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Fact sheet

Franchise Affordability: How Many US Families Can Meet Franchisor Requirements

Federal Reserve household data matched to the published liquid capital and net worth minimums of 50 franchise brands, with an SBA equity comparison.
Updated Next update: Brand minimums rechecked quarterly; household figures when the Federal Reserve publishes the next Survey of Consumer FinancesBy the Editorial TeamData: CC BY 4.0
Documentary photograph of a kitchen table in evening light: an open household budget binder, a few bank statements with no readable text, a desk calculator and
Short answer

Franchise affordability is narrow. In the Federal Reserve’s 2022 Survey of Consumer Finances, 11.6% of US families held $250,000 or more in liquid assets and 9.9% also had $1 million in net worth. The median brand in our 50-brand sample asks for $212,500 liquid and $500,000 net worth, which 12.4% of families meet.

This fact sheet reports published data. It is not financial advice; requirements are as each brand published them on the date shown.

The numbers

0111.6%11.6% of US families held $250,000 or more in liquid assets in 2022.Federal Reserve SCF 2022
029.9%9.9% of US families held both $250,000 in liquid assets and $1 million in net worth in 2022.Federal Reserve SCF 2022
0319.7%19.7% of US families held $100,000 or more in liquid assets in 2022, and 27.4% held $50,000 or more.Federal Reserve SCF 2022
04$10,000The median US family held $10,000 in liquid assets in 2022 under this report’s definition.Federal Reserve SCF 2022
0550Across 50 franchise brands checked on 2026-10-03, the median published liquid capital minimum is $212,500 and the median net worth minimum is $500,000.Brand franchising pages
062424 of the 50 brands publish a liquid capital minimum of $250,000 or more, and 11 publish $500,000 or more (2026-10-03).Brand franchising pages
0712.4%12.4% of US families met both of the median brand’s minimums ($212,500 liquid, $500,000 net worth) in 2022.SCF 2022 and brand pages, derived
0872.8%72.8% of US families met the published minimums of none of the 50 brands in 2022 terms; 27.2% met at least one.SCF 2022 and brand pages, derived
0935,Among US families headed by someone under 35, 2.9% met the median brand’s minimums in 2022, against 19.4% for ages 65 to 74.Federal Reserve SCF 2022
1020%In the top 20% of US incomes, 42.3% of families met the median brand’s minimums in 2022; in the bottom 20%, 1.5% did.Federal Reserve SCF 2022
117The median SBA 7(a) franchise start-up loan from FY2024 to June 30, 2026 was $318,450, implying a minimum cash injection of about $35,383 under the 10% rule.SBA 7(a) FOIA; SOP 50 10 8.1
1231.6%31.6% of US families held at least $35,383 in liquid assets in 2022, enough for that SBA equity floor.SCF 2022 and SBA FOIA, derived
13$250,000Counting retirement accounts as liquid raises the share of US families with $250,000 or more from 11.6% to 22.8% (2022).Federal Reserve SCF 2022
142007,In 2007, 38.0% of US franchise firms started with $100,000 or more in capital, compared with 12.2% of non-franchise firms.Census Bureau SBO 2007 PUMS

Franchise affordability in 10 numbers

Each figure below is one number from one source. Household figures describe US families in the Federal Reserve’s 2022 Survey of Consumer Finances (SCF), the most recent survey the Fed has conducted. Brand figures are the minimums each franchisor published on its own franchising page on 2026-10-03.

  1. 11.6% of US families held $250,000 or more in liquid assets (cash, CDs, brokerage stocks, bonds and mutual funds outside retirement accounts) in 2022. Source: Federal Reserve, Survey of Consumer Finances 2022, computed by Franchise Consultants and Brokers
  2. 9.9% of US families had both $250,000 in liquid assets and $1 million in net worth in 2022. Source: Federal Reserve, Survey of Consumer Finances 2022, computed by Franchise Consultants and Brokers
  3. $212,500 is the median published liquid capital minimum across 50 franchise brands in 11 sectors, checked on 2026-10-03. Source: 50 brands’ own franchising pages, accessed 2026-10-03 (tables/requirements.csv)
  4. $500,000 is the median published net worth minimum among the 44 brands in the sample that publish one. Source: 50 brands’ own franchising pages, accessed 2026-10-03 (tables/requirements.csv)
  5. 12.4% of US families meet both of the median brand’s minimums ($212,500 liquid and $500,000 net worth), SCF 2022. Source: Federal Reserve, Survey of Consumer Finances 2022, computed by Franchise Consultants and Brokers
  6. 72.8% of US families meet the published minimums of none of the 50 brands in the sample, SCF 2022. Source: Federal Reserve, Survey of Consumer Finances 2022, computed by Franchise Consultants and Brokers
  7. 24 of 50 brands in the sample ask for $250,000 or more in liquid capital. Source: 50 brands’ own franchising pages, accessed 2026-10-03 (tables/requirements.csv)
  8. $35,383 is the implied minimum cash injection for the median franchise start-up SBA 7(a) loan ($318,450, FY2024 to FY2026) under the 10% start-up rule. Source: SBA 7(a) FOIA as of 2026-06-30; SBA SOP 50 10 8.1
  9. 6.0x is how much larger the median brand liquid minimum ($212,500) is than that SBA equity floor. Source: Derived from brand pages and SBA FOIA
  10. 38.0% of franchise firms started with $100,000 or more in capital in the 2007 Survey of Business Owners, versus 12.2% of non-franchise firms. Source: U.S. Census Bureau, 2007 SBO PUMS

Franchise affordability calculator: which brands and how many families

0
brands in our sample whose published minimums you meet
n/a
of US families have at least this much in both measures
Brands you meet

    The calculator counts the brands in our 50-brand sample whose published liquid capital minimum and net worth minimum are both at or below your two numbers. A brand that publishes no net worth figure is matched on liquid capital alone. It then reads tables/household_thresholds.csv and reports the share of US families (SCF 2022) whose liquid assets and net worth are both at or above the nearest grid values at or below your inputs. Liquid assets here means cash, CDs, brokerage stocks, bonds and non-money-market mutual funds; retirement accounts and home equity are excluded, although some franchisors count them. Meeting a published minimum does not mean a franchisor will approve you, and requirements change.

