How to Finance a Beans & Brews Coffee House Franchise: Cafe Costs
By Marc Cornella
A Beans & Brews Coffee House franchise loan usually pays for a coffee shop build-out with a drive-thru, an espresso equipment package and enough working capital to carry the store through its opening months. The brand charges a $30,000 initial franchise fee for a first location and a 5.5% royalty, and it publishes a line-by-line estimate of what a standard store costs to open.
Below are those published costs, the franchisor’s capital guideline, the brand’s SBA Franchise Directory listing and the financing tools that fit a drive-thru coffee concept.
US Professional Funding is not affiliated with, sponsored by or endorsed by Beans & Brews Coffee House; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, so review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant.
Beans & Brews Coffee House Franchise Loan at a Glance
- Initial franchise fee: $30,000 for the first location, $25,000 for the second and $20,000 for each location after that, according to the franchisor’s FAQ page. Veterans receive 15% off the initial franchise fee.
- Royalty: 5.5% of weekly gross revenue.
- Estimated investment, standard store: $407,050 to $812,500 on the franchisor’s investment page, including the franchise fee.
- Financial guideline: about $275,000 in liquid cash and a $1,000,000 net worth for two to three locations.
- Store size: the standard store averages about 1,700 square feet with a lobby and a drive-thru.
- System size: the franchisor reported more than 80 locations open in 2025.
- SBA Franchise Directory: listed under code S0199, with no additional note.
What Is Beans & Brews Coffee House?
Beans & Brews is a coffee house brand founded in Salt Lake City in 1993 that began franchising in 2004. It roasts its own coffee at a facility in Utah and sells espresso drinks, brewed coffee, teas, smoothies, seasonal beverages and a line of plant-based energy drinks, along with a food menu.
Formats include a standard store with a lobby and drive-thru, an express model, a drive-thru-only prototype, in-line and end-cap units, freestanding shops and kiosks. The franchisor is seeking multi-unit franchisees in western and southwestern states including Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Oklahoma, Texas, Utah and Wyoming.
How lenders see the concept. Coffee is a high-transaction, low-ticket business. Lenders like repeat morning traffic and drive-thru speed, but coffee is crowded and site quality drives results. A long operating history and an SBA directory listing give a Beans & Brews Coffee House franchise loan a familiar framework, while each store is still underwritten on its own site, budget and owner.
Beans & Brews Coffee House Franchise Loan Costs
The franchisor’s investment page breaks out the estimated costs of a standard store. Confirm every line in Item 7 of the current FDD before you size a loan, because the franchisor’s pages have shown different totals over time and the FDD controls.
Initial franchise fee
The fee is $30,000 for a first store. The franchisor’s FAQ page lists $25,000 for a second store and $20,000 for each additional store, plus a 15% veteran discount on the initial fee.
Real estate and build-out
Most stores are leased. The investment page lists a $2,500 real estate development fee, $7,000 to $14,000 for the property lease during the initial period, and $125,000 to $360,000 for leasehold improvements. The wide build-out range reflects whether you take a second-generation space or a shell, and how much drive-thru site work is needed.
Equipment, fixtures and signage
Equipment and furniture run $110,000 to $140,000 and fixtures $45,000 to $90,000. Outdoor signage and the outdoor menu board add $30,000 to $60,000, and point-of-sale equipment ranges from $550 to $28,000.
Opening costs and working capital
Initial inventory and supplies run $12,000 to $15,000, grand opening advertising $5,000 to $15,000, miscellaneous expenses $8,000 to $15,000 and utility and security deposits $2,000 to $3,000. Working capital is listed at $30,000 to $40,000.
Total investment
- Initial franchise fee: $30,000
- Real estate development fee: $2,500
- Property lease: $7,000 to $14,000
- Utility and security deposits: $2,000 to $3,000
- Fixtures: $45,000 to $90,000
- Leasehold improvements: $125,000 to $360,000
- Initial inventory and supplies: $12,000 to $15,000
- Equipment and furniture: $110,000 to $140,000
- Outdoor signage and outdoor menu board: $30,000 to $60,000
- POS equipment: $550 to $28,000
- Grand opening advertising: $5,000 to $15,000
- Miscellaneous expenses: $8,000 to $15,000
- Working capital: $30,000 to $40,000
Those lines add up to the published total of $407,050 to $812,500 for a standard store. Express, drive-thru-only and kiosk formats are priced differently, so ask for the Item 7 table that matches the format you plan to build.
