How to Finance a Grain and Berry Franchise: Smoothie Bowl Costs
By Marc Cornella
A Grain and Berry franchise loan funds a superfood cafe serving acai and smoothie bowls, juices and healthy snacks in a compact storefront. With a published startup range of $350,000 to $909,500 and recommended minimums of $450,000 in net worth and $250,000 in liquid capital, most buyers combine their own cash with SBA or conventional financing for the build-out, equipment and opening reserves.
US Professional Funding is not affiliated with, sponsored by or endorsed by Grain and Berry; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you sign.
Grain and Berry Franchise Loan at a Glance
- Initial franchise fee: $49,500 for a single location, with discounts for multi-unit purchases.
- Royalty: 6% of net sales.
- System development fee: 1% of net sales.
- Local advertising: at least 2% of monthly net sales.
- Startup costs: $350,000 to $909,500 for a single unit, or $419,000 to $1,037,500 under an area development agreement.
- Recommended minimums: $450,000 net worth and $250,000 liquid capital, subject to the franchisor’s evaluation.
- System size: the company cites 36 locations in 7 states.
- Franchisor financing: none offered directly; the franchisor notes that qualified applicants may pursue third-party loans, including SBA-backed financing.
- SBA Franchise Directory: listed as “Grain and Berry Cafe” under code S3049, with a note about the lease addendum when real estate secures the loan.
What Is Grain and Berry?
Grain and Berry opened its first cafe in Palm Harbor, Florida, on July 26, 2017, and its first franchise location opened in Tampa on July 18, 2018. The franchisor, Grain & Berry Cafe, LLC, is a Florida company based in Trinity, Florida.
The concept. The menu centers on acai and smoothie bowls, juices and healthy snacks. Customers can order in the cafe or through the brand’s app for pickup, delivery and catering, and the company reports a loyalty program with more than 130,000 members.
Store format. According to the franchisor, the ideal space is 1,500 to 2,000 square feet. Cafes must open by 9am and close no earlier than 9pm, seven days a week, and each location employs 15 to 25 people with 3 to 5 scheduled per shift.
Why lenders view it the way they do. Lenders see a young but growing system with a small leased footprint, a cold-prep equipment package and clearly published fees. The franchisor’s Florida roots and multi-state expansion help, while a lender will still focus on local competition, labor needs and the owner’s capital.
Grain and Berry Franchise Costs
Initial franchise fee. The fee is $49,500 for a single location. Lenders generally expect it to come from your own cash or be included in the total project budget.
Real estate and build-out. Cafes occupy leased space, so the big variable is leasehold improvements. The franchisor estimates 2 to 6 months to find a site and secure a lease, and 90 to 150 days to open once build-out begins, which affects how much pre-opening rent and interest you carry.
Equipment and furniture. Kitchen equipment, furniture, fixtures, signage and the point-of-sale system are major line items in the Item 7 table.
Opening costs and working capital. Initial inventory, insurance, local opening advertising, employee wages during the first months and additional funds for the opening period complete the budget.
Total investment. The franchisor’s current startup cost range is $350,000 to $909,500 for a single unit. The company’s 2023 FDD grouped Item 7 costs into these categories:
- Initial franchise fee
- Lease deposit and first month’s rent
- Leasehold improvements and a construction management fee
- Training wages and travel
- Kitchen equipment
- Furniture, fixtures and non-kitchen equipment
- Computer system
- Signs
- Initial inventory and supplies
- Employee salaries for the first three months
- Local advertising
- Insurance for the first three months
- Additional funds for three months
Request the current FDD to see the dollar range for each line item, since figures change from year to year. Our page on restaurant build-out financing explains how construction draws are handled.
Ongoing Fees and How They Affect Your Loan
Royalty. Grain and Berry charges a 6% royalty on net sales.
System development fee and local advertising. Franchisees pay a 1% system development fee and spend at least 2% of monthly net sales on local advertising.
Technology and other fees. The 2023 FDD also listed point-of-sale fees and transfer and renewal fees each set at 50% of the then-current franchise fee, plus costs. Check the current Item 6 for updated amounts.
How lenders factor these costs in. Together, royalty, the system development fee and minimum local advertising take at least 9% of net sales before rent, labor and food cost. A Grain and Berry franchise loan is sized so that the remaining cash flow covers debt service with a cushion, so build these fees into every month of your projections.
Franchisor Requirements for New Owners
- Net worth: a recommended minimum of $450,000.
- Liquid capital: a recommended minimum of $250,000.
- Experience: restaurant experience is not required.
- Training: online courses plus up to 10 days of in-person training for the franchisee, a manager and up to two staff members, with up to 3 days of pre-opening and up to 3 days of grand opening help. Franchisees pay trainee wages, travel, lodging and meals.
The approval process. The franchisor lists five steps: request information, a phone or video interview, review of the FDD, a personal meeting and franchise approval, after which you sign the franchise agreement and begin site selection.
Because the $250,000 liquidity recommendation is close to what many lenders expect for an equity injection plus reserves, plan your loan request with the franchise team’s requirement in mind. Our article on how much franchise you can afford walks through the math.
Ways to Own a Grain and Berry
A new cafe. Most owners lease and build out a new location, financed on projections, the build-out budget and their equity. See our franchise start-up financing options.
Buying an existing cafe. A resale gives lenders actual sales history, subject to the franchisor’s transfer approval and fee. Our page on franchise restaurant acquisition financing explains these deals.
Area development. Owners who commit to several cafes sign an area development agreement, with an investment range of $419,000 to $1,037,500 and discounted fees for additional units.
