When a franchise seller introduces a lender

Ask why this provider was introduced

A development team, broker or supplier may refer you to a funding provider familiar with franchise transactions. Ask about compensation, ownership or other commercial relationships behind the introduction. Request the explanation in writing so that you understand the context of the recommendation.

Find out whether the provider is a lender, broker or another intermediary. Ask who will receive an application, who makes the decision and what fees apply at each stage. A helpful contact does not by itself establish approval or suitability.

Verify before sharing documents

Use a verified official channel and understand the recipient’s role before sending tax records, bank statements or identity documents. A general magazine inquiry form is not an application portal. Be cautious about instructions to move sensitive materials to an unexpected personal address or unfamiliar link.

Prepare the same use-of-funds schedule and questions you would take to another provider. Compare proposed rates, fees, repayment obligations, conditions and service. Familiarity with a brand can make a discussion easier, but it does not replace scrutiny of the actual terms.

Keep advice independent

Ask legal and financial advisers who are not paid to complete the franchise sale to review the proposed arrangement. SBA’s Lender Match resource offers a way to explore interested lenders, while making clear that matching does not guarantee a loan. Treat every route as the beginning of underwriting and comparison, not the end of research.

Put it on paper

• Clarify relationships and compensation.
• Verify the secure application destination.
• Compare terms and obtain independent review.

Continue with the franchise research checklist, our FDD guide, and the research directory.