    How many US families clear common franchise thresholds

    Most US families do not hold the liquid assets franchisors commonly ask for. In 2022, 27.4% of US families held $50,000 or more in liquid assets, 19.7% held $100,000 or more and 11.6% held $250,000 or more, according to the Federal Reserve SCF 2022.

    Net worth tests are less binding than liquidity tests. In 2022, 29.7% of US families had a net worth of $500,000 or more and 18.0% had $1 million or more. Adding a $1 million net worth test to a $250,000 liquidity test lowers the share of US families from 11.6% to 9.9%.

    The median US family held $10,000 in liquid assets in 2022, and the 90th percentile family held $321,500 (SCF 2022, this report’s broad definition). Median family net worth computed from the public data was $192,700, which matches the Fed’s public-data table (the Fed’s Bulletin reports $192,900 from internal data).

    The definition of liquid assets moves these shares. Counting only transaction accounts, 4.5% of US families had $250,000 or more in 2022. Counting retirement accounts as well, which some brands in the sample (Senior Helpers, Express Employment Professionals) say can count, 22.8% had $250,000 or more and 15.5% also had $1 million in net worth (SCF 2022).

    Figure 1Share of US families at or above common franchise liquidity thresholds, 2022Liquid assets exclude retirement accounts; second series adds a $1 million net worth test
    0.0%7.5%15.0%22.5%30.0%27.4%$50K+19.7%$100K+15.4%$150K+11.6%$250K+7.5%$500K+
    Source: Federal Reserve, Survey of Consumer Finances 2022 (weighted, n = 4,595 families); Franchise Consultants and Brokers analysis. Download data (CSV)
    Table 1Share of US families meeting liquid asset and net worth thresholds, 2022 (percent, with standard errors)
    Liquid assets at or aboveAny net worth (%)Any net worth SENet worth $250,000+ (%)Net worth $250,000+ SENet worth $500,000+ (%)Net worth $500,000+ SENet worth $1,000,000+ (%)Net worth $1,000,000+ SE
    $50,00027.420.6424.820.6620.840.6914.610.65
    $100,00019.70.5118.990.517.030.5313.160.58
    $150,00015.420.4915.270.5114.570.5111.820.59
    $250,00011.580.4611.570.4711.350.489.890.51
    $500,0007.520.347.520.347.510.347.110.34
    No liquid test100045.080.7729.710.8818.040.88
    Source: Federal Reserve, Survey of Consumer Finances 2022 summary extract and replicate weights; SEs combine sampling and imputation variance. Download CSV

    What 50 franchise brands publish as liquid capital and net worth minimums

    The median brand in our sample asks for $212,500 in liquid capital and $500,000 in net worth. We recorded the minimums 50 franchisors published on their own franchising pages on 2026-10-03, across 11 sectors; 44 publish both numbers and 6 publish only a liquidity figure.

    36 of the 50 brands ask for at least $150,000 in liquid capital, 24 ask for at least $250,000 and 11 ask for at least $500,000. Published liquidity minimums range from $40,000 (Wild Birds Unlimited, stated as $40,000 to $50,000) to $2,500,000 (Five Guys, whose page describes development-level requirements).

    Food and beverage brands sit at the top. The 17 food and beverage brands in the sample have a median liquid minimum of $400,000 and a median net worth minimum of $1,000,000, a combination 8.0% of US families meet (SCF 2022). The 3 home services brands have medians of $60,000 and $225,000, which 23.5% of families meet.

    The sample is not random. It includes only brands that publish figures on an open web page, and it leans toward restaurant brands. Investment ranges by brand are covered separately in our franchises under $100k list and the franchise costs guide; this table records only financial qualification minimums.

