How to Finance a Grabbagreen Franchise: Eat Clean Startup Costs
By Chris Cornella
A Grabbagreen franchise loan pays for a quick-service restaurant that sells grain and green bowls, wraps, fresh-pressed juices, smoothies and acai bowls under the brand’s “Eat Clean” menu. Because most of the startup budget goes into leasehold improvements and kitchen equipment for a leased storefront, the financing plan is really a build-out and equipment plan with a working capital cushion attached.
US Professional Funding is not affiliated with, sponsored by or endorsed by Grabbagreen; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you commit.
Grabbagreen Franchise Loan at a Glance
- Concept: a quick-service restaurant built around made-to-order bowls, wraps, juices, smoothies, acai bowls, breakfast items and kids’ options.
- History: founded in 2013 by two mothers; nationwide franchising launched in 2015, and the brand joined a larger multi-brand restaurant franchisor in 2018.
- Initial franchise fee: $16,000 to $30,000, paid in a lump sum when the franchise agreement is signed, according to the franchisor’s startup cost table.
- Estimated initial investment: $283,500 to $640,575 for a traditional restaurant with a new build-out, excluding real estate and rent other than the initial security deposit.
- Royalty and marketing fees: disclosed in Item 6 of the current FDD; we could not verify current rates from the franchisor’s own pages, so confirm them in the document.
- Net worth and liquidity: the inquiry form asks for your approximate net worth, but the franchisor’s pages publish no fixed minimum.
- SBA Franchise Directory: listed as “grabbagreen” under code S2010, with no additional directory note.
What Is Grabbagreen?
Grabbagreen was founded in 2013 by two mothers who found it hard to feed their families healthy food on the go. The brand pairs the speed and convenience of fast food with whole-food meals built on superfood ingredients, and it trademarks its menu approach as “Eat Clean.”
Growth and ownership. According to the company, the concept reached three stores in under two years, and founder Keely Newman launched nationwide franchising in 2015. In 2018, Grabbagreen joined a larger multi-brand restaurant franchisor based in Scottsdale, Arizona, which supports training, real estate and franchise development.
The menu. Signature items are made to order: grain- and green-based bowls that can also be served as wraps, fresh-pressed juices, handcrafted smoothies, acai bowls, breakfast items and kid-friendly choices.
Why lenders view it the way they do. Lenders see a leased quick-service footprint, an equipment package with resale value and a franchisor backed by a larger restaurant organization. The trade-offs are reliance on health-conscious traffic and a build-out budget that varies widely by site.
Grabbagreen Franchise Costs
The franchisor publishes its estimated initial investment for a traditional restaurant with a new build-out. Costs vary by location, so treat every range as a starting point for your own budget.
Initial franchise fee. The fee ranges from $16,000 to $30,000 and is due in a lump sum when you sign the franchise agreement. Lenders usually expect the fee to come from the buyer’s own funds or be included in the overall project budget.
Real estate and build-out. Grabbagreen units occupy leased space, and the table excludes real estate and rent apart from the security deposit. Leasehold improvements, from $122,000 to $322,000, are the single largest line item, followed by architectural fees. Because this range is so wide, a signed letter of intent and a contractor bid usually drive the final loan amount.
Equipment, furniture and signage. Restaurant equipment, furniture, smallwares, interior signage and menu panels run $80,000 to $149,000. Exterior signage adds $7,500 to $17,000, and computer hardware, software and the point-of-sale system add $5,000 to $7,500.
Total investment. The franchisor lists the following line items, totaling $283,500 to $640,575:
- Initial franchise fee: $16,000 to $30,000
- Lease review fee: up to $2,500
- Rent and security deposit: $10,000 to $20,000
- Travel and living expenses for two people during training: $2,500 to $5,000
- Architectural fees: $7,500 to $26,000
- Leasehold improvements: $122,000 to $322,000
- Restaurant equipment, furniture, smallwares, interior signage and menu panels: $80,000 to $149,000
- Exterior signage: $7,500 to $17,000
- Computer hardware, software and POS system: $5,000 to $7,500
- PCI compliance: $150 to $1,300
- Opening inventory (food and paper): $2,500 to $7,000
- Business insurance: $1,150 to $2,700
- Miscellaneous opening costs: $1,200 to $17,500
- Grand opening marketing: $10,000
- Depository account: $3,000
- Data fees: up to $75 per month
- Additional funds (three months): $15,000 to $20,000
If you plan to finance construction, our page on financing a restaurant build-out explains how lenders handle contractor draws and cost overruns.
