Key Takeaways
- L-1A holders can own and operate franchises — the management role fits the visa's executive requirement
- Franchise fee, buildout, equipment, and working capital all eligible for funding
- SBA franchise loan programs now require US citizenship — Bankable fills the gap
- Decisions in 48 hours, funding from $50K to $5M
- Both single-unit and multi-unit franchise acquisitions funded
Franchising is a natural business model for L-1A holders. The franchise system provides the operational structure, brand recognition, and training infrastructure that makes a manager-visa business genuinely owner-operated. An L-1A executive who acquires a franchise as the managing owner fits the visa's requirement that the holder be in a managerial or executive capacity. The franchisor's systems reduce the operational complexity of starting from scratch. And the economics — typically 15-25% net margins for well-run food service franchises, 25-40% for service franchises — are compelling at the revenue scales that L-1 holders typically operate.
The obstacle is that SBA's franchise loan programs — historically the most favorable financing channel for franchise acquisitions — now require 100% US citizen ownership as of March 2026. An L-1A holder who wants to acquire a Subway, a Great Clips, a Mathnasium, or a Junk King franchise cannot access the SBA's small business development funding that their citizen peers use. Bankable's revenue-based franchise financing fills this gap precisely.
How Franchise Funding Works for L-1 Holders
Bankable evaluates franchise funding requests on the strength of the specific franchise system, the acquisition price relative to system averages, and the applicant's capital reserves and business operating experience. For existing franchisees looking to add units, we evaluate the performance of current units as the primary revenue basis. For first-time buyers, we evaluate the franchisor's Item 19 financial performance representations alongside the applicant's professional and capital profile.
- Franchise fee financing: Initial franchise fees range from $25K (QSR) to $150K+ (hotel brands) — these are sunk costs that Bankable can fund as part of an integrated acquisition package
- Buildout and leasehold improvements: Restaurant buildouts average $250K-$500K; service franchise buildouts average $50K-$150K
- Equipment packages: Franchisors often specify required equipment — commercial kitchen equipment, vehicles, signage — which qualifies for asset-backed financing
- Working capital reserve: Franchisors typically require 3-6 months of working capital as a condition of approval — Bankable can fund this component
Explore buying a franchise on L-1 in depth or check your Bankability Score.
Frequently Asked Questions
Yes. L-1A holders can own and operate US franchises. The managerial role inherent in franchise ownership aligns with the L-1A visa's executive/manager requirement. You need a US-registered business entity, EIN, and SSN to proceed.
No. As of March 1, 2026, SBA loans require 100% U.S. citizen or national ownership. L-1 holders are excluded. Bankable is an SBA alternative that funds franchise acquisitions without citizenship requirements.
Franchise acquisition costs vary widely: QSR franchises range from $150K to $600K total investment. Service franchises (cleaning, fitness, tutoring) range from $75K to $300K. Hotel and senior care franchises can exceed $1M. Bankable funds the full acquisition including fees, buildout, and equipment.
Yes. Multi-unit development agreements where you commit to opening 3-10 units over a defined period are fundable. We evaluate unit economics from the FDD Item 19 and your operating capital profile.
Not necessarily. You can apply in the evaluation stage. Having a signed FDD (Franchise Disclosure Document) and letter of intent helps expedite the process, but Bankable can pre-qualify you before you finalize franchisor selection.
Bankable has funded franchisees across food service (QSR and fast casual), fitness, home services, automotive, and education tutoring franchises. We review each franchise system's Item 19 independently.
Repayment structures vary: equipment financing uses fixed monthly installments; working capital uses daily or weekly revenue-based repayments that flex with your sales; term loans for buildout use fixed monthly payments. We structure based on the specific use.
Typically 10-20% of the total project cost. A $400K franchise buildout would require $40K-$80K in personal capital contribution. This demonstrates commitment and reduces lender risk.