How to Finance a Foxtail Coffee Franchise: Costs, Fees and SBA
By Anthony Cornella
A Foxtail Coffee franchise loan funds a specialty coffee shop from a Florida brand that roasts its own coffee and has grown from a single Winter Park café into a multi-state network. Because most of the cost of a Foxtail shop sits in leasehold improvements and equipment, the way you structure the loan matters as much as the amount.
This article uses Foxtail Coffee’s 2025 Franchise Disclosure Document (FDD) to explain the franchise fee, ongoing fees and estimated initial investment, then covers the brand’s SBA Franchise Directory listing, the financing options that fit a new shop or a resale and how lenders review the deal.
US Professional Funding is not affiliated with, sponsored by or endorsed by Foxtail Coffee; the name is used only to describe the business. Figures from the franchisor’s disclosure document 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.
Foxtail Coffee Franchise Loan at a Glance
- Franchisor: Foxtail Coffee Franchise Co., LLC, a Florida company based in Winter Park, franchising since 2019.
- Initial franchise fee: $40,000 for a single shop, according to the 2025 FDD.
- Estimated initial investment: $357,000 to $713,000 for a single shop without optional add-ons (2025 FDD, Item 7).
- Royalty: 6% of gross sales, paid monthly.
- Marketing fund: 1% of gross sales, paid monthly.
- Technology: a mobile app fee of $150 to $300 per month and software of about $300 to $600 per month paid to the vendor.
- Network size: 78 outlets at the end of 2024, 52 franchised and 26 company-owned, according to Item 20 of the 2025 FDD.
- Franchisor financing: none offered (Item 10).
- Term: 10 years, with renewals in 5-year terms (Item 17).
- SBA Franchise Directory: listed as Foxtail Coffee Co (code S4645), with a note about the lease rider when real estate secures the loan.
What Is Foxtail Coffee?
Foxtail Coffee Co. started in Winter Park, Florida, where an affiliate of the franchisor has operated a shop since 2016. The franchisor entity was formed in September 2019 to take the concept nationwide, and the company says its first franchised shop opened in Clermont, Florida. It has since grown across Florida and into several other states.
The brand positions itself as a craft coffee house. The company says it sources and roasts coffee from ethical, sustainable farms and pairs its coffee with hand-selected teas and food. The FDD also describes optional add-ons a franchisee may include: an ice cream counter, a gelato counter, a bagel program and a coffee truck or trailer.
Why lenders pay attention to the company-owned base. At the end of 2024, roughly a third of the system’s outlets were company-owned. A franchisor that operates its own shops has direct experience with costs and staffing, which lenders tend to view as a positive. The franchised network is still relatively young, though, so lenders will focus closely on your plan and your site. Our article on buying a coffee shop or café explains how lenders look at coffee economics.
Foxtail Coffee Franchise Costs
According to Foxtail Coffee’s 2025 FDD, the estimated initial investment for a single shop without add-ons is $357,000 to $713,000. Here is how that range breaks down.
Initial franchise fee
The single-unit fee is $40,000, due when the franchise agreement is signed and not refundable. Under a multi-unit development agreement, each additional franchise carries a $35,000 fee, payable when that agreement is signed.
Leasehold improvements
Build-out is the largest line item at $175,000 to $390,000. That covers construction of the café interior, plumbing for espresso and ice machines, electrical, HVAC and finishes. A second-generation restaurant or café space can land toward the lower end; a raw shell or a pad with heavy site work can push the top end. See our page on financing a restaurant build-out.
Furniture, fixtures and equipment
The FDD estimates $80,000 to $155,500 for furniture, fixtures and equipment, plus $2,500 to $5,000 for point-of-sale hardware and $8,000 to $25,500 for signage. Starting inventory and proprietary equipment purchased from the franchisor add $10,000 to $17,500.
Opening costs and working capital
Additional funds for the first three months are estimated at $25,000 to $40,000. That amount sits on top of deposits, insurance, permits and launch marketing, and lenders often want to see reserves beyond it.
