How to Finance an Earl of Sandwich Franchise: Formats and SBA
By Anthony Cornella
An Earl of Sandwich franchise loan can look very different depending on where the restaurant will be. The brand franchises compact non-traditional units in places such as airports, malls and college campuses, as well as traditional end-cap, in-line and drive-thru restaurants, and the franchisor looks for owners with a combined minimum net worth of $1 million.
This article explains how the brand’s formats, fees and owner requirements shape financing, what its SBA Franchise Directory listing and lease note mean, and how lenders evaluate new restaurants, resales and multi-unit plans.
US Professional Funding is not affiliated with, sponsored by or endorsed by Earl of Sandwich; 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 lender review and 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.
Earl of Sandwich Franchise Loan at a Glance
- Royalty: 6% of gross sales, according to the franchisor.
- Advertising: 3% of gross sales, with 1% going to the Brand Fund and 2% spent by the franchisee on local store marketing.
- Net worth: the franchisor’s ideal candidates have a combined minimum net worth of $1 million.
- Total investment and franchise fee: the franchisor says the investment varies with size and location; Items 5 and 7 of the current FDD give the figures.
- Formats: non-traditional units of 600 to 1,000 square feet and traditional restaurants of 1,200 to 1,400 square feet.
- Training: a 4-week manager program in Orlando, Florida, plus on-site team training around the first opening.
- Opening timeline: typically 6 to 8 months after a site is approved.
- SBA Franchise Directory: listed as “Earl of Sandwich” under code S0559, with a note about the Addendum to Lease when real estate secures the loan.
What Is Earl of Sandwich?
The brand’s story starts in 1762, when John Montagu, the 4th Earl of Sandwich, is credited with inventing the sandwich. The restaurant brand launched in 2004 as a partnership between his descendants, Lord John Montagu, the 11th Earl of Sandwich, and his son Orlando Montagu, and entrepreneur Robert Earl. The first restaurant opened in Orlando, Florida. The franchisor is Earl of Sandwich (USA) LLC.
The concept. The brand calls its signature product “the world’s greatest hot sandwich.” Sandwiches are baked to order on artisan bread, with signature items such as The Original 1762 and The Full Montagu, alongside salads and wraps.
Two families of formats. The franchisor describes non-traditional units of 600 to 1,000 square feet for airports, travel centers, convenience stores, food courts, office buildings, kiosks, malls and college campuses, sometimes with a non-traditional menu. Traditional restaurants of 1,200 to 1,400 square feet include end-cap, in-line and drive-thru sites in places such as lifestyle centers, promenades and urban downtown districts.
Why lenders view Earl of Sandwich the way they do. Lenders see a recognizable concept with a simple, focused menu and a franchisor that says it has refined its system over the past 15 years. Because the formats vary so widely, lenders look closely at the specific site: who the landlord is, how long the lease or concession runs, and what traffic the location depends on.
Earl of Sandwich Franchise Costs
The franchisor states that total store investment varies depending on size and location, and it does not publish a single range on its franchising page. Item 7 of the current FDD is where to find the estimated initial investment and each line item.
Initial franchise fee. The franchisor mentions franchise and application fees, which are paid when the franchise agreement is signed. The amounts appear in Item 5 of the FDD.
Lease and build-out. A 600-square-foot kiosk inside a mall or campus building and a 1,400-square-foot drive-thru restaurant are very different projects. Non-traditional units can involve landlord or venue design standards, while drive-thru sites involve site work, a pickup window and more extensive construction. The franchisor provides architectural drawings, store layout reviews and site selection help, which keep plans consistent with brand standards.
Equipment. A hot-sandwich kitchen needs ovens for baking bread and toasting sandwiches, refrigerated prep tables, walk-in or reach-in refrigeration, beverage equipment, display cases and point-of-sale systems. Drive-thru restaurants add order and pickup technology.
Opening costs and working capital. Opening inventory, pre-opening wages during on-site training, grand opening marketing and additional funds for the early months are typically part of Item 7.
Total investment. Item 7 typically includes categories such as these:
- Initial franchise and application fees
- Lease deposits and rent before opening
- Architectural and design services
- Leasehold improvements and construction
- Kitchen equipment, furniture and fixtures
- Signage and decor
- Point-of-sale and technology systems
- Opening inventory and supplies
- Training travel and expenses
- Insurance, permits, licenses and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty. The franchisor states a royalty of 6% of gross sales.
Advertising. Advertising fees total 3% of gross sales: 1% goes to the Brand Fund and 2% is spent by the franchisee on local store marketing.
Other fees. Item 6 of the FDD lists any technology, transfer, renewal and other recurring or one-time fees.
How lenders factor these fees in. Together, the royalty and advertising obligations equal 9% of gross sales before rent, labor, food costs or debt service. In non-traditional venues, rent may also be tied to sales. Lenders build those percentages into projections and test whether the remaining cash flow covers loan payments with a margin of safety.
Franchisor Requirements for New Owners
- Net worth: a combined minimum net worth of $1 million for ideal candidates.
