How to Finance a Berens Frozen Custard Franchise: Shop Costs
By Marc Cornella
A Berens Frozen Custard franchise loan pays for a dessert shop whose product is made fresh throughout the day: a leased storefront, a continuous custard freezer, dipping cabinets and walk-in refrigeration, a counter and service window, signage and the cash to carry the business through its first season. Few frozen dessert concepts are as equipment-driven, and that shapes how the deal is financed.
US Professional Funding is not affiliated with, sponsored by or endorsed by Berens Frozen Custard; the name is used only to describe the business. Figures in the franchisor’s 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; review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you sign.
Berens Frozen Custard Franchise Loan at a Glance
- Concept: an old-fashioned frozen custard shop serving fresh custard in cones, cups, sundaes and blended treats.
- Home market: metro Atlanta, where the family-run shop operates in Grayson and has expanded to downtown Lawrenceville.
- Franchise stage: an emerging system; the owners have announced plans to franchise the brand beyond its home shops.
- Franchise fee, royalty and investment range: not published in materials we could verify; request Items 5, 6 and 7 of the current FDD.
- SBA Franchise Directory: listed under code S8805, with a note about the Rider to Lease Agreement when real estate secures the loan.
- Typical financing mix: an SBA 7(a) or conventional term loan for build-out, equipment and opening costs, often paired with equipment financing and a seasonal working capital reserve.
What Is Berens Frozen Custard?
Berens Frozen Custard is a family business from the Atlanta suburbs. Don Berens opened the original shop decades ago, and his son, Mark Berens, later reopened the business under the family name and runs it today from Grayson, Georgia. A second shop in downtown Lawrenceville extended the brand within Gwinnett County, and the family has said it intends to grow through franchising.
Frozen custard differs from ordinary soft serve because it contains egg yolk and is churned with very little air, producing a dense, smooth product made fresh through the day.
Why lenders view the concept the way they do. A lender sees a small-footprint dessert shop with a short menu, modest inventory and relatively simple operations, but also heavy reliance on specialized equipment, strong summer seasonality and a franchise system with only a handful of open units. An emerging brand has less system history for a lender to lean on, so the borrower’s own experience, equity and projections carry more weight.
Berens Frozen Custard Franchise Costs
We could not verify the brand’s Item 5 fee, Item 6 royalties or Item 7 investment range from the franchisor’s own materials, so treat every cost category below as something to confirm in the current FDD and with local contractor quotes.
Initial franchise fee. Item 5 of the FDD states the fee, when it is due, whether any portion is refundable and whether a reduced fee applies to additional shops.
Real estate and build-out. Most custard shops lease an end-cap or freestanding pad with strong evening and weekend traffic. Build-out can include plumbing and floor drains for the freezer, upgraded electrical service, a service counter or walk-up window, restrooms and finishes. A second-generation restaurant space may reduce this line.
Equipment. The continuous custard freezer is the core purchase, supported by dipping cabinets, a blast or walk-in freezer, refrigeration for mix and toppings, a three-compartment sink and point-of-sale hardware.
Opening costs and working capital. Opening inventory (custard mix, cones, toppings and packaging), training travel, grand opening marketing, deposits, insurance and the additional funds the FDD recommends for the first months.
Total investment. Item 7 of the FDD totals these categories in a low-to-high range. When you receive it, map each line to a funding source:
- Initial franchise fee
- Leasehold improvements and construction
- Custard freezer, dipping cabinets and refrigeration
- Furniture, fixtures and signage
- Point-of-sale system and technology
- Opening inventory and supplies
- Training and travel
- Grand opening advertising
- Security deposits, licenses and insurance
- 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, technology fees, renewal and transfer fees, and any required local marketing. Ask whether royalties are a percentage of gross sales or a flat amount, because a percentage royalty rises in peak months while a flat fee does not.
Lenders subtract every ongoing fee from projected sales before measuring debt service coverage. For a custard shop, that analysis is usually done month by month: strong spring and summer months must cover loan payments in cooler months when traffic slows.
