Financing a franchise: what the filings say
Most franchisors do not lend you the money. Item 10 of the FDD says who will, and on what terms. Here is what seven 2026 filings say, and what to ask a lender.
Item 10 of the Franchise Disclosure Document (FDD) is short. It says whether the franchisor, or anyone it works with, offers you financing. It must also say if the franchisor takes a fee from a lender. Read it before you talk to a bank, so you know what help you will and will not get.
What seven filings say
| Franchise | What Item 10 says | FDD page |
|---|---|---|
| Club Pilates | No direct or indirect financing. It does not guarantee your note, lease or obligation. | p. 36 |
| The Joint Chiropractic | No direct or indirect financing. It does not guarantee your notes, leases or obligations. | p. 25 |
| Scenthound | No direct or indirect financing. It does not guarantee your loan, lease or obligations. | p. 28 |
| Crumbl | No direct or indirect financing from the company or its affiliates. The filing adds that there may be SBA financing to help with the purchase. | p. 41 |
| Dogtopia | No direct or indirect financing. Lenders that finance Dogtopia franchisees may pay Dogtopia a fee of 1% of the loan amount. The filing says Dogtopia gives any such fee to the Dogtopia Foundation, a 501(c)(3) charity. | p. 26 |
| Mosquito Joe | No duty to finance. It may agree to finance part of the initial franchise fee for qualified buyers, based on credit, collateral and its policies. It does not finance any deal that involves a broker. | p. 42 |
| Koala Insulation | The initial fees are due in cash at signing. In limited cases it may finance up to 80% of the franchise fee for up to 24 months, at 4 percentage points above prime, and the filing says this is for qualifying existing franchisees. | p. 29 |
We did not find an Item 10 financing line for Goldfish Swim School in the text we read, so it is not on this list.
What this means for you
Plan to borrow from a bank or lender, not the franchisor. Five of the seven filings say flatly that they do not offer financing. The two that do offer it limit it to part of the franchise fee, which is a small share of the total cost.
The franchise fee is not the whole bill. The rest, such as build-out and equipment, comes from you or your lender. Compare the totals in our guide on start-up costs.
Watch for lender fees to the franchisor. Dogtopia's filing shows this is a thing to ask about. If a franchisor gets paid when you borrow, you should know before you sign.
Questions to ask a lender
- Have you financed this franchise before? A lender that knows the brand can tell you the usual loan size and how long approval takes.
- How much cash must I put in myself? Most lenders want a share of the cost up front. Get the number in writing.
- What will you hold as security? Ask if your home or other property is at risk if the business fails.
- What is the full cost of the loan? Ask for the rate, fees and the monthly payment, not just the loan size.
- Does the franchisor receive any money from you? Item 10 must say. Check that the lender's answer matches the filing.
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