How to Finance a DuraFleet Franchise: Service Trucks and SBA
By Anthony Cornella
A DuraFleet franchise loan funds a repair shop that drives to the customer. DuraFleet franchisees maintain and repair commercial vehicles on site at the customer’s location, so the money goes into service trucks, diagnostic tools and the working capital to carry business accounts, rather than into a building with service bays.
US Professional Funding is not affiliated with, sponsored by or endorsed by DuraFleet; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you commit.
DuraFleet Franchise Loan at a Glance
- Concept: mobile maintenance and repair for light, medium and heavy-duty commercial vehicles, performed at the customer’s location.
- Services: preventive maintenance, engine diagnostics, DOT inspections, repairs and roadside assistance.
- Customers: businesses that own or operate vehicle fleets, from service companies to delivery and trucking operations.
- Core assets: one or more outfitted service trucks, diagnostic software and scan tools, hand and power tools and parts inventory.
- Fees and investment: we could not verify the franchise fee, royalty, marketing fund, Item 7 investment range or net worth and liquidity requirements from the franchisor’s own materials. Request the current FDD and read Items 5, 6, 7, 8 and 12.
- SBA Franchise Directory: listed as DuraFleet under codes S8653 and S8721, with a note about lien position on collateral.
What Is DuraFleet?
DuraFleet is a mobile fleet maintenance brand. Instead of asking a fleet manager to take vehicles out of service and drive them to a shop, a DuraFleet technician brings the shop to the yard, depot or job site. Work ranges from scheduled preventive maintenance and inspections to diagnostics, repairs and roadside calls.
The appeal for fleet customers is uptime. Every hour a vehicle sits at a shop is an hour it is not earning, so on-site service can be worth paying for. That also shapes the revenue model: a franchisee builds a base of business accounts with recurring maintenance schedules, then adds repair work as it comes up.
How lenders size up the business. A mobile repair franchise is labor and equipment driven. Lenders look at how many technicians and trucks the plan calls for, how quickly the owner can sign fleet accounts and how long those customers take to pay. Business-to-business invoices often run on payment terms, which means the owner covers wages, fuel and parts before the money comes in.
DuraFleet Franchise Costs
Because we could not review the current DuraFleet FDD, this section explains how costs are usually structured for a mobile fleet service franchise. Your actual budget should come from the Item 7 table, the franchisor’s truck and tool specifications and local quotes.
Initial franchise fee
Item 5 lists the initial franchise fee and any fee for added territories. Ask how territories are defined and when each payment is due.
Service trucks and upfitting
The service truck is usually the largest single cost. A mobile repair truck needs more than a chassis: a service body with compartments, an air compressor, possibly a crane for heavy components, lighting, an inverter or generator and secure storage for tools and parts. Item 8 tells you whether the truck or upfit must come from approved sources.
Tools and diagnostics
Commercial vehicle work requires diagnostic software and scan tools that cover light, medium and heavy-duty platforms, plus hand and power tools, lifting equipment, fluid handling equipment and safety gear. Software subscriptions are often an ongoing cost rather than a one-time purchase.
Opening costs and working capital
Plan for commercial auto and garage liability insurance, licenses, initial parts inventory, uniforms, training travel, local marketing to fleet managers and an “additional funds” cushion. Because fleet customers often pay on terms, working capital needs can be higher than in a cash-at-the-counter business.
Item 7 categories to compare in the FDD typically include:
- Initial franchise fee
- Service truck purchase, lease or down payment
- Truck upfitting, service body and graphics
- Diagnostic software and scan tools
- Hand tools, power tools and shop equipment
- Opening parts and fluids inventory
- Insurance, licenses and permits
- Computer, phone and field service software
- Training expenses and grand opening marketing
- Additional funds for the opening period
Ongoing Fees and How They Affect Your Loan
Item 6 lists the royalty, any brand or marketing fund contribution, technology fees and transfer and renewal fees. Royalties are usually tied to gross revenue, so they are paid before technician wages, parts, fuel and loan payments.
