How to Finance a Longyards Franchise: Contractor Yard Costs
By Chris Cornella
A Longyards franchise loan finances something closer to a small industrial real estate project than a typical storefront: fenced, secured outdoor yards that contractors and other businesses rent for equipment, vehicles and materials. This article explains what is publicly known about the brand, its SBA Franchise Directory listing, the loan programs that tend to fit and how lenders look at a contractor storage yard deal.
US Professional Funding is not affiliated with, sponsored by or endorsed by Longyards; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Longyards Franchise Loan at a Glance
- Concept: secured outdoor storage yards rented to contractors, trades, small businesses, fleets and hobbyists who need space for equipment, trailers, vehicles and materials.
- Founder: Chris Long, a former tradesman who built the first yards in Canada before taking the concept to the United States.
- US presence: the brand’s location listings include a yard in Corpus Christi, Texas.
- Initial franchise fee, royalty and brand fund: not published in any franchisor source we could verify; confirm them in Items 5 and 6 of the current FDD.
- Estimated initial investment: not published; Item 7 of the FDD is the reliable source, and the total will swing widely depending on whether you buy or lease the land.
- Net worth and liquidity requirements: not published; request them in writing from the franchisor.
- SBA Franchise Directory: listed under code S7858, with no special note attached to the listing.
- Likely financing tools: SBA 7(a), SBA 504 when you own the land, conventional real estate and term loans, equipment financing for fencing, gates and security systems, and working capital for lease-up.
What Is Longyards?
Longyards describes its concept as contractor storage: large parcels of industrial or commercial land divided into individual fenced yards. A landscaper might park trailers there, or a builder might keep materials and a skid steer. Tenants get gated, camera-monitored access to their own yard rather than a roll-up unit inside a building.
The founder, Chris Long, came out of the trades and created the concept after struggling to find a secure place to keep his own equipment. The first yards opened on heavy industrial land in Ottawa, Canada, and were developed in phases. The company then began franchising and expanding into the United States, including a yard in Corpus Christi, Texas.
The founder has described month-to-month rentals priced by yard size, with fencing, screening, gates and cameras as the core product. According to the founder, franchisees receive help finding and protecting a territory, guidance on financing, lease-up support and construction oversight, and they may lease land rather than buy it.
Why lenders see it as a real estate deal. A yard’s value comes from the land, the site work and the rent roll, so a Longyards franchise loan is underwritten on the property, the zoning and local contractor demand as much as on the franchise itself.
Longyards Franchise Costs
Because the franchisor has not published fees or an investment range in a source we could verify, this section explains what each cost category usually involves and what to look for in Items 5 and 7 of the FDD.
Initial franchise fee. Item 5 shows the fee, when it is due and whether a multi-site or territory fee applies. Lenders treat it as an intangible cost that is financed alongside the hard costs but adds no collateral value.
Land or ground lease. This is the decision that shapes everything else. Buying industrial land creates collateral and can open the door to SBA 504 or a real estate loan, but it raises the equity you need. A ground lease lowers the upfront cost but means the lender’s collateral is mostly site improvements and business assets, and the lease term has to support the loan.
Site work and improvements. Grading, surfacing, drainage, fencing, screening, lighting and gates are the heart of the build, along with permits, surveys and engineering.
Security and technology. Cameras, gate controllers, access software and signage round out the build.
Opening costs and working capital. Marketing to local contractors, insurance, professional fees and training come before the first tenant moves in. Because yards fill over time, the additional funds line in Item 7 and your own reserves need to carry the property through lease-up.
Total investment. Check that the Item 7 lines add up to the stated total and note how long the additional funds line is meant to last. Expect lines such as:
- Initial franchise fee
- Land purchase or ground lease deposits
- Site preparation, grading, surfacing and drainage
- Fencing, screening, gates and lighting
- Cameras, access control and technology
- Signage, permits, surveys and engineering
- Training, insurance and professional fees
- Grand-opening marketing and additional funds for the initial period
For the project side, our self-storage start-up financing page explains how lenders fund a new facility, often in construction draws.
