How to Finance a Cousins Subs Franchise: Costs, SBA and Growth
By Chris Cornella
A Cousins Subs franchise loan finances a sub shop from a Wisconsin-born sandwich brand built around bread baked fresh daily that is now expanding across the Midwest. The franchisor publishes its franchise fee, royalty, investment range and net worth and liquidity requirements, and the brand is listed on the SBA Franchise Directory, which gives buyers a clear starting point for planning.
This article covers the brand’s published costs and requirements, how its multi-unit focus shapes financing, what the SBA directory listing and its notes mean and what lenders look at.
US Professional Funding is not affiliated with, sponsored by or endorsed by Cousins Subs; 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 by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Cousins Subs Franchise Loan at a Glance
- Founded: 1972 in Milwaukee, Wisconsin, by cousins Bill Specht and Jim Sheppard, according to the franchisor.
- System size: the company reports 100 locations throughout Wisconsin, Illinois and Indiana.
- Initial franchise fee: $25,000 for the first location; $17,500 for each additional location.
- Royalty: 6%, according to the franchisor’s costs page.
- Estimated initial investment: $464,700 to $1,164,000.
- Net worth and liquidity: $1,000,000 net worth and $250,000 liquidity, which the franchisor lists as the requirements for a three-store development.
- Multi-unit owners: the franchisor says 40% of its current franchisees are multi-unit operators.
- Financial performance: the 2026 FDD includes Item 19 financial performance representations.
- SBA Franchise Directory: listed (code S0435), with notes on lease addendums, lien position and management agreements.
What Is Cousins Subs?
Cousins Subs was founded in 1972 by cousins Bill Specht and Jim Sheppard, who opened their first shop in Milwaukee, Wisconsin. The franchisor describes itself as a Midwest brand with Wisconsin roots, and Bill’s daughter Christine Specht now leads the company as president and CEO.
The brand’s positioning rests on quality ingredients: bread baked fresh daily, locally sourced ingredients and a diverse menu. The franchisor says it is innovating with menu additions and updated mobile platforms, and its restaurants combine a modern look with the brand’s history.
Where it is growing. The franchisor says it currently has 100 locations throughout Wisconsin, Illinois and Indiana and is expanding across the Midwest. Its franchising site names ten target markets: Indianapolis, Cincinnati, Louisville, Columbus, Cleveland, St. Louis, Des Moines, Grand Rapids, Detroit and Minneapolis.
Why lenders view Cousins Subs the way they do. Lenders see a family-led system with more than five decades of history, published costs and an SBA directory listing. They also see a regional brand entering new markets where it has less name recognition, so buyers in expansion markets should expect lenders to look closely at marketing plans, site quality and the operator’s experience.
Cousins Subs Franchise Costs
Initial franchise fee. The franchisor lists a $25,000 franchise fee for the first location and $17,500 for each additional location. The reduced fee for later locations fits the brand’s multi-unit development model, so ask how fees are scheduled under a development agreement and when each is due.
Real estate and build-out. Sub shops typically operate in leased space, so leasehold improvements, architectural work, signage and millwork make up a large part of the budget. The franchisor says its corporate team can assist with site selection and buildout management. The width of the investment range reflects differences in space condition, size, local construction costs and tenant improvement allowances.
Equipment and technology. A sub shop needs bread ovens and proofing equipment, slicers, refrigeration and prep tables, a beverage system, point-of-sale and online ordering technology and smallwares. These are typical candidates for separate equipment financing.
Opening costs and working capital. Training, opening inventory, grand opening marketing, insurance, deposits and additional funds for the early months belong in the plan.
Total investment. The franchisor publishes a total estimated initial investment of $464,700 to $1,164,000. The FDD’s Item 7 table breaks that total into line items, which typically include:
- Initial franchise fee
- Leasehold improvements and architectural fees
- Signage, seating and millwork
- Equipment and smallwares
- Point-of-sale and technology
- Rent, security deposits and utility deposits
- Opening inventory and supplies
- Grand opening marketing
- Training, insurance and additional funds for the initial operating period
Read the current Item 7 table for each line item’s range, assumptions and the length of the additional funds period, and confirm that your budget lines add up to a total inside the published range.
Ongoing Fees and How They Affect Your Loan
Royalty. The franchisor lists a 6% royalty. Because it is a percentage of sales, it rises with volume and must be deducted before a lender measures cash available for debt service.
Advertising and technology fees. The costs page does not publish a marketing fund or technology fee, so review Item 6 of the current FDD for every recurring fee, including any local advertising requirements, technology and loyalty platform fees, transfer and renewal fees.
Remodels and reinvestment. The brand has gone through a large-scale rebranding, and franchise agreements generally require periodic updates. Ask what remodel or refresh obligations apply over the term and build them into long-range projections.
How lenders factor these costs in. A Cousins Subs franchise loan is sized to what remains after food, labor, rent, the 6% royalty, marketing and technology costs. Lenders stress-test that figure to make sure the restaurant can carry its debt during the ramp-up period and a soft quarter.
Franchisor Requirements for New Owners
- Net worth: $1,000,000, listed by the franchisor for a three-store development.
