How to Finance a 3 Pepper Burrito Franchise: Costs and SBA
By Marc Cornella
A 3 Pepper Burrito franchise loan finances something fairly specific: a small, fast-casual burrito shop built around tortillas pressed fresh in front of guests, house-made salsas and a menu of burritos, tacos and bowls. The brand is young as a franchise system and still concentrated in Southwest Florida, so lenders tend to look harder at the buyer, the site and the budget than they would for a national chain.
This article explains how financing a 3 Pepper Burrito restaurant typically works: what the franchisor’s disclosure document needs to tell you, what a build-out of this kind involves, how the brand’s SBA Franchise Directory listing helps and how lenders size a request when public cost data is limited.
US Professional Funding is not affiliated with, sponsored by or endorsed by 3 Pepper Burrito; the name is used only to describe the business. Fees, costs and requirements come from the franchisor’s disclosure document and can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so review the current Franchise Disclosure Document (FDD) with a franchise attorney and accountant before you commit.
3 Pepper Burrito Franchise Loan at a Glance
- Concept: made-from-scratch burritos, tacos and bowls, with tortillas pressed on site and house-made salsas, served in a casual, industrial-style dining room.
- System size: the company’s website lists eight locations, all in Southwest Florida.
- Franchise fee, royalty and total investment: not published on the brand’s consumer website; request the current FDD and read Items 5, 6 and 7.
- Franchisor positioning: the brand markets its franchise as starting with lower initial costs than a typical burrito chain, without publishing dollar figures on its consumer site.
- Extra revenue lines: catering, fundraisers, gift cards and an app-based rewards program.
- SBA Franchise Directory: listed under code S7091 with no additional directory notes.
What Is 3 Pepper Burrito?
3 Pepper Burrito Co. is a Southwest Florida burrito brand that describes itself as the “home of healthy burritos.” The company’s story centers on a lifelong love of cooking and on travels through Central and South America in search of ingredients, which became a scratch-made menu and a secret family tortilla recipe.
The restaurants are counter-service shops where tortillas are made from scratch in front of customers. Guests order burritos, tacos and bowls, including a “walking taco,” for dine-in, pickup or delivery through online ordering. The brand also runs catering for offices and parties and hosts fundraisers for local groups.
Footprint. The company’s locations page lists Port Charlotte, Lehigh Acres, Cape Coral, Estero and four Fort Myers restaurants. That concentration matters to a lender, because the brand does not yet have a long record in other regional markets.
How lenders view the brand. An emerging franchise with an SBA directory listing is financeable, but lenders lean more on the borrower’s own strength. Expect questions about restaurant experience, the depth of franchisor support and how the projected sales for your site were built.
3 Pepper Burrito Franchise Costs
The brand does not publish its fee schedule or investment range on its consumer website, so the FDD is your only reliable source. Item 7 of the FDD lays out the estimated initial investment line by line, and lenders build their loan request from that table plus actual contractor and landlord quotes.
Initial franchise fee. Item 5 states the fee, when it is due, whether it is refundable and whether any multi-unit or development fee applies. Lenders typically expect the franchise fee to come largely from the buyer’s own funds.
Real estate and build-out. Most fast-casual restaurants of this type lease an inline or end-cap space in a strip center. Build-out can include plumbing, grease management, hood and ventilation, electrical upgrades, flooring, a service line and the open tortilla station that defines the concept. Landlord tenant-improvement allowances can reduce what you borrow. Our article on financing a restaurant build-out explains how lenders treat these costs.
Equipment. Expect a tortilla press, flat-top griddle, steam wells and a hot line, prep tables, walk-in or reach-in refrigeration, freezer space, a dish area, point-of-sale terminals and online-ordering hardware.
Opening costs and working capital. Item 7 normally includes opening inventory, training travel, grand-opening marketing, deposits, licenses and an “additional funds” reserve for the first months. Lenders often want a reserve beyond that figure for a new brand.
Total investment. When you receive the FDD, check that the Item 7 lines below add up to the stated total:
- Initial franchise fee
- Leasehold improvements and construction
- Kitchen equipment, furniture and fixtures
- Signage and décor
- Technology, point-of-sale and online ordering
- Opening inventory and supplies
- Training expenses
- Grand-opening marketing
- Deposits, licenses, permits and insurance
- Professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any brand or advertising fund contribution, local marketing requirements, technology fees, training fees for new managers, transfer and renewal fees and any required remodels.