    Figure 2Share of US families meeting the median brand minimums in each sector (2022 households, 2026 brand requirements)Commercial cleaning and retail each have one brand in the sample
    Automotive8.5%Food and beverage8.0%Fitness9.2%Pet services11.4%Personal care and wellness12.9%Education and child care13.6%Senior care15.3%Commercial cleaning16.8%Business services20.2%Home services23.5%Retail23.7%
    Source: Brand franchising pages accessed 2026-10-03; Federal Reserve SCF 2022; Franchise Consultants and Brokers analysis. Download data (CSV)
    Table 2Median published franchise minimums by sector and share of US families meeting both (50 brands, accessed 2026-10-03; SCF 2022)
    SectorBrands in sampleMedian liquid capital minimum ($)Median net worth minimum ($)US families at or above both medians (%)Std. error
    Automotive3400,000600,0008.50.37
    Food and beverage17400,0001,000,0007.980.38
    Fitness4300,0001,000,0009.230.46
    Pet services4225,000750,00011.360.51
    Personal care and wellness5200,000500,00012.870.49
    Education and child care6181,468400,00013.60.48
    Senior care3150,000200,00015.30.5
    Commercial cleaning1125,000250,00016.750.53
    Business services380,000300,00020.190.63
    Home services360,000225,00023.530.64
    Retail140,000400,00023.720.73
    Source: Brand franchising pages accessed 2026-10-03; Federal Reserve SCF 2022. Download CSV
    Table 3Published liquid capital and net worth minimums, 50 franchise brands, as published on 2026-10-03, with the share of US families at or above both
    BrandSectorLiquid capital minimum ($)Net worth minimum ($)US families at or above both (%)Basis and notesSourceAccessed
    Grease MonkeyAutomotive400,000600,0008.5Can be met individually or with partners.https://greasemonkeyfranchise.com/faqs/2026-10-03
    Jiffy LubeAutomotive250,000500,00011.35https://franchise.jiffylube.com/owner2026-10-03
    Meineke Car Care CentersAutomotive500,0001,000,0007.11https://meinekefranchise.com/what-it-takes/2026-10-03
    Express Employment ProfessionalsBusiness services200,000250,00013.24Liquid capital access may include cash, 401(k), business or home equity loan.https://expressfranchising.com/franchise-cost/2026-10-03
    FASTSIGNSBusiness services80,000300,00020.19https://www.fsfastsigns.com/own-a-fastsigns/investment/2026-10-03
    PostNetBusiness services60,000350,00021.85https://postnetfranchise.com/getting-started/cost-of-becoming-a-franchisee/2026-10-03
    Office PrideCommercial cleaning125,000250,00016.75https://officepride.com/franchise/ideal-candidate/2026-10-03
    Huntington Learning CenterEducation and child care110,000200,00018.17https://huntingtonfranchise.com/research/faq/2026-10-03
    Kiddie AcademyEducation and child care250,000750,00010.82Leased site; $750,000 to $900,000 liquid and $1 million net worth if purchasing the property.https://kiddieacademy.com/franchising/qualification-requirements/2026-10-03
    KumonEducation and child care100,00019.7No net worth figure published.https://www.kumonfranchise.com/2026-10-03
    MathnasiumEducation and child care112,936150,00018.05Stated as the financial criteria the ideal candidate typically meets.https://mathnasiumfranchise.com/ideal-candidate/2026-10-03
    The Goddard SchoolEducation and child care350,000500,0009.44Varies by location and transaction.https://goddardschoolfranchise.com/2026-10-03
    The Learning ExperienceEducation and child care250,000400,00011.5https://thelearningexperience.com/franchise/2026-10-03
    Anytime FitnessFitness225,000380,00012.27Stated as the ideal ownership candidate profile; the brand's lead form says candidates typically need over $100,000 in liquid capital (lower figure not used).https://franchise.anytimefitness.com/franchise/what-it-takes-to-be-an-anytime-fitness-franchisee2026-10-03
    Crunch FitnessFitness500,0002,500,0004.83Combined across all partners.https://www.crunch.com/franchise/faq2026-10-03
    Orangetheory FitnessFitness350,0001,000,0008.59https://www.orangetheory.com/en-us/franchising2026-10-03
    Snap FitnessFitness250,0001,000,0009.89Single license; higher for area developers.https://www.snapfitness.com/us/news/breaking-down-the-snap-fitness-investment2026-10-03
    Arby'sFood and beverage500,0001,000,0007.11Published on parent Inspire Brands franchising site.https://www.franchising.inspirebrands.com/arbys2026-10-03
    Baskin-RobbinsFood and beverage100,000200,00019.22Published on parent Inspire Brands franchising site.https://www.franchising.inspirebrands.com/baskin-robbins2026-10-03
    Buffalo Wild WingsFood and beverage750,0001,500,0005.07Published on parent Inspire Brands franchising site.https://www.franchising.inspirebrands.com/buffalo-wild-wings2026-10-03
    Culver'sFood and beverage500,0007.52Leased site; $750,000 liquid if owning real estate, building and equipment. No net worth figure.https://www.culvers.com/franchise/faq2026-10-03
    Dunkin'Food and beverage250,000500,00011.35Published on parent Inspire Brands franchising site.https://www.franchising.inspirebrands.com/dunkin2026-10-03
    Firehouse SubsFood and beverage150,000300,00015.14https://www.franchising.firehousesubs.com/faqs2026-10-03
    Five GuysFood and beverage2,500,0005,000,0001.64Stated as greater than these amounts; development fee applies.https://www.fiveguys.com/support-hub/faqs/2026-10-03
    Freddy's Frozen Custard & SteakburgersFood and beverage400,0001,000,0007.98Single-unit figures on the What It Takes page; the brand's FAQ lists $250,000 liquid and $750,000 net worth for single-unit owners (lower figures not used).https://www.freddysfranchising.com/what-it-takes/2026-10-03
    Jimmy John'sFood and beverage200,0001,000,00010.89Published on parent Inspire Brands franchising site.https://www.franchising.inspirebrands.com/jimmy-johns2026-10-03
    Little CaesarsFood and beverage200,000400,00013.11Net worth of $400,000, of which $200,000 liquid.https://franchise.littlecaesars.com/2026-10-03
    Marco's PizzaFood and beverage200,000600,00012.52One store; higher for two or three stores.https://www.marcosfranchising.com/what-it-takes/2026-10-03
    McDonald'sFood and beverage750,0005.29Published as at least $750,000 (net) in non-borrowed, unencumbered personal funds; no net worth figure; $100,000 working capital per restaurant also recommended.https://www.mcdonalds.com/us/en-us/us-franchising/costs.html2026-10-03
    Nothing Bundt CakesFood and beverage250,000750,00010.82Per bakery.https://www.nothingbundtcakes.com/franchise-opportunities/2026-10-03
    SONIC Drive-InFood and beverage500,0001,000,0007.11Published on parent Inspire Brands franchising site.https://www.franchising.inspirebrands.com/sonic2026-10-03
    Smoothie KingFood and beverage175,000400,00013.93Single store; page cites FDD issued April 8, 2026. The brand's FAQ page lists $150,000 liquid and $350,000 net worth (lower figures not used).https://www.smoothiekingfranchise.com/franchise-process/2026-10-03
    Tropical Smoothie CafeFood and beverage500,0001,000,0007.11Net worth includes the liquid assets; three-cafe minimum development commitment.https://www.tropicalsmoothiefranchise.com/perfect-candidate/2026-10-03
    Wendy'sFood and beverage500,0001,000,0007.11Minimums for new single and multi-unit franchisees in the US and Canada.https://www.wendys.com/franchising/franchise-faqs2026-10-03
    Budget BlindsHome services85,00020.94No net worth figure published on the page.https://franchise.budgetblinds.com/investment/2026-10-03
    Chem-DryHome services50,000250,00024.82https://chemdryfranchise.com/2026-10-03
    Lawn DoctorHome services60,000200,00023.76https://lawndoctorfranchise.com/candidate-profile/2026-10-03
    European Wax CenterPersonal care and wellness250,000700,00010.87https://waxcenter.com/pages/investment-requirements2026-10-03
    Great ClipsPersonal care and wellness100,000500,00017.03Standard markets; high-cost markets require $250,000 liquid and $1,000,000 net worth.https://franchise.greatclips.com/is-great-clips-right-for-you/investment2026-10-03
    Hand & Stone Massage and Facial SpaPersonal care and wellness150,000750,00013.26https://handandstone.com/franchise/franchise-investment/2026-10-03
    Sport ClipsPersonal care and wellness200,000400,00013.11May be higher where construction costs are higher.https://sportclipsfranchise.com/research/sport-clips-franchise-faqs/2026-10-03
    The Joint ChiropracticPersonal care and wellness250,000500,00011.35https://thejointfranchise.com/research/initial-investment-startup-costs/2026-10-03
    Camp Bow WowPet services500,0001,200,0006.82https://www.campbowwow.com/franchising/investment/2026-10-03
    DogtopiaPet services300,0001,000,0009.23More for area developers.https://www.dogtopia.com/franchising-us/the-investment/2026-10-03
    ScenthoundPet services150,000500,00014.57https://scenthoundfranchising.com/costs-and-fees2026-10-03
    Woof Gang Bakery & GroomingPet services100,000300,00018.64https://franchise.woofgangbakery.com/franchise-faq/2026-10-03
    Wild Birds UnlimitedRetail40,000400,00023.72Liquid stated as at least $40,000 to $50,000; lower bound recorded.https://franchise.wbu.com/wild-birds-franchise-cost/2026-10-03
    BrightStar CareSenior care150,00015.42No net worth figure published on the page.https://www.brightstarfranchising.com/about-us/faq/2026-10-03
    Right at HomeSenior care150,00015.42No net worth figure published on the page.https://www.rightathomefranchise.com/frequently-asked-questions-right-at-home-franchise-opportunity/2026-10-03
    Senior HelpersSenior care55,000200,00024.74Liquid capital may include cash, home equity, 401(k) or IRAs; the same page's FAQ says $50,000 (lower figure not used).https://www.seniorhelpersfranchise.com/investment/2026-10-03
    Source: Each brand's own franchising page (URL in the Source column), accessed 2026-10-03; family shares from Federal Reserve SCF 2022. Download CSV

