How to Finance a Gregory’s Coffee Franchise: NYC Cafe Startup
By Marc Cornella
A Gregory’s Coffee franchise loan funds a specialty coffee cafe from a brand that grew up on the streets of Manhattan and opened franchising to outside owners in 2026. The franchisor publishes a $35,000 franchise fee, a 6% royalty and a $500,000 net worth requirement, so you can start shaping a loan request before you ever see the full disclosure document.
US Professional Funding is not affiliated with, sponsored by or endorsed by Gregory’s Coffee; 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. Have a franchise attorney and an accountant review the current Franchise Disclosure Document (FDD) and franchise agreement before you commit.
Gregory’s Coffee Franchise Loan at a Glance
- Brand: a New York City specialty coffee chain founded in 2006 by Greg Zamfotis, which styles its name “Gregorys Coffee” and roasts its own small-batch coffee in New York.
- Footprint: the company reports more than 50 cafes, with New York and New Jersey as its core markets.
- Franchise fee: $35,000 for a single unit, according to the franchisor’s website, with multi-unit discounts available.
- Royalty: 6% of gross sales.
- Marketing: the franchisor’s pages describe marketing contributions totaling 4% of sales, shown on one page as a 2.5% national brand fund plus 1.5% spent on local marketing.
- Net worth: $500,000 minimum. The franchisor also sets a liquidity minimum; confirm the current figure directly, because its pages are not consistent.
- Total investment: not published; the franchisor provides build-out and working capital breakdowns during discovery and in Item 7 of the FDD.
- Cafe size: an optimal footprint of 1,500 to 2,500 sq ft.
- SBA Franchise Directory: listed as “Gregory’s Coffee” under code S8776, with a note about lease documents when real estate secures the loan.
What Is Gregory’s Coffee?
Gregory’s Coffee began in 2006 as a single coffee shop in Manhattan. Founder Greg Zamfotis built it into a neighborhood chain known for fast service in dense urban blocks, coffee roasted in its own New York roastery and a scratch-made food program.
Ownership and the franchise launch. The brand was acquired in 2025 by a multi-brand restaurant franchisor, and its franchise program officially launched in February 2026. Its first franchise agreement went to a longtime company team member, with a first location planned in Bergen County, New Jersey.
Where it is growing. The company is seeking owners in the Southeast, Mid-Atlantic, Midwest, Mountain West and select West Coast markets, in urban neighborhoods, commuter hubs, college towns and lifestyle centers. Its site criteria call for B+ or better locations in population-dense zones, and one franchise page cites a population of at least 150,000 within a 3-mile radius.
Formats. Site types include downtown storefronts, strip centers, stand-alone buildings and drive-through locations, with open kitchens and flexible dining rooms.
How lenders view the brand. Lenders see a long operating history and a recognizable urban brand, but a franchise system that is brand new to outside owners. That means limited franchisee track record outside the company’s own cafes, so lenders lean on your experience, liquidity and site. Our article on financing an emerging franchise explains how that changes underwriting.
Gregory’s Coffee Franchise Costs
The franchisor has not published a total investment range on its franchise pages, so build your budget from Item 7 of the current FDD and quotes for your own site.
Initial franchise fee. The single-unit fee is $35,000, according to the franchisor’s website. The franchisor notes that multi-unit discounts apply and that the fee can vary by location, size and market conditions, so confirm your fee in Item 5.
Lease and build-out. A cafe of 1,500 to 2,500 sq ft needs a coffee bar, an open kitchen for the food program, plumbing, water filtration, electrical capacity, seating and signage. Drive-through sites add lane and window work. Our page on restaurant start-up financing covers how new builds are funded.
Equipment. Expect espresso machines, grinders, brewers, ice machines, refrigeration, cooking equipment for the food menu, display cases and point-of-sale hardware.
Opening costs and working capital. Opening inventory, training travel, grand-opening marketing, insurance, deposits and a reserve come before sales stabilize.
Total investment. Item 7 will show the estimated range. Typical line items to review include:
- Initial franchise fee
- Security deposits and pre-opening rent
- Architecture, design and permits
- Leasehold improvements or site work
- Coffee, kitchen and refrigeration equipment
- Furniture, fixtures and outdoor seating
- Interior and exterior signage
- Technology and point-of-sale systems
- Opening inventory and supplies
- Training travel and lodging
- Grand-opening marketing
- Additional funds for the first months of operation
Confirm that the line items add up to the stated total and which format the estimate describes.