Parts are a pass-through cost on many repair invoices. If the royalty applies to gross revenue that includes parts, the margin on a parts-heavy job is thinner than the invoice total suggests. Lenders calculate debt service coverage after royalties, fund fees, labor, parts, fuel, insurance and truck payments, so build projections on that basis.
DuraFleet Franchise Loan Requirements From the Franchisor
We could not confirm DuraFleet’s published minimum net worth or liquid capital requirements. Expect the franchisor to review your finances, your management or business development background and your plan for hiring technicians. Ask whether the brand expects an owner who works in the field or one who manages technicians and sells to fleet accounts.
A mechanical background helps but may not be required. Many owners in mobile service franchises focus on sales and operations and hire certified technicians to do the work.
Ways to Own a DuraFleet
Start a new territory. Most buyers start fresh and finance the fee, first truck, tools and working capital together. Our page on automotive service start-up loans covers how these first loans are built.
Buy an existing territory. A resale may include trucks, tools and fleet service contracts. The value of the contracts and their remaining terms matter as much as the equipment. Our article on buying a franchise resale explains the transfer process.
Add trucks and territories. Growth typically means a second truck and technician, then possibly another territory. Each step can be financed as the business shows results.
Financing Options for a DuraFleet Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine the franchise fee, truck, tools, opening inventory and working capital in one loan. The 7(a) program maximum is currently $5 million, and program rules can change.
SBA 504 loans. The 504 program is built for real estate and long-lived fixed assets. A mobile business usually has no building to buy, so 504 rarely fits a new territory, though it may fit later if an owner buys a small shop or yard.
Conventional term loans. Owners with strong credit or an existing business may use a conventional business loan, especially to add trucks once the first territory has a track record.
Equipment financing. Service trucks, service bodies, cranes, compressors and diagnostic systems are well suited to equipment loans and leases. Some owners finance the truck separately and use the main loan for the fee and working capital. See our page on auto service equipment financing and leasing.
Working capital and lines of credit. Fleet invoices on payment terms, a parts inventory and a growing technician payroll all tie up cash. A line of credit can bridge the gap between doing the work and getting paid. Learn more about working capital and lines of credit for auto service businesses.
Seller financing on resales. A seller may agree to carry part of the price. Seller notes are typically subordinate to the main loan, and SBA rules may limit them.
SBA Loans for DuraFleet Franchisees
Before making an SBA-guaranteed loan to a franchisee, a lender confirms that the franchise agreement leaves the owner in control of the business. The SBA Franchise Directory lets lenders rely on a prior review for listed brands.
The directory listing. DuraFleet appears on the directory under two codes, S8653 and S8721. Brands sometimes have more than one code when different agreements or versions have been reviewed. Your lender will match the code to the agreement you sign. A listing does not approve any borrower or guarantee a loan.
What the directory note means. The note says the lender or CDC must ensure they obtain the correct lien position on all collateral as required by the SBA’s lending rules. In plain English, if the franchisor or another party, such as an equipment seller, could hold a security interest in the truck, tools or other business assets, the SBA lender must make sure its own lien has the priority the program requires. Expect the lender to search existing liens and ask for subordination or payoff documents where needed.
SBA application tips. Bring the franchise agreement, truck and upfit quotes, a tool and software list, a sources and uses statement, personal financial statements, tax returns and résumés. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer.
How Lenders Evaluate a DuraFleet Deal
Personal credit and financial history. Lenders review each owner’s credit, tax returns and debts, and personal guarantees are typical.
Net worth and liquidity. Lenders want your cash injection plus reserves for slow-paying accounts and truck repairs. Our article on how much franchise you can afford walks through the math.
Experience. Fleet management, diesel or automotive repair, field service or business-to-business sales experience all help. If you are not a mechanic, show how you will recruit and retain technicians.
Business plan and projections. Build projections around trucks, billable hours per technician, labor rate, parts margin, the number of fleet accounts and how quickly you expect to sign them, and customer payment terms.
The FDD and franchise agreement. Lenders review the term, renewal rights, territory protections, transfer conditions and any equipment purchase requirements. Our article on how lenders read an FDD explains which items matter.
