How to Finance a FilterShine Franchise: Filter Exchange Costs
By Marc Cornella
A FilterShine franchise loan funds a commercial kitchen service business built on a simple promise: dirty hood filters out, clean filters in, on a regular schedule. Unlike many mobile service franchises, FilterShine owners also need a cleaning facility where used filters are soaked, washed and inspected, so the budget covers both route vehicles and a working plant, along with filter inventory, marketing and working capital.
US Professional Funding is not affiliated with, sponsored by or endorsed by FilterShine; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, 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 sign.
FilterShine Franchise Loan at a Glance
- Concept: a commercial kitchen grease filter exchange service, headquartered in Elgin, Illinois, that says it brings more than 20 years of expertise to the work.
- How service works: technicians swap used hood filters for clean, restored ones on a weekly, every-other-week or every-four-weeks schedule, and used filters are cleaned off-site.
- Add-on services: rooftop grease containment and ice machine treatment, with kitchen exhaust cleaning in some regions.
- Capital question: the franchisor’s application asks whether candidates have at least $400,000 in liquid assets or the ability to invest that amount through debt.
- Fees and investment: the franchise fee, royalty and estimated initial investment are in Items 5, 6 and 7 of the current FDD; the franchisor’s website does not publish them.
- SBA Franchise Directory: listed as FilterShine under code S8870, with two notes about real estate explained below.
What Is FilterShine?
FilterShine is a franchised grease filter exchange service for commercial kitchens. Hood filters trap fats, oils and grease from cooking, and when they clog they reduce ventilation and add to fire risk. Instead of kitchen staff scrubbing filters, FilterShine assigns each customer location two sets of filters. One set is in the hood while the other is being cleaned, so the customer does not need to buy replacement filters.
How the business runs. Technicians run scheduled routes, removing used filters and installing clean ones. Used filters go back to the franchisee’s cleaning facility, where they are soaked in the franchisor’s proprietary chemicals, cleaned and inspected before returning to service. Owners also sell add-on services such as rooftop grease containment and ice machine treatment.
Customers. Restaurants and bars, hospitals and medical facilities, schools and universities, hotels and resorts, and institutional cafeterias are the target market. Service plans are tailored to kitchen size, cooking volume and recommended frequency, and franchisees can also serve national accounts secured by the corporate team.
Why lenders view it the way they do. Lenders see recurring, scheduled commercial revenue and tangible assets in vehicles, filter inventory and cleaning equipment. Their questions focus on how quickly a new owner can sign kitchens, the cost and lease terms of the cleaning facility, and how much working capital is needed before routes become dense.
FilterShine Franchise Costs
FilterShine does not post fees or investment ranges on its website, so your FilterShine franchise loan request should be built from the current FDD and from quotes for your facility, vehicles and equipment.
Initial franchise fee
Item 5 of the FDD lists the initial franchise fee and any territory-based pricing. The franchisor describes an exclusive territory, so ask how its size is defined and whether additional territory costs extra.
Cleaning facility and real estate
The franchisor describes a complete set-up of the cleaning facility as part of its turnkey model. Most owners lease a small industrial or flex space with drainage, water, ventilation and room for soak tanks, racks and vehicles. A few may buy a building, which is where the SBA directory notes come into play.
Vehicles, equipment and filter inventory
Expect route vans or trucks, soak tanks and washing equipment, drying and storage racks, safety gear and an inventory of filters in the sizes your customers use. Because each account needs two sets of filters, inventory grows with every new customer.
Opening costs and working capital
Training, insurance, licenses and permits, environmental and wastewater compliance, marketing, phone and web services, and payroll for technicians until routes are full all belong in the plan.
Total investment
Item 7 of the FDD shows the estimated initial investment. When reviewing it, look for:
- Initial franchise fee
- Cleaning facility lease deposits, rent and improvements
- Soak tanks, washing and drying equipment
- Service vehicles
- Opening filter inventory and proprietary chemicals
- Technology, phone and web services
- Training, insurance, licenses and permits
- Initial marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD discloses FilterShine’s royalty, marketing contributions, technology or service-line fees and any required purchases such as proprietary soaking chemicals. Review how each is calculated and whether minimums apply.