Ongoing Fees and How They Affect Your Loan
Item 6 lists every recurring fee: royalty, brand or marketing fund contributions, technology or software fees, and transfer and renewal fees. Also look for required upgrades to fencing or security systems, which wear under heavy truck traffic.
How lenders use these numbers. Lenders subtract franchise fees, property taxes, insurance, any ground rent, repairs and management from projected rent before measuring debt service coverage. Fees calculated on gross rent rise as occupancy rises, so model them at every stage of lease-up, not only at stabilization.
Franchisor Requirements for New Owners
Longyards has not published minimum net worth, liquid capital or experience requirements in a source we could verify. Ask for the written criteria and the steps in the approval process, which typically include an application, discovery calls, review of the FDD, territory and site approval and signing the franchise agreement.
Experience in construction, the trades or property management helps with both building the site and renting yards to contractors, and lenders will ask who will manage tenants day to day.
Ways to Own a Longyards
New site you purchase. Owning the land takes the most equity but gives the strongest collateral and can fit SBA 504 or a conventional real estate loan.
New site on leased land. You finance the improvements, fee and working capital, and the loan term is tied to the lease term.
Buying an operating yard. If a franchised site is resold, the lender will look at the rent roll, tenant mix, occupancy history and the franchisor’s transfer approval. Our article on buying a franchise resale explains how lenders review an existing unit.
Multiple sites in a territory. The founder has described a goal of several yards in an area overseen by one manager, so expect questions about a development schedule and how each site will be funded.
Financing Options for a Longyards Franchise
SBA 7(a) loans. The 7(a) program can combine land, site work, the franchise fee, equipment and working capital in one loan. Our SBA 7(a) loan programs page explains the structure.
SBA 504 loans. When you buy the land and build long-lived improvements, a 504 loan may fit the real estate portion, with the franchise fee and working capital financed separately. See our SBA 504 real estate financing page.
Conventional term and real estate loans. Owners with strong equity or other income-producing property may use conventional business loans, particularly for a second site or to refinance once a yard is leased up.
Equipment financing. Gate operators, access control hardware, camera systems, lighting, a site office container and a loader or skid steer for site maintenance may be financed on their own terms. Learn more about franchise equipment financing and leasing.
Working capital and lines of credit. Lease-up is the main working capital need: property taxes, insurance, loan payments and marketing continue while yards fill. Our self-storage working capital page covers reserves and credit lines.
Seller financing on resales. When buying an existing yard, a seller may agree to carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA and other loan programs may limit their terms.
SBA Loans for Longyards Franchisees
SBA lenders check whether a franchise appears on the SBA Franchise Directory, which shows the agreement has been reviewed for eligibility. Longyards is listed under code S7858 with no special note, so lenders can consider SBA-guaranteed financing, subject to normal underwriting, without a brand-specific addendum flagged on the listing.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Rental real estate raises an eligibility question for SBA lenders, because passive real estate investment is generally not eligible, so be ready to show how you will actively operate the yards as a business: marketing, tenant service, security and management. Read our article on SBA loans for storage facilities for how lenders treat similar properties, and use our SBA loan calculator to test payments at different loan amounts.
How Lenders Evaluate a Longyards Deal
Personal credit and financial history. Lenders review your credit report, tax returns and any past business or real estate loans.
Net worth and liquidity. Expect to show cash for the equity injection plus reserves to carry the property through lease-up.
Industry and management experience. Background in construction, the trades, fleet management or property management helps, especially if you already know the contractors who would rent yards.
Business plan and projections. Lenders want a realistic lease-up schedule, rents based on local quotes for outdoor and industrial storage, a tenant mix that does not depend on a single customer, and expenses for taxes, insurance, repairs and security. Our franchise business plan guide for SBA loans explains what to include.
The FDD and franchise agreement. Lenders read the term, territory protections, transfer rules and any default provisions, and they confirm that the franchise term covers the loan.
