How to Finance a Fastest Labs Franchise: Drug and DNA Testing
A Fastest Labs franchise loan funds a testing office that serves employers and individuals with drug and alcohol screening, DNA and paternity testing, and related services such as background checks. Compared with many healthcare franchises, the space is small and the equipment list is short, so the financing questions center on the franchise fee, required marketing and the time it takes to win business accounts.
This article reviews the costs and fees in the brand’s most recent disclosure document, the regulatory and cash flow points lenders consider, and the loan options an owner can compare. US Medical Funding is not affiliated with, sponsored by or endorsed by Fastest Labs; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, every loan is subject to approval, and nothing here is legal, tax, billing or compliance advice.
Fastest Labs Franchise Loan at a Glance
- Franchisor: Fas-Tes Franchise Systems, LLC, a Texas company headquartered in San Antonio
- Franchising since: October 2010
- Initial franchise fee: $59,500 for a standard territory, according to the 2025 Franchise Disclosure Document, with mid-size and large territory options
- Estimated initial investment: $130,500 to $199,500 for a standard territory
- Royalty: the greater of 7% of gross revenue or a monthly minimum
- National brand fund: 2% of gross revenue
- Required internet marketing: an $18,000 prepayment before opening, then a monthly program fee
- Franchisor financing: a deposit agreement may be offered toward the franchise fee; no other financing
- SBA Franchise Directory: listed under code S2184
What Is Fastest Labs?
Fastest Labs offices provide drug testing and related services to commercial businesses and individuals. The 2025 disclosure document lists DNA and paternity testing, alcohol testing, random drug and alcohol testing programs, customized administrative services for employer testing programs, physical testing and background checks.
The franchisor was formed in Texas in July 2010 and has offered franchises since October 2010. An affiliate has operated a similar business at the San Antonio headquarters address since August 2008.
For lenders, the model looks like a business-to-business service with a healthcare compliance layer. Much of the revenue comes from employers that need pre-employment, random or post-incident testing, so sales skills and account retention matter as much as the testing itself.
Regulation and Licensing
The disclosure document notes several regulatory points. Some states require certification before an office can administer instant drug screens, and some states prohibit them. Some states require special licenses or licensed professionals for certain services. Federal transportation rules govern drug testing laboratories and specimen collection for covered employers, and workplace safety rules may also apply.
These rules affect financing in two ways. They can limit which services an office may offer in a given state, and they can add training or certification steps before opening. Owners should confirm their state’s requirements before signing a lease. Our article on compliance risks lenders review in toxicology testing shows how regulation enters a lender’s analysis, even though a Fastest Labs office is a collection and screening business rather than a laboratory.
Fastest Labs Franchise Costs
Initial Franchise Fee by Territory Size
Territories are sized by the number of businesses they contain. According to the 2025 disclosure document:
- Mid-size territory (up to 8,499 businesses): $45,500
- Standard territory (8,500 to 12,000 businesses): $59,500
- Large territory (over 12,000 and up to 14,000 businesses): $80,500
Qualifying honorably discharged veterans receive $1,500 off a first franchise.
Space and Build-Out
A testing office needs a reception area, private collection rooms and restrooms suitable for specimen collection. The disclosure document estimates $5,000 to $25,000 for leasehold improvements, assuming a second-generation space and a negotiated tenant improvement allowance, plus $2,500 to $15,000 for lease, utility and security deposits.
Equipment and Technology
Initial testing equipment is estimated at $3,500 to $5,000, office equipment at $3,500 to $6,500 and computer hardware and software at $6,000 to $7,500. The equipment needs are modest compared with clinical laboratories.
Marketing and Working Capital
The required internet marketing prepayment of $18,000 is a large fixed item, and additional funds for three months are estimated at $20,000 to $40,000.