How lenders factor these in. Royalties and required purchases come off revenue before labor, fuel, rent and loan payments. Lenders deduct every Item 6 fee in projections and check that the business can cover its debt while routes are still building.
Franchisor Requirements for New Owners
FilterShine’s application asks whether candidates have at least $400,000 in liquid assets or the ability to invest that amount through debt, which signals that financing is an expected part of many deals. The franchisor also says it looks for owners with a commitment to excellence, entrepreneurial spirit, a strong work ethic and leadership and communication skills.
The approval process. The franchisor describes the path as discovering the opportunity, building a business plan and defining your territory, validating the decision by talking with franchisees, meeting the team at headquarters, then onboarding and training before launch. Bring a lender in at the business-plan stage so your funding matches your territory plan.
Ways to Own a FilterShine Franchise
Opening a new territory. Most owners start new, financing the facility build-out, vehicles, filter inventory and working capital on projections. Our page on franchise start-up financing explains how these loans work.
Buying an existing franchise. If an operating territory comes up for sale, it brings signed accounts, filter inventory and a working facility, and the lender can review real revenue. Franchisor approval is required.
Growing a territory. Owners can add routes, vehicles, technicians and add-on services. See our cleaning business expansion financing options.
Financing Options for a FilterShine Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine the franchise fee, facility improvements, vehicles, filter inventory and working capital in one loan, subject to approval.
SBA 504 loans. If you buy the building that houses your cleaning facility, an SBA 504 loan may finance the real estate and long-lived equipment. The SBA directory notes for FilterShine address exactly this situation. Our article on franchise real estate financing covers owning versus leasing.
Conventional term loans. Owners with strong financial statements and collateral may use conventional business loans.
Equipment and vehicle financing. Vans, soak tanks and washing equipment can be financed separately, secured by the assets. Learn more about franchise equipment financing and leasing.
Working capital and lines of credit. Each new account requires two sets of filters before the first invoice is paid, and commercial customers may pay on terms. A line of credit helps fund filter inventory, payroll and fuel as you grow. See our cleaning business working capital options.
Seller financing on resales. A seller may carry part of the price on an existing territory. Seller notes are typically subordinate to the senior loan, and SBA programs may limit their structure.
SBA Loans for FilterShine Franchisees
SBA loans are made by participating lenders with an SBA guarantee on part of the loan. The SBA Franchise Directory helps lenders confirm that a franchise agreement leaves the owner in control of the business. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
FilterShine on the SBA Franchise Directory. FilterShine is listed under code S8870 with two notes:
- When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Conditional Assignment Agreement may not be executed.
- The franchisor may not enforce a purchase option on the real estate when it is owned by the franchisee or an affiliate of the franchisee and taken as collateral for the SBA loan.
What those notes mean in plain English. If you lease your facility, the franchisor’s lease conditional assignment, which can let the franchisor step into the lease, works as usual. But if you or a related company own the building and pledge it as collateral, that assignment is not used, and the franchisor cannot exercise a purchase option to buy the property out from under the lender’s lien. These notes protect the lender’s real estate collateral. If you plan to buy your building, share them with your lender and attorney early.
SBA application tips. Bring a business plan with an account-building timeline, the FDD and franchise agreement, the facility lease or purchase contract, equipment and vehicle quotes and personal financial statements for each owner. Our article on writing a franchise business plan for an SBA loan walks through what to include.
How Lenders Evaluate a FilterShine Deal
Personal credit and financial history. Lenders review credit, tax returns and personal financial statements, and owners usually sign personal guarantees.
Net worth and liquidity. Lenders want equity in the deal and reserves after opening, separate from the franchisor’s own capital question.
Sales and management experience. B2B sales, foodservice, facilities or route-service management experience strengthens an application.
Business plan and projections. Projections should show account signings by month, service frequency mix, revenue per account, filter inventory needs, add-on service sales, labor and every Item 6 fee.
The FDD and franchise agreement. Lenders review the territory, term, renewal and transfer rules in Item 17, any franchisor financing in Item 10 and whether Item 19 includes financial performance representations. Our guide to how lenders read an FDD explains what they focus on.