Resale history. For an existing territory, expect to provide financial statements, a list of fleet contracts and an equipment list with ages and condition.
The Service Truck: Your Shop on Wheels
In a mobile repair business, the service truck is the storefront, the tool room and the main piece of collateral. Lenders look at the chassis, the service body and the installed equipment as one financed package. New trucks may support longer terms; used trucks may need more cash down.
Plan the fleet around demand. A second truck makes sense when the first technician is booked solid and accounts are waiting, and that utilization history is exactly what a lender wants to see before funding it.
Multi-Unit Growth and Development
Growth in mobile fleet service usually means more trucks and technicians within a territory before adding a new territory. Each step adds debt and payroll, so lenders look at how the existing operation covers its obligations first. Our article on multi-unit franchise financing explains how owners stage capital.
Real-World Scenarios
A diesel technician becoming an owner. An experienced technician buys a territory, finances the fee, one truck and tools with an SBA 7(a) loan and works in the field while building accounts.
A sales professional hiring technicians. A former fleet sales manager buys a territory, hires a lead technician and uses a line of credit to carry invoices while larger accounts settle into regular payments.
An owner adding a second truck. After the first truck stays fully booked, the owner finances a second truck and upfit through equipment financing, supported by the first year’s results.
Common Mistakes to Avoid
- Underestimating upfitting and diagnostic software costs
- Ignoring how long fleet customers take to pay
- Planning growth without a technician hiring plan
- Overlooking existing liens on equipment when applying for an SBA loan
- Spending all reserves on the truck and leaving no working capital
For more, read common auto repair loan mistakes.
Next Steps to Finance Your DuraFleet Franchise
Step 1: Get the FDD. Review Items 5, 6, 7, 8, 10, 12 and 17 with a franchise attorney.
Step 2: Price the truck and tools. Get quotes for the chassis, service body, crane or compressor and diagnostic systems.
Step 3: Map your market. List the fleets in your territory and estimate how many accounts you can sign in the first year.
Step 4: Build projections. Model technician hours, labor rates, parts margins and payment terms.
Step 5: Assemble your package. Gather tax returns, financial statements, résumés, the franchise agreement and quotes.
Step 6: Close and launch. Coordinate truck delivery, insurance and your first fleet sales calls.
DuraFleet Franchise Loan FAQs
How much does a DuraFleet franchise cost?
Item 7 of the current FDD gives the franchisor’s estimate. We could not verify it. The biggest variables are the truck, upfitting and the number of trucks you start with.
What is the DuraFleet franchise fee?
Item 5 of the FDD lists the initial fee and any fees for added territories.
What ongoing fees will I pay?
Item 6 lists the royalty, marketing contributions, technology fees and transfer and renewal fees.
Is DuraFleet eligible for SBA loans?
It is listed on the SBA Franchise Directory under codes S8653 and S8721. Each loan still depends on the borrower, the project and lender approval.
Can I finance the service truck separately?
Yes. Service trucks and upfits can be financed with equipment loans or leases, and the main lender will count that debt and confirm lien priority.
Do I need to be a mechanic to get a DuraFleet franchise loan?
Not necessarily. Lenders want relevant management or industry experience and a credible plan for hiring qualified technicians.
Can I buy an existing DuraFleet territory?
Yes, if one is for sale and the franchisor approves the transfer. Lenders will review the financials and fleet contracts.
Does DuraFleet offer financing?
Item 10 of the FDD describes any financing the franchisor offers or arranges.
How long is the franchise term?
Item 17 of the FDD covers the term, renewal and transfer. Lenders want the franchise term to cover the loan.
Final Thoughts
A DuraFleet franchise loan is mostly a truck, tool and working capital loan. Owners who price the upfit carefully, plan for fleet payment terms, line up technicians and keep reserves after launch put themselves in the best position with lenders.
US Professional Funding helps automotive service franchise owners finance start-ups, acquisitions, equipment and growth. Learn more about our franchise financing programs and our automotive care financing.