Financing Options for a Grain and Berry Franchise
SBA 7(a) loans. With its directory listing, Grain and Berry is eligible for consideration under the SBA 7(a) loan program, which can combine build-out, equipment, the franchise fee and working capital.
SBA 504 loans. The SBA 504 program suits owner-occupied real estate and long-lived fixed assets. It fits only if you buy the building, which also brings the directory’s lease note into play.
Conventional term loans. Owners with strong liquidity or existing businesses may use a conventional business loan; terms and collateral vary.
Equipment financing. Blenders, refrigeration, freezers for acai and fruit, prep tables, display cases and the POS system can be financed separately. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. With 15 to 25 employees and seven-day hours, payroll is a major early expense. A line of credit can bridge the ramp-up. See our restaurant working capital options.
Seller financing on resales. A seller may carry part of the price on an existing cafe. A seller note is typically subordinate to the senior loan, and SBA and other programs may limit its terms.
SBA Loans for Grain and Berry Franchisees
SBA lenders use the SBA Franchise Directory to confirm that a brand’s franchise documents have been reviewed for SBA eligibility. Grain and Berry is listed as “Grain and Berry Cafe” under code S3049.
What the directory note means. The note reads: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Addendum to Lease Agreement may not be executed. In plain terms, the franchisor’s lease addendum is meant for franchisees who rent their space. If you own the property, or it is pledged as collateral for the SBA loan, that addendum should not be signed, and your lender and attorney will handle the documents accordingly. For a typical leased cafe, the note has no effect.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. A listing does not guarantee approval. Our SBA loan calculator can help with early payment estimates, which are for planning only.
How Lenders Evaluate a Grain and Berry Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. The franchisor’s $450,000 and $250,000 recommendations set a baseline; lenders also want reserves after closing.
Industry and management experience. Restaurant experience is not required by the franchisor, but management or food service experience strengthens a loan request.
Business plan and projections. Model your site’s traffic, labor for 15 to 25 employees, the 9% minimum in combined fees and the build-out timeline.
The FDD and franchise agreement. Lenders review the term, renewal, transfer and territory provisions. The franchisor notes that its FDD includes financial performance representations in Item 19. Our guide to how lenders read the FDD explains what matters.
Site and lease. Lenders check lease length, rent, tenant improvement allowances and how the lease aligns with the franchise term.
Historical financials for resales. Expect to provide the cafe’s profit and loss statements and tax returns.
Equipment and Build-Out
A Grain and Berry cafe runs on cold prep: commercial blenders, freezers for acai and fruit, refrigerated prep stations, display cases and a POS system with app ordering. Financing equipment separately can keep the main loan smaller, and lenders will want quotes that match the franchisor’s specifications.
Multi-Unit Growth and Development Agreements
Under the area development program, owners commit to several cafes on a development schedule with discounted fees for additional units. Lenders typically finance each cafe as it is built, using the operating history of earlier units to support the next one.
Real-World Scenarios
A first-time owner opening a cafe. A former corporate professional with the recommended liquidity opens a cafe near a fitness corridor, using an SBA 7(a) loan for build-out and equipment.
A multi-unit developer. An investor-operator signs an area development agreement and finances each cafe as it opens, using earlier units’ cash flow to support the next request.
A buyer acquiring an existing cafe. A buyer purchases an operating location, and the lender relies on its sales history and the remaining lease.
Common Mistakes to Avoid
- Treating the $250,000 liquidity recommendation as the entire equity budget
- Forgetting the 9% minimum in combined royalty, system development and advertising fees
- Underestimating payroll for seven-day operating hours
- Using outdated FDD figures instead of the current Item 7
- Signing a lease addendum when real estate is pledged for an SBA loan
For more pitfalls, read about restaurant loan mistakes.
Next Steps to Finance Your Grain and Berry Franchise
Step 1: Request information. Complete the inquiry form and schedule the interview.
Step 2: Review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with advisors.
Step 3: Talk with a financing specialist. Learn how much you can borrow and which program fits.
Step 4: Secure a site. Work with the franchisor on site selection and negotiate the lease.
Step 5: Build projections and gather bids. Get contractor and equipment quotes and model monthly cash flow.
Step 6: Apply, close and train. Submit your loan package and coordinate closing with training and opening.
Grain and Berry Franchise Loan FAQs
How much does a Grain and Berry franchise cost?
The franchisor puts startup costs at $350,000 to $909,500 for a single unit.
What is the Grain and Berry franchise fee?
$49,500 for a single location, with discounts for multi-unit purchases.
What royalty does Grain and Berry charge?
A 6% royalty on net sales, plus a 1% system development fee and at least 2% for local advertising.
How much liquid capital do I need?
The franchisor recommends $250,000 in liquid capital and $450,000 in net worth.
Is Grain and Berry SBA eligible?
Yes. It is listed on the SBA Franchise Directory under code S3049. A Grain and Berry franchise loan through the SBA still requires full underwriting.
Does Grain and Berry offer financing?
No. The franchisor does not offer financing, but notes that qualified applicants may pursue third-party loans, including SBA-backed financing.
Do I need restaurant experience?
No. The franchisor says restaurant experience is not required.
How long does it take to open?
The franchisor estimates 2 to 6 months to secure a site and 90 to 150 days to open after build-out begins.
Can I finance equipment separately?
Yes. Blenders, refrigeration and the POS system can often be financed with equipment loans or leases.
Can I buy an existing Grain and Berry?
Yes, with franchisor approval of the transfer. Lenders will review the cafe’s financial history.
Final Thoughts
A Grain and Berry franchise loan works best when you meet the liquidity recommendation comfortably, budget from the current Item 7 and plan for payroll and fees from the first day.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