Franchisor Requirements for New Owners
We could not verify published net worth, liquidity or experience minimums for Berens franchisees. Request them in writing during discovery, along with the approval steps for owners, sites and leases.
Ways to Own a Berens Frozen Custard
A new shop. Most early franchisees will open new locations, financed with a start-up loan built around the construction budget and projections. Our franchise start-up financing page outlines how these loans are structured.
Buying an existing shop. As the system grows, resales may become possible with franchisor approval. A buyer can finance the purchase based on the shop’s historical results; see what to check when buying a franchise resale.
Multiple shops. An operator who wants several shops in one area should ask whether the franchisor offers development rights and on what schedule.
Financing Options for a Berens Frozen Custard Franchise
SBA 7(a) loans. The most flexible option for a first shop, covering the franchise fee, build-out, equipment, opening inventory and working capital in one loan. Learn more about SBA 7(a) loans.
SBA 504 loans. If you buy or build a freestanding custard stand, an SBA 504 loan can finance owner-occupied real estate and long-lived equipment. The directory note discussed below applies in that case.
Conventional term loans. Owners with strong credit, collateral and food service history may qualify for a conventional business loan, often for a second shop.
Restaurant build-out financing. Plumbing, electrical, walk-up windows and finishes are usually the largest variable cost; our article on financing a restaurant build-out explains how construction draws work.
Equipment financing. Custard freezers, dipping cabinets, walk-in freezers and refrigeration can often be financed separately, preserving cash for opening. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. A custard shop buys mix and toppings ahead of busy months, staffs up for summer evenings and may see sales slow sharply in winter. A reserve or line of credit smooths those swings; learn about restaurant working capital.
Seller financing on resales. A seller may carry part of the price. A seller note is typically subordinate to the senior loan, and lending programs may limit its terms.
SBA Loans for Berens Frozen Custard Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory, a list of brands whose agreements have been reviewed for SBA eligibility. A listing clears the franchise relationship for SBA purposes; it does not approve any borrower or guarantee a loan.
The brand’s directory listing. Berens Frozen Custard appears under code S8805. Its note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Rider to Lease Agreement may not be executed.
What the note means in plain English. A franchisor’s lease rider typically gives it rights in the shop’s lease, such as notice of defaults or the right to step in and take over the location if the franchise ends. Those rights make sense when the franchisee rents from a landlord. If instead the owner’s real estate is pledged to secure the SBA loan, the rider could conflict with the lender’s lien, so it is not signed. For a typical leased shop, the note does not change the deal.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our SBA loan calculator gives early planning estimates, which are not an offer or approval.
Application tips. A strong Berens Frozen Custard franchise loan request includes the FDD, the lease or letter of intent, a contractor’s build-out estimate, equipment quotes, monthly projections, a personal financial statement and tax returns.
How Lenders Evaluate a Berens Frozen Custard Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and owners with significant stakes typically sign personal guarantees.
Net worth and liquidity. Expect to show cash for the equity injection plus reserves after closing.
Food service experience. Prior restaurant, dessert shop or retail management experience is one of the strongest factors in approval.
Business plan and projections. Model traffic by month rather than as an annual average. Show summer peaks, cooler-month declines, labor scheduling, mix and topping costs, rent and a realistic ramp in the first year.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 17 and 19, along with the franchisor’s support and training. Our article on how lenders read a Franchise Disclosure Document explains what matters most.
Site and lease. Lenders look at lease term and renewal options, rent escalations, parking, evening visibility, walk-up access and whether the landlord will allow the plumbing and electrical work the freezer requires.
For resales, historical financials. Expect to provide several years of profit and loss statements, sales reports and tax returns, with seasonal patterns clearly visible.
Custard Equipment and Shop Build-Out
A continuous custard freezer is the heart of the shop. It needs a dedicated electrical circuit, often water or air cooling, floor drainage and service access. Production capacity determines how many customers the shop can serve on a hot weekend night, so undersizing the machine can cap sales while oversizing it ties up capital.
Many custard shops also rely on a walk-up window, which adds glazing, ordering systems and site work.
Get equipment quotes that include delivery, installation and startup service. Lenders treat installed, new equipment as stronger collateral than used equipment, and separate equipment financing can match payments to the useful life of each machine.
