Hi everyone, new guys here and really needing/wanting some guidance from some professionals out there regarding financing of a franchise. We are looking to purchase an existing franchise (Quick Serve Restaurant) with a 10 year operating history in a major regional mall. The current owner is asking 400k. We have 60k (15%) in cash to put down on the business and are seeking the finance the balance of 85%... Some of our resources are telling us that this will be very difficult to do with this little personal commitment and have suggested asking the current owner to possibly carry a subordinated note for 10 or 15%...however, this is not our first choice of options... Does anyone have any thoughts on this and/or resources for financing franchises with minimal money down for a first-time acquisition? Also, what is generally considered a minimum amount of personal commitment money for a first time business acquisition? Thanks...

To further elaborate:

The franchise is a co-brand situation grossing 700K+ yearly and in looking at the last 4 years of tax returns, the net is showing an avg of 167K over those 4 years.