Franchise Conversion Financing

Finance a conversion to a new brand — kitchen changeover, technology, and exterior rebrand — with the restaurant's existing trade as the strength. Projects we fund typically run $300,000–$800,000, drawn across the changeover while the restaurant keeps trading.

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The Franchise Conversion Reality

A conversion starts with a working restaurant, which is both the advantage and the complication. There is real trade history to underwrite against — unusual for a project of this size — but the operator inherits a kitchen and a building designed for something else and has to bring both to a specification written by a brand they have just signed with. The gap between what is there and what is required is the whole project, and it is rarely known precisely until someone walks the building with the new brand's standard in hand.

What a Conversion Package Covers

Kitchen equipment brought to the incoming brand's specification
Refrigeration, storage, and production line changes
POS, drive-thru, and technology changeover
Dining room refit, millwork, and brand interior elements
Exterior rebrand, signage, and building modifications
Smallwares, opening inventory, and installation

How the Draws Work

One approval, funded in phases — the schedule follows the project rather than a delivery date.

1 · Survey the Gap

The incoming brand's specification is compared against the kitchen and building that already exist, which is the number nobody has at the start: what carries over, what has to be replaced, and what has to be added.

2 · Changeover

Kitchen equipment, technology, and the dining room are brought to spec in the shortest closure the project allows, with exterior and signage sequenced around the brand's launch requirements.

3 · Reopen Under the Flag

Final inspections, brand certification, and reopening. Payments move to full as the restaurant trades under the new name.

Payment Structures

The differentiation: four ways to own the same equipment, engineered to your cash flow. Compare them side by side on our structures page.

Operating Lease

Off-balance-sheet treatment with end-of-term flexibility — return, renew, or purchase. Often the right answer when technology cycles or accounting outcomes drive the decision.

$1 Buyout Lease

Own the equipment for one dollar at term end. Fixed payments, full Section 179 eligibility, and a clean path to ownership.

Seasonal & Step Payments

Payments that follow your revenue curve — lighter in slow months, heavier in peak season, or stepping up as new equipment ramps to full production.

Usage-Based & As-a-Service

Payments tied to hours, output, or consumption. The category Elevex is defining: pay for what equipment achieves, not what it costs.

Learn more about financing structures

How It Works

Three steps from scope to funded.

1 · Bring the Scope

A budget, a floor plan or build spec, and the timeline you're working to. Not a single quote — the whole project, however many vendors it runs across.

2 · Structure the Draws

A finance professional maps the funding to the project's milestones, so money lands when each phase needs it and payments start when the facility earns.

3 · Fund Each Phase

Vendors are paid as phases clear. One approval and one schedule carry the project instead of a separate application every time the scope moves forward.

Common Questions

Does the restaurant's existing trade help?

It is usually the strongest part of the file. Unlike a new location, a conversion has real sales history, a known site, and an operator with a track record at that address — so the project is assessed against a business that already works rather than against projections for one that does not exist yet.

How is a conversion different from opening a new location?

Most of the building is already there, which sounds simpler and often is not. A new store is built to spec from an empty shell; a conversion has to reconcile an existing kitchen, layout, and utilities against a standard written for a different restaurant, and the scope is not fully known until that comparison is done.

Can one facility cover equipment from several vendors?

Yes — that is the point of financing franchise conversion as a project rather than as purchases. A single schedule can carry equipment from every vendor on the job, so the scope is approved once instead of being re-underwritten each time another supplier is added.

Which parts of a franchise conversion qualify for Section 179?

Most business-use equipment placed in service this tax year generally qualifies, financed or purchased outright. Leasehold improvements, real property, and construction costs follow different rules, so a project budget rarely qualifies as a single number. Run the equipment portion on our Section 179 calculator and confirm the split with your tax advisor.

How fast can franchise conversion financing close?

Application-only decisions to $1,000,000 come back in minutes for qualified credits. Apply online with your scope and budget rather than a single quote — the draw schedule is built from the project timeline, so the sooner that exists the sooner funding can follow it.

Ready to fund your franchise conversion?

Payments built on outcomes, from the team that knows your industry. Equipment sellers: offer financing at the point of sale with CapVex.

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