How to Finance a Blue Moon Estate Sales Franchise: Low Overhead
By Marc Cornella
A Blue Moon Estate Sales franchise loan finances a very different kind of business than most franchise loans. There is no storefront to build, no warehouse to lease and no inventory to buy, so the money goes toward the franchise fee, launch marketing, a small set of tools and supplies, and the working capital needed to carry the business while the first estate sales are booked and held.
US Professional Funding is not affiliated with, sponsored by or endorsed by Blue Moon Estate Sales; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Blue Moon Estate Sales Franchise Loan at a Glance
- Initial franchise fee: $24,500 to $57,000, based on a territory population base of 250,000 to 400,000, according to the franchisor’s website.
- Estimated total investment: $89,515 to $113,325, which the franchisor describes as an estimate that may not include every expense.
- Royalty: 5% to 7.5% of gross sales, according to the franchisor’s website.
- Capital requirement: the franchisor says applicants must have at least $50,000 to cover the franchise fee and startup costs.
- Business model: home-based; sales are held at the client’s property, with no storefront, warehouse or inventory.
- Experience: no prior estate sale experience is required, according to the franchisor.
- History: founded in 2009 in Raleigh, North Carolina; franchising began June 1, 2013.
- SBA Franchise Directory: listed as “Blue Moon Estate Sales” (code S4849), with no additional directory notes.
What Is Blue Moon Estate Sales?
Blue Moon Estate Sales was founded in 2009 by Ken and Deb Blue after they moved to Raleigh, North Carolina. The company says Ken, a lifelong antiques enthusiast, started it after losing his job in the recession, and Deb saw a chance to professionalize a fragmented industry through franchising, which began on June 1, 2013.
The company describes its services as estate sale liquidation for residential and commercial clients, along with downsizing and relocation sales. Its owners price items using the brand’s proprietary valuation and cataloging process, called Moonetize, along with market research, then stage, market and run the sale at the client’s home. The franchisor says it has locations across the United States but does not publish a unit count.
How the business earns revenue. Blue Moon franchisees are paid a commission on the gross sales of each estate sale. Payment is collected from shoppers at the point of sale, so the franchisor notes that the business does not carry accounts receivable the way many service businesses do.
Why lenders view Blue Moon the way they do. Lenders see a low fixed-cost business with modest startup costs and an SBA directory listing. But there are few hard assets, revenue arrives sale by sale, and early months depend on building referrals, so personal credit, liquidity and sales ability carry the decision.
Blue Moon Estate Sales Franchise Costs
Initial franchise fee. The franchisor lists an initial franchise fee of $24,500 to $57,000, with the amount tied to a territory population base of 250,000 to 400,000. It says the fee covers training, marketing materials and customized technology work. Confirm in Item 5 of the current FDD exactly how your territory is priced and whether any portion is refundable.
Office and real estate. With the business run from home and sales held at the client’s property, there is no lease or build-out to fund, and no building to secure a loan.
Tools, technology and supplies. Expect pricing supplies, sale-day signage, display tables, payment equipment, a computer and possibly a cargo vehicle or trailer. Item 7 shows which of these the estimate includes.
Opening costs and working capital. The franchisor provides launch marketing and PR support and a lead-generating website. Budget separately for insurance, licenses, local marketing, sale-day payroll and a reserve until commissions arrive.
Total investment. The franchisor estimates the total investment, including startup costs, at $89,515 to $113,325. It describes these as estimates and notes that additional expenses may apply. Item 7 tables commonly cover categories such as:
- The initial franchise fee
- Training-related travel and expenses
- Opening marketing and advertising
- Equipment, supplies and technology
- Insurance, licenses and professional fees
- Additional funds for the initial operating period
Match each Item 7 line to your own quotes before sizing a Blue Moon Estate Sales franchise loan request.
Ongoing Fees and How They Affect Your Loan
Royalty. The franchisor lists ongoing royalties of 5% to 7.5% of gross sales, and says royalties support ongoing technology work, marketing materials and coaching. Item 6 of the FDD explains how the rate is applied and whether it changes over time or with sales volume.
Other recurring fees. Review Item 6 for any marketing fund, technology, renewal and transfer fees.