Multi-Unit Growth and Development Agreements
In an emerging system, early franchisees may be offered territory or development rights. Read what a development schedule requires and what happens if you miss a deadline.
Lenders finance each additional shop on its own merits, but a first shop with a full year of results makes the second request much easier. Our article on multi-unit franchise financing explains how operators layer debt across several locations.
Real-World Scenarios
A restaurant manager opening a first shop. A longtime restaurant manager leases a former coffee shop on a busy suburban road, uses an SBA 7(a) loan for build-out, equipment and the franchise fee, and keeps a working capital reserve to carry the shop through its first winter.
An owner buying a freestanding stand. An operator buys a small building with walk-up windows using an SBA 504 loan. Because the real estate secures the loan, the Rider to Lease Agreement is not executed.
Common Mistakes to Avoid
- Underestimating electrical, plumbing and drainage work for the custard freezer
- Building projections around summer sales and ignoring winter months
- Leaving too little working capital for mix, toppings and seasonal staffing
- Signing a lease before the franchisor and landlord approve the site and window layout
- Skipping a franchise attorney’s review of an emerging brand’s FDD
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Berens Frozen Custard Franchise
Step 1: Request the current FDD. Read Items 5, 6, 7, 10, 17, 19, 20 and 21 carefully, including the franchisor’s financial statements.
Step 2: Confirm the franchisor’s requirements. Ask for net worth, liquidity and experience expectations in writing.
Step 3: Speak with a financing specialist. Learn how much you can borrow and how much cash you need before committing to a site.
Step 4: Secure a site and price the build-out. Get contractor and equipment quotes that include freezer installation.
Step 5: Build seasonal projections. Prepare a month-by-month forecast that shows how the shop covers debt in slower months.
Step 6: Assemble and submit your loan package. Combine the FDD, lease, budget, projections, personal financial statement and tax returns.
Step 7: Close and prepare to open. Fund your reserve, order equipment early and schedule training.
Berens Frozen Custard Franchise Loan FAQs
How much does a Berens Frozen Custard franchise cost?
The total estimated initial investment appears in Item 7 of the current FDD. We could not verify the range from the franchisor’s own materials, so request the FDD and price your local build-out.
What is the Berens Frozen Custard franchise fee?
Item 5 of the FDD discloses the initial franchise fee and any discount for additional shops.
What royalty does Berens Frozen Custard charge?
Item 6 of the FDD lists the royalty, any advertising fund contribution and other recurring fees.
Is Berens Frozen Custard eligible for SBA loans?
Yes. The brand is listed on the SBA Franchise Directory under code S8805. Eligibility still depends on the borrower, the project and the lender’s review.
What does the SBA directory note mean?
If the shop’s real estate secures the SBA loan, the franchisor’s Rider to Lease Agreement is not signed. For a leased shop, it generally does not apply.
Can I finance the custard freezer separately?
Often, yes. Freezers, dipping cabinets and refrigeration can be financed with equipment loans or leases apart from the build-out loan.
Can a first-time owner get a Berens Frozen Custard franchise loan?
Yes, though lenders favor food service management experience, strong liquidity and a clear plan for staffing evening peaks.
Can I buy an existing Berens Frozen Custard shop?
If an owner sells and the franchisor approves the transfer, lenders can finance the purchase based on the shop’s historical results.
Does the franchisor offer financing?
Item 10 of the FDD discloses whether the franchisor offers any direct or indirect financing.
How long is the franchise term?
Item 17 of the FDD sets the term, renewal rights and transfer conditions.
What documents do I need to apply?
Typically the FDD, lease, build-out and equipment quotes, projections, a personal financial statement, tax returns and a resume.
Final Thoughts
A Berens shop combines a simple menu with demanding equipment and a strongly seasonal sales pattern. With the SBA directory listing, a clear understanding of the lease rider note, careful equipment planning and conservative month-by-month projections, a Berens Frozen Custard franchise loan can be structured to carry a new shop through its first full year.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Explore our franchise financing programs and our restaurant and food service financing solutions.