Ongoing Fees and How They Affect Your Loan
Royalty and brand marketing. The franchisor’s getting-started page says ongoing royalty fees are disclosed in the FDD, which you receive after financial screening. Read Item 6 for the royalty rate, any brand or advertising fund contribution and local marketing requirements, then build each into your projections as a percentage of sales.
How lenders factor these costs in. Royalty and marketing fees come off the top of every sales dollar before rent, labor, food cost and debt service. Lenders subtract them first, then test whether what remains covers your loan payment.
Franchisor Requirements for New Owners
The franchisor’s pages do not publish a minimum net worth or liquid capital figure. The inquiry form asks for your approximate net worth, and financial screening comes before you receive the FDD, so expect the franchise development team to review your finances early.
The approval process. According to the franchisor, you start with an exploration call with a development manager, complete financial screening, receive the FDD and then talk with the support team about the business model and training.
Training. New owners attend 4.5 days of classroom training in Scottsdale, Arizona, then 3 days (24 hours) of in-store training about 30 to 45 days before opening.
Site approval. After you sign, you submit a site packet with your broker’s help, and only after the site is authorized do you start the lease and construction.
Ways to Own a Grabbagreen
A new restaurant. Most new owners build a unit in leased space, financed on projections, the build-out budget and your equity. See our overview of franchise start-up financing.
Buying an existing restaurant. A resale gives a lender real sales history, subject to franchisor transfer approval. Our page on franchise restaurant acquisitions covers how these purchases are structured.
More than one unit. Owners who want several restaurants should ask whether the franchisor offers a development agreement and how fees are scheduled. Each added unit typically needs its own financing.
Financing Options for a Grabbagreen Franchise
SBA 7(a) loans. Because Grabbagreen appears on the SBA Franchise Directory, an SBA 7(a) loan is often the first option buyers explore for a combined package of build-out, equipment, the franchise fee and working capital.
SBA 504 loans. The SBA 504 program is designed for owner-occupied real estate and long-lived fixed assets. Since Grabbagreen units are usually leased storefronts, 504 fits only if you buy the building or finance a substantial package of fixed assets.
Conventional term loans. Buyers with strong credit and liquidity, or existing restaurant owners, may prefer a conventional business loan; terms and collateral vary.
Equipment financing. Commercial juicers and cold presses, high-speed blenders, refrigerated prep tables, walk-in coolers and freezers, display cases and the POS system can be financed separately, which can preserve cash for the build-out. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. The franchisor’s budget includes three months of additional funds, but produce costs, staffing during the ramp-up and slower seasons can stretch that reserve. A line of credit can help. See our options for restaurant working capital.
Seller financing on resales. When buying an existing unit, a seller may agree to carry part of the price. A seller note is typically subordinate to the senior loan, and SBA and other loan programs may limit how it is structured.
SBA Loans: Is a Grabbagreen Franchise Loan SBA-Eligible?
SBA lenders rely on the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for SBA eligibility. Grabbagreen is listed as “grabbagreen” under code S2010, and the directory shows no special note for the brand. In plain terms, a lender can generally consider an SBA application from a Grabbagreen franchisee without additional franchise-document hurdles, though the borrower and the project still go through full underwriting.
A listing does not guarantee approval. The SBA 7(a) program maximum is currently $5 million, although program rules can change.
Application tips. Bring the FDD, your lease or letter of intent, contractor and equipment bids and a personal financial statement. Our SBA loan calculator can help with early payment estimates, which are for planning only.
How Lenders Evaluate a Grabbagreen Deal
Personal credit and financial history. Expect a review of your credit, tax returns and personal financial statement, plus a personal guarantee.
Net worth and liquidity. Lenders want cash for your equity injection plus reserves left after closing.
Industry and management experience. Restaurant, food service or multi-location management experience strengthens a request.
Business plan and projections. Projections should reflect your specific site, the menu’s breakfast-through-afternoon traffic, produce costs and the royalty and marketing rates from Item 6. Our article on writing a franchise business plan for an SBA loan walks through the sections lenders expect.
The FDD and franchise agreement. Lenders look at the franchise term, renewal and transfer conditions, and whether the FDD includes financial performance representations. The franchisor notes that its FDD includes prior-year financial information in Item 19, which you can use alongside your own research.