    How many brands a typical family could qualify for

    Most US families meet no brand’s published minimums. Matching each SCF 2022 family against all 50 brands, 72.8% of US families meet the minimums of none of them, 27.2% meet at least one, 12.4% meet at least half and 1.6% meet all 50.

    Brand by brand, the share of families at or above both published minimums runs from 1.6% (Five Guys, $2,500,000 liquid and $5,000,000 net worth) to 24.8% (Chem-Dry, $50,000 liquid and $250,000 net worth). For the median brand, 11.9% of US families qualify. 43 of the 50 brands set minimums that fewer than 20% of US families meet.

    These shares treat each family alone. Several brands in the sample, including Crunch Fitness, Grease Monkey and Kiddie Academy, state that the minimums can be met with business partners, which raises the share of buyers who can qualify as a group.

    Figure 3Share of US families meeting the published minimums of none, some or all of 50 franchise brands (2022 households)
    0.0%20.0%40.0%60.0%80.0%72.8%None of 5027.2%At least 112.4%At least 251.6%All 50
    Source: Federal Reserve SCF 2022; brand franchising pages accessed 2026-10-03; Franchise Consultants and Brokers analysis. Download data (CSV)
    Franchisors usually ask for liquid assets and net worth separately; most US families hold far less cash and investments than net worth.
    Franchisors usually ask for liquid assets and net worth separately; most US families hold far less cash and investments than net worth.

    Who clears the median brand's bar: age, race and ethnicity, and income

    Qualification rises steeply with age and income. In 2022, 2.9% of US families headed by someone under 35 met the median brand’s minimums ($212,500 liquid and $500,000 net worth), compared with 19.4% of families headed by someone aged 65 to 74, according to SCF 2022.

    By income, 42.3% of families in the top 20% of the income distribution met both minimums in 2022, against 1.5% in the bottom 20% and 5.6% in the middle 20% (SCF 2022).

    By race and ethnicity of the survey respondent, 16.3% of White non-Hispanic families, 21.7% of Asian families, 2.8% of Hispanic or Latino families and 1.3% of Black non-Hispanic families met both minimums in 2022 (SCF 2022). Estimates for smaller groups carry wider standard errors, shown in the table.

    Figure 4Share of US families meeting $212,500 liquid and $500,000 net worth, by age of family head, 2022
    0.0%6.2%12.5%18.8%25.0%2.9%Under 357.8%35 to 4412.2%45 to 5416.1%55 to 6419.4%65 to 7420.1%75 or older
    Source: Federal Reserve, Survey of Consumer Finances 2022; Franchise Consultants and Brokers analysis. Download data (CSV)
    Figure 5Share of US families meeting $212,500 liquid and $500,000 net worth, by income percentile group, 2022
    0.0%12.5%25.0%37.5%50.0%1.5%Bottom 20%3.4%20 to 39.9%5.6%40 to 59.9%9.1%60 to 79.9%42.3%Top 20%
    Source: Federal Reserve, Survey of Consumer Finances 2022; Franchise Consultants and Brokers analysis. Download data (CSV)
    Table 4Share of US families meeting franchise thresholds by age, race or ethnicity, and income, 2022 (percent, with standard errors)
    Group typeGroupLiquid assets $100,000+ (%)Liquid assets $100,000+ SELiquid assets $250,000+ (%)Liquid assets $250,000+ SENet worth $500,000+ (%)Net worth $500,000+ SEBoth $212,500 liquid and $500,000 net worth (%)Both $212,500 liquid and $500,000 net worth SEBoth $250,000 liquid and $1,000,000 net worth (%)Both $250,000 liquid and $1,000,000 net worth SE
    All familiesAll families19.70.5111.580.4629.710.8812.390.59.890.51
    Age of reference personUnder 357.590.942.380.496.730.932.860.511.150.41
    Age of reference person35 to 4414.650.987.160.7321.41.257.770.825.590.8
    Age of reference person45 to 5419.181.6311.221.1634.461.8612.181.3510.081.14
    Age of reference person55 to 6424.281.5415.311.2740.722.216.061.2814.061.22
    Age of reference person65 to 7430.491.2718.61.243.961.8519.411.2116.151.2
    Age of reference person75 or older26.212.0418.511.6237.272.3620.051.7315.481.61
    Race or ethnicityWhite non-Hispanic24.950.7215.240.6235.711.1416.340.713.170.69
    Race or ethnicityBlack non-Hispanic3.450.891.660.4810.631.261.30.430.970.44
    Race or ethnicityHispanic or Latino3.60.832.290.811.321.472.830.861.680.71
    Race or ethnicityAsian38.73.4420.152.8952.63.7621.692.716.022.8
    Race or ethnicityOther or multiple race9.181.412.380.5417.881.592.410.532.270.51
    Income percentileBottom 20%3.450.721.550.535.320.871.50.410.970.31
    Income percentile20 to 39.9%6.810.932.550.6811.551.273.380.721.460.6
    Income percentile40 to 59.9%10.721.175.360.9418.71.715.620.943.940.78
    Income percentile60 to 79.9%20.491.48.820.7533.291.619.120.767.040.71
    Income percentileTop 20%57.021.4939.631.4479.71.542.341.4736.031.58
    Source: Federal Reserve, Survey of Consumer Finances 2022; race and ethnicity of respondent (RACECL5); income percentile groups from INCPCTLECAT. Download CSV

    The SBA equity floor versus franchisor liquidity minimums

    The SBA’s own cash floor for a franchise start-up is far below what most franchisors publish. Under SBA SOP 50 10 8.1, effective October 1, 2026, 7(a) loans to a start-up business (one in operation for 1 year or less) require an equity injection of at least 10% of total project costs.