Why lenders care. Royalties and fund contributions come off the top of sales before rent, payroll and food costs. A lender reviewing a 3 Pepper Burrito franchise loan and projecting debt service coverage will subtract every percentage-of-sales fee, then test whether the remaining cash flow comfortably covers the loan payment.
Food and labor. Scratch cooking means more prep labor than an assembly-only concept. Build projections that reflect fresh tortillas, salsas and catering production, not a generic quick-service labor ratio.
Remodels. Check whether the franchise agreement requires periodic refreshes; lenders will model that cost.
Franchisor Requirements for New Owners
3 Pepper Burrito does not publish minimum net worth or liquid capital requirements on its consumer website. The FDD and the franchisor’s application will set those thresholds, along with any experience standards, ownership rules and training obligations.
The approval process. Expect an inquiry, an application with a personal financial statement, a review of the FDD, discovery conversations with the franchise team and existing owners, and site approval before signing. Coordinate your financing timeline with that process.
Ways to Own a 3 Pepper Burrito
A new restaurant. Most candidates will open a new unit in a new market. Lenders underwrite these on projections, the franchisor’s support and your experience, which is why a strong business plan matters. Our restaurant start-up financing page covers the basics.
Buying an existing restaurant. If a franchised location comes up for sale, the buyer can finance it on actual results, subject to the franchisor’s transfer approval. Read our guide to buying a franchise resale before you make an offer.
Multiple units. Ask whether the FDD offers a development agreement for several restaurants and what the opening schedule and fees look like.
Financing Options for a 3 Pepper Burrito Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan is often the first option a buyer explores. It can cover the franchise fee, build-out, equipment and working capital in one package.
SBA 504 loans. If you buy the building or land for a restaurant, an SBA 504 loan can finance owner-occupied real estate and long-lived equipment.
Conventional term loans. A conventional business loan can make sense for experienced operators with strong collateral, especially when the deal falls outside SBA rules.
Equipment financing. The tortilla press, griddle, refrigeration and hot line can be financed separately through restaurant equipment financing and leasing, which can preserve cash for opening.
Working capital and lines of credit. Catering orders, fundraiser nights and seasonal swings in Southwest Florida traffic can create uneven cash flow. A line of credit or restaurant working capital can cover food purchases, payroll and the ramp-up period.
Seller financing on resales. When buying an existing restaurant, a seller may carry part of the price. A seller note is typically subordinate to the senior loan, and lender programs may limit how it is structured.
SBA Loans for 3 Pepper Burrito Franchisees
SBA lenders use the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for eligibility. 3 Pepper Burrito appears on the directory under code S7091 with no special notes, which means a lender can generally move ahead with the standard SBA franchise review without extra brand-specific addenda.
A listing does not approve any borrower. You still need to meet the lender’s credit, collateral, equity and experience standards, and the restaurant’s projections still need to support repayment. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA application tips. Give the lender the full FDD, the signed or draft franchise agreement, the lease or letter of intent, construction bids, equipment quotes and a month-by-month projection. Our SBA loan calculator can help you estimate payments for planning; it is not an offer or approval.
How Lenders Evaluate a 3 Pepper Burrito Deal
Personal credit and financial history. Expect a review of credit reports, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Lenders look at the cash you inject and the reserves left after closing. For a 3 Pepper Burrito franchise loan, with an emerging brand, extra liquidity can offset limited system history.
Industry and management experience. Restaurant management experience, especially in fast casual or catering, carries real weight.
Business plan and projections. Build projections around a scratch kitchen, the share of sales you expect from catering and delivery, local competition and the time it takes a new restaurant to build a following.
The FDD and franchise agreement. Lenders read the term, renewal and transfer terms in Item 17, any franchisor financing in Item 10 and whether Item 19 includes financial performance representations. Our article on how lenders read an FDD walks through each item.
Site and lease. The lease term, renewal options, rent, tenant-improvement allowance and co-tenancy all affect approval.
Historical financials for resales. Expect to provide several years of the restaurant’s statements and sales reports.
Kitchen and Equipment Considerations
The open tortilla station is part of the guest experience, so it shapes the layout as much as the menu. Plan for ventilation, prep space for salsas and fillings, and enough cold storage for fresh produce.