- Liquidity: $250,000 for a three-store development.
- Experience: the franchisor looks for experience as a restaurateur and/or franchisee.
- Involvement: a desire to be involved in the business, or a strong general manager in mind.
- Growth interest: interest in multi-unit expansion down the road.
The approval process. Candidates inquire, review the FDD, meet the leadership team and work through site selection with the corporate team. The franchisor’s materials describe training that combines brand immersion at headquarters, hands-on work at a certified training restaurant and on-site support around opening.
What the requirements mean for financing. Because the published net worth and liquidity figures are tied to a three-store development, lenders will look at whether the buyer can fund the equity for the first store and still keep reserves for later ones.
Ways to Own a Cousins Subs
A new restaurant. A new location in one of the target markets is a start-up. Lenders underwrite it on the site, the lease, the build-out budget, projections and the operator’s experience. Our franchise start-up financing page explains how these loans are structured.
A multi-unit development agreement. The franchisor’s requirements are framed around a three-store development, and later locations carry a lower franchise fee. Financing for a development agreement is usually arranged store by store as each site is approved.
Buying an existing restaurant. Existing Cousins Subs restaurants change hands, and the franchisor’s newsroom announces new owners of established shops. A resale gives a lender actual sales and expenses to underwrite. Our franchise restaurant acquisition financing page covers how these purchases are financed.
Financing Options for a Cousins Subs Franchise
SBA 7(a) loans. Because Cousins Subs is on the SBA Franchise Directory, the SBA 7(a) loan program is a natural fit for many buyers. A 7(a) loan can finance leasehold improvements, equipment, the franchise fee, working capital and the purchase of an existing restaurant, subject to program rules and lender approval.
SBA 504 loans. The SBA 504 program fits buyers who want to purchase the building or land for a freestanding restaurant, or to finance major long-lived equipment. Most sub shops are leased, so 504 applies to a narrower set of deals.
Conventional term loans. Experienced multi-unit operators with strong financials may prefer a conventional business loan, particularly for later stores in a development schedule.
Equipment financing. Bread ovens, proofers, slicers, refrigeration, beverage systems and point-of-sale technology can be financed separately. Explore restaurant equipment financing and leasing.
Build-out financing. Leasehold improvements are often the largest cost in a new shop. Our article on restaurant build-out financing explains how construction funds are disbursed.
Working capital and lines of credit. A new shop needs cash for payroll, food inventory and grand opening marketing before sales stabilize, and expansion-market stores may take longer to build awareness. See our restaurant working capital solutions.
Seller financing on resales. On the sale of an existing restaurant, the seller may carry part of the price. A seller note is typically subordinate to the senior loan, and SBA rules can limit how seller notes count toward the buyer’s equity.
SBA Loans for Cousins Subs Franchisees
SBA lending for franchises runs through the SBA Franchise Directory, a list of brands whose franchise documents have been reviewed for SBA eligibility. A listing does not approve any borrower, but it allows SBA lenders to consider loans to the brand’s franchisees without a separate franchise review.
The Cousins Subs listing. Cousins Subs appears on the directory under code S0435, with three notes. In plain English:
- Lease addendum and real estate: when the real estate where the business operates will secure the SBA-guaranteed loan, the brand’s lease addendum may not be executed. This matters to buyers who purchase a building and pledge it as collateral.
- Lien position: the lender must obtain the correct lien position on all collateral as SBA rules require. Expect the lender to review any franchisor or landlord interests in equipment and the premises.
- Management agreements: if the applicant operates under a management agreement with a third party, the lender must review it to determine whether the applicant and the management company are affiliated. The applicant is not eligible if the management company is, or is affiliated with, the franchisor.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A Cousins Subs franchise loan for a single shop is generally well within that limit, while a multi-store development may involve several loans over time.
SBA application tips. Prepare personal financial statements and tax returns, a resume showing restaurant or management experience, the franchise agreement and FDD, the lease or letter of intent, contractor bids, equipment quotes and monthly projections. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Cousins Subs Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement and generally require personal guarantees.
Net worth and liquidity. The franchisor’s $1,000,000 net worth and $250,000 liquidity requirements for a three-store development set the floor. Lenders want to see the equity injection and post-closing reserves coming from documented sources.
Industry and management experience. The franchisor values restaurant and franchise experience, and so do lenders. A buyer without it should plan on a strong general manager.
Business plan and projections. Projections should reflect the site’s traffic, the target market, the 6% royalty, rent, labor and food costs and a realistic ramp-up. In expansion markets, show how grand opening marketing and catering will build awareness.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 10, 12, 17 and 19 for fees, territory, term, renewal and transfer conditions.
Site and lease. Lenders review the lease term relative to the loan term, renewal options, any landlord allowance and the lease addendum.
Historical financials for resales. For an existing shop, expect to provide several years of profit and loss statements, sales reports and tax returns.
Bread, Equipment and Kitchen Layout
Fresh-baked bread is central to the brand, so the bakery line is a key equipment category. Ovens, proofers and dough handling equipment sit alongside slicers, refrigerated prep tables, walk-in coolers, beverage systems and the technology that runs online ordering, delivery and loyalty.