Ongoing Fees and How They Affect Your Loan
The royalty is 5.5% of weekly gross revenue, so it is paid every week from the first sale. The franchisor’s site does not publish a brand fund, technology fee or other recurring charges, so read Item 6 of the current FDD for the full schedule, including transfer and renewal fees.
Lenders subtract the royalty, any marketing contribution, rent, labor and the cost of coffee, milk and cups before calculating how much debt a store can carry. Projections should show monthly revenue, average ticket and drive-thru share.
Franchisor Requirements for New Owners
The franchisor’s FAQ page gives a basic guideline of $275,000 in liquid cash and a $1,000,000 net worth for two to three locations, and notes that qualification depends on the number of stores and the area. Its investment page describes the ideal candidate as having a net worth of $1,000,000 or more.
The franchisor also looks for hands-on owners with customer service, retail or management experience who want more than one location, and it welcomes partnerships and investors.
Training and approval. Franchisees complete 16 hours of classroom training and up to 120 hours of on-the-job training before opening, plus on-site support at opening. Owners work with a local broker and the franchise team to choose a site.
Ways to Own a Beans & Brews Coffee House
Opening a new store. A new store is a start-up loan underwritten on the budget, lease, projections and your capital. Our restaurant start-up financing page explains how these requests are structured.
Buying an existing store. A resale lets a lender underwrite actual sales and expenses, but the franchisor must approve the buyer and transfer. Read our article on buying a coffee shop and see how we handle franchise restaurant acquisitions.
Multi-unit development. The franchisor’s guideline is written for two to three locations, and its tiered franchise fee rewards additional stores. A development agreement means planning capital for each store on a schedule, not just the first.
Financing Options for a Beans & Brews Coffee House Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can finance the franchise fee, leasehold improvements, equipment, signage and working capital in one loan for a qualified borrower.
SBA 504 loans. If you buy the land and building, such as a freestanding drive-thru pad, an SBA 504 loan can finance the real estate and long-lived fixed assets. Most leased stores will not need it.
Conventional term loans. Owners with strong liquidity, experience or existing stores may use a conventional business loan, especially for later units or acquisitions.
Equipment financing. Espresso machines, grinders, brewers, refrigeration and drive-thru systems can be financed separately. See restaurant equipment financing and leasing.
Working capital and lines of credit. A new store needs cash for payroll and inventory while sales build, and coffee demand shifts with the seasons, from iced drinks in summer to holiday beverages in winter. Our restaurant working capital options can cover those gaps.
Seller financing on resales. A seller may carry part of the price. Any seller note is typically subordinate to the senior loan, and SBA program rules may limit how it is structured.
SBA Loans for Beans & Brews Coffee House Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. Beans & Brews Coffee House appears under code S0199, and the listing carries no additional note. In plain terms, an SBA lender can consider a loan for this brand without asking the franchisor to sign extra brand-specific addenda beyond the standard requirements. A listing does not approve any borrower.
The SBA 7(a) program maximum is currently $5 million, though program rules can change, which matters mainly for owners financing several stores.
SBA application tips. A Beans & Brews Coffee House franchise loan application should include the current FDD, a proposed lease, a contractor bid, equipment quotes and projections for your format. Our guide to writing a franchise business plan for an SBA loan shows what to include, and the SBA loan calculator gives early payment estimates for planning only.
How Lenders Evaluate a Beans & Brews Coffee House 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. The franchisor’s guideline sets a floor, and lenders look at the cash left after the equity injection.
Industry and management experience. Food service, coffee or retail management experience helps, as does a named operator if you will not run the store yourself.
Business plan and projections. Projections should reflect the format, nearby competition, traffic counts and a realistic ramp-up.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 17 and 19, the territory, the term and transfer rules. The franchisor’s own materials point to financial performance information in its FDD, so read Item 19 and its assumptions carefully.
Site and lease. The lease term and renewals should cover the loan term and allow drive-thru use and signage.
Historical financials for resales. Expect to provide several years of the store’s financial statements and tax returns.