Ongoing Fees and How They Affect Your Loan
Royalty. The royalty is 6% of gross sales, according to the franchisor’s website.
Marketing. The franchisor’s pages put total marketing contributions at 4% of sales, described as a 2.5% national brand development fund and 1.5% of gross sales spent locally under company guidance.
Other fees. Technology, transfer and renewal fees appear in Item 6.
How lenders factor these costs in. Lenders take royalty and marketing off the top of every sale, then subtract coffee and food cost, labor, rent and loan payments. Because a cafe runs on high volume and a low ticket, show transaction counts by daypart, especially the morning rush.
Franchisor Requirements for New Owners
The franchisor’s website lists a minimum net worth of $500,000 for single-unit owners. It also sets a minimum in liquid assets, but its pages show different figures, so get the current number in writing.
Who the franchisor is seeking. Single-unit owner-operators who meet the financial requirements, and multi-unit operators with a three-location minimum. One franchise page says restaurant experience is not required and that many partners are first-time business owners.
The approval path. The process runs through an introductory call, an application, territory analysis, an FDD review, a discovery day at one of the cafes and the franchise award. The franchisor says most partners open within 12 months of signing.
Training. Initial training typically lasts 7 days of classroom and on-site instruction at a corporate location, for up to 3 people with no training fee, and must be completed 45 days before the grand opening. You pay travel, food and lodging, so budget for them. Two company team members support opening for up to 7 days.
Ways to Own a Gregory’s Coffee
Opening a new cafe. Because the franchise program is new, most deals today are new units, and a Gregory’s Coffee franchise loan for one is underwritten on projections, your experience and your site.
Buying an existing cafe. Resales will be rare until franchised cafes mature. If one becomes available, the franchisor must approve the transfer and lenders will underwrite its historical financials.
Multi-unit development. Operators who commit to three or more cafes finance them in stages.
Financing Options for a Gregory’s Coffee Franchise
SBA 7(a) loans. With the brand on the SBA Franchise Directory, an SBA 7(a) loan can fund the franchise fee, build-out, equipment, opening inventory and working capital, subject to approval.
SBA 504 loans. An owner who buys a stand-alone building or a drive-through pad can use an SBA 504 loan for owner-occupied real estate and long-lived equipment. That is also the situation where the directory note on lease documents applies.
Conventional term loans. Experienced multi-unit operators with strong balance sheets may qualify for a conventional business loan, especially for later cafes in a development schedule.
Equipment financing. Espresso machines, grinders, brewers, ice machines and refrigeration can be financed or leased separately. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Pre-opening payroll, training travel and the first months of rent come before sales ramp up. A restaurant working capital line can cover those gaps and seasonal dips in college-town or commuter traffic.
Franchisor financing. The franchisor’s website says it does not offer direct financing and refers partners to outside financing sources, so plan on arranging your own.
Seller financing on resales. If you buy an existing cafe, a seller may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit their terms.
SBA Loans for Gregory’s Coffee Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. Your loan is still judged on your credit, cash, experience and site.
The listing and its note. Gregory’s Coffee is listed under code S8776. The note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lessor Consent to Assignment and Lease Rider may not be executed. In plain English, the franchisor normally asks your landlord to sign a rider and consent to the lease being assigned to the franchisor if the franchise ends. When you or an affiliate own the building and pledge it as loan collateral, those lease documents should not be signed for that location.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. Assemble the FDD, a letter of intent, quotes, a personal financial statement, tax returns, a resume and monthly projections. Model payments with our SBA loan calculator.
How Lenders Evaluate a Gregory’s Coffee Deal
Credit and financial history. Lenders review credit, tax returns and your personal financial statement, and a Gregory’s Coffee franchise loan typically requires a personal guarantee.
Net worth and liquidity. Meeting the $500,000 net worth requirement is a starting point; lenders also want cash for the equity injection and a reserve after closing.
Experience. Coffee, restaurant or retail management experience helps. First-time owners should show a strong manager and a plan for early-morning shifts.
Business plan and projections. Build sales from morning, midday and afternoon transaction counts, average ticket, food attachment and mobile ordering. A cafe in a commuter hub behaves differently from one in a college town or a lifestyle center, so explain your site’s traffic pattern.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 10, 17 and 19 and note whether the FDD includes financial performance representations.
