FUND Score – Franchise Credit Score for Lenders
More than 60% of all SBA franchise loans are financed by banks that rely on 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.
WHY IS THE FUND™ REPORT THE BEST WAY TO ASSESS FRANCHISED UNIT SUCCESS FROM A CREDIT RISK PERSPECTIVE?
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.
Frequently Asked Questions About the FUND Score
What is the FUND Score?
The FUND Score is FRANdata’s proprietary franchise credit scoring model used by lenders to evaluate the credit risk of a franchise brand before approving loans to franchisees. Scored on a scale up to 950 points, it analyzes 13 credit risk and performance categories — including unit-level performance, franchisee continuity, and franchisor support quality — based on up to 10 years of verified performance history.
How does the FUND Score help SBA lenders underwrite franchise loans?
More than 60% of all SBA franchise loans are financed by banks that rely on the FUND Score for underwriting decisions. The score gives lenders a franchise-specific, data-driven assessment of brand-level credit risk that personal credit scores and standard business financials cannot provide — enabling more consistent, defensible underwriting across a lender’s entire franchise loan portfolio.
What does a high FUND Score mean for a franchise brand?
A high FUND Score signals that a franchise brand has demonstrated strong, consistent unit-level performance, low franchisee turnover, and effective franchisor support over time. For franchisors, a strong score makes their brand more attractive to lenders, which translates directly into better loan terms and faster financing approvals for prospective franchisees — removing a significant barrier to growth.
Which franchise brands have FUND Scores available?
FUND Scores are available for franchise brands that have sufficient size and operational history to test FRANdata’s proprietary algorithm, typically established systems with enough units and longevity to produce statistically meaningful performance data. Scores are accessible to lender subscribers through the Franchise Registry at franchiseregistry.com.
How is the FUND Score different from a personal credit score?
A personal credit score evaluates an individual borrower’s financial history. The FUND Score evaluates the franchise brand itself — assessing the system-level risk that a lender takes on when financing any franchisee within that brand. It is specifically designed for franchise lending and accounts for factors unique to the franchise model, including franchisor support quality, system continuity, and unit-level performance across the entire brand network.
How do I access the FUND Score for a franchise brand?
FUND Scores are available to lenders through a Franchise Registry subscription. Franchisors interested in obtaining a FUND Score for their brand can contact FRANdata directly or complete the inquiry form on this page to speak with a client advisor.