How to Finance a Garage Living Franchise: Design-Build Costs
By Chris Cornella
A Garage Living franchise loan funds a design-and-install business that turns cluttered garages into finished rooms with durable floors, cabinetry and storage. Unlike a restaurant or a gym, the money goes into installation crews, vehicles, tools, project materials and the sales process that wins large residential jobs, so lenders look at this deal through a different lens.
This article explains what the brand does, which costs to pull from its Franchise Disclosure Document (FDD), how its SBA Franchise Directory listing helps and how buyers assemble financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Garage Living; the name is used only to describe the business. Figures in a franchisor’s disclosure document can change from year to year, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice; review the current disclosure document and franchise agreement with a qualified franchise attorney and accountant.
Garage Living Franchise Loan at a Glance
- Concept: a garage transformation company offering turn-key projects delivered by trained designers, installers and service staff.
- Background: founded in 2005, headquartered in Vaughan, Ontario, and franchising since 2015, with franchise owners in US markets.
- Business model: project-based residential work, sold through in-home consultations and installed by crews working from vehicles.
- Fees and total investment: disclosed in Items 5, 6 and 7 of the current FDD. We could not verify current figures from the franchisor’s own materials, so request the latest FDD before building a budget.
- SBA Franchise Directory: listed as Garage Living under code S2027, with no additional note.
- Typical financing mix: an SBA 7(a) or conventional term loan, vehicle and equipment financing, and a working capital reserve for the sales ramp-up.
What Is Garage Living?
Garage Living describes itself as a garage transformation company. Founded in 2005 and headquartered in Vaughan, Ontario, it began franchising in 2015 and has since added franchise owners in the United States, including markets in the Southeast. The company says it has completed thousands of garage projects for clients in the US and Canada.
The service is a full makeover rather than a single product. Homeowners hire the company to create space that works for parking, organized storage and, increasingly, uses such as home gyms and entertaining areas, with the goal of a clean, functional garage that can be used year-round. A typical project combines design, a durable floor finish, cabinetry or wall-mounted storage and other upgrades, all installed by the local team.
How the model works. A designer meets the homeowner, measures the space and presents a plan and quote. Once the client signs, materials are ordered and an installation crew completes the work, often over a short schedule. Revenue arrives in large tickets, so the sales pipeline matters more than foot traffic.
Why lenders view it the way they do. Lenders like that the brand has a long operating history, a defined design-and-install process and an SBA directory listing. They also know that home improvement spending can soften when housing slows or consumer confidence dips, that results depend on the owner’s ability to sell, and that most assets are vehicles and tools rather than real estate. Expect the borrower’s personal strength, sales background and ramp-up plan to carry a lot of weight.
Garage Living Franchise Costs
The FDD is the authoritative source for this brand’s costs: Item 5 shows the initial franchise fee, Item 6 lists ongoing fees and Item 7 estimates the total initial investment by line item. Because we could not verify current figures, here is what each cost category usually covers in a garage design-build franchise.
Initial franchise fee. The fee buys the right to use the brand in a defined territory, plus initial training and launch support. Check whether it varies with territory size.
Vehicles, tools and equipment. Installation crews need a work vehicle or trailer, floor preparation equipment such as grinders and industrial vacuums, coating application tools, cabinet installation tools and ladders. Floor prep equipment is often the most specialized purchase. Leasing or financing vehicles separately reduces the cash needed at launch.
Workspace and samples. Many owners work from a small warehouse or flex unit; ask what space Item 7 assumes.
Opening costs and working capital. Grand-opening marketing, design software, insurance, licensing, training travel and initial materials sit in the start-up budget. Item 7 also usually includes additional funds for an initial operating period to cover payroll, marketing and overhead while the first projects are sold and installed.
Total investment. When you receive the FDD, list each Item 7 line item and range in your loan request and confirm your budget matches the disclosed total:
- Initial franchise fee
- Vehicle or trailer purchase or lease, graphics and upfitting
- Floor preparation and installation equipment and tools
- Warehouse or office lease, deposits and any display area
- Opening materials inventory and samples
- Initial marketing, software, insurance, licenses and training expenses
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty, marketing and technology. Home improvement franchisors commonly charge a royalty on gross sales, sometimes with a minimum, a contribution to a brand marketing fund, a required local advertising spend and technology or software fees. In a business built on high-value projects, lead generation is a core cost, not an extra. Read Item 6 for each fee, how it is calculated and whether it can increase.
