How to Finance a Green + The Grain Franchise: $1M Net Worth Rule
By Marc Cornella
A Green + The Grain franchise loan funds a fast-casual salad restaurant in a young franchise system that began as a single food truck. The franchisor publishes clear financial qualifications for new owners, a $1 million net worth and $250,000 in liquid capital, which gives buyers and lenders a firm starting point.
This article explains what the brand publishes, which costs to confirm in the Franchise Disclosure Document (FDD), what the two notes on its SBA Franchise Directory listing mean and how new restaurants and multi-unit plans are typically financed.
US Professional Funding is not affiliated with, sponsored by or endorsed by Green + The Grain; 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. Review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Green + The Grain Franchise Loan at a Glance
- Concept: a contemporary fast-casual salad restaurant built around a single daypart, with dine-in, online, third-party delivery and catering sales.
- Origins: the brand started as a food truck about a decade ago and is led by founder and CEO Tiffany Hauser.
- Locations: the brand’s website lists restaurants in Minneapolis, St. Paul, St. Louis Park, Rochester and Denver.
- Net worth: $1 million, according to the franchisor’s franchise website.
- Liquid capital: $250,000, according to the same page, which also lists a minimum credit score.
- Target markets: Rochester, Minnesota; Chicago; Denver; Dallas; and Nashville, focused on dense urban business districts.
- Franchise fee, royalty and investment: provided through the franchisor’s process and disclosed in Items 5, 6 and 7 of the FDD.
- SBA Franchise Directory: listed under code S8720, with notes on the lease addendum and real estate purchase options.
What Is Green + The Grain?
Green + The Grain describes itself as a contemporary salad restaurant for busy appetites, built around exceptional ingredients, elevated flavors and thoughtful experiences. The business started as a food truck about ten years ago, according to the franchisor, and grew into brick-and-mortar restaurants in the Twin Cities area, Rochester and Denver. The company says it is proudly woman and minority owned and operated.
The menu. Signature salads include The Farmer, Apple + Pear and The Cowboy, and the brand promotes catering for events and offices.
The operating model. The franchisor highlights a single-daypart model with shorter hours than many restaurants. Sales come from dine-in guests, online orders, third-party delivery and catering. For a lender, a lunch-focused model means projections should reflect weekday traffic in business districts and a strong catering program.
Why lenders view it the way they do. Lenders see an emerging franchise with a proven concept but a short franchising track record. That puts weight on the owner’s financial strength, which the franchisor addresses directly with its net worth and liquidity requirements, and on the quality of the site. Our article on financing an emerging franchise explains how lenders approach newer systems.
Green + The Grain Franchise Costs
The franchisor’s website does not publish its fee or investment figures; it says the ownership process and costs are explained once you contact the development team. The current FDD is the source for every number.
Initial franchise fee. Item 5 discloses the fee, when it is due and whether multi-unit discounts apply.
Real estate and build-out. Urban salad restaurants usually occupy leased storefronts in office districts or mixed-use buildings. Build-out covers prep areas, refrigeration-heavy make lines, plumbing, electrical, a dining room and branded finishes. Because many salad concepts do little cooking, ventilation needs may be lighter than in a grill-based restaurant, but confirm the kitchen specification in the FDD and with the franchisor.
Equipment. Expect walk-in and reach-in refrigeration, salad make lines, prep tables, food processors, dish equipment, point-of-sale and online ordering systems, and catering supplies.
Total investment. Item 7 lists the estimated initial investment and its line items. Expect categories such as:
- Initial franchise fee
- Rent, security deposits and pre-opening occupancy
- Leasehold improvements and construction
- Refrigeration, make lines and kitchen equipment
- Furniture, fixtures and signage
- Technology and online ordering
- Opening inventory
- Training and travel
- Insurance, licenses and permits
- Grand opening marketing
- Additional funds for the first months of operation
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. Item 6 lists the royalty, any brand fund contribution and technology fees. Confirm whether they apply to catering and delivery sales.
Delivery commissions. Third-party delivery platforms charge commissions that reduce margins on those orders. Model them separately from dine-in and catering sales.
How lenders factor these costs in. Lenders subtract royalties, marketing fees, delivery commissions and rent from projected sales before testing debt service. Because a single-daypart restaurant concentrates sales in fewer hours, lenders want realistic weekday traffic assumptions behind a Green + The Grain franchise loan.
Franchisor Requirements for New Owners
The franchisor lists these qualifications on its franchise website:
- Net worth: $1 million
- Liquid capital: $250,000
- Credit: a minimum personal credit score
The approval process. Candidates complete an inquiry form, after which the team evaluates preferred locations and explains the ownership process and investment. The franchisor targets select urban and metropolitan markets with dense business districts, so your market must fit its development plan.
Why liquidity matters to lenders. The $250,000 liquid capital figure is a franchisor threshold. Lenders will separately look at how much cash you inject into the project and how much remains in reserve after closing.
Ways to Own a Green + The Grain
A new restaurant. Most new owners will open a new location in one of the franchisor’s target markets. Lenders underwrite projections, the lease and the build-out budget. Learn about franchise start-up financing.
Multiple restaurants. Owners who want to develop a market may commit to more than one restaurant. Any development schedule appears in the FDD.
Buying an existing restaurant. Resales are likely to be rare in a young system. If one becomes available, the franchisor must approve the transfer, and lenders underwrite actual results.
Financing Options for a Green + The Grain Franchise
SBA 7(a) loans. The directory listing allows lenders to consider an SBA 7(a) loan for the franchise fee, build-out, equipment and working capital, subject to approval.