- Involvement: franchisees must be involved in the business, and stores must be within a reasonable distance of where the owner or an operating partner lives.
- Training: a 4-week initial manager training program in Orlando, Florida, plus on-site team training one week before and one week after the first opening.
- Ongoing support: pre-opening processes, on- and off-site training and quarterly restaurant visits.
The approval process. The franchisor describes seven steps: an online inquiry, an introduction call, an online application, review of the FDD, an application review by the CEO and CFO, a Discovery Day that includes a visit to its Orlando restaurant, and finally the franchise agreement and fee payment.
What the requirements mean for financing. The franchisor does not publish a separate liquid capital minimum, so ask during the process. The $1 million combined net worth expectation signals the financial strength lenders will also look for, and the involvement requirement means lenders will expect an owner or operating partner close to the restaurant.
Ways to Own an Earl of Sandwich
A new traditional restaurant. An end-cap, in-line or drive-thru restaurant follows the usual sequence of site selection, lease negotiation and construction. An Earl of Sandwich franchise loan for this format typically covers the build-out, equipment, fees and working capital. Learn about franchise start-up financing.
A new non-traditional unit. Airport, campus, mall and travel-center units often come with venue-specific agreements and design requirements. Lenders want to review those agreements carefully because the right to operate depends on them.
Buying an existing restaurant. An operating Earl of Sandwich comes with actual sales history, staff and equipment. The franchisor must approve the transfer, and the buyer must be able to assume the lease or venue agreement; our article on buying a franchise resale covers that process. See also our page on franchise restaurant acquisition financing.
Multi-unit development. The franchisor encourages multi-unit development, depending on territory availability and existing store performance.
Financing Options for an Earl of Sandwich Franchise
SBA 7(a) loans. With the brand on the SBA Franchise Directory, an SBA 7(a) loan can finance leasehold improvements, equipment, franchise fees, opening inventory and working capital in one package, which suits most leased traditional and non-traditional units.
SBA 504 loans. An SBA 504 loan is designed for owner-occupied real estate and long-lived fixed assets. It may fit an owner who buys or builds a freestanding drive-thru building. In that case, the SBA directory note about the Addendum to Lease becomes relevant, as explained below. Our article on franchise real estate financing compares owning and leasing.
Conventional term loans. Experienced operators with strong capital may use a conventional business loan, particularly for acquisitions or additional units. Terms vary by lender.
Equipment financing. Ovens, refrigerated prep tables, refrigeration, beverage systems, point-of-sale and drive-thru technology can be financed separately. Explore restaurant equipment financing and leasing.
Working capital and lines of credit. Sales can swing with travel seasons in airports and travel centers, with academic calendars on campuses and with holiday shopping in malls. A line of credit helps cover payroll and inventory through those cycles. See our restaurant working capital options.
Seller financing on resales. A seller may carry part of the price of an existing restaurant. Any seller note would need to be acceptable to the senior lender, is typically subordinate to it, and may be limited by program rules.
SBA Loans for Earl of Sandwich Franchisees
The SBA Franchise Directory lists franchise brands whose agreements have been reviewed for SBA eligibility. SBA lenders generally rely on the directory when financing franchisees, and a listing clears the franchise relationship for review without approving any borrower.
Earl of Sandwich’s listing. The brand appears on the directory as “Earl of Sandwich” under code S0559 with this note: “When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Addendum to Lease may not be executed.”
What the note means in plain English. Franchisors often ask that a lease include an addendum giving the franchisor certain rights in the premises, such as notice of defaults or the ability to step in. For a typical leased Earl of Sandwich, that addendum can be used as normal. But if the property where the restaurant operates will itself be pledged as collateral for the SBA loan, for example when the owner or a related company owns the building and leases it to the operating business, the brand’s Addendum to Lease should not be signed for that lease. Raise this early in any deal involving owned real estate.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA application tips. Bring a personal financial statement, tax returns, a resume, a business plan with monthly projections, the lease or venue agreement, contractor bids, an equipment list and the FDD. Our loan payment calculator can help with early estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate an Earl of Sandwich Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and owners typically sign personal guarantees.
Net worth and liquidity. The franchisor’s $1 million combined net worth expectation is a useful benchmark. Lenders also look at cash available for the equity injection and reserves after closing.
Industry and management experience. Food service and multi-unit management experience help, and lenders want to know whether the owner or an operating partner will be on site, as the franchisor requires involvement and proximity.
Business plan and projections. Projections should match the format: traveler counts and hours for an airport or travel center, academic calendars for campuses, mall traffic for food courts, and drive-thru volume for traditional sites. Include the 6% royalty, the 3% advertising obligation, rent, labor and food costs.
The FDD and franchise agreement. Lenders review the term, renewal and transfer rights, and note whether Item 19 includes financial performance representations.
Site, lease or venue agreement. For leased sites, the lease should match or exceed the loan term. For non-traditional venues, lenders examine the term and termination rights of the concession or license agreement, since the business depends on them.
Historical financials for resales. Expect to provide the seller’s profit and loss statements, sales reports and tax returns.
