How to Finance a Bora Bora Smoothie Cafe Franchise: Cafe Costs
By Anthony Cornella
A Bora Bora Smoothie Cafe franchise loan finances a tropical-themed café that sells smoothies, açaí and fruit bowls, fresh juices, coffee drinks and made-to-order crepes and waffles. That broader menu means more equipment and a larger build-out than a simple smoothie counter, and the financing should reflect it.
This article explains what to pull from the Franchise Disclosure Document (FDD), how the brand’s SBA Franchise Directory listing and its two directory notes affect an SBA loan, and how buyers can finance a new café, several cafés or an existing location.
US Professional Funding is not affiliated with, sponsored by or endorsed by Bora Bora Smoothie Cafe; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a franchise attorney and an accountant before you sign.
Bora Bora Smoothie Cafe Franchise Loan at a Glance
- Concept: a fast-casual, health-focused café with an island-style interior, serving smoothies, bowls, juices, coffee, crepes and waffles.
- Ownership model: locations are opened by independent franchise owners in a growing number of states.
- Fees, royalty and investment range: not verified from the franchisor’s own published materials for this article; Items 5, 6 and 7 of the current FDD set them out.
- Net worth and liquidity: not verified; ask the franchise development team for current requirements.
- SBA Franchise Directory: listed as “Bora Bora Smoothie Cafe” under code S8780, with two notes, one about lease documents and one about lien position.
What Is Bora Bora Smoothie Cafe?
Bora Bora Smoothie Cafe presents itself as an international brand built around a tropical escape. Its cafés use bright, beach-inspired décor with turquoise seating, and the menu runs from blended smoothies and açaí bowls to fresh juices, specialty coffee drinks, sweet and savory crepes, waffles and pancakes.
More than a juice bar. Because the menu includes cooked items alongside blended drinks, a café needs griddle or crepe equipment, more refrigeration and more prep space than a drinks-only concept. That raises both the equipment budget and the labor plan.
Where cafés open. The brand’s locations include shopping-center storefronts, downtown streets and enclosed malls. Each setting has different rent, hours and traffic patterns, which lenders weigh when reviewing projections.
How lenders see the brand. An emerging brand gives an underwriter less system-wide history than a national chain. The SBA Franchise Directory listing is a real advantage, but your own experience, equity and site carry much of the weight.
Bora Bora Smoothie Cafe Franchise Costs
The franchisor’s own published cost figures could not be confirmed for this article, so treat the FDD as your cost source. Here is how the costs of a smoothie and crepe café typically break down.
Initial franchise fee. Item 5 lists the fee for one café and any multi-unit or development fee. Ask whether fees change when you commit to several cafés.
Leasehold improvements. Most cafés lease retail space. Plumbing for blenders and sinks, electrical upgrades for cooking equipment, counters, the island-themed interior and any ventilation the cooking equipment needs are usually the largest cost. A landlord allowance can reduce what you finance.
Equipment and furniture. Commercial blenders, juicers, crepe and waffle makers, espresso equipment, refrigeration and freezers, ice machines, prep tables, seating and point-of-sale technology.
Opening costs and working capital. Opening inventory of fruit, bases and dry goods, training, licenses and health permits, deposits, grand-opening marketing and a reserve for the first months.
Total investment. Item 7 gives the low and high estimate and the assumptions behind each line. A café’s Item 7 typically includes:
- Initial franchise fee
- Leasehold improvements and construction
- Blending, cooking and coffee equipment
- Furniture, fixtures, décor and signage
- Technology and point-of-sale systems
- Opening inventory, licenses, deposits and training
- Additional funds for the initial operating period
Lenders size a Bora Bora Smoothie Cafe franchise loan against this table and your contractor bids, so reconcile any gap before you apply.
Ongoing Fees and How They Affect Your Loan
Item 6 lists the royalty, any marketing fund contribution, technology fees and transfer and renewal fees. Royalty and marketing fees are usually a percentage of gross sales, so they reduce the cash available for debt service at every sales level.
