Short answer
Franchise working capital is a lump sum for operating costs at an open location: payroll, inventory, a repair, a marketing push the franchisor requires, or a thin month. Merchant Fund Express offers it from $5,000 into seven figures for larger operators, decides in 2–4 hours on a complete file and repays it from the store's revenue. The right size is the one the store can repay comfortably alongside royalties, rent and existing payments.
What owners use it for
Payroll ahead of revenue
Holiday or summer staffing that you pay for two weeks before the busy sales land.
Inventory and food costs
Stocking up before a promotion, or absorbing a supplier price jump.
Repairs that cannot wait
HVAC, plumbing, a dead walk-in. Things that close the store if ignored.
Required local marketing
Grand-reopening or local-store marketing spends your agreement calls for.
Sizing it so the payment fits
The question is not how much you can get. It is what the store can carry every week once royalties, the ad fund, rent, payroll and existing payments are out. A reviewer starts with average monthly deposits and subtracts what is already committed. Then the amount and term are set so the new payment sits inside what is left.
| Item | Hypothetical store (example only) |
|---|---|
| Average monthly deposits | $95,000 |
| Existing funding payments | $4,000 a month |
| Request | $40,000 for a cooler replacement and summer payroll |
| What the reviewer weighs | Whether the new payment plus the $4,000 still leaves room after fixed costs |
If the payment would squeeze the store, a smaller amount, a longer term or a line of credit drawn in pieces may fit better. That is a normal outcome of the review, not a decline.
Total cost: what to compare
Working capital costs more than a long-term bank loan and moves much faster. Before you sign, compare the total payback, the payment amount and frequency (daily, weekly or monthly), the term, any fees taken from the proceeds and whether paying early lowers the total cost. Put two offers side by side by total dollars repaid, not by the headline rate, since structures differ. Ask the specialist to walk you through each line; you should never be guessing.
Alternatives worth checking
| Option | When it beats working capital | Trade-off |
|---|---|---|
| Bank or SBA loan | You have time and strong financials | Weeks to close, more paperwork |
| Equipment financing | The need is a specific machine | Only covers the asset |
| Line of credit | The gap repeats every month | Needs steadier deposits |
| Franchisor or vendor terms | Your system offers them for that purchase | Limited to that vendor or program |
What to send
No tax returns required to apply. Same-day funding is available on approved files; funding often arrives the next business day.
When working capital is not the whole answer
Working capital is one of six ways Merchant Fund Express funds an open franchise location. The full menu for existing owners: franchise business loans, merchant cash advances, revenue-based financing, lines of credit, equipment financing, working capital and, for franchises that bill other businesses, invoice factoring.
Three franchise situations where working capital is the wrong tool
Being direct about this saves you money. Working capital is built for short, one-time operating needs. It is not the best answer when:
The need repeats every month
If you are short every payroll cycle, a line of credit costs less because you only pay on what you draw.
You are buying a long-lived machine
A lift or a walk-in lasts years. Equipment financing can spread the cost over the asset's life.
The store is losing money every month
More cash buys time but does not fix pricing, labor scheduling or rent. Fix the cause first.
When the request does fit, keep it tight: the amount you need, for the period you need it, with a payment the store's slowest normal week can carry.
Owner questions, answered
How fast is franchise working capital?
On a complete file, Merchant Fund Express usually decides in 2–4 hours. Same-day funding is available and next-business-day funding is common.
How much working capital can my location get?
It depends on the store's deposits and existing payments. Merchant Fund Express offers $5,000 to $5,000,000 overall.
Can I use working capital for payroll?
Yes, payroll is a common use. Approval and timing depend on the review, so apply before the payroll date, not on it.
Will working capital affect my franchise agreement?
Read your agreement for financing and lien clauses. Merchant Fund Express does not need franchisor approval to review your file.
Already carrying an advance. Is that a problem?
Yes. List it on the application. If the existing payment is the problem, ask about options to lower the payment.
Keep going
Merchant Fund Express is a separate company with no franchisor ties. Terms depend on the business's revenue and history.