How lenders factor these costs in. Lenders deduct royalties, marketing and technology fees before calculating the cash available to repay debt. Percentage fees fall in a slow month, but minimums and flat fees do not, so lenders stress-test the first year, when the sales pipeline is still filling.
Franchisor Requirements for New Owners
We could not verify the franchisor’s current net worth, liquid capital or experience requirements from its own materials, so ask the development team for them in writing. Garage and home improvement franchisors generally look for enough liquid capital to cover the equity injection and a cash cushion, a net worth that supports a personal guarantee, sales or management experience, and the ability to recruit and lead installers.
The approval process. Expect an inquiry, introductory calls, delivery of the FDD, validation calls with current owners, a discovery meeting and a final approval. Your lender will want the signed franchise agreement or an approval letter before closing.
Ways to Own a Garage Living Franchise
A new territory. With no operating history, the loan is underwritten on projections, your experience and the capital you contribute. Our overview of financing a franchise start-up explains how lenders approach new units.
Buying an existing territory. A buyer may acquire vehicles, equipment, a project backlog, customer reviews and trained staff, subject to franchisor approval and a transfer fee. Because lenders can review real sales history, resales are often easier to finance. Read about buying a franchise resale before making an offer.
Financing Options for a Garage Living Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan is usually the first place to look. One loan can cover the franchise fee, equipment, vehicles, opening marketing and working capital.
SBA 504 loans. The 504 program funds owner-occupied real estate and long-lived fixed assets. It rarely fits a new territory, but an established owner who buys a warehouse could consider an SBA 504 loan.
Conventional term loans. Borrowers with strong credit, collateral and liquidity may qualify for a conventional business loan, especially for a resale or an expansion by an experienced owner.
Equipment and vehicle financing. Floor grinders, dust-collection vacuums, coating equipment, installation tools and work vehicles can be financed separately, using the asset as collateral. See franchise equipment financing and leasing.
Working capital and lines of credit. Project businesses pay for materials and labor before final payment arrives, and demand often shifts with the seasons and the housing market. A line of credit or franchise working capital financing smooths those gaps.
Seller financing on resales. A seller sometimes carries part of the price of a resale. A seller note is typically subordinate to the senior loan, and SBA rules or lender policies may limit how it can be structured.
SBA Loans for Garage Living Franchisees
SBA lenders check the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for eligibility. A listing does not approve any borrower; each loan is still underwritten on its own merits.
The listing and code S2027. Garage Living appears on the directory under code S2027 with no additional note, which means no extra brand-specific conditions are flagged for lenders. Share the code with your lender so it can match your franchise agreement to the listing. A franchisor based outside the United States does not by itself affect eligibility; what matters is that your business is a US small business that meets SBA rules.
Loan size and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change; a single territory typically needs much less, and projected cash flow sets the real limit. Our SBA loan calculator gives planning estimates only.
How Lenders Evaluate a Garage Living Deal
Personal credit and financial history. For any Garage Living franchise loan, lenders review personal credit, tax returns and existing debt, and owners of a meaningful share of the business typically sign personal guarantees.
Net worth and liquidity. Your cash covers the equity injection and must leave reserves afterward. Our article on how much franchise you can afford helps you test the numbers.
Industry and management experience. Sales, design, construction or project management backgrounds all help. A buyer without trade experience should show a plan to hire an experienced installation lead.
Business plan and projections. Model leads, consultation-to-sale conversion, average project size, crew capacity, materials costs, local marketing and every Item 6 fee, with a realistic ramp-up period and seasonal swings.
The FDD and franchise agreement. Lenders read Items 5 through 7 for costs, Item 17 for term, renewal and transfer, and Item 19 to see whether financial performance representations are included. Our explanation of how lenders read a Franchise Disclosure Document goes into more detail.
