Bank Statement for a Franchise Resale
Buying an existing franchise location — a resale — means underwriting the actual historical performance of that specific unit, not just the brand's overall system. Bank statements from the current owner, verified against reported revenue, are central to resale due diligence and your own financing application. Here is what to gather.
Key Benefits
- Verifies the seller's reported revenue against actual bank deposits
- Documents historical cash flow for your own financing application
- Supports franchisor approval of the transfer alongside financial review
- Helps you value the resale price against real, not projected, performance
How It Works
- Step 1: Request 12 to 24 months of the location's business bank statements from the seller
- Step 2: Convert them to Excel with Bank Statement Converter to verify deposits against reported sales
- Step 3: Compare the verified revenue against the asking price and franchisor's system averages
- Step 4: Provide your own statements to lenders financing the resale purchase
Frequently Asked Questions
- Why do I need the seller's bank statements to buy a franchise resale?
- Reported revenue on a franchise resale listing can be optimistic — bank statements confirm actual deposits, giving you real numbers to base your purchase offer and financing on.
- Does the franchisor need to approve a resale transaction?
- Yes, almost always — franchise agreements typically require franchisor approval of any new owner, which often includes reviewing the buyer's own financial statements.
- How many months of the seller's statements should I review?
- Request at least 12 months, and ideally 24, to see seasonal patterns and confirm the revenue trend is stable rather than a temporary spike before the sale.
- Can I finance a franchise resale with an SBA loan?
- Yes, SBA 7(a) loans commonly finance franchise resales, and lenders will want both the seller's verified financials and your own bank statements as part of underwriting.
Convert Your Franchise Resale Statements