Latest / Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses
How Franchisees Are Using Revenue-Based Financing for Growth
In this episode of Franchise Conversations with Fexingo, Lucas and Luna explore how franchisees are increasingly turning to revenue-based financing—also known as royalty-based financing—to fund unit expansion without diluting ownership. They break down the mechanics of a deal where a franchisee receives a lump sum in exchange for a fixed percentage of future revenue until a cap is reached, using the example of a multi-unit Subway operator who used this structure to open three new locations in Texas in 2025. The hosts compare revenue-based financing to traditional bank loans and SBA lending…
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