Most lenders expect buyers to invest some of their own capital in an acquisition. A common down payment is around 20% of the purchase price. For example, if you’re buying a franchise for $500,000, you might need about $100,000 of your own funds. Some SBA loans only require 10% down, but many deals end up higher. If the business has a lot of intangible value (goodwill), occasionally lenders might ask for even more equity to ensure the loan isn’t too high relative to hard assets. Remember, any seller financing (where the seller lets you pay part of the price over time) can sometimes count towards that down payment portion – effectively reducing how much cash you need upfront.