SBA 504 loans. If an owner buys the building, an SBA 504 loan can finance owner-occupied real estate. Both directory notes come into play in that case.
Conventional term loans. Owners with strong net worth and restaurant experience may qualify for a conventional business loan.
Equipment financing. Refrigeration, make lines and ordering technology can be financed separately. See restaurant equipment financing and leasing.
Working capital and lines of credit. Business district traffic can slow during holidays and summer vacation weeks, and catering orders arrive unevenly. A line of credit helps smooth payroll and produce purchases. Explore restaurant working capital.
Seller financing on resales. If a resale occurs, a seller may carry part of the price. Any seller note must be acceptable to the senior lender, is typically subordinate to it, and loan programs may limit it.
SBA Loans for Green + The Grain Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a listing before making an SBA-guaranteed loan to a franchisee, but a listing does not approve any borrower.
The listing. Green + The Grain appears under code S8720 with two notes.
Note one: the lease addendum. When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Addendum to Lease may not be executed. In plain English, the franchisor’s lease addendum is designed for a franchisee who rents space. If you own the property and pledge it to the SBA lender, that addendum is not used, so it cannot interfere with the lender’s lien.
Note two: purchase options. The franchisor may not enforce a purchase option on real estate owned by the franchisee or an affiliate if the franchisee has received SBA assistance. That means the franchisor cannot force the sale of a building you own, which protects the collateral behind your loan.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. Provide the FDD, franchise agreement, lease, build-out bids, personal financial statements, tax returns and projections. Our FDD financing overview explains which items lenders read first.
How Lenders Evaluate a Green + The Grain Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require a personal guarantee.
Net worth and liquidity. The franchisor’s thresholds set a floor. Lenders look at your equity injection and post-closing reserves.
Industry and management experience. Restaurant, catering or multi-unit management experience strengthens a request in a young system.
Business plan and projections. Show weekday lunch traffic, catering volume, delivery commissions and the single-daypart labor model.
The FDD and franchise agreement. Lenders review Items 17 and 19 for term, transfer rules and whether financial performance representations are included.
Site and lease. A lease that covers the loan term and a site near dense office and residential populations are key.
Multi-Unit Growth
Because the franchisor targets select metro markets, some owners will plan several restaurants in one city. Lenders typically finance the first restaurant, then underwrite each additional one on combined cash flow. Read more about multi-unit franchise financing.
Real-World Scenarios
A corporate professional opening downtown. A buyer who meets the net worth and liquidity requirements opens near a large office district. An SBA 7(a) loan covers build-out and equipment, with a reserve for the first months.
An experienced restaurant operator developing a market. An operator plans several restaurants in one target city, financing the first and returning to the lender once it has a track record.
An owner buying the building. A franchisee purchases a small mixed-use building and uses an SBA 504 loan. The lease addendum is not executed, and the franchisor cannot enforce a purchase option on the building.
Common Mistakes to Avoid
- Treating the franchisor’s capital thresholds as the full amount you need
- Overlooking delivery commissions in projections
- Assuming weekend and evening sales in a single-daypart model
- Signing a lease shorter than the loan term
- Leaving too little working capital for the ramp-up
Read the restaurant loan mistakes that cost owners the most for more.
Next Steps to Finance Your Green + The Grain Franchise
Step 1: Confirm you qualify. Compare your net worth, liquidity and credit to the franchisor’s requirements.
Step 2: Contact the franchisor. Complete the inquiry form and discuss available markets.
Step 3: Review the FDD. Study Items 5, 6, 7, 17 and 19 with advisors.
Step 4: Estimate payments. Our SBA loan calculator provides planning estimates only.
Step 5: Secure a site. Gather the lease and build-out bids.
Step 6: Apply for financing. Submit the FDD, agreements, financials and projections.
Step 7: Close and open. Coordinate the loan closing, construction and training.
Green + The Grain Franchise Loan FAQs
How much does a Green + The Grain franchise cost?
The franchisor shares its investment details through its development process. Item 7 of the current FDD gives the estimated initial investment.
What is the Green + The Grain franchise fee?
It is disclosed in Item 5 of the FDD. Ask the franchisor for the current figure.
What net worth and liquid capital do I need?
The franchisor lists a $1 million net worth and $250,000 in liquid capital.
What royalty does Green + The Grain charge?
The royalty and marketing contributions are listed in Item 6 of the FDD.
Can SBA financing work for a Green + The Grain franchise loan?
Yes, subject to approval. The brand is listed on the SBA Franchise Directory under code S8720.
What do the SBA directory notes mean?
If real estate secures the loan, the lease addendum is not executed, and the franchisor cannot enforce a purchase option on property you own if you received SBA assistance.
Where is Green + The Grain expanding?
The franchisor lists Rochester, Minnesota; Chicago; Denver; Dallas; and Nashville as available markets.
Can I finance equipment separately?
Yes. Refrigeration, make lines and technology can be financed or leased.
Can a first-time owner qualify?
Possibly, if you meet the franchisor’s financial requirements and bring management experience.
Does the franchisor offer financing?
Item 10 of the FDD discloses any franchisor financing.
How long is the franchise term?
The term and renewal rules are in Item 17.
Final Thoughts
A Green + The Grain franchise loan rests on the owner’s financial strength, a strong urban site and realistic lunch and catering projections. Confirm every cost in the FDD and plan reserves beyond the franchisor’s minimums.
US Professional Funding helps franchise owners finance start-ups, equipment and working capital. Learn more about our franchise financing and restaurant financing programs.
