What are the Best Options for How to Finance a Franchise

Ori’Zaba’s Scratch Mexican Grill outlines the most common financing options for a restaurant franchise. End Quote

Ori'Zaba's offers a fair and reliable balance of affordable ownership, individualized location support and scalability in high-growth regions.

(1888PressRelease) April 10, 2026 - LAS VEGAS - Launching a restaurant franchise offers investors an excellent opportunity to grow and be part of a thriving community. As with any business decision, it's essential to have a firm understanding of the financials before signing contracts or agreements. Roughly 64% of financing for new locations in a franchise is sourced from personal finance. However, there are many other options for those with passion, strategic thinking and patience to grow.

To help people start to think about the best options for themselves and their situation, the team at Ori’Zaba’s Scratch Mexican Grill has outlined some of the most common financing options for a restaurant franchise. Financial options and rates are unique to markets and individuals and, of course, not guaranteed. Below are some examples of how others have funded their franchise dreams:
• Franchisor Financing: Some brands offer direct lending partnerships with preferred banks, making the cost of a fast-food franchise more appealing and simpler, as the lender already understands the system they are supporting.
• Commercial Bank Loans: These are more traditional options to cover a Mexican restaurant franchise. They do require strong credit histories and a detailed business plan, as well as some form of collateral.
• SBA Loans: The U.S. Small Business Administration offers SBA 7(a) and SBA 504 loans that can provide financial support for everything from first-time startup funding to fixed asset purchasing of equipment and land. As the U.S. government guarantees up to 85% of these loans, they are easier to get due to the lower lender risk.
• Alternative Lenders: If traditional pathways for how to start a franchise are out of reach, there are alternative lenders. Just go in with eyes wide open, as they will have higher interest and quicker repayment terms.
• Personal Assets: Some franchise owners choose to leverage personal savings, home equity, stock options and severance packages as collateral. This avoids interest payments without sacrificing control, but entrepreneurs should anticipate needing a six-month emergency reserve for operations to demonstrate solvency.
• Rollovers as Business Startups (ROBS): A ROBS arrangement gives entrepreneurs the ability to use retirement funds (401(k)s or IRAs) to finance a franchise purchase, without being subject to early withdrawal taxes or penalties.
• Hybrid Options: The final few options are considered part of a “hybrid” financing plan. That would involve securing a low-cost restaurant franchise via cash from crowdfunding (Kickstarter, Indiegogo, etc.), friends and family, and “angel” investors. In many cases, when there is a strong story to sell with a proven system like Ori’Zaba’s Scratch Mexican Grill, these hybrid options become much more advantageous.

“Ori’Zaba’s offers a fair and reliable balance of affordable ownership, individualized location support and scalability in high-growth regions,” explained Ori’Zaba’s Franchise Sales Manager Maria Maciel. “It is a strong option for investors due to our proven operational processes.”

To learn more about Ori'Zaba's franchising opportunities, contact franchise ( @ ) zabas dot com or visit https://orizabasfranchising dot com/ dot

About Ori’Zaba’s - Ori’Zaba’s Scratch Mexican Grill is a fast-casual Mexican restaurant chain whose mission is to feed the soul of every guest with old world Mexican flavors, made every day with care in their scratch kitchens, with the finest, freshest ingredients. Originating in Las Vegas in 2001, Ori’Zaba’s multiple locations can now be found in Nevada and is currently expanding throughout the United States. To learn about franchising, visit https://orizabasfranchising.com/.

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