Site and lease. Density, commuter flow, parking and rent matter, and the lease should outlast the loan.
Coffee Equipment and the Cafe Build
Espresso machines, grinders and water treatment run all day, so their maintenance and replacement belong in your capital plan. A drive-through adds a window and lane design, while an older urban storefront may need plumbing and electrical upgrades. Decide early whether to finance equipment inside the main loan or separately. Our guide to buying and financing a coffee shop explains how lenders view cafe equipment and cash flow.
Multi-Unit Growth and Development Agreements
The franchisor’s multi-unit path requires at least three locations with protected territories, and multi-unit options are discussed at franchise closing. Lenders usually fund the first cafe, then review its results, your remaining liquidity and your management depth before funding the next, so plan equity for each opening. Read more about multi-unit franchise financing.
Real-World Scenarios
A former cafe manager opening a first unit. A longtime coffee shop manager meets the net worth requirement and opens a storefront near a commuter rail station. An SBA 7(a) loan covers the build-out, equipment and working capital.
A restaurant group signing for three cafes. An experienced operator commits to three locations in a Southeast metro. The first cafe is funded with an SBA 7(a) loan, and the group plans conventional financing for later units once the first has a track record.
An owner buying a drive-through pad. An investor buys a stand-alone building with a drive-through lane. An SBA 504 loan funds the real estate, and the lease rider and consent to assignment are not signed under the directory note.
Common Mistakes to Avoid
- Budgeting only for the franchise fee without the full Item 7 range.
- Assuming you meet liquidity requirements without confirming the current figure.
- Leaving the combined royalty and marketing contributions out of cash flow.
- Underestimating drive-through site work or older-building upgrades.
- Signing a development schedule your cash cannot support.
Read more about the loan mistakes restaurant owners make.
Next Steps to Finance Your Gregory’s Coffee Franchise
Step 1: Check your finances. Compare your net worth and cash with the franchisor’s requirements, and use our article on how much franchise you can afford.
Step 2: Apply and get the FDD. Review Items 5, 6, 7, 10, 17 and 19 with an attorney and accountant.
Step 3: Talk with a financing specialist. Decide on SBA, conventional or equipment financing before you pick a site.
Step 4: Complete territory analysis. Work with the franchisor on site approval and get a letter of intent.
Step 5: Build projections. Model transactions by daypart for the first year.
Step 6: Close and open. Coordinate loan closing with the franchise agreement, the lease and the training schedule.
Gregory’s Coffee Franchise Loan FAQs
How much does a Gregory’s Coffee franchise cost?
The franchisor has not published a total investment range on its franchise pages. Item 7 of the FDD gives the estimate, which depends on format, size and market.
What is the Gregory’s Coffee franchise fee?
The franchisor’s website lists $35,000 for a single unit, with multi-unit discounts available.
What royalty does Gregory’s Coffee charge?
The royalty is 6% of gross sales, with marketing contributions the franchisor’s pages put at 4% of sales in total.
How much net worth do I need?
The franchisor lists a $500,000 minimum net worth. Confirm the liquid capital minimum directly with the franchisor.
Is Gregory’s Coffee eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8776, subject to lender approval and the note on lease documents.
Does Gregory’s Coffee offer financing?
The franchisor says it does not offer direct financing and refers partners to outside financing sources. Item 10 of the FDD confirms any financing terms.
Can I finance coffee equipment separately?
Yes. Espresso machines, grinders and refrigeration can be part of an SBA 7(a) loan or financed with a separate equipment loan or lease.
How long does it take to open?
The franchisor says most partners open within 12 months of signing the franchise agreement, sooner if a site is already approved.
How long is the franchise term?
Item 17 of the FDD lists the term, renewal and transfer conditions. Your loan term should fit within the franchise term.
Final Thoughts
A Gregory’s Coffee franchise loan combines a well-known New York coffee brand with a franchise program that is new to outside owners. Budget from the current FDD, confirm the liquidity requirement and use the SBA listing correctly.
US Professional Funding helps franchise owners finance new cafes, equipment and multi-unit growth. Explore our franchise financing solutions and our restaurant financing programs to see how we can help you open your Gregory’s Coffee cafe.