How lenders factor these in. Lenders build a projected profit and loss statement that subtracts these fees, rent, food cost and labor before arriving at cash available for loan payments. Fresh fruit is perishable and prices can swing, so lenders like to see a realistic food-cost assumption and a plan for waste.
Seasonality. Cold drinks often sell best in warm months. In colder markets, coffee, crepes and waffles can help balance the year, and projections should show that mix month by month.
Franchisor Requirements for New Owners
Specific net worth and liquid capital minimums were not confirmed from the franchisor’s own materials. Ask the franchise development team for current thresholds and compare them with Item 7 and the equity a lender will expect.
The approval process. Expect an inquiry, introductory calls, delivery of the FDD, a financial and background review, a discovery meeting and, if approved, a franchise agreement. Site approval and lease review follow, which is where the brand’s SBA directory notes come into play.
Ways to Own a Bora Bora Smoothie Cafe
A new café. A new build relies on projections, so lenders lean on your experience, the site and your equity injection. Our page on franchise start-up financing outlines how we approach first units.
Several cafés. Some owners commit to more than one location. Each café is usually financed when its site is ready, and the first one’s results support the next.
Buying an existing café. The franchisor must approve the transfer, and lenders can underwrite actual sales history. Our franchise restaurant acquisition financing page and our article on buying a franchise resale explain the process.
Financing Options for a Bora Bora Smoothie Cafe Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can combine build-out, equipment, the franchise fee and working capital in one loan.
SBA 504 loans. If you buy the building, an SBA 504 loan can finance owner-occupied real estate and long-lived equipment. Most cafés lease, so 504 applies mainly to owners who buy a small freestanding or condominium space.
Conventional term loans. Experienced operators with strong balance sheets may prefer conventional business loans, particularly for a second or third café.
Equipment financing. Blenders, crepe and waffle equipment, espresso machines and refrigeration can be financed separately to preserve cash. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. A new café needs cash for hiring, training, opening inventory and the ramp-up months, plus a cushion for slower seasons. Our restaurant working capital solutions can help.
Seller financing on resales. A seller may carry part of the price on an existing café. A seller note is typically subordinate to the senior loan, and SBA rules can limit its structure.
SBA Loans for Bora Bora Smoothie Cafe Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally rely on a listing before lending to a franchisee, but a listing does not approve any borrower.
Bora Bora Smoothie Cafe is listed under code S8780 with two notes.
Note one: lease documents. When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the brand’s Collateral Assignment and Assumption of Lease Agreement may not be executed or recorded against that real estate. In plain terms, the lease assignment is written for leased space and lets the franchisor step into the lease; if you own the property and pledge it to the SBA lender, that document should not be signed or recorded against it.
Note two: lien position. The lender or certified development company must obtain the correct lien position on all collateral, as SBA rules require. Expect questions about any franchisor security interest, equipment leases and existing liens before closing.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. When applying, bring the FDD, franchise agreement, lease or letter of intent, contractor bids, projections, personal financial statements and tax returns.
How Lenders Evaluate a Bora Bora Smoothie Cafe Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require personal guarantees.
Net worth and liquidity. Lenders look at cash for the equity injection and reserves after closing. Our SBA loan calculator provides early payment estimates for planning only.
Food service experience. Café, coffee or quick-service management experience strengthens a request. Without it, plan to hire an experienced manager.
Business plan and projections. Reflect morning coffee and afternoon smoothie traffic, seasonality, the share of cooked items, delivery and takeout and a realistic ramp-up.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 10, 17, 19 and 20 closely. Item 19 shows whether the FDD includes financial performance representations. Our guide to how lenders read a Franchise Disclosure Document covers the details.
Site and lease. Lenders review lease length, renewal options, rent escalations, co-tenants, parking or foot traffic and the tenant allowance, along with the lease assignment the franchisor requires.
Historical financials for resales. Expect several years of profit and loss statements, sales reports and tax returns.
Café Equipment: Blending, Cooking and Coffee
A Bora Bora café combines three equipment groups: high-volume commercial blenders and juicers; crepe makers, waffle irons and griddles; and espresso and coffee equipment. Add reach-in and under-counter refrigeration, freezers for frozen fruit and bases, ice machines, prep sinks and display cases. Blenders and coffee machines see heavy daily use, so budget for service contracts and replacements, and consider whether leasing makes sense for equipment you expect to upgrade.
