How to Finance a Carbone’s Pizza Franchise: Pizza Pub Build-Outs
By Anthony Cornella
A Carbone’s Pizza franchise loan usually funds more than ovens and a counter. Many Carbone’s locations operate as neighborhood pizzerias with a bar, dining room and room for watching the game, so owners often need to finance a full-service build-out, a liquor-licensed bar and a takeout and delivery operation at the same time. Matching each of those costs with the right kind of financing is the first job.
This article covers how a Carbone’s restaurant is typically financed: the cost categories to plan for, how franchise fees affect a loan, what the brand’s SBA Franchise Directory listing means, and what lenders look at. US Professional Funding is not affiliated with, sponsored by or endorsed by Carbone’s Pizza; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Carbone’s Pizza Franchise Loan at a Glance
- Concept: a regional pizzeria brand rooted in the Upper Midwest, with many locations combining a pizza kitchen, dining room and bar
- Franchise fee and royalty: not confirmed from the franchisor’s own materials; see Items 5 and 6 of the current Franchise Disclosure Document (FDD)
- Estimated initial investment: not confirmed; Item 7 of the FDD gives the official range and line items
- Net worth and liquidity requirements: not published in materials we could verify
- SBA Franchise Directory: listed as Carbone’s Pizza under code S2659, with no additional notes
- Typical financing: SBA 7(a), SBA 504 for owned real estate, conventional loans, equipment financing and working capital
We could not access a current FDD or franchisor-published fee schedule, so this article does not quote fees, investment ranges or unit counts.
What Is Carbone’s Pizza?
Carbone’s is a pizzeria brand with a long history in Minnesota, where most of its restaurants operate, and a presence in neighboring Wisconsin. Locations range from pizza-focused restaurants to pizzeria, bar and grill formats with full menus, taps and televisions, and many rely on a strong mix of dine-in, takeout and delivery.
For lenders, a regional brand with a loyal local following can be a strength, but the format matters. A pizzeria with a full bar has higher build-out costs, liquor licensing requirements and more staff than a carryout shop, and a lender will underwrite those differences. Because the brand is concentrated in one region, lenders may also focus on how familiar local customers are with the name in the specific market you choose.
Carbone’s Pizza Franchise Costs
Item 7 of the FDD is the official cost estimate. Until you have it, organize your budget the way a lender will expect to see it.
Initial franchise fee
Item 5 of the FDD lists the initial franchise fee and any fees for additional units. The franchise fee can often be included in an SBA 7(a) loan as part of the total project.
Lease, real estate and build-out
Most pizzerias lease space in a strip center or a freestanding building. A bar and grill format may need a larger footprint, a bar build-out, restrooms sized for a dining crowd and a hood system for pizza ovens and fryers. Taking over a former restaurant can save money if the kitchen infrastructure is usable. Our article on restaurant build-out financing explains how construction and tenant improvements are funded.
Equipment and furniture
Pizza ovens, dough mixers, prep tables, walk-in coolers, fryers, bar equipment, televisions, point-of-sale systems, delivery technology, seating and signage are all part of the equipment budget.
Opening costs and working capital
Add opening inventory, training, pre-opening payroll, marketing, deposits, licenses and insurance. If the location serves alcohol, budget for the liquor license and the time it takes to obtain it, then set aside additional funds for the early months.
When you receive the FDD, expect the Item 7 table to break these into lines such as:
- Initial franchise fee
- Rent, security deposits and real estate costs
- Leasehold improvements
- Kitchen, oven and bar equipment
- Furniture, fixtures, televisions and signage
- Computer, point-of-sale and delivery systems
- Opening inventory
- Training and pre-opening expenses
- Licenses, permits and insurance
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists royalties, advertising or marketing contributions, technology fees and transfer and renewal fees. Royalties for restaurant franchises are commonly based on gross sales, so they are paid before rent, payroll or loan payments.
Lenders sizing a Carbone’s Pizza franchise loan deduct these fees in their projections before calculating debt service coverage. Delivery costs, third-party ordering commissions and the cost of beer and liquor inventory should also appear in the plan, since they can change margins more than many first-time owners expect.
Franchisor Requirements for New Owners
We could not verify published net worth, liquid capital or experience requirements for Carbone’s. Ask the franchisor for its current criteria and expect questions about restaurant and bar management experience, your time commitment and your funding sources.
Ways to Own a Carbone’s
Opening a new restaurant. A new location is underwritten on projections, so experience and liquidity matter most. See our franchise start-up financing page.
Buying an existing restaurant. Because many Carbone’s restaurants have operated in their communities for years, resales can come up. A buyer can be underwritten on actual sales history, and the franchisor must approve the transfer. Our page on franchise restaurant acquisition financing explains how purchases are structured.
Adding locations. Owners who succeed with one restaurant may add more, financed one at a time based on existing performance.
Financing Options for a Carbone’s Pizza Franchise
SBA 7(a) loans. SBA 7(a) loans can combine leasehold improvements, equipment, the franchise fee, inventory and working capital, or finance the purchase of an existing restaurant. The 7(a) program maximum is currently $5 million, and program rules can change.
SBA 504 loans. If you buy or build the restaurant building, SBA 504 loans can finance owner-occupied real estate and long-lived equipment.
Conventional loans. Experienced operators with strong credit and collateral may use conventional business loans, particularly when buying an established, profitable location.
Equipment financing. Deck or conveyor pizza ovens, mixers, walk-ins, fryers, draft beer systems, bar coolers and televisions can be financed through restaurant equipment financing and leasing.
Working capital. Sales at pizza and sports bar concepts can rise and fall with football season, holidays and weather. A cushion for payroll, inventory and slower stretches can come from restaurant working capital.