    The median franchise start-up 7(a) loan approved from FY2024 through June 30, 2026 was $318,450 (10,898 loans), according to the SBA 7(a) FOIA file. If that loan covers everything except the injection, the 10% rule implies a minimum cash contribution of $35,383 (loan divided by 9). For all franchise 7(a) loans in the same period the median was $358,000 and the implied minimum $39,778.

    31.6% of US families held liquid assets of at least $35,383 in 2022 (24.6% counting transaction accounts only), according to SCF 2022. The median brand liquid minimum in our sample ($212,500) is 6.0 times that SBA floor, so for most buyers the franchisor’s requirement, not the SBA’s, is the binding test.

    Median franchise loan size has risen: $325,000 in FY2024, $380,300 in FY2025 and $394,000 in FY2026 through June 30, 2026 (SBA FOIA). The SBA file marks a loan as franchise only when it carries a franchise code. The coded share of all 7(a) loans fell from 13.9% in January to March 2023 to 6.7% in October to December 2024 and was back at 13.7% by July to September 2025, a pattern that points to a coding gap, so FY2024 and FY2025 franchise counts are a floor. Our SBA franchise loans report covers the loan data in depth.

    Table 5SBA 7(a) median loan size and implied minimum equity, franchise loans, FY2024 to FY2026 (through 2026-06-30)
    Fiscal yearLoansNumber of loansMedian loan ($)Mean loan ($)10% of median loan ($)Implied minimum equity, loan / 9 ($)
    FY2024all franchise loans5,929325,000650,40732,50036,111
    FY2024franchise start-up loans3,683277,000435,56427,70030,778
    FY2025all franchise loans7,174380,300749,91938,03042,256
    FY2025franchise start-up loans4,137326,200515,89132,62036,244
    FY2026 (Oct 2025 to Jun 2026)all franchise loans5,619394,000845,79039,40043,778
    FY2026 (Oct 2025 to Jun 2026)franchise start-up loans3,078350,000577,67835,00038,889
    FY2024 to FY2026 pooledall franchise loans18,722358,000747,17935,80039,778
    FY2024 to FY2026 pooledfranchise start-up loans10,898318,450506,19531,84535,383
    FY2024all 7(a) loans70,242150,000443,09715,00016,667
    FY2025all 7(a) loans78,078166,850477,57116,68518,539
    FY2026 (Oct 2025 to Jun 2026)all 7(a) loans40,824200,000535,03420,00022,222
    FY2024 to FY2026 pooledall 7(a) loans189,144150,000477,17115,00016,667
    Source: U.S. Small Business Administration, 7(a) FOIA loan-level data as of 2026-06-30; SBA SOP 50 10 8.1; implied equity = median loan / 9. Download CSV

    Franchise start-up capital in the 2007 Survey of Business Owners

    In 2007, franchise businesses started with far more capital than other businesses. In the Census Bureau 2007 Survey of Business Owners, 38.0% of firms operated as franchises started with $100,000 or more in start-up or acquisition capital, against 12.2% of non-franchise firms. Among employer firms the shares were 56.4% and 23.6%.

    At the other end, 47.9% of non-franchise firms started with less than $5,000, compared with 20.8% of franchise firms (SBO 2007). These are 2007 nominal dollars from a survey now 19 years old, so the figures show the gap at that time, not today’s levels.

    Figure 6Start-up or acquisition capital of US franchise vs non-franchise firms, 2007Share of firms reporting an amount, by capital threshold
    Franchise firmsNon-franchise firms$50,000+52.1% vs 19.4%$100,000+38.0% vs 12.2%$250,000+18.5% vs 5.6%
    Source: U.S. Census Bureau, 2007 Survey of Business Owners PUMS; Franchise Consultants and Brokers analysis. Download data (CSV)
    Table 6Start-up or acquisition capital by franchise status, US firms, 2007 (percent of firms reporting an amount, with standard errors)
    FirmsFranchise statusSample recordsWeighted firms$50,000+ (%)$50,000+ SE$100,000+ (%)$100,000+ SE$250,000+ (%)$250,000+ SEUnder $5,000 (%)Under $5,000 SE
    all firmsfranchise34,879263,36752.090.3338.030.2918.490.2520.770.36
    all firmsnon-franchise948,59410,671,26019.350.0412.150.035.650.0447.90.11
    employer firmsfranchise27,006136,10273.230.456.390.2428.380.414.760.15
    employer firmsnon-franchise516,7032,837,54636.710.0623.650.0910.80.124.270.09
    firms established 2000 to 2007franchise15,284139,36153.090.5839.160.4918.150.3421.380.66
    firms established 2000 to 2007non-franchise402,5235,283,52317.550.0810.950.055.150.0550.550.14
    Source: U.S. Census Bureau, 2007 Survey of Business Owners Public Use Microdata Sample; random-group standard errors. Download CSV

    Original analysis: how we calculated it

    Household qualification rates at common thresholds

    Formula
    Weighted share of SCF families with liquid assets >= L and net worth >= N; mean of 5 implicates; SE from 999 replicate weights plus imputation variance
    Inputs
    F26, F29, F12
    Result
    11.6% of US families at $250,000 liquid; 9.9% at $250,000 liquid and $1 million net worth (2022)
    Limitations
    2022 balances; liquid definition excludes retirement accounts and home equity; families, not partnerships

    Median brand minimums and household reach

    Formula
    Median of published minimums across brands; weighted share of families meeting both
    Inputs
    F230, F234
    Result
    $212,500 liquid and $500,000 net worth; 12.4% of US families meet both
    Limitations
    Brands that publish figures only; food and beverage brands are 17 of 50

