When do franchisors usually require a remodel?
Remodel requirements usually show up at three points: when the franchise agreement comes up for renewal, on a cycle written into the agreement, or when the brand launches a new image across the system. A unit transfer to a new owner can also trigger one. The franchise agreement and the disclosure document describe the obligations; the franchisor's notice sets the scope and deadline.
Where to look:
- Franchise agreement: remodel, refurbishment or upgrade obligations and any caps.
- Disclosure document: Item 8 often covers required purchases and specifications, and Item 11 often covers remodeling and upgrades.
- Renewal terms: conditions for renewing, which may include bringing the unit to current standards.
- Brand notices: the written scope, approved vendors and completion date.
Have a franchise attorney confirm what your agreement requires. This article is not legal advice, and Restaurant Capital Now is not affiliated with any franchisor.
What does a reimage typically include?
A reimage usually updates what guests see and how they order. That can mean exterior signage and paint, new menu boards, dining room seating, lighting, flooring and restrooms, drive-thru upgrades, self-order kiosks and pickup areas, and sometimes kitchen equipment the brand now specifies. Scope ranges from a light refresh to a near rebuild, so costs vary widely by unit.
- Exterior: signage, façade, paint, drive-thru lane and menu boards.
- Dining room: seating, lighting, flooring, décor package, restrooms.
- Ordering and pickup: kiosks, digital boards, mobile pickup shelves.
- Kitchen: brand-specified equipment for new menu items or speed.
- Technology: POS, kitchen screens and drive-thru timers.
Older units usually need more work, and landlord approval may be required for exterior changes.
| Cost | Typical fit | Planning note |
|---|---|---|
| Kiosks, menu boards, POS | Equipment financing | Check approved vendor lists |
| Kitchen equipment | Equipment financing | Long lead times are common |
| Construction and décor | Term loan or SBA-backed loan | Permits and landlord consent |
| Lost sales during work | Line of credit or reserve | Phase work to stay open |
How do franchisees fund remodel costs?
Most franchisees split the remodel into what can be financed as equipment and what is construction or décor. Equipment, kiosks, digital menu boards and some signage often fit equipment financing. Construction, décor and soft costs usually fit a term loan. Multi-unit operators may stagger remodels so healthier units' cash flow supports the next. Owner cash often fills the gap.
- Equipment and technology: restaurant equipment financing.
- Construction and décor: restaurant term loans, or an SBA-backed loan if the deadline allows a longer review.
- Lost sales during work: a line of credit as a backstop.
Match the term to how long the remodel's benefits last. A multi-year reimage funded with short-term, daily-payment products can squeeze cash for the entire life of the payments.
How should franchisees plan the remodel timeline?
Work backward from the franchisor's deadline. Leave time for scope approval, approved-vendor quotes, landlord consent, permits, funding review, equipment lead times, construction and the franchisor's final sign-off. Funding and permits are usually the slowest steps. Starting a year or more ahead for a major reimage is common, and it lets you schedule work during your slowest season.
- Get the written scope and deadline from the franchisor.
- Walk the unit with approved contractors and get quotes.
- Request landlord approval for exterior or structural work.
- Apply for funding with quotes in hand.
- Order long-lead equipment and signage.
- Pull permits through the official agency.
- Schedule work during a slow period, overnight where possible.
- Complete the franchisor's inspection and sign-off.
Can a franchise unit stay open during a remodel?
Often partly. Many reimages are phased: exterior and signage while open, dining room work overnight or in sections, drive-thru kept running while the lobby closes. A short full closure may be needed for flooring or kitchen changes. Budget lost sales and any paid staff time during closures as real project costs, not afterthoughts.
Tell guests what is happening with signs and app notices, and keep delivery and drive-thru open when you can. If the unit closes briefly, plan cash for rent, core staff and payments during those days.
What happens if a franchisee misses a remodel deadline?
Consequences depend on the agreement, but a missed deadline can lead to default notices, fees, loss of renewal rights or other remedies the franchisor holds. Some franchisors grant extensions when a franchisee communicates early and shows progress, such as signed quotes and a funding application. Waiting until the deadline to raise a problem limits your options.
If funding or permits are running late, tell the franchisor in writing, share your timeline and ask what flexibility exists. Keep records of every approval and delay. Ask your franchise attorney before responding to any default notice.
For the full franchise lifecycle, see our franchise quick-service page.
Frequently asked questions
Do franchisors ever help pay for remodels?
Some brands offer incentives during system-wide reimage programs, such as temporary royalty relief, vendor discounts or development credits. Programs vary and change. Ask the franchisor directly what is available for your unit, and get any terms in writing.
Can I negotiate the remodel scope?
Sometimes. Franchisors may allow a lighter scope for units with recent partial updates, or phase requirements over time. Bring photos, quotes and your unit's results to the conversation. Any agreement should be documented in writing.
Will a remodel raise my unit's sales?
Brands often roll out reimages expecting a lift, but results vary by unit, market and scope. Do not build your funding plan on a sales increase. Make sure payments fit your current sales, and treat any lift as a bonus.
Is a remodel required when I buy an existing franchise unit?
Often, a transfer comes with a requirement to bring the unit to current standards within a set period. Ask the franchisor for the remodel scope before agreeing to a purchase price, because it can change what the unit is worth to you.
How do funders view a remodel request from a franchisee?
Requirements vary by product and funder; many look at time in business, monthly revenue and credit. For remodels, a franchisor's written scope and deadline, vendor quotes and the unit's sales history usually make the request clear and concrete.
Meet the deadline without draining the unit
Share your remodel scope and see which funding options fit your timeline.
Updated September 14, 2026 · Restaurant Capital Now Funding Team