Item 7 line items for a single shop (2025 FDD):
- Initial franchise fee: $40,000
- Rent and lease security deposit: $5,000 to $10,000
- Utilities: $1,000 to $4,000
- Leasehold improvements: $175,000 to $390,000
- Market introduction program: $2,000 to $7,500
- Furniture, fixtures and equipment: $80,000 to $155,500
- Point-of-sale hardware: $2,500 to $5,000
- Insurance: $1,500 to $3,000
- Signage: $8,000 to $25,500
- Office expenses: $1,000 to $2,000
- Starting inventory and equipment: $10,000 to $17,500
- Operational licenses and permits: $1,000 to $3,000
- Professional fees: $2,000 to $4,000
- Initial training travel, lodging and meals: $3,000 to $6,000
- Additional funds for the first three months: $25,000 to $40,000
- Total: $357,000 to $713,000
Optional add-ons
The FDD prices four add-ons separately. An ice cream counter adds $37,000 to $42,000, a gelato counter $10,000 to $15,000, a bagel program $18,000 to $35,000 and a coffee truck or trailer $40,000 to $75,000. If you plan to include one, build it into the loan request from the start rather than adding it later.
Ongoing Fees and How They Affect Your Loan
The 2025 FDD lists a royalty of 6% of gross sales and a marketing fund contribution of 1% of gross sales, both paid monthly. Owners also pay $150 to $300 per month for the mobile app and about $300 to $600 per month for software. Other fees include a $10,000 transfer fee, a $10,000 renewal fee and $500 per person for replacement training.
When sizing a Foxtail Coffee franchise loan, lenders deduct these fees, rent, labor and coffee and dairy costs before testing whether the shop’s cash flow covers loan payments. Renewal also requires renovating to current standards, so plan for a future reinvestment cycle.
Franchisor Requirements for New Owners
The franchisor’s public pages do not publish minimum net worth or liquid capital figures, so ask for them during discovery. Lenders will set their own expectations based on the total project cost, your injection and reserves.
Approval generally involves an application, meetings with the franchisor, review of the FDD, site approval and initial training before opening. Expect the franchisor to approve both the site and the lease.
Ways to Own a Foxtail Coffee
A new shop. Most owners build a new location, which calls for start-up financing covering build-out, equipment and opening reserves. Our restaurant start-up financing page explains how these loans work.
Buying an existing shop. Resales let a buyer step into an operating café with sales history. The franchisor must approve the transfer, and the FDD lists a $10,000 transfer fee. See franchise restaurant acquisition financing.
Multi-unit development. The FDD describes a multi-unit development agreement covering additional shops at $35,000 each. The estimated total for that path, without add-ons, is $393,000 to $788,000 including the first shop.
Financing Options for a Foxtail Coffee Franchise
SBA 7(a) loans
An SBA 7(a) loan can cover the franchise fee, build-out, equipment and working capital in one loan, which fits a café’s mix of hard and soft costs.
SBA 504 loans
Coffee shops usually lease their space, but if you buy a freestanding building, an SBA 504 loan may finance the real estate and long-lived improvements.
Conventional term loans
Experienced owners with strong collateral may prefer conventional business loans, especially for a second or third shop.
Equipment financing
Espresso machines, grinders, brewers, ice machines, refrigeration, blenders, display cases and point-of-sale systems can be financed separately. A coffee truck or trailer is another candidate. Learn more about restaurant equipment financing.
Working capital and lines of credit
The FDD’s three-month additional funds estimate is a minimum. A reserve or line of credit helps with the opening ramp, seasonal swings and repairs. See restaurant working capital.
Seller financing on resales
A selling franchisee may carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA program rules may limit how they are structured.
SBA Loans for Foxtail Coffee Franchisees
SBA lenders check the SBA Franchise Directory to confirm a brand’s franchise documents have been reviewed for eligibility. Foxtail Coffee is listed as Foxtail Coffee Co under code S4645.
The listing includes a note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Rider to Lease Agreement may not be used. The rider is designed for owners who lease their site from a landlord. If you own the property and pledge it as collateral, there is no landlord lease for the rider to modify, so it should not be used. Tell your lender early whether you will lease or own.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our article on SBA loans for restaurants covers the process in more detail.
How Lenders Evaluate a Foxtail Coffee Deal
Personal credit and financial history. Lenders review personal credit, tax returns and existing debts.
Net worth and liquidity. Expect to show an injection plus reserves beyond the three-month estimate.
Industry and management experience. Food service, retail or multi-unit management experience strengthens the file.