Item 7 Line Items for a Standard Territory (2025 FDD)
- Initial franchise fee: $59,500
- Airfare and living expenses while training: $1,000 to $1,500
- Leasehold improvements and build-out: $5,000 to $25,000
- Lease and utility or security deposits: $2,500 to $15,000
- Exterior signage and installation: $5,000 to $9,000
- Office equipment: $3,500 to $6,500
- Initial testing equipment: $3,500 to $5,000
- Insurance and miscellaneous opening expenses: $5,500 to $11,000
- Computer hardware and software: $6,000 to $7,500
- Start-up kit and uniforms: $1,000 to $1,500
- Internet marketing (search, keywords and social media): $18,000
- Additional funds for three months: $20,000 to $40,000
- Total: $130,500 to $199,500
Item 7 puts a large territory at $151,500 to $220,500 and a mid-size territory at $116,500 to $185,500.
Ongoing Fees and How They Affect Your Loan
Item 6 of the 2025 disclosure document lists these main recurring fees:
- Royalty: the greater of 7% of gross revenue or the minimum royalty
- Minimum royalty: waived for the first 6 months, then $500 per month for months 7 to 36 and $1,225 per month after month 36
- National brand fund: 2% of gross revenue
- Internet marketing program: $1,500 per month for the first 12 months, then $1,200 per month, which can rise back to $1,500 if a performance standard is not met
- Technology fee: $200 per month
- Lab management software: $109 per month for one tablet and $20 per month for each additional tablet
- Web platform fee: $200 per month
- Transfer fee: $15,000 plus $7,500 toward professional fees and costs
- Renewal fee: $10,000
Several of these fees are fixed monthly amounts, so they weigh most heavily in the early months when revenue is still building. A lender will add the fixed marketing, technology and software fees to rent and payroll to find the monthly breakeven, then test whether loan payments fit on top. The disclosure document also describes liquidated damages if the agreement ends early, so read that section with an attorney before borrowing.
Working Capital and Account Billing
Employer accounts are often invoiced rather than paid at the counter, so an office can carry receivables while still paying staff and supply costs. Our page on lab working capital and lines of credit explains how owners fund that gap.
Franchisor Requirements for New Owners
From the disclosure document, a new owner should be ready to:
- Pay the initial franchise fee for the chosen territory size
- Prepay the $18,000 internet marketing program before opening
- Meet state certification or licensing rules for the services offered
- Complete initial training and budget for travel
- Spend at least $300 on grand opening advertising within the required window
We could not verify a minimum net worth or liquid capital requirement from the franchisor’s own materials, so ask the franchisor for its current qualifications.
Ways to Own a Fastest Labs Franchise
A New Office
Most owners open a new office. Financing usually covers the fee, build-out, marketing prepayment and a working capital reserve. Our page on lab and testing start-up financing covers this structure.
Buying an Existing Office
A resale comes with employer accounts and a payment history, which can make underwriting easier. It requires franchisor approval and the transfer fee. Buyers should review account concentration and contract terms. See our page on lab and testing business acquisition loans.
Area Development
An area developer can commit to two to five standard territories. The cumulative development fee is $115,000 for two, $167,500 for three, $217,000 for four and $264,500 for five, and Item 7 estimates $191,000 to $440,500 in total investment for an area developer.
Financing Options for a Fastest Labs Franchise
SBA 7(a) Loans
An SBA 7(a) loan can combine the franchise fee, leasehold work, equipment, marketing prepayment and working capital. The program maximum is currently $5 million, well above what one office typically needs.
Conventional Loans
Owners with existing businesses or strong liquidity may consider conventional loans, particularly when adding a second territory.
Franchisor Deposit Agreement
Item 10 says the franchisor may offer a deposit agreement, with deposits generally of $15,000 to $30,000 applied toward the franchise fee or development fee. The initial deposit is nonrefundable, and no interest is charged on the balance. This is not a loan for the rest of the investment, so outside financing is still needed.
Seller Financing on Resales
When buying an existing office, the seller may carry a note for part of the price. With an SBA loan, the seller note is typically subordinate and program rules may limit it.
SBA Loans for Fastest Labs Franchisees
Fastest Labs is listed on the SBA Franchise Directory under code S2184. The directory note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the brand’s lease addendum and collateral assignment of lease may not be executed. In plain terms, if an owner buys the building and pledges it as collateral, those lease documents that normally give the franchisor rights over a leased site should not be used.
