This is actually 10x better than most drawn sprites. Just go to the amateur+child art section and feel 10x better.
You have to split each frame into an image type that works in fighter factory, like .png, .pcx

My ghetto way of doing it is uploading a gif to https://ezgif.com/maker
Downloading each frame that comes up (or download the webpage as a whole if I don't feel like clicking a bunch)
Go to https://cloudconvert.com/gif-to-png and upload each new gif you've obtained and convert it and bam. No you can put it in fighter factory.