Business plan and projections. Base projections on traffic counts, morning commute patterns, average ticket and labor scheduling. Address any add-on separately.
The FDD and franchise agreement. The 2025 FDD does not include a financial performance representation in Item 19, so your projections must stand on local research. Lenders also review Item 20 outlet data and Item 17 terms.
Site and lease. Visibility, parking, access and the length of the lease relative to the loan term all matter.
For resales, historical financials. Lenders review sales trends, tax returns and lease terms.
Equipment and Build-Out Deep Dive
A specialty coffee shop runs on a short list of expensive machines: commercial espresso machines, grinders, batch brewers, ice machines and refrigeration. Downtime directly cuts sales, so lenders like to see service plans and reserves for repair.
Build-out cost depends on what was in the space before. Plumbing, drains and electrical capacity for espresso machines and ice makers are often the costly surprises. Get contractor bids before finalizing the loan amount.
Multi-Unit Growth and Development Agreements
Owners who sign a development agreement commit to opening additional shops on a schedule. Lenders usually finance each shop as it opens, using the performance of earlier shops as support. Our article on multi-unit franchise financing explains how lenders sequence these loans.
Real-World Scenarios
The first-time owner. A corporate manager with savings and no café experience leans on the franchisor’s training and hires an experienced shop manager. The lender structures an SBA 7(a) loan with a working capital reserve.
The add-on shop. An owner plans a location with a gelato counter. The add-on is built into the loan request and projections from the start.
The resale buyer. A buyer acquires an operating shop. The lender reviews tax returns and sales history, and the seller carries a small subordinate note.
The developer. An experienced restaurant operator signs a development agreement and finances the first shop with an SBA loan and later shops with conventional loans.
Common Mistakes to Avoid
- Underestimating build-out in a raw space.
- Treating the three-month additional funds estimate as enough.
- Forgetting technology fees in projections.
- Adding a costly add-on after the loan closes.
- Signing a lease shorter than the loan term.
Read more in restaurant loan mistakes.
Next Steps to Finance Your Foxtail Coffee Franchise
Step 1: Review the FDD. Read Items 5, 6, 7, 10, 17, 19 and 20 with an attorney.
Step 2: Confirm requirements. Ask the franchisor for its net worth and liquidity expectations.
Step 3: Find a site. Get franchisor approval and contractor bids.
Step 4: Build projections. The SBA loan calculator gives planning estimates only, not an offer or approval.
Step 5: Gather documents. Tax returns, financial statements, résumé, business plan and quotes.
Step 6: Apply and coordinate. Align franchisor approval, the lease and loan approval.
Foxtail Coffee Franchise Loan FAQs
How much does a Foxtail Coffee franchise cost?
The 2025 FDD estimates $357,000 to $713,000 for a single shop without add-ons.
What is the Foxtail Coffee franchise fee?
$40,000 for a single shop, or $35,000 for each additional shop under a development agreement.
What royalty does Foxtail Coffee charge?
6% of gross sales, plus a 1% marketing fund contribution.
How much liquid capital do I need?
The franchisor does not publish a minimum on its public pages. Lenders will expect an injection plus reserves.
Is Foxtail Coffee eligible for SBA loans?
It is listed on the SBA Franchise Directory under code S4645. Eligibility still depends on the borrower, project and lender approval.
Can I finance equipment separately?
Yes. Espresso machines, refrigeration and other equipment can be financed separately or within a Foxtail Coffee franchise loan.
Can I buy an existing Foxtail Coffee?
Yes, subject to franchisor approval. The transfer fee is $10,000.
Does Foxtail Coffee offer financing?
No. Item 10 of the 2025 FDD states the franchisor does not offer direct or indirect financing.
How long is the franchise agreement?
10 years, with renewals in 5-year terms if conditions are met.
Does the FDD include earnings figures?
The 2025 FDD does not include a financial performance representation in Item 19.
How many Foxtail Coffee locations are there?
Item 20 of the 2025 FDD reports 78 outlets at the end of 2024: 52 franchised and 26 company-owned.
Final Thoughts
A Foxtail Coffee franchise loan finances a build-out-heavy café, so accurate bids, realistic reserves and the right mix of loan types make the difference. Owners who plan add-ons and technology costs from the start give lenders a clearer picture.
US Professional Funding helps café and restaurant owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing.
