Performance Capital Franchise Finance Programs

Petroleum Franchise Finance

Performance Capital's Franchise Finance Programs provides long term capital to small and medium sized franchise restaurant operators giving them the opportunity to expand their business’s profitably.PCC's Franchise Finance Group helps to provide capital through conventional financing programs provided by our correspondent lenders, which are flexibly structured to meet your real financing objectives.Franchise Loan Program Overview.

The following describes some of the requirements and parameters of the permanent Franchise Loan Program through PCC Franchise Finance.

Borrower Eligibility

The franchise system must be an approved concept of PCC. The franchisee must have at least three years of applicable experience as an owner or seasoned operator with two or more units.

Maximum Borrowing Power

For each location pledged as collateral, a franchisee usually will be eligible to borrow an amount equal to either (1) a multiple of the location’s latest twelve months of Adjusted Pre-Occupancy Cash Flow (“Cash Flow”). Cash Flow is defined as (i) earnings before interest, income taxes, depreciation and amortization expense, rent expense (if real estate is being pledged as collateral), owners’ compensation and non-recurring expenses less (ii) non-recurring income; or (2) an amount which will cause the Franchisee’s location to have a unit Fixed Charge Coverage Ratio (“FCCR”) of at least 1.35:1 and a minimum corporate level FCCR of at least 1.40. A unit FCCR is defined as Cash Flow plus third party rent expense, if any, divided by the location’s annual total debt service payments, including proposed debt, plus third party rent expense.

Loan Amounts:

Minimum $400,000, with a maximum of $10MM in aggregate loans to one obligor. Larger loans on a case by case basis.

Use of Proceeds:

A borrower may use funds to:

  • Purchase underlying real estate (if it is currently being leased);
  • Purchase Equipment
  • Refinance debt with unfavorable terms;
  • Recapitalize ownership entities; or
  • Expand/Renovate; or
  • Acquire a new business or other business related property
  • Loan Type:

    Floating rate loans, balloon or fully amortizing loans.

    Loan Term:

    Fully amortizing loans of up to 20 years for multi-unit operators; 5,7, 10-year balloons available.

    Interest Rate:

    Floating interest rates of an applicable spread over the 6-Month LIBOR.

    Property Seasoning:

    Each unit must have been open for a minimum of twelve months.


    Generally personal guarantees are required.


    5% in year 1, 4% in year 2, 3% in year 3, 2% year 4 and 1% thereafter.


    1st mortgage on land and building. 1st security interest in the furniture, fixtures and equipment at each location pledged and all available company assets.

    Equity Contribution:

    Acquisitions require equity at least 15-20% of purchase price including closing costs. Equity should be in the form of cash, cash equivalents, or other acceptable assets.