How lenders factor these costs in. Lenders model commission income, subtract royalties and fees, then test what remains for payroll, marketing and loan payments. Because revenue arrives sale by sale, they also want a reserve and a clear booking pipeline.
Franchisor Requirements for New Owners
Blue Moon publishes the following on its franchising pages:
- Capital: applicants must have at least $50,000 to cover the franchise fee and startup costs.
- Experience: no prior estate sale experience is required.
- Screening: the application asks about skills, whether the business would be your sole income, any lawsuits, felonies or bankruptcies, and preferred locations.
- Training: a classroom and field training program supported by Blue Moon University, the company’s online, self-paced platform covering lead generation, staging and item assessment.
- Staffing: the company says owners can start with a team of about five employees and grow from there.
The approval process. Candidates apply, talk with the Blue Moon team, attend a Discovery Day in the Raleigh area, choose a territory, sign and pay the fee, then train and open. The company says the process from first contact to opening is about 60 days, so financing should be lined up early.
Ways to Own a Blue Moon Estate Sales Franchise
A new territory. Most owners start with a new territory. Lenders underwrite these as start-ups, relying on the owner’s projections, credit, liquidity and background. Our overview of franchise start-up financing explains how these are structured.
Buying an existing territory. A buyer acquires an operating business’s referral network, staff and equipment, subject to the franchisor’s transfer approval, and lenders can underwrite its actual results. See our guide to buying a franchise resale.
Blue Moon Estate Sales Franchise Loan Options
SBA 7(a) loans. Because the brand is listed on the SBA Franchise Directory, the SBA 7(a) loan program is a natural fit for the franchise fee, startup equipment, opening marketing and working capital, or for buying an existing territory.
SBA 504 loans. The 504 program is designed for owner-occupied commercial real estate and long-lived fixed assets. A home-based Blue Moon business generally has neither, so 504 rarely applies.
Conventional term loans. A conventional business loan may suit a borrower with strong credit and collateral, or an existing owner financing an expansion or the purchase of a second territory.
Equipment and vehicle financing. A cargo van or trailer, display fixtures, tablets and payment hardware can sometimes be financed separately, preserving cash for marketing. See our options for franchise equipment financing and leasing.
Working capital and lines of credit. Estate sale revenue depends on when families need a sale, and the franchisor says owners typically need to work a territory for about 12 months to reach sustainability. A working capital reserve or line of credit can carry payroll and marketing through that ramp-up. Learn more about franchise working capital.
Seller financing on resales. When an existing territory is sold, part of the price may be carried by the seller. Any seller note would need to be acceptable to the senior lender, is typically subordinate to it and may be limited by the rules of the loan program being used.
SBA Loans for Blue Moon Estate Sales Franchisees
SBA lenders generally require a brand to appear on the SBA Franchise Directory, which lists franchise agreements reviewed for SBA eligibility, before making an SBA-guaranteed loan. A listing does not approve any borrower.
Blue Moon’s listing. Blue Moon Estate Sales appears on the directory under code S4849 with no additional notes. In plain terms, the standard franchise documents have been reviewed, and there is no special addendum or brand-specific condition flagged for lenders.
Application tips. Prepare a personal financial statement, tax returns, a resume and a plan explaining how you will build referral sources. The SBA 7(a) program maximum is currently $5 million (program rules can change). Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Blue Moon Estate Sales Franchise Loan
Personal credit and financial history. With few business assets to secure a loan, personal credit history carries extra weight. Expect a personal guarantee.
Net worth and liquidity. The franchisor’s $50,000 capital requirement is a starting point. Lenders look at what remains after your equity injection, since a reserve is what protects the business through a slow stretch. Our article on how much franchise you can afford walks through that math.
Industry and management experience. Estate sale experience is not required, but sales, real estate, antiques, retail or senior services backgrounds help.
Business plan and projections. Projections should be built sale by sale: how many sales per month you expect, how long the ramp-up takes, the commission you collect, royalties and fees, labor for each sale and marketing spend. Our guide to a franchise business plan for an SBA loan shows what lenders want to see.
