How to Finance a Cabin Coffee Company Franchise: Costs and SBA
By Anthony Cornella
A Cabin Coffee Company franchise loan usually funds a ground-up or converted coffeehouse with on-site roasting, a cabin-style interior and, in many models, a drive-thru. Construction is the largest cost, and the franchisor’s own minimum cash injection sets how much of the project buyers must bring to the table.
This article walks through the store models, the costs the franchisor publishes, ongoing fees, the brand’s SBA Franchise Directory listing and the loan structures that fit a new store, a conversion or a second location.
US Professional Funding is not affiliated with, sponsored by or endorsed by Cabin Coffee Company; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website 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 Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you sign.
Cabin Coffee Company Franchise Loan at a Glance
- Upfront franchise fee: $40,000, according to the franchisor’s franchising website; multi-unit owners pay $40,000 for the first store and $30,000 for each additional store.
- Training fee: $15,000 per store, or $10,000 for each additional store for multi-unit owners.
- Royalty and service fee: 6% of sales, billed on the first and fifteenth of each month.
- Minimum cash injection: $250,000 and/or 25% of total project cost, excluding land and municipal tap fees.
- Store models: from a 600-square-foot drive-thru-only Express to a 2,301-square-foot Lodge with a meeting room, plus end-cap and conversion options.
- Background: the first store opened in Clear Lake, Iowa, in December 2002, and the first franchise opened in St. Charles, Minnesota, in November 2007.
- SBA Franchise Directory: listed as “Cabin Coffee Company” under code S2133, with no additional directory notes.
What Is Cabin Coffee Company?
Cabin Coffee Company was founded by a husband-and-wife team who opened the first store on Main Street in Clear Lake, Iowa, in December 2002 as a gathering place for their community. A second store followed in Mason City in 2005. After being approached about franchising, the founders chose slow, selective growth, and the first franchised store opened in 2007. The franchisor, Cabin Coffee Franchising, Inc., is based in Clear Lake, and the company reports two company-owned stores in Iowa plus franchised stores in several states.
Roasted in the store. Each location roasts its beans on site, except the Express drive-thru model. The company says coffee more than 14 days past its roast date is not served or sold. In-store roasting adds equipment and space to the build-out, and it is part of what sets the brand apart.
A cabin look. Interiors use a western, cabin-inspired design that differs from store to store. The company says its stores work in communities from small towns to large metro areas.
Morning-focused hours. The franchisor says stores typically open around 6:00am and close around 4:30pm, which keeps labor hours tighter than an all-day restaurant.
Why lenders view it the way they do. Lenders see a regional coffeehouse system with a long operating history, a published cost structure and an SBA directory listing. Because many stores are built from the ground up, lenders focus on construction budgets, real estate and the buyer’s cash injection.
Cabin Coffee Company Store Models
The franchising website describes these formats:
- Express: drive-thru only, 600 square feet, on a minimum 1/8 acre, without the in-store roasting area.
- Cabin: dining room without a meeting room, 1,723 square feet.
- Retreat: dining room with a meeting room, 2,007 square feet.
- Lodge: large dining and meeting room, 2,301 square feet.
- End Cap: dining with or without a meeting room, 1,800 square feet or more.
- Conversion: adaptive reuse of existing buildings such as former banks or gas stations.
The model you choose changes the construction budget, the equipment list and whether you need land, so pick the model before you size the loan.
Cabin Coffee Company Franchise Costs
The franchisor publishes estimated cost categories on its franchising website. It notes that all costs are estimates that vary by location and local regulations, and that land cost and municipal tap fees are not included. The current FDD’s Item 7 table gives the official estimated initial investment.
Initial franchise fee. $40,000 for a single store. Multi-unit owners pay $40,000 for the first store and $30,000 for each additional store.
Training fee. $15,000 per store, due two weeks before training, or $10,000 for each additional store under a multi-unit arrangement.
Construction and build-out. $350,000 to more than $1 million for a single store, or $250,000 to $900,000 per store for multi-unit owners. A construction administration and architect fee adds $35,000 to $85,000 per store.