    Brands met per family

    Formula
    For each family, count of brands whose minimums it meets; weighted distribution
    Inputs
    F237, F238, F240
    Result
    72.8% meet none of 50; 1.6% meet all 50
    Limitations
    Ignores credit score, experience, partner pooling and market-specific minimums

    SBA equity floor for the median franchise start-up loan

    Formula
    Median loan / 9 (10% of project when the loan funds the other 90%)
    Inputs
    F202, F215, F303
    Result
    $35,383; 31.6% of families hold at least that in liquid assets; median brand minimum is 6.0 times larger
    Limitations
    Lower bound; ignores reserves, other debt, standby notes and SBA Express lender discretion; FOIA franchise coding gaps

    Historical start-up capital gap

    Formula
    Weighted share of firms with start-up capital >= $100,000, franchise vs non-franchise
    Inputs
    F219, F220, F309
    Result
    38.0% vs 12.2% (3.1 times)
    Limitations
    2007 nominal dollars; firms reporting an amount; survey is 19 years old

    In short

    • 11.6% of US families held $250,000 or more in liquid assets in 2022, and 9.9% also had a net worth of $1 million or more (Federal Reserve SCF 2022).
    • The median of 50 franchise brands’ published minimums is $212,500 in liquid capital and $500,000 in net worth (brand pages, accessed 2026-10-03); 12.4% of US families meet both.
    • 72.8% of US families meet the published minimums of none of the 50 brands, and 1.6% meet all of them (SCF 2022, derived).
    • Under 35, 2.9% of families meet the median brand’s minimums; at 65 to 74, 19.4% do (SCF 2022).
    • The SBA’s 10% start-up equity rule implies about $35,383 of cash for the median franchise start-up 7(a) loan of $318,450 (FY2024 to FY2026), a sum 31.6% of families hold.
    • Franchisor liquidity minimums, not SBA rules, are the main hurdle: the median brand minimum is 6.0 times the SBA floor.
    • In 2007, 38.0% of franchise firms started with $100,000 or more versus 12.2% of non-franchise firms (Census SBO 2007).

    What's new

    As of October 3, 2026
    • 2026-10-03: 50 brand franchising pages opened and their published minimums re-checked live; every recorded figure was found on the page.
    • 2026-10-01: SBA SOP 50 10 8.1 took effect (published September 25, 2026). It keeps the 10% equity injection for 7(a) loans to start-up businesses. Version 8 had applied from June 1, 2025.
    • 2026-06-30: as-of date of the SBA 7(a) FOIA file used here; FY2026 figures cover October 2025 to June 2026.
    • 2022 remains the latest Survey of Consumer Finances: the Fed’s SCF page describes it as the most recent survey conducted, and no release date for a newer survey was posted on the SCF pages checked on 2026-10-03.

    Questions people ask

    How much money do you need to buy a franchise?

    It depends on the brand, but the median of 50 brands’ published minimums is $212,500 in liquid capital and $500,000 in net worth (2026-10-03). Those are qualification tests, not the full cost: each brand’s total estimated initial investment appears in Item 7 of its Franchise Disclosure Document, which the FTC Franchise Rule requires. The FTC also suggests budgeting personal living expenses for up to two years. See our franchise costs guide.

    How much liquid capital do franchises require?

    In our sample of 50 brands, published liquid capital minimums run from $40,000 to $2,500,000, with a median of $212,500. 43 of the 50 ask for at least $100,000 and 24 ask for at least $250,000 (brand pages, 2026-10-03).

    Can I buy a franchise with $50,000?

    A few brands publish liquidity minimums at or near that level: Wild Birds Unlimited states $40,000 to $50,000 and Chem-Dry states $50,000, while Senior Helpers lists $55,000 and Lawn Doctor and PostNet list $60,000 (2026-10-03). 43 of the 50 brands in our sample ask for $100,000 or more. 27.4% of US families held $50,000 or more in liquid assets in 2022 (SCF). Our franchises under $100k page lists lower-investment brands.

    What net worth do you need for a franchise?

    The median published net worth minimum among the 44 brands in our sample that state one is $500,000; 14 of them ask for $1 million or more (2026-10-03). In 2022, 29.7% of US families had a net worth of $500,000 or more and 18.0% had $1 million or more (SCF).

    Can you use an SBA loan to cover the franchise down payment?

    No, not the SBA loan itself. Under SBA SOP 50 10 8.1 (effective October 1, 2026), a start-up’s 10% equity injection can come from cash that is not borrowed (including gifts), a personal loan repaid from a source other than the business, debt on full standby, qualifying grants, independently valued non-cash assets or verified prepaid expenses. For SBA Express loans the lender decides whether to require an injection. For the median franchise start-up 7(a) loan ($318,450, FY2024 to FY2026) the 10% rule implies about $35,383 of cash. This is not financing advice.

    Frequently asked questions

    What share of US households can afford a franchise?

    Measured against the median published minimums in our 50-brand sample ($212,500 liquid, $500,000 net worth), 12.4% of US families qualified in 2022 (Federal Reserve SCF). Against a $250,000 liquid and $1 million net worth test, 9.9% did.

    What counts as liquid capital for a franchise?

    Franchisors define it differently. This report counts cash and transaction accounts, CDs, non-money-market mutual funds, directly held stocks and bonds, and savings bonds. Some brands, such as Senior Helpers and Express Employment Professionals, say on their pages that retirement accounts or home equity can count.

    Does counting a 401(k) change the numbers?

    Yes. Adding retirement accounts raises the share of US families with $250,000 or more from 11.6% to 22.8%, and the share with $250,000 plus $1 million in net worth from 9.9% to 15.5% (SCF 2022).

    How much do typical families have in liquid assets?

    The median US family held $10,000 in liquid assets in 2022 under this report’s definition, and the 90th percentile family held $321,500 (Federal Reserve SCF 2022).

    Which sectors have the highest franchise financial requirements?

    In our sample, food and beverage brands have the highest medians: $400,000 liquid and $1,000,000 net worth across 17 brands. Home services brands have the lowest: $60,000 and $225,000 (2026-10-03).

    Which brands in the sample have the highest and lowest minimums?

    Five Guys lists more than $2,500,000 liquid and $5,000,000 net worth on its FAQ page; McDonald’s lists at least $750,000 in non-borrowed personal funds. Wild Birds Unlimited lists $40,000 to $50,000 liquid and $400,000 net worth (2026-10-03).

