Single-unit · Multi-unit · Existing or new build
Business plan for a Canadian franchise loan.
Built around the documents Canadian franchise lenders actually evaluate — your FDD, the brand's published unit economics, the territory rights, and the 30–50% equity injection franchise files typically require.
Canadian franchise lenders
Who funds franchise purchases.
RBC and TD franchise finance
Dedicated franchise finance groups. Both maintain pre-approved brand lists that speed up underwriting — files for those brands move faster and at better rates. Off-list brands are still fundable but underwritten as standard commercial files.
Scotiabank, BMO, CIBC, National Bank
Franchise files go through each bank's commercial division. Scotiabank has a dedicated franchise banking team. The other three underwrite franchise deals as standard commercial loans with attention to the brand's national track record.
BDC + Franchise Canada Fund
BDC funds franchises through its general SME products (Small Business Loan up to $350K, Commercial Real Estate for larger build-outs). The BDC-affiliated Franchise Canada Fund supports certain growth-stage franchisors directly.
Credit unions
Vancity, Meridian, and regional credit unions fund franchise deals — particularly for franchisees in the credit union's footprint, or for brands the chartered banks consider higher-risk. Often more flexible on collateral structure.
What we write
What franchise lenders expect in the plan.
Franchise plans are evaluated against TWO sets of criteria simultaneously: the lender's standard underwriting, and the brand-specific economics published in the Franchise Disclosure Document. Both need to be addressed.
- FDD compliance section. Summary of royalty rate, marketing fund contribution, initial franchise fee, territory rights, renewal terms, and any obligations that affect ongoing cash flow. Required by lenders in Ontario, BC, NB, Manitoba, and PEI (which mandate FDD disclosure). Still expected in Alberta even without the disclosure law.
- Brand-specific cost ranges in line with the FDD. Fast food: build-out $250K–$600K, royalty 4–6%, marketing 2–4%. Fitness: build-out $150K–$300K, royalty 6–8%, marketing ~2%. Retail / services: build-out $100K–$250K, royalty 5–7%, marketing 1–3%. The plan benchmarks the borrower's deal against the brand's published ranges.
- Personal equity injection — 30–50%. Higher than the 15–25% norm for non-franchise small business loans. Reflects the concentration risk in single-brand investment plus the franchisor's ongoing claims on cash flow.
- 3-year projections with FDD-cost modelling. Royalty and marketing fund modelled as separate expense lines (not folded into G&A). Initial franchise fee amortized over the agreement term. Renewal fees flagged in the year they hit.
- Multi-unit considerations (if applicable). For multi-unit applicants: existing unit performance, area development agreement terms, financing structure across units, and management bench depth.
- Franchisor stability check. Unit-count trend (growing or declining nationally), recent FDD-history flags, system-wide same-unit-sales trend. Lenders won't fund into a declining brand.
How Bridge Note writes a franchise plan
From discovery call to franchise lender.
Franchise plans are 2–3 weeks depending on whether the brand is on the lender's pre-approved list. Files for off-list brands need additional brand-validation work, which extends the timeline.
01
Discovery call (free)
30 minutes to confirm the brand, the lender, single vs. multi-unit, and territory. Fixed quote by end of call.
02
Structured intake
60–90 minutes covering the borrower, the FDD, the location and lease, build-out scope, and personal financial position.
03
Draft + revision
5–7 business day first draft with FDD compliance + brand-economics modelling. One revision round included.
Buying a Canadian franchise? Bring it to the discovery call.
30 minutes, free, no obligation. We confirm the brand, the lender, and the equity structure — and give you a fixed quote.