Why it matters for financing. This equipment is both a significant cost and useful collateral, and financing it separately can preserve cash for build-out and working capital.
Multi-Unit Growth and Development Agreements
Multi-unit ownership is built into the brand’s model: the franchisor says 40% of current franchisees are multi-unit operators, frames its financial requirements around a three-store development and lowers the franchise fee for additional locations.
Financing the second and third store. Once the first store has operating history, lenders can underwrite its cash flow alongside the next store’s projections. Many operators finance each store as it is approved rather than borrowing for all of them at once. Our article on multi-unit franchise financing covers development schedules and global cash flow.
Pacing the schedule. Read what the development agreement says about deadlines and what happens if a store opens late, and keep enough liquidity to fund each store’s equity on time.
Real-World Scenarios
An experienced restaurateur entering a target market. A multi-unit restaurant operator signs a three-store development in one of the brand’s target markets. The first store is financed with an SBA 7(a) loan covering build-out, equipment and working capital, and later stores are financed as each site is approved.
A first-time owner buying an existing shop. A former retail manager buys an established Wisconsin shop from a retiring franchisee. The lender underwrites the shop’s history, and the buyer keeps a working capital reserve and relies on the existing team during the transition.
An owner buying the building. A franchisee finds a freestanding building and uses an SBA 504 loan for the real estate. Because the real estate secures the SBA loan, the directory note on the lease addendum applies, and the lender structures collateral accordingly.
Common Mistakes to Avoid
- Treating the three-store net worth and liquidity figures as the cash needed for just the first store
- Signing a development schedule without a plan to fund each store’s equity on time
- Underestimating build-out costs or the length of the ramp-up in a new market
- Ignoring the SBA directory notes on real estate collateral and management agreements
- Leaving out the 6% royalty and Item 6 fees when building projections
- Using Item 19 figures as a projection for a specific site
- Signing a lease before financing and franchisor site approval are aligned
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Cousins Subs Franchise
Step 1: Confirm you meet the requirements. Document net worth and liquidity against the franchisor’s three-store development figures and decide who will manage the restaurant day to day.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 12, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 3: Choose your path. Decide between a new store, a development agreement or an existing restaurant.
Step 4: Talk with a financing specialist early. Learn how SBA 7(a), SBA 504, conventional and equipment financing fit your plan before you commit to a site.
Step 5: Secure a site and build your plan. Work with the corporate team on site selection, gather contractor bids and equipment quotes and build monthly projections.
Step 6: Apply and coordinate approvals. Submit the loan package and align the lender’s timeline with lease signing, franchisor approval and construction.
Step 7: Close, build and open. Complete training, manage the build-out and keep working capital in reserve for the opening months.
Cousins Subs Franchise Loan FAQs
How much does a Cousins Subs franchise cost?
The franchisor lists an estimated initial investment of $464,700 to $1,164,000. The current FDD’s Item 7 table breaks that total into line items.
What is the Cousins Subs franchise fee?
$25,000 for the first location and $17,500 for each additional location, according to the franchisor.
What royalty does Cousins Subs charge?
The franchisor lists a 6% royalty. Review Item 6 of the FDD for marketing, technology and other recurring fees.
How much net worth and liquid capital do I need?
The franchisor lists $1,000,000 in net worth and $250,000 in liquidity as the requirements for a three-store development.
Is Cousins Subs approved for SBA loans?
Cousins Subs is listed on the SBA Franchise Directory under code S0435, which allows SBA lenders to consider loans to its franchisees. Each loan still depends on the borrower’s qualifications and lender approval.
Can I finance equipment separately?
Yes. Ovens, slicers, refrigeration, beverage systems and technology can often be financed with equipment loans or leases, separate from the main loan.
Can I buy an existing Cousins Subs?
Yes, with franchisor approval. A resale lets lenders underwrite actual sales and expenses, and an SBA 7(a) loan can often finance the purchase.
Can a first-time owner get a Cousins Subs franchise loan?
Yes, if the franchisor approves the candidate and the buyer meets a lender’s standards. The franchisor values restaurant or franchise experience, so first-time owners strengthen their request with a strong general manager and solid reserves.
Can I open multiple locations?
Yes. The franchisor’s requirements are framed around a three-store development, additional locations carry a lower fee and the franchisor says 40% of current franchisees are multi-unit operators.
Does Cousins Subs offer financing?
Review Item 10 of the current FDD, which discloses any financing offered by the franchisor or its affiliates. Buyers who need outside funding typically arrange SBA or conventional loans.
Does the FDD include financial performance information?
Yes. The franchisor’s website refers to Item 19 of the 2026 FDD. Review it with your advisors and build your own projections for your site.
Final Thoughts
Cousins Subs combines a long operating history with published costs, a multi-unit growth model and an SBA directory listing. Buyers who plan for the full development, understand the directory notes and build careful projections for new markets put themselves in the best position to secure a Cousins Subs franchise loan.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital for established brands. Learn more about our franchise financing and restaurant financing solutions.