The FDD and franchise agreement. Lenders review the franchise term, renewal and transfer conditions, territory rights and any financing offered by the franchisor in Item 10. The franchisor says earnings information is included in its FDD, so review Item 19 to see what financial performance representations it makes. Read how lenders read a Franchise Disclosure Document for the items that matter most.
Historical financials for resales. If you are buying an existing territory, expect to provide the seller’s profit and loss statements, sales history and tax returns.
Multi-Unit Growth and Territory Expansion
Blue Moon prices territories by population base, so growth often means taking on a larger market or an adjacent territory rather than opening a second storefront. Lenders will review the first territory’s results, the added marketing and staffing needs, and the franchisor’s approval before financing an expansion. Read more on multi-unit franchise financing.
Real-World Scenarios
A career changer starting a new territory. A former real estate professional with strong local referral relationships signs for a new territory. The buyer contributes savings, uses an SBA 7(a) loan for the franchise fee, launch marketing and working capital, and keeps a reserve to cover payroll until sales are steady.
A couple buying an existing territory. A couple buys an established territory from a retiring owner. The lender bases the loan on the business’s tax returns and sales history, and the seller agrees to a small subordinated note to bridge the price.
Common Mistakes to Avoid
- Treating the low startup cost as a reason to skip a working capital reserve
- Projecting a full schedule of sales in the first months instead of modeling a ramp-up
- Forgetting that royalties come off gross sales before payroll and loan payments
- Signing for a territory before confirming financing is in place
For more pitfalls common to service firms, read the loan mistakes professional firms should avoid.
Next Steps to Finance Your Blue Moon Estate Sales Franchise
Step 1: Confirm you meet the requirements. Make sure you have at least the $50,000 the franchisor requires, plus a personal reserve.
Step 2: Apply and attend Discovery Day. Complete the application and meet the Blue Moon team.
Step 3: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 4: Talk with a financing specialist early. Learn how lenders will view your experience, credit and liquidity before choosing a territory.
Step 5: Build your plan and projections. Model sales per month, commissions, royalties, payroll and marketing through the first year.
Step 6: Apply for financing. Submit your financial statement, tax returns, resume, plan and franchise documents.
Step 7: Close, train and launch. Coordinate funding with the franchise signing and training schedule so you can open on time.
Blue Moon Estate Sales Franchise Loan FAQs
How much does a Blue Moon Estate Sales franchise cost?
The franchisor estimates the total investment at $89,515 to $113,325 and notes that additional expenses may apply. Review Item 7 of the current FDD for the full breakdown.
What is the Blue Moon Estate Sales franchise fee?
The franchisor lists an initial franchise fee of $24,500 to $57,000, based on a territory population base of 250,000 to 400,000.
What royalty does Blue Moon charge?
The franchisor lists ongoing royalties of 5% to 7.5% of gross sales. Check Item 6 for any other recurring fees.
How much money do I need to qualify?
The franchisor says applicants must have at least $50,000 to cover the franchise fee and startup costs. Lenders will also look for a personal reserve beyond that amount.
Can I get an SBA loan for a Blue Moon Estate Sales franchise?
Blue Moon is listed on the SBA Franchise Directory under code S4849 with no additional notes, so SBA 7(a) financing is generally available to qualified borrowers, subject to lender approval.
Can a first-time business owner get a Blue Moon Estate Sales franchise loan?
Yes, if you meet the franchisor’s and lender’s requirements; show relevant experience, solid credit and a realistic ramp-up plan.
Do I need an office or storefront?
No. The franchisor describes a home-based business, with sales held at the client’s property.
Can I buy an existing Blue Moon territory?
Possibly, subject to the franchisor’s transfer approval; lenders then underwrite the business’s actual results.
How long does it take to open?
The franchisor says about 60 days from first contact, so start the financing process early.
Does Blue Moon offer financing?
The franchisor’s website does not describe a financing program. Check Item 10 of the current FDD for any financing it offers.
Final Thoughts
A Blue Moon Estate Sales franchise offers a low-overhead way into a service business, but low overhead does not mean low risk. Buyers who understand the franchisor’s fees, budget a realistic ramp-up and keep a healthy reserve give themselves the best chance at a smooth approval and a steady first year.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and professional services firm financing solutions.