Equipment and the Drive-Thru
The drive-thru is the key physical feature of a standard store. It adds site work, menu boards, speaker systems and window equipment to the budget, and lenders look closely at stacking space and access.
Inside, the bar runs on espresso machines, grinders, brewers, blenders, refrigeration and ice production. Espresso machines need regular service and eventual replacement, so plan a reserve or future equipment financing.
Multi-Unit Growth and Development Agreements
The franchisor’s capital guideline is framed around two to three stores, signaling a preference for owners who will grow. Each new store usually needs its own financing, and lenders want to see the first store performing before funding the next. Our article on multi-unit franchise financing explains how lenders look at combined cash flow as you add locations.
Real-World Scenarios
A first-time owner with a drive-thru end cap. A former retail manager signs for an end-cap site with a drive-thru, uses personal savings for the equity injection and finances the rest with an SBA 7(a) loan that covers the build-out, equipment and working capital.
A veteran opening a freestanding store. A veteran uses the 15% fee discount, buys a pad site and pairs an SBA 504 loan for the building with equipment financing.
A buyer acquiring an existing store. A buyer purchases a store from a retiring owner, and the lender sizes the loan on the store’s actual cash flow, with a small seller note subordinate to the senior loan.
Common Mistakes to Avoid
- Budgeting from a single published total instead of the Item 7 table for your format
- Underestimating drive-thru site work, signage and permitting
- Signing a lease that does not allow drive-thru use or matches the loan term poorly
- Leaving too little working capital for the ramp-up and seasonal swings
- Forgetting that the 5.5% royalty is paid weekly from gross revenue
For more pitfalls, read about the restaurant loan mistakes owners make most.
Next Steps to Finance Your Beans & Brews Coffee House Franchise
Step 1: Review your finances. Compare your liquid cash and net worth with the franchisor’s guideline.
Step 2: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Learn which loan types fit before you commit to a site.
Step 4: Choose a site and format. Work with the franchisor and a local broker to pick a location and get a build-out estimate.
Step 5: Build your business plan. Prepare projections, a sources and uses of funds and your personal financial statement.
Step 6: Apply and close. Submit the loan request and align closing with the lease and construction timeline.
Beans & Brews Coffee House Franchise Loan FAQs
How much does a Beans & Brews Coffee House franchise cost?
The franchisor’s investment page estimates $407,050 to $812,500 for a standard store, including the $30,000 franchise fee. Confirm the current figures for your format in Item 7 of the FDD.
What is the Beans & Brews franchise fee?
It is $30,000 for the first location, $25,000 for the second and $20,000 for each additional location. Veterans receive 15% off the initial franchise fee.
What royalty does Beans & Brews charge?
The royalty is 5.5% of weekly gross revenue. Check Item 6 of the FDD for any marketing, technology or other fees.
How much liquid capital do I need?
The franchisor’s basic guideline is $275,000 in liquid cash and a $1,000,000 net worth for two to three locations, depending on the number of stores and the area.
Is Beans & Brews eligible for SBA loans?
Yes, the brand is on the SBA Franchise Directory under code S0199, so qualified borrowers can apply for SBA 7(a) and, when real estate is involved, SBA 504 financing.
Can I buy an existing Beans & Brews store?
Yes, with franchisor approval. A resale lets lenders review the store’s actual financial history.
Can a first-time owner get a Beans & Brews Coffee House franchise loan?
Yes, if the franchisor approves you and you meet lender requirements. Customer service, retail or management experience helps.
How long is the franchise term?
The franchisor’s website does not state the term. Item 17 of the FDD covers the term, renewal and transfer conditions, which lenders compare with the loan length.
What documents will I need?
Tax returns, a personal financial statement, the FDD, a lease or letter of intent, build-out bids and a business plan.
Does the franchisor offer financing?
The franchisor says it has preferred lending sources that can help determine eligibility. Check Item 10 of the FDD for any direct financing it offers.
Final Thoughts
A Beans & Brews Coffee House franchise loan is a build-out and equipment deal with a drive-thru at its center. Buyers who confirm the Item 7 figures for their format, budget carefully for site work and keep healthy working capital will be in a stronger position with lenders, whether they are opening one store or several.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