Seller financing on resales. A seller may carry part of the price on an existing restaurant. Seller notes are typically subordinate to the primary loan, and SBA rules may limit how they are structured.
SBA Loans for Carbone’s Pizza Franchisees
SBA-backed loans are made by participating lenders with an SBA guarantee on part of the loan. For a franchise, the lender must confirm the franchise relationship is eligible, and the SBA Franchise Directory simplifies that step.
The directory listing. Carbone’s Pizza is listed on the SBA Franchise Directory under code S2659, and the listing carries no additional notes. That means the directory does not flag special conditions, such as lease addendum or area representative restrictions, that apply to some brands. A listing still does not approve any borrower or guarantee a loan.
Application tips. Have the FDD, franchise agreement, lease, contractor bids, equipment quotes, liquor license plans, personal financial statements, tax returns and résumés ready. Our SBA loan calculator can provide early payment estimates for planning only.
How Lenders Evaluate a Carbone’s Pizza Deal
Personal credit and financial history. Lenders review each owner’s credit, debts and tax returns, and significant owners usually sign personal guarantees.
Net worth and liquidity. Expect to document your cash injection and show reserves after closing.
Restaurant and bar experience. Experience running a full-service restaurant or bar, including alcohol compliance and staff scheduling, strengthens a request.
Business plan and projections. Projections should split dine-in, bar, takeout and delivery sales, and include royalties, marketing contributions, delivery costs and seasonal swings.
The FDD and franchise agreement. Lenders check the term, renewal and transfer rules and any franchisor financing in Item 10. Our article on using the FDD in franchise financing explains what underwriters read first.
Site and lease. Lease length should cover the loan term, and liquor licensing should be confirmed for the site.
For resales, historical financials. Lenders review several years of profit and loss statements and tax returns for the restaurant.
Pizza Ovens, Bars and Equipment Planning
Ovens are the core of the kitchen, and their type, number and ventilation needs drive much of the equipment budget. A bar adds draft systems, coolers, ice machines and glass washers. Match each loan to the useful life of the equipment, and keep quotes and serial numbers ready, since lenders often take equipment as collateral.
Multi-Unit Growth
Owners expanding to a second or third Carbone’s should expect lenders to look at the first restaurant’s results, global cash flow and remaining liquidity. Keep separate financial statements for each location. Our article on multi-unit franchise financing explains the process.
Real-World Scenarios
A bar manager opening a first location. An experienced bar and restaurant manager signs on for a pizzeria and bar format in a former restaurant space. An SBA 7(a) request covers build-out, ovens, bar equipment, the franchise fee and working capital.
Buying a long-running restaurant. A buyer purchases an established Carbone’s from a retiring owner. The lender underwrites the restaurant’s sales history, the seller carries a small subordinate note, and the franchisor approves the transfer.
An owner buying the building. A multi-unit operator buys the building for a new location and uses a 504 structure for the real estate with separate equipment financing.
Common Mistakes to Avoid
- Underestimating bar build-out and liquor licensing costs and timelines
- Leaving royalties, delivery costs and marketing contributions out of projections
- Holding too little working capital for slower seasons
- Signing a lease before financing and franchisor approval are lined up
- Buying a resale without reviewing several years of financial statements
For more, read about the restaurant loan mistakes owners make most often.
Next Steps to Finance Your Carbone’s Pizza Franchise
Step 1: Get the current FDD. Review it with a franchise attorney, especially Items 5, 6, 7, 10, 17 and 19.
Step 2: Pick your format and path. Decide between a new restaurant or a resale and whether you will include a bar.
Step 3: Build the budget. Include build-out, equipment, fees, licensing, opening costs, working capital and a contingency.
Step 4: Talk with a financing specialist. Confirm which loan structures fit before signing a lease or purchase agreement.
Step 5: Gather documents. Collect financial statements, tax returns, résumés, the lease or purchase contract and a business plan.
Step 6: Coordinate approvals. Keep franchisor, landlord, liquor license and loan approvals on the same timeline.
Carbone’s Pizza Franchise Loan FAQs
How much does it cost to open a Carbone’s Pizza?
The official estimate is in Item 7 of the current FDD, which we could not verify. Costs vary widely depending on format, especially whether the location includes a bar.
What is the Carbone’s franchise fee?
Item 5 of the FDD lists the initial franchise fee. Confirm the current amount with the franchisor.
What royalty does Carbone’s charge?
Royalties and marketing contributions appear in Item 6 of the FDD, and lenders include them in projections.
How much liquid capital do I need?
We could not verify published minimums. Expect lenders to want a meaningful cash injection plus reserves after closing.
Is Carbone’s Pizza eligible for an SBA loan?
The brand is listed on the SBA Franchise Directory under code S2659 with no additional notes. Each borrower still must qualify.
Can I buy an existing Carbone’s?
Yes, if an owner is selling. A resale is financed on the restaurant’s history, subject to franchisor approval.
Can a first-time owner get a Carbone’s Pizza franchise loan?
It is possible, but lenders weigh restaurant and bar experience heavily. Hiring an experienced manager can help.
Does Carbone’s offer financing?
Item 10 of the FDD discloses any franchisor financing. Most owners arrange their own loans.
How long is the franchise agreement?
Item 17 of the FDD covers the term, renewal and transfer conditions. Lenders want the term to cover the loan.
Final Thoughts
A Carbone’s Pizza franchise loan comes together most smoothly when the budget matches the format you choose, the projections reflect delivery, bar and seasonal patterns, and the franchise, lease and liquor approvals move in step with the loan.
US Professional Funding helps franchise owners finance new restaurants, resales, equipment and working capital. Learn more about our franchise financing and restaurant financing programs.
