Frequently Asked Questions  
     
  What types of financing does the Chase McDonald's Finance provide?  
  Chase McDonald's Finance provides financing for the acquisition of a restaurant (new or existing), the acquisition of furniture, fixtures or equipment, exercising a BFL, acquiring a McOpCo, building a PlayPlace, refinancing or restructuring existing debt, reinvestment and various other special purposes relating to your McDonald’s restaurants.  
     
  Where may I obtain a copy of the loan request?  
  You can complete your loan request through an on-line form. Now, requesting a loan means simply updating the information you have already submitted. The new on-line request is completely secure. You can also download a form from this website or call a loan specialist and ask them to send one directly to you (either by fax, email or mail).  
     
  What maturities are offered by Chase McDonald's Finance?  
  Chase offers financing terms up to seven years (84 months) on standard loans.  
     
  Are documentation fees refundable if I choose not to finance my transaction with Chase?  
 
  • No, the fees are used to cover the costs associated with credit inquiries, state corporate and lien searches, etc., regardless of funding decision.
  • All documentation fees should accompany the initial loan request, or you may contact your Relationship Manager for alternate payment options.
  
     
  What criteria does Chase consider when making an approval decision?  
 

Credit approval is based on a four-category system. The four categories are:

  1. Profit after Controllable Expense Margin
  2. Cash Flow Coverage Ratio
  3. Debt to Sales Ratio
  4. Personal Credit Bureau Information
  
     
  What interest rate options are available through Chase McDonald's Finance?  
  Chase currently offers both floating and flexible fixed rate options. To see today's rates, click here.  
     
  Are there breakage costs associated with early repayment of loans?  
  Floating rate loans may be prepaid at any time without a penalty. You may prepay fixed rate notes in full throughout the life of the loan; however, a breakage cost may be charged at the time of payment. Partial prepayments are not allowed on fixed rate loans.  
     
  What steps should I take to refinance an existing fixed rate loan in order to take advantage of lower rates?  
 

The first step is to contact your Relationship Manager to determine if you would have a breakage fee. The second step is to consult with your accountant and determine whether or not the new rate, considering the breakage fee, would financially benefit you.

Once you have completed both steps, you should complete a loan request attaching the appropriate information listed on the checklist and send it to Chase for evaluation and approval.

 
     
  How may I obtain a breakage fee quote?  
  Your Chase Relationship Manager can quote a breakage fee on any business day. The amount quoted is only applicable for a period of 4 days. After 4 days, it is necessary for you to obtain an updated quote. (For an explanation of the calculation, please refer to the Fixed Rate Option page of this website.)  
     
  How are my floating rate loan payments calculated?  
  On floating rate loans, you will have a fixed payment. The amortization rate is established at the time your loan funds, so that you know the exact payment amount being ACH debited from your account each month. However, you have a variable or floating rate that typically fluctuates at a lower rate than your payment rate, which allows for more of your payment to be put toward the principal portion of your loan automatically.  
     
  How are my fixed rate loan payments calculated?  
  Chase uses a program that calculates a “best fit” payment on fixed rate loans to help reduce potential balloon payments.  
     
  Does Chase check personal credit bureaus?  
  Yes, Chase may check your personal credit rating to determine approval.  
     
  What information will be disclosed to McDonald’s Corporation?  
  We verify certain information in your loan request, such as: license expiration, franchise agreement dates, names on franchise agreements, etc. The financial statements that you submit and your transaction file are not shared with McDonald’s Corporation, unless you become delinquent on your loan.  
     
  How often are financial statements required?  
  Franchisees must provide Chase with copies of their consolidated and individual financial statements (P&Ls and Balance Sheets) on an annual basis. As stated in the loan documents, these statements are due 120 days after the franchisee’s year-end. A penalty fee may be assessed for not complying with this requirement.  
     
  Is it possible to cross-collateralize my restaurants and use equity in one store to purchase another?  
  Chase will allow the use of the equity in one restaurant to act as the capital contribution in acquiring an additional restaurant(s).  
     
  How long does it usually take to process a loan request?  
  Generally, it takes less than two weeks to process a loan request upon receipt of a completed loan request. The approval notification usually takes 3 business days, but the funding date is dependent upon receipt of the required information.  
     
  How do I borrow from my line of credit?  
 
  • First time to draw on line of credit, click here for request form.
  • For all subsequent draws:
    • Dial 800.543.4622
    • Selection Option 1 and then Option 4
    • Enter your nine digit Obligation number (previously your Note number) plus #
    • Enter your six digit PIN plus #
    • Enter the requested dollar amount without decimals or cents plus # (this must be a minimum of $2,500)
    • The system will process the information and give you a confirmation number for your records. Requests received before noon, Central Time, will be disbursed the next business. Requests received after noon will be processed the following business day.
 
     
  What steps do I take to convert my floating rate loan to a fixed rate?  
 
  • Call your Relationship Manager to obtain a quote on the current fixed interest rate options and choose the rate you prefer from those available at that time.
  • You will be faxed a document that requires your signature giving your Relationship Manager the authority to change the rate and payment on your loan.
  • You must sign that document and return it within 24 hours, or the quoted rate will expire.
  • Once the Relationship Manager has received the faxed document, your rate is processed and is ‘officially’ changed on the next 20th of the month (your next payment date).
  
     
  Can I lock a fixed rate for a future funding?  
  Rate locks are available. Please call your Relationship Manager at 1-800-543-4622 for a quote.  
     
  Are lines of credit available?  
 
  • Chase offers a $25,000 working capital line of credit for each full-size/conventional restaurant.
  • Walmart and other satellite stores do not qualify for this option.
  
     
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