Franchise Lending Underwriting & FUND Score | FRANdata

FRANdata: The Trusted Partner in Franchise Lending Underwriting

Franchise businesses offer a wealth of performance data that can help lenders accurately assess risk—data that independent businesses simply don’t have. With this advantage, banks financing franchise loans need reliable, data-driven insights to make informed underwriting decisions. That’s where FRANdata comes in.

• • More than 60% of all SBA franchise loans are financed by banks that rely on FRANdata’s FUND (Franchise Credit Scoring) Report for underwriting.
  • Banks with over $5 trillion in assets use FRANdata’s expertise to assess and manage their franchise loan portfolios.

Why Franchise Lending is Different—and How FRANdata Helps

Franchise systems provide unique benefits to lenders:

✔ Predictability & Scalability – Each franchise location follows a proven model, making underwriting more consistent.

✔ Network Advantage – Lenders can gain preferred status with franchisors, opening access to a portfolio of borrowers rather than just one.

With decades of experience in both lending and franchising, FRANdata continuously innovates to support franchise lenders. Our tools, including the FUND Report and Brand Credit Report (BCR), set the industry standard for franchise loan underwriting.

Additionally, for over 25 years, we have operated the Franchise Registry (www.franchiseregistry.com), the go-to resource for franchise financing, used by over 9,000 small business lenders nationwide.

If you’re a small business lender and don’t yet have access, email franchiseregistry@frandata.com to get started with a complimentary login today.

Frequently Asked Questions About FRANdata for Franchise Lenders

What is the FUND Score and how does it help lenders underwrite franchise loans?

The FUND Score is FRANdata’s proprietary franchise credit scoring model, rated on a scale up to 950 points across 13 credit risk and performance categories. More than 60% of all SBA franchise loans are financed by banks that rely on the FUND Score for underwriting. It gives lenders a data-driven, franchise-specific tool to assess brand-level credit risk before approving loans.

Why is franchise lending different from standard small business lending?

Franchise businesses offer performance data that independent businesses simply don’t have — including system-wide unit economics, historical continuity rates, and franchisor support track records. This predictability makes franchise loans more consistent to underwrite, and lenders who understand franchise-specific risk factors are better positioned to grow a high-quality portfolio.

What is the Franchise Registry and how do lenders use it?

The Franchise Registry is FRANdata’s lender resource platform, used by more than 9,000 small business lenders nationwide. It provides access to FUND Scores, Brand Credit Reports, and franchise eligibility information — giving lenders the tools to process franchise loan applications more efficiently and with greater confidence.

What is the Bank Credit Report and how does it differ from the FUND Score?

The Bank Credit Report (BCR) is a franchisor-commissioned credit risk analysis that lenders use to evaluate a specific franchise brand’s performance history. While the FUND Score provides a numerical credit rating for lenders, the BCR explains a brand’s financial story in banker language — giving credit departments the context they need to structure and approve franchisee loan packages.

How do I get access to FRANdata’s franchise lending tools?

Lenders can access FUND Scores and Brand Credit Reports through a Franchise Registry subscription. To get started with a complimentary login, contact FRANdata directly at franchiseregistry@frandata.com or complete the inquiry form on this page.