Discover Financing Options for Your Burrito Shak Franchise
Money is usually the first wall a prospective franchisee runs into, and it’s often the tallest one. The good news is that it doesn’t have to be. Franchising exists precisely because it lowers the risk of starting a business from scratch, and that same support system extends into how you fund it. If you’ve been dreaming about bringing a Burrito Shak to your community but aren’t sure how to pay for it, this guide walks through the real financing paths available to you, from SBA-backed loans to a dedicated program for military veterans.
Start With a Clear Picture of the Investment
Before you can talk financing, you need to know exactly what you’re financing. Every franchise brand is legally required to disclose its startup costs in a Franchise Disclosure Document, and the initial investment breakdown in Item 7 covers everything from the franchise fee to build-out costs, equipment, and working capital. Reading this section closely, alongside Item 19 financial performance data where available, gives you a real number to plan around instead of a rough guess. That number is what determines which financing tools actually make sense for your situation.
SBA Loans: The Most Common Path
For most new franchisees, the U.S. Small Business Administration is the starting point. SBA loans aren’t issued by the government directly. Instead, a bank or credit union issues the loan and the SBA guarantees a portion of it, which is what makes lenders more willing to approve applicants who might not qualify for a conventional loan. There are two programs worth knowing:
- SBA 7(a) loans cover a wide range of costs, including working capital, equipment, and renovations, with repayment terms that can stretch out for years.
- SBA 504 loans are built for major fixed assets, like real estate and large equipment purchases, and typically carry longer terms for those bigger-ticket items.
One detail matters a lot here: the brand itself has to be eligible. To qualify for SBA financing, your franchise must appear in the SBA’s Franchise Directory, which lenders use to evaluate whether a brand’s franchise agreement meets SBA eligibility standards. Burrito Shak’s inclusion on this registry is a meaningful head start for any prospective franchisee, since it removes one of the biggest early hurdles before you’ve even applied.
VetFran: A Direct Path for Veterans
If you served in the military, franchising has a well-worn track record of being an especially good fit, and the numbers back that up. Military veterans make up roughly 14 percent of all franchisees in the U.S., despite representing only about 7 percent of the general population, and 97 percent of surveyed franchisors say veterans make excellent franchisees. That’s not a coincidence. The discipline, systems-thinking, and leadership that come out of military service translate directly into running a franchise location well.
That connection is formalized through VetFran, a program of the International Franchise Association that encourages member brands to offer meaningful incentives to veterans entering franchising, often in the form of reduced fees or dedicated support. Burrito Shak proudly participates in this program, which is one more reason veterans exploring their next chapter should take a serious look at what this brand offers.
Other Ways to Fund Your Franchise Fee
SBA loans and VetFran incentives aren’t the only tools available, and combining more than one source of funding is common. A few other paths worth understanding:
- Rollovers as Business Startups (ROBS). This lets you move funds from an existing 401(k) or IRA into your new business without early withdrawal penalties or income tax, since the money is technically invested in the new company rather than withdrawn from the account. ROBS can be used on its own or as the equity injection portion of an SBA loan, though it should be set up carefully and with professional guidance since retirement savings are directly at stake if the business doesn’t perform.
- Conventional bank loans. These don’t require giving up equity in your business, though terms are often shorter and payments higher than SBA-backed options.
- Personal savings and home equity. Many franchisees combine some personal capital with a loan to reduce their overall borrowing costs.
Every financial situation is different, and there’s no single right answer. What matters is knowing your options exist before you assume franchising is out of reach.
The Bottom Line
Financing a franchise can feel like the hardest part of the whole process, but it’s also the most solvable. Between SBA-backed loans, the VetFran program for veterans, and flexible tools like ROBS, there’s a realistic path forward for a wide range of financial starting points. Burrito Shak’s SBA registry status and VetFran participation exist for exactly this reason: to make the path to becoming a franchisee more accessible, not less.
If you’ve been putting off exploring franchise ownership because of the price tag, now is a good time to take the next step. Download the free Burrito Shak franchise brochure to see full investment details, or reach out to the team to talk through which financing path fits your goals.