What is a liquid capital requirement?
Last reviewed July 6, 2026
Liquid capital is cash and near-cash you can deploy quickly — savings and marketable securities, as distinct from home equity or retirement accounts. Franchisors set a liquid-capital requirement to screen candidates, because a franchisee who runs out of cash during ramp-up fails even inside a good system. The figure is usually self-reported at inquiry and documented later during underwriting.
Treat the requirement as a floor, not a target: it's calibrated to get you open, not through the slow first year. Stack it against Item 7's high end plus living expenses. On this site, liquid capital is always labeled self-reported — nobody checks it against you at the inquiry stage.