in a prime location or starting construction without delay.
Bridge loans typically last 6 to 18 months and are often secured by real estate or business assets. They are not meant to replace long-term loans but to serve as an interim solution until a more permanent structure, such as an SBA or conventional loan, is secured.
Key characteristics of bridge loans
- Fast closing: Often in under 2 weeks
- Collateral-based approval: Less emphasis on credit score
- Flexible use: Real estate, equipment, working capital
As a short-term commercial lending solution, bridge loans can be used to solve immediate financing issues for franchise growth.
When should franchise operators use a bridge loan?
Bridge loans are ideal when traditional financing timelines or underwriting requirements threaten to delay expansion. These loans are especially useful for:
- Rapid expansion: Opening multiple units on tight schedules
- Real estate acquisition: Securing a location before it’s lost to competitors
- Buildout financing: Covering construction or renovation costs
- Pre-revenue coverage: Funding operations before the location generates income
Bridge loans let franchisees seize growth opportunities without waiting for slower financing.
What are the pros and cons of bridge loans for franchise growth?
Bridge loans offer clear advantages for fast-moving franchise operators, but they also come with trade-offs.
| Feature | Pros | Cons |
|---|---|---|
| Speed | Funds in 5–10 days | Higher interest rates |
| Flexibility | Use for various expansion needs | Short repayment window |
| Approval | Asset-based underwriting | Often requires collateral |
Despite higher costs, the flexibility and speed of bridge loans can make them the most practical solution in time-sensitive scenarios.
How do hard money bridge loans work for franchise projects?
Hard money bridge loans are a subtype of bridge financing funded by private investors or non-bank lenders.
These loans are based primarily on the value of the collateral—usually commercial real estate—and less on the borrower’s credit or income documentation.
Franchise operators often turn to hard money loans when:
- Traditional banks reject the application
- Time-sensitive closings demand speed
- The borrower has complex financials or recent credit issues
Hard money bridge loans close faster, sometimes in at least seven business days, and require minimal documentation, making them ideal for real estate-backed franchise opportunities.
When should a franchise operator choose a hard money bridge loan?
Franchisees might choose a hard money bridge loan under specific conditions, such as:
- Poor or limited credit history
- Self-employed income that doesn’t meet bank standards
- Urgent deadlines to close on a location
- Real estate-heavy project where asset value is high
These loans provide access to capital when conventional lenders won’t approve financing quickly enough. However, borrowers should be prepared for higher interest rates and origination fees in exchange for speed and flexibility.
How do bridge loans compare to SBA franchise loans?
Bridge loans and SBA loans serve different purposes. SBA 7(a) and 504 loans offer lower rates and longer repayment terms, but take weeks or months to close. Bridge loans, by contrast, prioritize speed.
Comparison:
- Bridge loan: 6–18 months, high interest, funds in 7–10 days
- SBA loan: 7–25 years, low interest, funds in 45–90 days
Many franchisees employ a ‘bridge-to-SBA’ strategy—using bridge funds to launch quickly, then refinancing into a long-term SBA loan when approved.
FAQs about bridge loans for franchise operators
Yes, some lenders allow franchise fees to be covered, particularly if secured by real estate or equipment.
Yes. Approval often hinges on the strength of the collateral and the viability of the business plan rather than prior experience.
Not always. Some lenders accept leasehold improvements or business assets, though real estate offers the strongest collateral.
Yes. Many borrowers use bridge loans as short-term solutions while waiting for SBA approval.
Is a bridge loan right for your franchise expansion?
Yes, especially if you face tight timelines or delayed permanent financing. Bridge loans are a practical tool for franchise operators who must act quickly on expansion opportunities.
Whether you’re securing a lease, completing a buildout, or bridging a financing gap, these loans provide access to fast capital. Hard money bridge loans offer an even faster, more flexible option for those with strong collateral but nontraditional profiles.
For growth-focused franchisees facing funding delays or tight timelines, bridge loans can make the difference between expansion and missed opportunity.
Why choose Marquee Funding Group for your bridge loan needs
Marquee Funding Group provides tailored bridge loan solutions for franchise operators and real estate investors. Their approach combines speed, flexibility, and a deep understanding of complex financing scenarios.
Fast Funding with Flexible Terms
Marquee Funding Group can close bridge loans in as little as 7 days, providing swift access to capital for time-sensitive opportunities.
Their flexible lending requirements and simple application process make it easier for borrowers to secure financing without the stringent criteria often imposed by traditional lenders.
Asset-Based Lending Focus
Unlike conventional lenders that heavily weigh credit scores and income documentation, Marquee emphasizes the deal’s viability.
This asset-based lending approach allows for higher approval rates, especially beneficial for borrowers with unconventional financial profiles.
Expertise in Complex Scenarios
Marquee’s team is adept at structuring loans for unique or challenging situations, including those involving multiple properties or unconventional collateral arrangements.
Their experience enables them to craft solutions tailored to the specific needs of franchise expansions and real estate investments.
Franchise operators seeking a reliable and responsive financing partner will find Marquee Funding Group’s bridge loan offerings a strategic advantage in achieving their expansion goals.
Submit your loan scenario with Marquee Funding Group today!