Restaurant Financing: What You Need to Know

The exterior of a Marco's franchise.

Many people dream of owning a restaurant as it can be rewarding both personally and professionally. There are many restaurant financing options available and franchising with a brand that has a strong FRANdata FUND Score increases your opportunity for financing.

Common Ways to Finance Your Restaurant

Making your dream of opening a restaurant into reality will require capital as Franchisors have minimum financial requirements for both liquidity and net worth. There are several common ways entrepreneurs acquire this capital, some conventional and some a little less so. Here are several options commonly considered by prospective franchisees: 

  • Lender loan: A lender or bank financing is the most common way most restaurants are financed, covering most of the costs involved with opening a restaurant.  
  • SBA loans: Many banks offer loans to small businesses supported by a guarantee from the Small Business Association (SBA) to assist with the loan. Some SBA backed loans require as low as a 10% cash injection. 
  • Franchisor financing: Certain franchises offer financing arrangements to franchisees. While Marco’s does not offer in-house financing options, we maintain a Preferred Lender List containing lenders familiar with our brand. 
  • Tap your assets: A home equity line of credit or second mortgage can give you access to funds, while assets like stocks, bonds, and mutual funds can be used to secure loans. 
  • Investors: Outside investors are looking to fund promising new businesses, hoping to make a profit as the business takes off. You can structure agreements so that they’ll own a part of your restaurant until you pay them back helping them attain a return on their investment, at which point you’ll have full control over your business. 
  • Partners: Consider a partnership to help with funding, operations and growth. 
  • Friends and family: Friends and family can be easy asks when it comes to needing funds or meeting minimum liquidity qualifications if the funds are gifted. However, borrowing money from loved ones can be tricky if a lender is also involved because borrowed equity is usually prohibited. 

No single method is right for everyone, so you will need to evaluate your specific situation and financing goals to determine which path is right for you. 

Owning the Right Franchise Can Help You Achieve Your Restaurant Dream

Banks are more likely to back a tried-and-true restaurant franchise with a proven business model, solid reputation in the marketplace, and a recognizable brand, making buying into a franchise a smarter move for you.

Marco’s Pizza is one of the fastest-growing pizza brands in the U.S. with $1,198,201 AUV* and 12.8% same-store sales growth* in 2021. Our 2021 FUND Score is in the top 1% of all evaluated franchise systems and is among the top three scores for all QSR brands.  Data-backed site selection, expert marketing, training, and ongoing support are just part of what comes with a Marco’s Pizza franchise.

If you want to learn more about owning a Marco’s franchise and making your dreams come true, get started today.

About Marco’s Pizza  

Marco’s Pizza is America’s Most Loved and Most Trusted Pizza Brand, according to the 2019 Harris Poll EquiTrend® Study. Headquartered in Toledo, Ohio, Marco’s Pizza is one of the fastest-growing pizza brands in the United States. Marco’s was founded in 1978 by Italian-born Pasquale (“Pat”) Giammarco and thrives to deliver a high-quality pizza experience, known for its dough made from scratch and its three fresh signature cheeses. The company has grown from its roots as a beloved Ohio brand to operate over 1,000 stores in 34 states with locations in Puerto Rico and the Bahamas. Most recently, Marco’s Pizza was ranked No. 2 in the Pizza category on Entrepreneur Magazine’s 2022 “Franchise 500” ranking, and No. 4 in the Fastest Growing category on Restaurant Business’ 2021 “Top 10 Fastest Growing Chains” ranking. Other recent accolades include a first-time presence on Newsweek’s 2022 “America’s Best Customer Service” in pizza chains list, ranked No. 42 on QSR’s Top 50 and has been featured five consecutive years on Nation’s Restaurant News’ prestigious “Top 500” ranking. 

*Based on the Average Unit Volume of the top 50% of our Franchised Stores for fiscal year 2021. Based on fiscal year 2021, 146 of 389 Franchised Stores in the category (38%) met or exceeded this average. This information appears in Item 19 of our 2022 FDD – please refer to our FDD for complete information on financial performance. Results may differ. There is no assurance that any franchisee will perform as