    Are younger buyers less likely to qualify?

    Yes. In 2022, 2.9% of US families headed by someone under 35 met the median brand’s minimums, compared with 16.1% for ages 55 to 64 and 19.4% for ages 65 to 74 (SCF 2022).

    How big are SBA franchise loans now?

    The median SBA 7(a) loan to a franchise business was $325,000 in FY2024, $380,300 in FY2025 and $394,000 in FY2026 through June 30, 2026 (SBA FOIA as of 2026-06-30).

    Is the SBA 10% equity injection the same as the franchisor's liquidity requirement?

    No. The SBA rule sets a floor of 10% of total project cost for start-up 7(a) loans. Franchisors set their own minimums, which in our sample have a median of $212,500, about 6.0 times the implied SBA floor for the median franchise start-up loan.

    How current are these numbers?

    Household figures come from the 2022 SCF, the most recent survey the Federal Reserve has conducted as of 2026-10-03. Brand minimums were opened and checked on 2026-10-03. SBA loan data run through June 30, 2026, and SOP 50 10 8.1 took effect October 1, 2026.

    For journalists

    Most quotable statistics

    If you cite only a few, cite these

    • 9.9% of US families had $250,000 in liquid assets and $1 million in net worth in 2022 (Federal Reserve SCF 2022, analysis by Franchise Consultants and Brokers). source
    • Median published franchise minimums across 50 brands: $212,500 liquid capital and $500,000 net worth (2026-10-03). source
    • 72.8% of US families met none of the 50 brands’ published minimums (SCF 2022). source
    Press summary and suggested headlines

    A new fact sheet from Franchise Consultants and Brokers matches Federal Reserve household data to the financial requirements franchisors publish. Using the 2022 Survey of Consumer Finances, the most recent the Fed has conducted, it finds that 11.6% of US families held $250,000 or more in liquid assets and 9.9% also had $1 million in net worth. The median of 50 brands' published minimums, checked on 2026-10-03, was $212,500 in liquid capital and $500,000 in net worth, a bar 12.4% of US families cleared; 72.8% met none of the 50 brands' minimums. Families headed by someone under 35 qualified at a rate of 2.9%. SBA rules ask less: the 10% start-up equity injection in SOP 50 10 8.1 implies about $35,383 for the median franchise start-up 7(a) loan of $318,450. Data tables and the brand dataset are free to reuse under CC BY 4.0.

    Suggested headlines

    • Only 9.9% of US families meet a common franchise wealth test
    • Most US families (72.8%) meet none of 50 franchise brands' financial minimums
    • Median franchise cash minimum is 6.0 times the SBA's start-up equity floor
    • Under 35 and wanting a franchise? 2.9% of young families meet the median brand's bar
    • The median franchise brand wants $212,500 in liquid capital, data from 50 brands show

    Methodology

    Household data. We used the Federal Reserve’s 2022 Survey of Consumer Finances summary extract (all dollar values in 2022 dollars) and the 2022 replicate weight file. Shares are weighted with WGT across all five implicates and averaged over implicates. Standard errors follow the Fed’s Standard Error Documentation: sampling variance from 999 bootstrap replicate weights (WT1B times MM) on the first implicate plus 1.2 times the between-implicate variance. Liquid assets = LIQ + CDS + NMMF + STOCKS + BOND + SAVBND; we also report a narrow (transaction accounts) and a broad-plus-retirement (adds RETQLIQ) version. Our computed median net worth ($192,700) matches the Fed’s public-data table. Groups use AGECL, RACECL5 and INCPCTLECAT (combined into quintiles).

    Brand dataset. We included a brand only if its own franchising page (or its parent franchisor’s page for that brand) stated a liquid capital or net worth minimum in words; lead-form dropdown ranges were not used. Each page was opened on 2026-10-03 and re-fetched by a script that confirmed every recorded figure still appears. When a brand’s own pages disagreed, we recorded the higher figure and noted the other. Values are for a single standard US unit where the page distinguishes; where a brand publishes only one number, the other is blank. The sample is a convenience sample, not representative of all franchise brands.

    Derived metrics. For each brand we computed the weighted share of SCF families with liquid assets and net worth at or above the brand’s minimums (blank = no test), and for each family the number of brands it meets. The SBA floor is the median gross approval of franchise-coded 7(a) loans (FY2024 to June 30, 2026) divided by 9, the cash a 10% injection implies when the loan funds the rest. The 2007 SBO figures are TABWGT-weighted shares of firms reporting a start-up capital amount, with random-group standard errors.

    Limitations. Household data are from 2022 and brand requirements from 2026; asset values have changed since. The SCF measures families, while many franchise buyers pool assets with partners. Franchisors also weigh credit, experience and unit commitments, and some count retirement funds or home equity as liquid. SBA franchise coding is incomplete for parts of FY2024 and FY2025. The SBO data are from 2007 in nominal dollars.

    Last updated: 2026-10-03. Sources are grouped by tier below. Data tables and charts: CC BY 4.0, attribution “Franchise Consultants and Brokers, franchiseconsultantsandbrokers.com”.

    Sources and source quality

    Tier 1: primary and government sources (15)

    1. Survey of Consumer Finances 2022, summary extract public data (scfp2022excel.zip), Board of Governors of the Federal Reserve System (accessed 2026-10-03)
    2. Survey of Consumer Finances 2022, replicate weight file (X42001), Board of Governors of the Federal Reserve System (accessed 2026-10-03)
    3. Survey of Consumer Finances (SCF) main page, Board of Governors of the Federal Reserve System (accessed 2026-10-03)
    4. Changes in U.S. Family Finances from 2019 to 2022: Evidence from the Survey of Consumer Finances (Federal Reserve Bulletin, October 2023), Board of Governors of the Federal Reserve System (accessed 2026-10-03)
    5. SCF 2022 historical tables based on public data (nominal), Board of Governors of the Federal Reserve System (accessed 2026-10-03)
    6. SCF Standard Error Documentation, Board of Governors of the Federal Reserve System (accessed 2026-10-03)
    7. SBA 7(a) loan-level FOIA data, FY2020 to present, as of 2026-06-30, U.S. Small Business Administration (accessed 2026-10-03)
    8. 7(a) and 504 FOIA dataset page, U.S. Small Business Administration (accessed 2026-10-03)
    9. SOP 50 10: Lender and Development Company Loan Programs (document page with version history), U.S. Small Business Administration (accessed 2026-10-03)
    10. SOP 50 10 8.1, Lender and Development Company Loan Programs with Technical Policy Updates (effective October 1, 2026), U.S. Small Business Administration (accessed 2026-10-03)
    11. 2007 Survey of Business Owners Public Use Microdata Sample (PUMS), U.S. Census Bureau (accessed 2026-10-03)
    12. 2007 SBO PUMS data file (pums_csv.zip), U.S. Census Bureau (accessed 2026-10-03)
    13. 2007 SBO PUMS Users Guide, U.S. Census Bureau (accessed 2026-10-03)
    14. A Consumer's Guide to Buying a Franchise, Federal Trade Commission (accessed 2026-10-03)
    15. 16 CFR 436.5, Disclosure items (Item 7: Estimated Initial Investment), Electronic Code of Federal Regulations (eCFR) (accessed 2026-10-03)

