How to Lease Display Refrigerators & Coolers for Food Franchises

In the food service industry, display refrigerators and coolers are more than just equipment—they’re part of your brand experience. Customers expect to see chilled drinks, desserts, and grab-and-go items presented clearly and attractively. But these essential units can cost anywhere from $2,000 to $15,000+ each, and food franchises often need several.

Instead of making large upfront purchases, many franchise owners turn to equipment leasing to keep costs manageable while staying compliant with franchise standards.

Why Leasing Makes Sense for Food Franchises

• Lower Upfront Costs – Avoid a big lump sum purchase.

• Cash Flow Flexibility – Spread payments into predictable monthly installments.

• Upgrade Opportunities – Switch to energy-efficient models when your lease ends.

• Franchise Compliance – Many leases can be structured to cover equipment required by franchisors.

• Tax Advantages – Lease payments may be deductible as operating expenses.

Types of Display Refrigeration Equipment You Can Lease

✔ Glass-Door Merchandising Coolers – For beverages, dairy, and grab-and-go foods.
✔ Open-Air Coolers – Perfect for salads, sandwiches, and impulse buys.
✔ Bakery Display Refrigerators – Showcase desserts and chilled baked goods.
✔ Undercounter Coolers – Save space in compact franchise layouts.
✔ Walk-In Coolers – Store bulk perishable inventory.

Leasing Options Available

1.  Operating Lease

• Lowest monthly payments.

• Equipment returned at the end of the lease.

• Best if you plan to upgrade regularly.

2. Capital Lease (Lease-to-Own)

• Higher monthly payments.

• Ownership transfers at lease end.

• Best for long-term equipment that holds value.

3. Seasonal Payment Plans

• Payments structured around peak sales seasons.

• Ideal for franchises with fluctuating revenue cycles.

Example Leasing Scenario

A frozen yogurt franchise needs:

• 3 Glass-Door Merchandisers @ $3,500 each = $10,500

• 2 Open-Air Coolers @ $6,000 each = $12,000

Total Equipment Cost: $22,500

With a 5-year operating lease, payments could be around $480/month.
If each unit helps generate $1,500+ in monthly sales, leasing pays for itself many times over.

Tips for Successful Equipment Leasing

✔ Confirm with your franchisor that the leased equipment meets brand requirements.
✔ Bundle multiple units into a single lease for better terms.
✔ Compare leasing companies that specialize in restaurant and food service equipment.
✔ Factor in delivery, installation, and warranty service into your lease agreement.
✔ Evaluate energy efficiency—newer coolers lower utility costs and increase ROI.

Final Thoughts

Leasing display refrigerators and coolers is a cost-effective strategy for food franchises looking to expand, remodel, or launch new locations. With flexible terms, tax benefits, and upgrade options, leasing ensures you can meet franchise requirements while keeping cash flow strong.