Credit Score for Franchising

Franchise Credit Score-FUND

Roughly half of all franchise loans are financed by banks that use FRANdata’s services and the FUND report

Banks with over $5 trillion in assets rely on FRANdata to underwrite their franchise loans

FUND, the franchise credit score, uses a proprietary scoring model, with a possible 950 points associated, to evaluate 13 credit risk and performance categories of a franchise brand that influence unit-level performance. The FUND™ score, with its accompanying report, is the best predictor of the future performance of a franchise system that publicly available information can provide.

  • Based on up to 10 years of performance history
  • Reports are only available for brands with enough size and longevity to test the algorithm
  • Specifically designed for lenders

FUND REPORTS provide an efficient way to help assess a bank’s franchise portfolio as a separate asset class based on the franchise brand creditworthiness.


FRANdata has worked with lenders on franchise credit risk issues for over 20 years. A FUND™ report is the culmination of this interaction. It analyzes franchise systems using lender-defined credit risk categories with associated methodologies and algorithms. Franchise systems have a unique set of characteristics from a credit risk perspective. Regardless of the industry, each franchise brand is designed around uniformity and conformity, and every franchisor has responsibility for the same support functions. Based on hundreds of brands across decades of performance, credit risk factors were evaluated at the unit, system, and franchisor support levels. The result is the best credit risk predictor of future brand, system, and unit performance, thus providing the lender with the tools to evaluate systemic franchise credit risk.

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FUND reports are available on the Franchise Registry to lender subscribers. Fill out the form below if you have any questions, and an advisor will get back to you shortly.



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