Facility lease or real estate. Lenders want a lease long enough to cover the loan, with permitted use for chemical soaking and wastewater discharge, or an appraisal and environmental review if you buy.
The Cleaning Facility and Filter Inventory
The cleaning facility is what sets FilterShine apart from purely mobile kitchen services. Zoning, wastewater rules and utility capacity can affect where you locate and what improvements you need, so confirm them before signing a lease.
Filter inventory is the other unusual asset. Every account needs two full sets, and filters wear out over time. Track inventory as an asset and budget for replacements, since lenders will ask how growth is funded.
Multi-Unit Growth and Expansion
Growth usually means more routes, vehicles and technicians running out of the same facility, then possibly additional territory. Lenders look at existing route revenue, combined cash flow and guarantor liquidity before financing each step.
Real-World Scenarios
A facilities manager opening a territory. A former hospital facilities manager leases a flex space, finances the build-out, a van, filter inventory and working capital with an SBA 7(a) loan and targets local healthcare kitchens first.
An owner buying the building. An established franchisee buys the building that houses the cleaning facility with an SBA 504 loan. Because the property secures the loan, the directory notes on the lease assignment and purchase option apply.
An owner adding services and routes. A franchisee with full routes finances a second van and adds rooftop grease containment for existing customers.
Common Mistakes to Avoid
- Underestimating filter inventory needed as accounts grow
- Signing a facility lease before confirming zoning and wastewater rules
- Overlooking the SBA directory notes when buying your building
- Leaving out royalties and required chemical purchases in projections
- Holding too little working capital while routes fill
For more pitfalls, read our list of restoration and cleaning company loan mistakes.
Next Steps to Finance Your FilterShine Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Define your territory and facility. Identify a suitable building and confirm zoning and utilities.
Step 3: Price your start-up. Gather quotes for improvements, vehicles, equipment and filter inventory.
Step 4: Estimate payments. Use our business loan calculator for planning; results are estimates only, not offers or approvals.
Step 5: Apply for your FilterShine franchise loan. Submit your plan, financial statements, quotes, lease and FDD.
Step 6: Close and launch. Coordinate funding with facility set-up, training and your first routes.
FilterShine Franchise Loan FAQs
How much does it cost to open a FilterShine franchise?
The estimated initial investment is in Item 7 of the current FDD. Facility, vehicles, filter inventory and working capital drive most of the cost.
What is the FilterShine franchise fee?
The initial franchise fee is listed in Item 5 of the current FDD; the franchisor’s website does not publish it.
What royalty does FilterShine charge?
Royalties and other ongoing fees are disclosed in Item 6 of the current FDD.
How much capital do I need?
The franchisor’s application asks whether candidates have at least $400,000 in liquid assets or the ability to invest that amount through debt. Lenders also look for equity and reserves.
Can I get an SBA loan for a FilterShine franchise?
Yes, if you qualify. FilterShine is listed on the SBA Franchise Directory under code S8870, with notes that apply when real estate secures the loan.
Can I use an SBA loan to buy my facility building?
Possibly, through SBA 7(a) or 504 programs. The directory notes then limit the lease conditional assignment and the franchisor’s purchase option.
Can I finance vehicles and equipment separately?
Yes. Vans, soak tanks and washing equipment can often be financed on their own.
Can a first-time owner get a FilterShine franchise loan?
Possibly, with solid credit, equity and reserves. Sales or facilities experience helps.
Does FilterShine offer financing?
Item 10 of the current FDD describes any financing the franchisor offers.
How long is the FilterShine franchise agreement?
The term, renewal and transfer rules appear in Item 17 of the FDD. Lenders want the franchise term to cover the loan term.
Final Thoughts
A FilterShine franchise combines scheduled route service with an in-house cleaning facility, so financing must cover vehicles, a plant, a growing filter inventory and working capital. If you plan to own your building, the SBA directory notes deserve early attention from your lender and attorney.
US Professional Funding helps franchise owners finance start-ups, facilities, equipment and working capital. Learn more about our franchise financing and restoration, remediation and cleaning financing programs.
