How to Finance a Doner Shack Franchise: Multi-Unit Deals and SBA
By Marc Cornella
A Doner Shack franchise loan is often part of a bigger plan. The brand, which began in the United Kingdom, has been entering the U.S. largely through multi-unit agreements, so many buyers are financing a first restaurant while committing to open more. That makes the capital plan for unit two and three as important as the loan for unit one.
US Professional Funding is not affiliated with, sponsored by or endorsed by Doner Shack; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Have a franchise attorney and an accountant review the current Franchise Disclosure Document (FDD) before you commit.
Doner Shack Franchise Loan at a Glance
- Concept: a quick-service restaurant serving doner kebabs and shawarma alongside buttermilk fried chicken tenders, loaded fries, sliders and ice-cream milkshakes.
- Roots: founded in the United Kingdom, with a U.S. franchisor office in Miami Beach, Florida.
- Service channels: dine-in, to-go, curbside, online ordering and delivery, with drive-thru listed among the brand’s formats.
- U.S. growth model: multi-unit franchise agreements announced in markets across the South, the West and the Northeast.
- Fees and investment: we could not verify the franchise fee, royalty, marketing fund, Item 7 investment range or net worth and liquidity requirements from the franchisor’s own materials. Get the current FDD and read Items 5, 6, 7 and 12.
- SBA Franchise Directory: listed as Doner Shack under code S8286, with a two-part note covering real estate collateral and lease documents.
What Is Doner Shack?
Doner Shack was created by founders with long careers in professional kitchens who were inspired by the kebab shops of mainland Europe. The idea was to take a late-night favorite and present it in a modern, brightly designed quick-service setting with simple kitchen operations.
The menu pairs Middle Eastern and European street food with American comfort items. Doner and shawarma are the anchors, but fried chicken tenders, sliders, loaded fries and milkshakes broaden the appeal to guests who have never ordered a kebab. That mix matters to a lender because it reduces the risk that an unfamiliar core product limits traffic in a new U.S. market.
How lenders size up the brand. A franchise that is new to the U.S. has limited domestic operating history, so lenders lean more on the borrower’s own experience, liquidity and the strength of the site. The brand’s simple kitchen design, multiple sales channels and a menu that travels well for delivery are points a borrower can highlight.
Doner Shack Franchise Costs
Because we could not review the Doner Shack FDD, this section shows how the costs are usually structured. Your budget should come from the current Item 7 table and local bids.
Franchise and development fees
Item 5 lists the initial franchise fee and, for multi-unit buyers, any development fee paid when the agreement is signed. Development fees are often credited toward future units, but the timing of those payments affects how much cash you need up front. Ask how the fees are split and when each is due.
Site and build-out
Doner Shack locations can range from inline storefronts to pad sites with a drive-thru lane. A drive-thru site may involve a ground lease or a land purchase, more site work and a larger budget, while an inline space centers on interior build-out, ventilation and signage.
Equipment
The kitchen combines kebab and fried-food production: vertical broilers for doner and shawarma, pressure or open fryers for chicken tenders and fries, a flat-top grill for sliders, milkshake machines and freezers, refrigeration, hoods and fire suppression, plus point-of-sale, kitchen display and drive-thru communication systems where applicable.
Opening costs and working capital
Plan for opening inventory, uniforms, training travel, launch marketing, insurance, permits, utility deposits and the “additional funds” line that keeps the restaurant running while sales build.
Typical Item 7 categories to compare include:
- Initial franchise fee and any development fee
- Real estate, lease deposits or ground lease costs
- Leasehold improvements or site work
- Kitchen equipment, hoods and fire suppression
- Drive-thru equipment where the site has one
- Furniture, fixtures and exterior signage
- Technology, POS and kitchen display systems
- Opening inventory, uniforms and supplies
- Training expenses and launch marketing
- Additional funds for the opening period
Ongoing Fees and How They Affect Your Loan
Royalties, brand fund contributions and technology fees appear in Item 6. These are usually tied to gross sales and paid before the owner takes any profit, so they reduce the cash flow available for loan payments.