Format Deep Dive: Non-Traditional Versus Traditional Units
Non-traditional units. At 600 to 1,000 square feet, these units can have smaller build-outs, but they may carry venue-specific construction rules, security requirements and operating hours set by the host location. Financing should account for those rules and the length of the venue agreement.
Traditional and drive-thru restaurants. At 1,200 to 1,400 square feet, these units involve more construction and, for drive-thrus, site work and specialized equipment. They also open the door to owning real estate, which brings SBA 504 and the directory’s lease note into play.
Timeline. The franchisor says it typically takes 6 to 8 months after a site is approved to open. Budget interim rent and pre-opening payroll across that window.
Multi-Unit Growth and Development Agreements
The franchisor encourages multi-unit development, depending on territory availability and the performance of existing stores. A development arrangement sets a schedule of openings, and Item 5 of the FDD discloses any development fees.
Financing additional units. Lenders typically finance each unit as it opens. The first restaurant’s results support later requests, and each new unit generally needs its own equity contribution. Our article on multi-unit franchise financing explains how growing owners structure debt.
Real-World Scenarios
A first-time owner opening an in-line restaurant. A candidate meets the net worth expectation, completes training in Orlando and opens an in-line restaurant in a lifestyle center, financing build-out, equipment and working capital with an SBA 7(a) loan.
An operator adding a campus unit. An owner with one restaurant opens a small non-traditional unit on a college campus. The lender reviews the campus agreement and plans working capital around academic breaks.
A drive-thru on owned land. An owner’s real estate company buys a pad site, builds a drive-thru restaurant and leases it to the operating company, using an SBA 504 structure. Because the property secures the loan, the parties follow the SBA directory note and do not use the brand’s Addendum to Lease for that property.
Common Mistakes to Avoid
- Applying one budget to every format instead of pricing the specific site
- Overlooking the term and termination rights of an airport, campus or mall agreement
- Leaving the combined 9% royalty and advertising obligation out of projections
- Signing the Addendum to Lease on a property that will secure an SBA loan
- Planning absentee ownership when the franchisor requires involvement and proximity
- Underfunding the 6 to 8 month period between site approval and opening
Read the restaurant loan mistakes that cost owners the most for more pitfalls.
Next Steps to Finance Your Earl of Sandwich Franchise
Step 1: Assess your finances. Compare your combined net worth and available cash with the franchisor’s expectations.
Step 2: Start the application. Submit the online inquiry, take the introduction call and complete the online application.
Step 3: Review the FDD. Study Items 5, 6, 7, 10, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 4: Talk with a financing specialist. Before Discovery Day, learn how an Earl of Sandwich franchise loan could be structured for your format and site.
Step 5: Choose the site and format. Secure the lease or venue agreement and gather contractor and equipment bids.
Step 6: Apply for financing. Submit your Earl of Sandwich franchise loan package with projections, site documents, bids and franchise documents, and flag any owned real estate for the lease note.
Step 7: Train, build and open. Complete training in Orlando, fund construction and keep working capital ready for opening.
Earl of Sandwich Franchise Loan FAQs
How much does an Earl of Sandwich franchise cost?
The franchisor says total store investment varies depending on size and location. Item 7 of the current FDD gives the estimated range and line items.
What royalty does Earl of Sandwich charge?
The royalty is 6% of gross sales, and advertising fees are 3% of gross sales, split between 1% to the Brand Fund and 2% for local store marketing.
What is the Earl of Sandwich franchise fee?
The franchisor mentions franchise and application fees. The current amounts are in Item 5 of the FDD.
What net worth do I need?
The franchisor’s ideal candidates have a combined minimum net worth of $1 million.
Can I get an SBA loan for an Earl of Sandwich franchise?
Yes, subject to approval. The brand is on the SBA Franchise Directory under code S0559. If real estate where the restaurant operates will secure the loan, the brand’s Addendum to Lease may not be executed.
What sizes are Earl of Sandwich restaurants?
Non-traditional units run 600 to 1,000 square feet, and traditional restaurants run 1,200 to 1,400 square feet.
Can I finance equipment separately?
Yes. Ovens, refrigeration, prep tables and point-of-sale systems can be financed through an equipment loan or lease or included in an SBA 7(a) loan.
Can I buy an existing Earl of Sandwich?
Yes, with franchisor approval and the ability to assume the lease or venue agreement. Lenders can underwrite the restaurant’s actual results.
Can I be an absentee owner?
The franchisor says franchisees must be involved and that stores must be within a reasonable distance of the owner or an operating partner.
How long does it take to open?
Typically 6 to 8 months after a site is approved, according to the franchisor.
Does Earl of Sandwich offer financing?
Item 10 of the FDD discloses any franchisor financing. Most franchisees arrange their own SBA or conventional loans.
Final Thoughts
Financing an Earl of Sandwich depends heavily on the format: a kiosk in a busy venue, an in-line cafe or a drive-thru on owned land each calls for a different structure. Know your site’s agreement, budget for the 9% combined royalty and advertising obligation, and plan around the SBA lease note if real estate is involved.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing programs and restaurant business financing.