Most offices lease space, so this mainly matters to owners who plan to buy property. Tips for a Fastest Labs franchise loan application:
- List target employers and industries in your territory
- Show the fixed monthly fees in your projections
- Confirm which services your state allows before projecting revenue
- Document the source of your equity contribution
How Lenders Evaluate a Fastest Labs Deal
Credit and Financial History
Lenders review credit reports, tax returns and debts for every owner who will guarantee the loan.
Liquidity
Owners need cash for the equity contribution and reserves to cover the fixed fees and payroll while employer accounts build.
Sales and Management Experience
Because growth depends on winning business accounts, a background in sales, human resources, safety or healthcare can strengthen a Fastest Labs franchise loan request.
Projections
Credible projections show the number of accounts, expected tests per month, walk-in DNA and paternity work, staffing and the minimum royalty schedule.
The FDD and Franchise Agreement
Lenders read the fee sections, territory terms and early termination provisions. Review Item 19 to see whether the disclosure document includes financial performance representations, and Items 3 and 4 for any litigation or bankruptcy history.
Site and Lease
Lenders check the lease term, accessibility for walk-in clients and whether the space meets collection privacy needs.
Multi-Unit Growth
Owners who plan more than one territory usually finance the first office, build accounts, then apply for the next. Lenders find a second loan easier to support when the first office shows steady account revenue. Our page on testing business expansion financing explains how lenders view growth.
Real-World Scenarios
A human resources professional opening an office. A former HR manager with employer contacts opens a standard territory office financed with an SBA 7(a) loan and focuses on pre-employment testing accounts.
A healthcare business owner adding testing. The owner of a related health business compares this model with adding employer services to a clinic, a path covered in our article on occupational medicine expansion, before choosing a franchise.
A buyer purchasing an existing office. A buyer acquires an office with established employer accounts using an SBA loan and a subordinate seller note.
Common Mistakes to Avoid
- Projecting services your state restricts
- Overlooking the fixed monthly marketing and technology fees
- Underestimating how long it takes to sign employer accounts
- Spending the reserve on build-out overruns
Our list of lab loan mistakes covers more pitfalls.
Next Steps to Finance Your Fastest Labs Franchise
Step 1: Read the disclosure document. Review Items 5, 6, 7, 10, 12 and 19 with an attorney and accountant.
Step 2: Choose a territory size. Compare the fees and investment for mid-size, standard and large territories.
Step 3: Confirm state rules. Learn which testing services are allowed and what certifications are needed.
Step 4: Build projections. Include accounts, test volumes, fixed fees and the minimum royalty.
Step 5: Estimate payments. Try different loan amounts with our SBA loan calculator.
Step 6: Gather documents and apply. Prepare tax returns, a personal financial statement, the franchise agreement and a lease or letter of intent.
Fastest Labs Franchise Loan FAQs
How much does a Fastest Labs franchise cost?
The 2025 disclosure document estimates $130,500 to $199,500 for a standard territory, $116,500 to $185,500 for a mid-size territory and $151,500 to $220,500 for a large territory.
What is the Fastest Labs franchise fee?
$45,500 for a mid-size territory, $59,500 for a standard territory and $80,500 for a large territory.
What is the royalty?
The greater of 7% of gross revenue or a minimum royalty, which is waived for 6 months, then $500 per month through month 36 and $1,225 per month afterward.
Does Fastest Labs offer financing?
Only a deposit agreement that applies deposits toward the franchise or development fee. The franchisor does not offer other financing or guarantee loans or leases.
Is Fastest Labs eligible for SBA loans?
The brand is listed on the SBA Franchise Directory under code S2184. Each loan is still subject to lender approval.
Do I need a medical background?
Ask the franchisor about its owner qualifications. Separately, the disclosure document notes that some states require certifications or licensed professionals for certain services, so confirm your state’s rules.
Can I own more than one territory?
Yes. Area developers can commit to two to five standard territories, with a cumulative development fee starting at $115,000 for two.
Final Thoughts
A Fastest Labs franchise loan is a relatively modest healthcare-related loan, but it carries fixed marketing and technology costs from day one and depends on winning employer accounts. Owners who check state rules, model the fixed fees carefully and keep reserves after opening put themselves in a stronger position with lenders.
US Medical Funding helps testing and laboratory business owners finance startups, acquisitions and growth, including franchise locations. Learn more about our lab and pathology facility financing.