Site, zoning and real estate. Zoning that permits outdoor storage, access for heavy trucks, drainage, environmental history and an appraisal of the land are all central. A Phase I environmental report is often required on industrial land.
Historical financials for resales. For an existing yard, expect rent rolls, occupancy history and tax returns. Plan for lease-up too: a yard earns more as each space is rented, so phasing construction can reduce the cash tied up before rent arrives.
Multi-Unit Growth and Development Agreements
Several yards in one market can share management and marketing, and the rent roll from the first site can support a second Longyards franchise loan. Lenders usually want to see the first yard leasing well before financing the next one. Our article on multi-unit franchise financing covers development schedules and how lenders size later loans.
Real-World Scenarios
A general contractor opening a first site. A builder who needs storage for his own crews buys industrial land, keeps one yard for his company and rents the rest. Lenders look closely at whether his company’s lease is at market rent and whether outside demand supports the remaining yards.
An investor on a ground lease. A buyer ground-leases a parcel near a highway and finances site work with SBA 7(a). The lender reviews the lease term and how the business will be actively managed.
Buying an existing yard. A buyer acquires a stabilized site from a franchisee who is relocating, with a seller note subordinate to the senior loan and franchisor approval of the transfer.
Common Mistakes to Avoid
- Assuming land zoned for industrial use automatically permits outdoor storage.
- Underestimating drainage, surfacing and fencing costs on raw land.
- Projecting full occupancy too soon and leaving too little working capital for lease-up.
- Signing a ground lease shorter than the loan term.
- Treating the project as a passive investment when the SBA requires an operating business.
For more pitfalls, read our article on self-storage loan mistakes.
Next Steps to Finance Your Longyards Franchise
Step 1: Request the current FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm the franchisor’s requirements. Get the net worth, liquidity and experience criteria in writing.
Step 3: Identify land and check zoning. Confirm outdoor storage is permitted and that trucks can access the site.
Step 4: Get site work bids. Price grading, surfacing, drainage, fencing, gates, lighting and cameras.
Step 5: Build a lease-up plan. Survey local contractor demand and rents, and model occupancy month by month.
Step 6: Organize your documents. Gather tax returns, a personal financial statement, bank statements and your business plan.
Step 7: Talk to a financing specialist. Compare SBA 7(a), SBA 504 and conventional structures before you commit to land.
Longyards Franchise Loan FAQs
How much does a Longyards franchise cost?
The franchisor has not published an investment range in a source we could verify. Item 7 of the current FDD discloses the estimate, and buying land versus leasing it will change the total dramatically.
What is the Longyards franchise fee and royalty?
Items 5 and 6 of the FDD disclose the initial fee, royalty and any marketing or technology fees.
Is Longyards eligible for SBA loans?
Yes. The brand is listed on the SBA Franchise Directory under code S7858, so lenders can consider SBA financing, subject to normal underwriting and eligibility review.
Is a contractor storage yard considered passive real estate?
SBA lenders will ask. Showing that you actively market, manage and secure the yards as an operating business is important for eligibility.
How much liquid capital or net worth do I need?
The franchisor has not published minimums. Ask for its written requirements, and expect lenders to look for an equity contribution plus reserves for lease-up.
Does Longyards offer financing?
Item 10 of the FDD discloses any financing the franchisor offers or arranges. First-time owners may still qualify for a Longyards franchise loan if their capital, credit and related experience are strong.
What documents do I need to apply?
Expect tax returns, a personal financial statement, the FDD and franchise agreement, a land contract or lease, site work bids, a zoning confirmation and projections.
How long is the franchise term?
The term and renewal rights are in Item 17 and the franchise agreement. Lenders prefer a term that runs at least as long as the loan.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations, and base projections on local demand rather than informal claims.
Final Thoughts
A Longyards franchise loan is really a land and site development loan wrapped around a franchise. With limited public data on the brand, the FDD, a zoning-approved site, solid contractor bids and a conservative lease-up plan are what will convince a lender.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and refinancing for established and emerging brands. Learn more about our franchise financing and self-storage financing solutions.