Equipment and signage. The furniture, fixtures and equipment package runs $100,000 to $200,000 per store, and signage $25,000 to $50,000.
Start-up costs. $45,000 to $60,000 per store.
Summary of the franchisor’s published estimates for a single store:
- Upfront franchise fee: $40,000
- Training fee: $15,000
- Start-up costs: $45,000 to $60,000
- Construction administration and architect: $35,000 to $85,000
- Construction: $350,000 to more than $1 million
- Furniture, fixtures and equipment: $100,000 to $200,000
- Signage: $25,000 to $50,000
- Not included: land and municipal tap fees
Confirm every figure against the current FDD, since the disclosure document controls.
Ongoing Fees and How They Affect Your Loan
Royalty and service fee. The franchisor charges 6% of sales, billed on the first and fifteenth of each month. Twice-monthly billing means the fee comes out of cash flow quickly, so plan working capital around it.
Marketing and technology. The franchising website does not list an advertising fund or technology fee, so check Item 6 of the FDD for any additional ongoing fees. The brand offers a customer loyalty program and mobile app.
How lenders factor these in. Lenders subtract the royalty and service fee, cost of goods, labor, occupancy and other fees from projected sales, then compare what remains with debt service. With construction often the largest part of the budget, the loan payment is a big fixed cost, so the ramp-up period and opening sales assumptions matter.
Franchisor Requirements for New Owners
The franchisor sets a minimum cash injection of $250,000 and/or 25% of total project cost, excluding land and municipal tap fees. That is the most important number for financing: it tells you the equity you must bring, and lenders will expect it to be documented.
Training. The franchisor describes eight weeks at its support training center plus two weeks in the new store, along with a barista training program for employees.
Development support. The franchisor offers help with site selection, lease or purchase negotiation, architectural and civil documents and a qualified general contractor, plus an equipment and decor package.
Timeline. The company says stores typically open five to 12 months after site approval, depending on location and model. Interest and carrying costs during construction belong in the budget.
Ways to Own a Cabin Coffee Company Store
A new store. Most new owners build a new store, either ground-up or in an end-cap space. See our franchise start-up financing options.
A conversion. The brand allows adaptive reuse of buildings such as former banks or gas stations, which can lower or change construction costs. Our article on conversion franchise financing covers how lenders look at these projects.
Buying an existing store. If an owner sells, the buyer gets operating history, staff and customers, and the franchisor must approve the transfer. Our article on buying a coffee shop explains what to evaluate.
Financing Options for a Cabin Coffee Company Franchise
SBA 7(a) loans. With the brand on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise and training fees, construction, equipment, signage, start-up costs and working capital, and can include real estate, subject to lender approval.
SBA 504 loans. When you buy land and build a freestanding store, an SBA 504 loan can finance the land, building and long-lived equipment with long terms. Read more about restaurant real estate acquisition financing.
Conventional term loans. Experienced operators with strong financials may use a conventional business loan.
Equipment financing. Roasters, espresso machines, grinders, brewers, refrigeration, ovens and drive-thru technology can often be financed separately. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Green coffee, milk and food inventory, payroll during ramp-up and twice-monthly royalty billing all call for working capital. See our restaurant working capital solutions.
Seller financing on resales. A seller may carry part of the price on a resale. A seller note is typically subordinate to the senior loan, and SBA programs may limit it.
SBA Loans for Cabin Coffee Company Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. Lenders check it before making an SBA-guaranteed loan to a franchisee.
The listing. Cabin Coffee Company appears under code S2133 with no additional notes, and the directory entry references a license and service agreement. In plain English, the brand’s agreement has been reviewed and no special addendum is flagged, so lenders can proceed with standard SBA underwriting. The franchisor also describes itself as an SBA-approved franchisor. A listing does not approve any borrower.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A project that includes land and a freestanding building may combine 504 and 7(a) financing.
Application tips. Choose your store model and site first, get a contractor budget, document your cash injection and build projections with a realistic ramp-up. Our SBA loan calculator can help with rough payment estimates; it is not an offer or approval.
How Lenders Evaluate a Cabin Coffee Company Deal
Personal credit and financial history. Expect a review of personal credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. The franchisor’s $250,000 and/or 25% minimum cash injection is a floor. Lenders also want reserves after closing.