Multi-Unit Growth and Development Agreements
If you sign for several cafés, the development agreement will set an opening schedule. Once the first café has a sales history, lenders can underwrite that cash flow alongside projections for the next one, and many owners finance each café separately. Missing a deadline can put territory rights at risk, so build financing into the timeline.
Real-World Scenarios
A first-time owner with café experience. A former coffee shop manager leases a shopping-center endcap and uses an SBA 7(a) loan for the fee, build-out, equipment and working capital, signing the lease assignment because the café is in leased space.
A mall location. A franchisee opens in an enclosed mall with longer hours and higher rent, and the projections reflect mall traffic and staffing.
An owner buying a small building. A franchisee buys a small retail building with an SBA 504 loan. Because the real estate secures the SBA loan, the lease assignment is not executed or recorded against it.
A resale buyer. A buyer acquires an operating café, using its sales history to support an acquisition loan, with a small seller note subordinate to the main loan.
Common Mistakes to Avoid
- Budgeting for a drinks-only counter when the menu needs cooking equipment
- Underestimating perishable food cost and waste
- Ignoring seasonality in colder markets
- Signing the lease assignment against real estate that secures the SBA loan
- Overlooking equipment leases or liens that affect lien position
- Leaving too little working capital for the ramp-up
For more industry pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Bora Bora Smoothie Cafe Franchise
Step 1: Request the FDD. Contact the franchise development team and confirm current requirements.
Step 2: Review it with advisors. Go through the FDD, franchise agreement and lease assignment with a franchise attorney and accountant.
Step 3: Talk with a financing specialist early. Learn how lenders will size the loan before committing to a site.
Step 4: Secure a site. Negotiate the lease, tenant allowance and the franchisor’s lease assignment.
Step 5: Build projections and apply. Base them on Item 7, contractor bids and seasonal sales, then submit your loan package.
Step 6: Close and open. Fund construction, order equipment, complete training and keep a working capital reserve.
Bora Bora Smoothie Cafe Franchise Loan FAQs
How much does it cost to open a Bora Bora Smoothie Cafe?
The total investment range is in Item 7 of the current FDD. Costs depend on the site, the size of the café, the cooking equipment required and local construction prices.
What is the Bora Bora Smoothie Cafe franchise fee?
Item 5 lists the initial franchise fee and any development fee. Ask for current figures, since they can change.
What royalty does Bora Bora Smoothie Cafe charge?
Royalty and marketing fund contributions are in Item 6. Lenders deduct them from projected sales.
How much liquid capital do I need?
The franchisor sets its own minimums, and lenders separately look for an equity injection plus reserves. Confirm current thresholds before applying.
Can I get an SBA-backed Bora Bora Smoothie Cafe franchise loan?
Yes, for qualified borrowers. The brand is on the SBA Franchise Directory under code S8780, so SBA 7(a) and 504 loans are available subject to lender approval and the two directory notes.
Can I finance equipment separately?
Yes. Blending, cooking and coffee equipment can often be financed through equipment loans or leases.
Can I buy an existing café?
Yes, with franchisor approval of the transfer. Lenders can underwrite the café’s actual sales.
Does Bora Bora Smoothie Cafe offer financing?
Item 10 of the FDD discloses whether the franchisor offers any financing. Most franchisees arrange their own loans.
How long is the franchise term?
Term, renewal and transfer conditions are in Item 17. Lenders generally want the remaining term to cover the loan.
What documents do I need?
The FDD and franchise agreement, a business plan with projections, the lease or purchase contract, contractor bids, personal financial statements and tax returns.
Final Thoughts
A Bora Bora Smoothie Cafe franchise loan has to fund a café with a fuller menu than a typical smoothie shop, a themed interior and a ramp-up that can vary by season. Buyers who get the FDD early, understand the two SBA directory notes and build realistic food-cost and seasonal assumptions give themselves the best chance at a smooth closing.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and refinancing. Learn more about our franchise financing and restaurant financing solutions.