Delivery is a meaningful channel for Doner Shack, and third-party delivery commissions can be significant. Lenders look at the expected sales mix and want projections that account for royalties, fund contributions and delivery fees before calculating debt service coverage.
Franchisor Requirements for New Owners
We could not confirm Doner Shack’s published minimum net worth or liquid capital requirements. Given its multi-unit focus, expect the franchisor to look closely at your financial capacity to develop several restaurants, your management team and your knowledge of the territory. Ask what development schedule the brand expects for the territory you want.
Ways to Own a Doner Shack
A single new unit. Some owners start with one restaurant to prove the concept locally. Financing typically combines the fee, build-out, equipment and working capital in one start-up loan.
A multi-unit development agreement. Many U.S. owners have signed for several restaurants in a market. The financing plan must cover the development fee, the first opening and liquidity for later openings. Our article on financing an area development agreement explains how lenders approach these deals.
Buying an existing restaurant. As the U.S. system grows, resale units may become available. A resale offers a sales history and usually requires franchisor approval of the transfer. Our page on franchise restaurant acquisition loans and our article on buying a franchise resale cover that route.
Financing Options for a Doner Shack Franchise
SBA 7(a) loans. SBA 7(a) financing can bundle the franchise fee, build-out, equipment and working capital, and can include real estate. The 7(a) program maximum is currently $5 million, and program rules can change. SBA limits apply across all of a borrower’s SBA loans, which matters for multi-unit owners.
SBA 504 loans. For a drive-thru pad that the owner buys or builds, an SBA 504 loan may fit the land, building and long-lived equipment, subject to program rules. See our article on franchise real estate financing for when owning the site makes sense.
Conventional loans. Experienced multi-unit operators with strong balance sheets may use conventional bank financing, sometimes with a development line for future units.
Equipment financing. Broilers, fryers, shake machines and drive-thru systems can be financed separately. Our page on restaurant equipment loans and leases covers the options.
Working capital and lines of credit. Opening several units close together strains cash. A working capital loan or line of credit can cover pre-opening payroll, training and marketing for each opening. See working capital for restaurants.
Seller financing on resales. On a resale, a seller may carry part of the price. Seller notes are typically subordinate to the main loan, and SBA rules may restrict them.
SBA Loans for Doner Shack Franchisees
SBA lenders confirm that the franchise agreement leaves the franchisee in control of its business. The SBA Franchise Directory speeds that step for listed brands.
The directory listing. Doner Shack is listed under code S8286. The listing does not approve any borrower or guarantee a loan; it simplifies the lender’s review.
What the directory note means. The note has two parts. First, the franchisor may not file a lien against the SBA real estate collateral, so if your loan is secured by real estate, the franchisor cannot hold a claim on that property ahead of or alongside the lender. Second, when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Assignment of Lease and the Consent and Agreement of Landlord may not be executed. Those documents let a franchisor take over a tenant’s lease; if you own the site and pledge it, there is no lease to assign. Both points mostly affect owners who buy their real estate, such as a drive-thru pad.
SBA application tips. Bring the franchise and development agreements, the lease or purchase contract, contractor bids, equipment quotes, a sources and uses statement, personal financial statements, tax returns and résumés for each owner.
How Lenders Evaluate a Doner Shack Deal
Personal credit and financial history. Each significant owner’s credit, tax returns and debts are reviewed, and personal guarantees are typical.
Net worth and liquidity. For a multi-unit agreement, lenders want to see liquidity not just for the first opening but for the development schedule.
Operating experience. Multi-unit restaurant or quick-service management experience carries weight, particularly for a brand with limited U.S. history.
Business plan and projections. Projections should break out dine-in, takeout, delivery and drive-thru sales, with delivery commissions, food and paper costs, labor, royalties and fund fees.
The FDD and agreements. Lenders review the franchise agreement term, the development schedule, transfer conditions and default provisions.