Equipment financing often fits these assets because their useful life can match the loan term. Lenders use quotes and model numbers to set advance amounts.
Multi-Unit Growth and Development Agreements
A first restaurant’s track record is the best support for a second. Lenders will review that restaurant’s results, the cash flow left after the first loan and the management team that will run both locations.
If you sign a development agreement, the opening schedule becomes a financing schedule. Plan each loan request around it. Read more in our guide to multi-unit franchise financing.
Real-World Scenarios
A restaurant manager opening a first unit. A manager with years of fast-casual experience opens a new restaurant using an SBA 7(a) loan that combines the franchise fee, build-out, equipment and working capital, with the lender leaning on that experience and a detailed projection.
A buyer acquiring an existing location. A buyer purchases a franchised restaurant from its owner, finances the price on the restaurant’s history and keeps a reserve for staffing changes.
An owner adding a second unit. An owner with a stable first restaurant finances a second location, and the lender reviews both restaurants’ combined cash flow.
Common Mistakes to Avoid
- Assuming a marketing claim about lower startup costs replaces a line-by-line Item 7 budget
- Signing a lease before the franchisor and lender have reviewed it
- Underestimating labor for a scratch kitchen
- Leaving too little working capital for a slow opening season
- Ignoring the risk of opening in a market where the brand has no restaurants yet
- Treating the SBA directory listing as a loan approval
For more pitfalls, see the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your 3 Pepper Burrito Franchise
Step 1: Request the FDD. Get the current disclosure document and read Items 5, 6, 7, 10, 17 and 19.
Step 2: Talk with existing owners. Ask about build-out time, staffing, catering demand and franchisor support.
Step 3: Build your budget. Turn Item 7 into a sources-and-uses table using real quotes.
Step 4: Find and evaluate a site. Have the lease or letter of intent reviewed by the franchisor, your attorney and your lender.
Step 5: Prepare a business plan. Include projections, your experience and a staffing plan.
Step 6: Apply for financing. Submit your loan package and keep the lender’s timeline aligned with franchisor approvals.
3 Pepper Burrito Franchise Loan FAQs
How much does a 3 Pepper Burrito franchise cost?
The brand does not publish its investment range on its consumer website. Item 7 of the current FDD gives the estimated initial investment and its line items.
What is the 3 Pepper Burrito franchise fee?
The initial franchise fee is disclosed in Item 5 of the FDD. Request the current document for the exact amount and any multi-unit terms.
What royalty does 3 Pepper Burrito charge?
The royalty and any advertising or brand fund fees are listed in Item 6 of the FDD.
Is 3 Pepper Burrito eligible for SBA loans?
Yes. The brand is listed on the SBA Franchise Directory under code S7091, which lets SBA lenders consider loans for its franchisees. Each borrower still needs approval.
Can I get a 3 Pepper Burrito franchise loan as a first-time owner?
Yes, if the franchisor approves you and you meet lender standards. Restaurant management experience and solid liquidity help most.
How much liquid capital do I need?
The franchisor does not publish its requirement on its consumer website. Ask for the current financial qualifications and plan for both your equity injection and post-closing reserves.
Can I finance the kitchen equipment separately?
Often, yes. Equipment financing can cover the tortilla press, griddle, refrigeration and other kitchen equipment.
Can I buy an existing 3 Pepper Burrito?
If a franchised location is for sale, a buyer can finance it with franchisor approval. Lenders will review the restaurant’s actual financial history.
Does 3 Pepper Burrito offer financing?
Check Item 10 of the FDD, which discloses any financing the franchisor offers.
How long is the franchise term?
Item 17 of the FDD lists the term, renewal rights and transfer conditions. Lenders generally want the remaining term to cover the loan.
What documents do lenders need?
Expect tax returns, a personal financial statement, the FDD, franchise agreement, lease or letter of intent, construction and equipment quotes, a business plan and projections.
Final Thoughts
A successful 3 Pepper Burrito franchise loan means pairing a young, regionally concentrated brand with a well-prepared borrower. The SBA directory listing opens the door to SBA 7(a) financing, but your experience, liquidity, site and a carefully built Item 7 budget are what get a loan approved.
US Professional Funding helps franchise buyers and owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