Industry and management experience. Food service, retail or management experience helps. Lenders also weigh the franchisor’s training.
Business plan and projections. Base the plan on your model, drive-thru traffic, morning hours, meeting room rentals if any, food and beverage costs and the 6% royalty and service fee.
The FDD and license agreement. Lenders review the term, renewal, transfer rules and territory.
Site and real estate. For leased sites, lenders want a lease at least as long as the loan. For owned sites, they review appraisal, zoning and the drive-thru layout.
Equipment and the Roastery
Every model except the Express includes an in-store roasting area, so the equipment package can include a coffee roaster plus espresso machines, grinders, brewers, blenders for frappes and other cold drinks, refrigeration and food equipment. The franchisor’s published estimate for furniture, fixtures and equipment is $100,000 to $200,000 per store. Equipment financing can match payments to the useful life of each piece.
Multi-Unit Growth and Development
The franchisor offers lower franchise and training fees for additional stores and a lower construction range per store for multi-unit owners. Lenders will look at the first store’s results before funding the second. See our article on multi-unit franchise financing.
Real-World Scenarios
A freestanding Retreat on owned land. A buyer purchases a lot and builds a Retreat. An SBA 504 loan covers land and building, and a 7(a) loan covers equipment and working capital.
An Express drive-thru. A buyer leases a small pad site and finances construction and equipment with an SBA 7(a) loan.
A bank conversion. A buyer converts a former bank branch, using its existing drive-thru lanes, with a 7(a) loan.
A second store. An existing owner adds a second store at the multi-unit fees, financed on the combined results.
Common Mistakes to Avoid
- Forgetting that land and tap fees are excluded from the franchisor’s estimates
- Underestimating construction costs and the five to 12 month timeline
- Using borrowed money for the required cash injection without checking lender rules
- Leaving too little working capital for ramp-up
- Ignoring the twice-monthly royalty billing in cash flow plans
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Cabin Coffee Company Franchise
Step 1: Review the FDD. Study Items 5, 6, 7, 10, 12, 17 and 19 with a franchise attorney.
Step 2: Choose your model. Pick a model that fits your market and budget.
Step 3: Find a site. Work with the franchisor on site selection and decide whether to buy or lease.
Step 4: Get budgets. Get construction, equipment and signage quotes.
Step 5: Document your cash injection. Show the required cash and plan reserves.
Step 6: Apply for financing. Choose SBA 7(a), 504, conventional or equipment financing for your Cabin Coffee Company franchise loan.
Step 7: Close and build. Coordinate construction, training and opening.
Cabin Coffee Company Franchise Loan FAQs
How much does a Cabin Coffee franchise cost?
The franchisor publishes cost categories, including a $40,000 franchise fee and construction of $350,000 to more than $1 million for a single store, with land and tap fees excluded. Item 7 of the current FDD gives the official range.
What is the franchise fee?
$40,000 for a single store. Multi-unit owners pay $40,000 for the first store and $30,000 for each additional store.
What is the royalty?
The royalty and service fee is 6% of sales, billed on the first and fifteenth of each month.
How much cash do I need?
The franchisor requires a minimum cash injection of $250,000 and/or 25% of total project cost, excluding land and municipal tap fees.
Is Cabin Coffee Company on the SBA Franchise Directory?
Yes, under code S2133 with no additional notes.
Can I finance the roaster and equipment separately?
Often yes, with equipment loans or leases.
Can I convert an existing building?
Yes. The franchisor allows conversions of buildings such as former banks or gas stations.
Can a first-time owner get a Cabin Coffee Company franchise loan?
Yes, if approved by the franchisor and the lender, with the required cash injection and a solid plan.
Does the franchisor offer financing?
Check Item 10 of the current FDD. Most buyers arrange their own loans.
How long does it take to open?
The company says five to 12 months after site approval, depending on location and model.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A Cabin Coffee Company franchise loan is largely a construction loan with a coffee business on top. Choose your model, decide on real estate early and bring the required cash injection.
US Professional Funding helps franchise owners and buyers finance new stores, real estate, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