Resale history. Resale buyers should collect the seller’s financial statements, tax returns, backlog and customer deposit records.
Crews, Equipment and Project Cash Flow
In a garage makeover business, crew capacity limits revenue. Each additional crew typically needs a vehicle, floor preparation equipment and tools, plus trained installers, so financing equipment as the business grows, rather than buying everything at launch, keeps debt in line with booked work.
Multi-Unit Growth and Development Agreements
Service franchisors often let successful owners add neighboring territories. Check the FDD for any development schedule, extra fees and the timing obligations that come with it. Once your first territory shows a track record, lenders can underwrite its cash flow alongside the projections for the next one. Our article on multi-unit franchise financing covers this path.
Real-World Scenarios
A sales executive starting a new territory. A buyer with a background in sales leadership signs for a territory, hires an experienced installer as crew lead and funds the franchise fee, equipment, vehicle and working capital with an SBA 7(a) loan.
A contractor buying an established territory. A remodeling contractor buys a territory from a retiring owner. The lender underwrites the historical results, the seller carries a small subordinate note, and the franchisor approves the transfer.
Common Mistakes to Avoid
- Budgeting from a summary instead of the full Item 7 table
- Underestimating marketing in a lead-driven, high-ticket business
- Leaving too little working capital for the first months of selling
- Ignoring seasonality and housing-market swings in projections
- Buying more equipment than early demand supports
For more pitfalls that trip up trade businesses, read the service contractor loan mistakes that cost owners the most.
Next Steps to Finance Your Garage Living Franchise
Step 1: Request the current FDD. Review it with a franchise attorney and accountant.
Step 2: Confirm requirements. Get the franchisor’s net worth and liquid capital minimums in writing.
Step 3: Validate with owners. Ask current franchisees about ramp-up, lead costs, hiring and seasonality.
Step 4: Build projections. Use the Item 7 line items, equipment and vehicle quotes, and a monthly cash-flow forecast.
Step 5: Talk with a financing specialist. Compare SBA 7(a), conventional and equipment financing, and share code S2027.
Step 6: Apply, close and launch. Align closing with franchisor approval, training and equipment delivery, and fund your working capital reserve.
Garage Living Franchise Loan FAQs
How much does a Garage Living franchise cost?
The total estimated initial investment appears in Item 7 of the current FDD. We could not verify current figures, so build your budget from the latest FDD’s line items.
What are the franchise fee and royalty?
The initial franchise fee is in Item 5, and the royalty, marketing and technology fees are in Item 6. Ask whether any minimum royalty applies.
Can I get a Garage Living franchise loan through the SBA?
Yes. The brand is listed on the SBA Franchise Directory under code S2027 with no additional note. Each borrower must still qualify, and your lender should confirm current status.
Does it matter that the franchisor is based in Canada?
Not for SBA eligibility on its own. The SBA looks at your US business, its owners and the franchise agreement, which the directory listing indicates has been reviewed.
Can I finance equipment and vehicles separately?
Yes. Floor preparation equipment, tools and work vehicles are often financed with equipment loans or leases, preserving cash for working capital.
Can I buy an existing Garage Living territory?
Resales may be available, subject to franchisor approval and a transfer fee. Lenders can then underwrite the territory’s actual results.
Do I need construction experience?
Not necessarily. Sales and management backgrounds are often a good fit when paired with a plan to hire experienced installers.
How much liquid capital do I need?
The franchisor sets its own minimum. Beyond that, lenders expect an equity injection and reserves left over after closing.
Does the franchisor offer financing?
Any franchisor financing is described in Item 10 of the FDD. Most buyers arrange their own SBA or conventional financing.
How long is the franchise term?
Term, renewal and transfer conditions are summarized in Item 17. Lenders generally want the remaining term to outlast the loan.
Final Thoughts
A Garage Living franchise loan funds a project-based business where sales skill, crew capacity and cash-flow timing drive results. Buyers who budget from the current FDD, use the SBA listing, finance equipment as they grow and keep a healthy working capital reserve put themselves in a strong position to turn first projects into a steady backlog.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and expansion. Learn more about our franchise financing and our service contractor financing programs.