    Tier 2: trade bodies, market research, company filings (50)

    1. McDonald's franchise information page, McDonald's (accessed 2026-10-03)
    2. Wendy's franchise information page, Wendy's (accessed 2026-10-03)
    3. Dunkin' franchise information page, Dunkin' (accessed 2026-10-03)
    4. Arby's franchise information page, Arby's (accessed 2026-10-03)
    5. Jimmy John's franchise information page, Jimmy John's (accessed 2026-10-03)
    6. SONIC Drive-In franchise information page, SONIC Drive-In (accessed 2026-10-03)
    7. Buffalo Wild Wings franchise information page, Buffalo Wild Wings (accessed 2026-10-03)
    8. Baskin-Robbins franchise information page, Baskin-Robbins (accessed 2026-10-03)
    9. Smoothie King franchise information page, Smoothie King (accessed 2026-10-03)
    10. Tropical Smoothie Cafe franchise information page, Tropical Smoothie Cafe (accessed 2026-10-03)
    11. Five Guys franchise information page, Five Guys (accessed 2026-10-03)
    12. Nothing Bundt Cakes franchise information page, Nothing Bundt Cakes (accessed 2026-10-03)
    13. Little Caesars franchise information page, Little Caesars (accessed 2026-10-03)
    14. Culver's franchise information page, Culver's (accessed 2026-10-03)
    15. Freddy's Frozen Custard & Steakburgers franchise information page, Freddy's Frozen Custard & Steakburgers (accessed 2026-10-03)
    16. Marco's Pizza franchise information page, Marco's Pizza (accessed 2026-10-03)
    17. Firehouse Subs franchise information page, Firehouse Subs (accessed 2026-10-03)
    18. Budget Blinds franchise information page, Budget Blinds (accessed 2026-10-03)
    19. Lawn Doctor franchise information page, Lawn Doctor (accessed 2026-10-03)
    20. Chem-Dry franchise information page, Chem-Dry (accessed 2026-10-03)
    21. Anytime Fitness franchise information page, Anytime Fitness (accessed 2026-10-03)
    22. Crunch Fitness franchise information page, Crunch Fitness (accessed 2026-10-03)
    23. Snap Fitness franchise information page, Snap Fitness (accessed 2026-10-03)
    24. Orangetheory Fitness franchise information page, Orangetheory Fitness (accessed 2026-10-03)
    25. Sport Clips franchise information page, Sport Clips (accessed 2026-10-03)
    26. Hand & Stone Massage and Facial Spa franchise information page, Hand & Stone Massage and Facial Spa (accessed 2026-10-03)
    27. Great Clips franchise information page, Great Clips (accessed 2026-10-03)
    28. European Wax Center franchise information page, European Wax Center (accessed 2026-10-03)
    29. The Joint Chiropractic franchise information page, The Joint Chiropractic (accessed 2026-10-03)
    30. Kumon franchise information page, Kumon (accessed 2026-10-03)
    31. The Goddard School franchise information page, The Goddard School (accessed 2026-10-03)
    32. The Learning Experience franchise information page, The Learning Experience (accessed 2026-10-03)
    33. Huntington Learning Center franchise information page, Huntington Learning Center (accessed 2026-10-03)
    34. Kiddie Academy franchise information page, Kiddie Academy (accessed 2026-10-03)
    35. Mathnasium franchise information page, Mathnasium (accessed 2026-10-03)
    36. BrightStar Care franchise information page, BrightStar Care (accessed 2026-10-03)
    37. Right at Home franchise information page, Right at Home (accessed 2026-10-03)
    38. Senior Helpers franchise information page, Senior Helpers (accessed 2026-10-03)
    39. Dogtopia franchise information page, Dogtopia (accessed 2026-10-03)
    40. Camp Bow Wow franchise information page, Camp Bow Wow (accessed 2026-10-03)
    41. Woof Gang Bakery & Grooming franchise information page, Woof Gang Bakery & Grooming (accessed 2026-10-03)
    42. Scenthound franchise information page, Scenthound (accessed 2026-10-03)
    43. Meineke Car Care Centers franchise information page, Meineke Car Care Centers (accessed 2026-10-03)
    44. Grease Monkey franchise information page, Grease Monkey (accessed 2026-10-03)
    45. Jiffy Lube franchise information page, Jiffy Lube (accessed 2026-10-03)
    46. Express Employment Professionals franchise information page, Express Employment Professionals (accessed 2026-10-03)
    47. FASTSIGNS franchise information page, FASTSIGNS (accessed 2026-10-03)
    48. PostNet franchise information page, PostNet (accessed 2026-10-03)
    49. Wild Birds Unlimited franchise information page, Wild Birds Unlimited (accessed 2026-10-03)
    50. Office Pride franchise information page, Office Pride (accessed 2026-10-03)

    Guides that use this data

    Browse every study in our franchise research library.

    How to cite and reuse

    Franchise Consultants and Brokers Editorial Team. "Franchise Affordability: How Many US Families Can Meet Franchisor Requirements." Franchise Consultants and Brokers, updated October 3, 2026. https://franchiseconsultantsandbrokers.com/research/franchise-affordability/

    The data tables and charts on this page are licensed under CC BY 4.0. Please credit “Franchise Consultants and Brokers, franchiseconsultantsandbrokers.com” with a link to this page.

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