Site, lease or real estate. Lenders review the lease term and renewal options, or for owned sites an appraisal and environmental review.
Multi-Unit Growth and Development Agreements
Multi-unit development is central to how Doner Shack has entered the U.S. A development agreement usually sets a number of restaurants and deadlines for opening them. Each restaurant is normally financed as its own project, with lenders looking at the earlier units’ results, global cash flow and remaining liquidity. Our article on multi-unit franchise financing explains how owners stage the capital.
Plan the financing for later units before you sign. If sales at the first restaurant ramp slowly, a lender may want to see more history before funding the next one, which can put a development deadline at risk.
Real-World Scenarios
A multi-unit group entering a new metro. An experienced quick-service operator signs for several units, uses an SBA 7(a) loan for the first restaurant and holds back liquidity for the second.
An owner buying a drive-thru pad. A buyer purchases land for a drive-thru location using an SBA 504 structure. Because the real estate secures the loan, the lease documents in the directory note are not signed and the franchisor cannot file a lien on the property.
A first-time owner starting with one unit. A buyer with management experience but no restaurant background starts with a single inline location, financing equipment separately to keep the main loan smaller.
Common Mistakes to Avoid
- Signing a development schedule without a financing plan for every unit
- Underestimating fryer, hood and fire suppression costs for the fried-food menu
- Ignoring delivery commissions in projections
- Spending all available liquidity on the first opening
- Overlooking the directory note when buying real estate
For more, read restaurant loan mistakes to avoid.
Next Steps to Finance Your Doner Shack Franchise
Step 1: Get the FDD. Review Items 5, 6, 7, 10, 12 and 17 with a franchise attorney.
Step 2: Decide on one unit or many. Your choice drives the fees, liquidity and lenders you need.
Step 3: Choose a site type. Inline, end-cap and drive-thru sites carry very different budgets.
Step 4: Model the numbers. Build projections with all fees, then use our SBA loan payment calculator for early estimates, which are for planning only and are not an offer.
Step 5: Assemble your package. Gather tax returns, financial statements, résumés, agreements, bids and quotes.
Step 6: Close and plan the next unit. Coordinate the closing with the franchise agreement and lease, and begin preparing for your next opening.
Doner Shack Franchise Loan FAQs
How much does a Doner Shack franchise cost?
Item 7 of the current FDD gives the franchisor’s estimate. We could not verify it, and the total varies by site type.
What is the Doner Shack franchise fee?
Item 5 of the FDD lists the initial fee and any development fee for multiple units.
What are the ongoing fees?
Item 6 lists the royalty, brand fund and other recurring fees, typically based on gross sales.
Is Doner Shack approved for SBA loans?
It is listed on the SBA Franchise Directory under code S8286. Each loan still depends on the borrower, the project and lender approval.
Can a Doner Shack franchise loan cover several units?
Usually each unit is financed separately, though a development plan can be presented upfront. SBA limits apply across all of a borrower’s SBA loans.
Can I buy the real estate for a drive-thru location?
Yes. SBA 504 or 7(a) financing may cover the land and building, and the directory note’s real estate provisions then apply.
Do I need restaurant experience for a Doner Shack franchise loan?
Experience strengthens a request, especially for multi-unit deals. First-time owners often hire an experienced general manager.
Does Doner Shack offer financing?
Item 10 of the FDD describes any franchisor financing.
How long is the franchise term?
Item 17 of the FDD covers the term, renewal and transfer. Lenders want the franchise and lease terms to match the loan.
Can I finance equipment separately?
Yes, equipment loans or leases can cover broilers, fryers and shake machines, and the main lender will count that debt.
Final Thoughts
A Doner Shack franchise loan works best as part of a full development plan. Owners who budget for both the kebab and fried-food kitchen, build delivery costs into projections and reserve liquidity for every scheduled opening are the ones lenders find easiest to approve.
US Professional Funding helps restaurant franchisees finance new units, acquisitions, equipment and expansion. Learn more about our franchise loan programs and restaurant financing.