Site and lease. Expect questions about rent, tenant improvement allowances and how the lease term lines up with the franchise term.
Historical financials for resales. Lenders compare the seller’s profit and loss statements with tax returns.
Equipment and Build-Out Considerations
A Grabbagreen kitchen is light on cooking equipment but heavy on cold prep: juice presses, blenders, refrigeration, freezers for acai and fruit, prep stations and display coolers. Financing that package separately can keep the build-out loan smaller, and lenders will want quotes that match the franchisor’s approved equipment list.
Multi-Unit Growth and Development Agreements
Once your first restaurant has history, lenders can underwrite its cash flow alongside a second unit’s projections. Ask whether a development agreement is offered, since missed opening deadlines can affect your rights. Our article on multi-unit franchise financing explains how lenders approach a growing group.
Real-World Scenarios
A first-time owner building a new unit. A former corporate manager signs a franchise agreement, finds a strip-center site and uses an SBA 7(a) loan for the build-out, equipment and opening costs, contributing personal cash for the equity injection and keeping a reserve on top of the three months of operating funds in the franchisor’s budget.
An existing restaurant owner adding a second brand. An operator who owns another quick-service franchise uses a conventional term loan secured by existing business cash flow and finances the juice and blending equipment separately.
A buyer acquiring an existing Grabbagreen. A buyer purchases an operating restaurant, and the lender relies on its sales history, the remaining lease term and transfer approval.
Common Mistakes to Avoid
- Budgeting from the low end of the leasehold improvement range before getting a contractor bid
- Forgetting that real estate costs and rent beyond the security deposit are not in the franchisor’s total
- Leaving out royalty and marketing fees from Item 6 when building projections
- Using all available cash for the equity injection and leaving no reserve
- Signing a lease before the franchisor authorizes the site
For more pitfalls, read about restaurant loan mistakes to avoid.
Next Steps to Finance Your Grabbagreen Franchise
Step 1: Start the conversation with the franchisor. Schedule the exploration call and complete financial screening.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Learn early how much you can borrow, what equity you need and whether SBA or conventional financing fits.
Step 4: Secure an authorized site. Work with your broker and the franchisor’s real estate team, then negotiate the lease.
Step 5: Gather bids and build projections. Get contractor and equipment quotes and a monthly first-year projection.
Step 6: Apply and close. Submit your loan package and align the closing with your lease and opening timeline.
Grabbagreen Franchise Loan FAQs
How much does it cost to open a Grabbagreen franchise?
For Grabbagreen franchise loan planning, the franchisor estimates the initial investment for a traditional restaurant with a new build-out at $283,500 to $640,575, excluding real estate and rent other than the initial security deposit.
What is the Grabbagreen franchise fee?
The initial franchise fee ranges from $16,000 to $30,000 and is paid in a lump sum when the franchise agreement is signed.
What royalty does Grabbagreen charge?
The royalty and any marketing fund contribution are disclosed in Item 6 of the current FDD. Request the latest document and use those rates in your projections.
How much net worth or liquid capital do I need?
The franchisor’s pages do not publish a fixed minimum. The inquiry form asks for your approximate net worth, and financial screening comes before you receive the FDD.
Can I get an SBA loan for a Grabbagreen franchise?
Grabbagreen is listed on the SBA Franchise Directory under code S2010 with no special note, so SBA financing can be considered. Approval still depends on your credit, equity, experience and the project.
Can I finance the equipment separately?
Yes. Juice presses, blenders, refrigeration and the POS system can often be financed with equipment loans or leases, which can reduce the size of the main loan.
Does Grabbagreen offer financing?
Check Item 10 of the current FDD for any franchisor financing. Most buyers arrange their own SBA or conventional loans.
Can a first-time business owner get a Grabbagreen franchise loan?
Yes, if the franchisor approves you and you meet a lender’s requirements. Training and an experienced manager help offset limited restaurant experience.
Can I buy an existing Grabbagreen?
Yes, when a franchisee is selling and the franchisor approves the transfer. Lenders will review the unit’s historical financials.
Does the investment include real estate?
No. The franchisor’s total excludes real estate and rent other than the initial security deposit, so add occupancy costs to your budget.
Final Thoughts
A Grabbagreen franchise loan comes down to controlling the build-out, financing the cold-prep equipment sensibly and keeping enough working capital to reach steady sales. Confirm the Item 6 fees and get firm bids before you sign a lease.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
