How to Finance a Grit and Grind Coffee Franchise: Trailer to Shop
By Anthony Cornella
A Grit and Grind Coffee franchise loan funds a specialty coffee business from a young Southern brand that started in a mobile trailer and now operates brick-and-mortar shops in several states. Because the system is new and the format can range from a mobile cafe to a full shop, the financing depends heavily on which format you choose, your site and your own financial strength.
US Professional Funding is not affiliated with, sponsored by or endorsed by Grit and Grind Coffee; the name is used only to describe the business. Figures from the franchisor’s disclosure document 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.
Grit and Grind Coffee Franchise Loan at a Glance
- Concept: handcrafted espresso drinks, signature flavored lattes, cold brew and non-coffee drinks, with a breakfast and snack menu.
- Formats: brick-and-mortar coffee shops and mobile cafes.
- Origins: founded in 2022 in Opp, Alabama, by Eric and Destiny Rowell, who began with a coffee trailer.
- Franchisor: Grit and Grind Franchising, LLC, with its headquarters and flagship shop in Andalusia, Alabama.
- Footprint: shops in Alabama, Mississippi, Louisiana, Texas and Utah, with some owners already running second and third locations.
- Fees and investment: listed in Items 5, 6 and 7 of the FDD. We could not verify them from the franchisor’s own materials.
- SBA Franchise Directory: listed as “Grit and Grind Coffee” under code S8692, with a note about the lease rider (explained below).
What Is Grit and Grind Coffee?
Eric and Destiny Rowell left real estate careers and opened a mobile coffee trailer in Opp, Alabama, in 2022 because they saw few local coffee options. Destiny taught herself specialty coffee preparation, and Eric focused on operations. The name pairs her resilience (“grit”) with his work ethic (“grind”).
From trailer to franchise. The brand moved from its trailer into permanent shops, tried a licensing arrangement and then adopted a full franchise model. It later opened a headquarters and flagship shop in Andalusia, Alabama, and has expanded into neighboring states and beyond.
The menu. Shops serve Americanos, cappuccinos, lattes, macchiatos, mochas and cold brew, plus signature flavored drinks and seasonal specials. Non-coffee options include matcha, chai, lemonades, refreshers, smoothies, energy drinks and frappes. Food includes breakfast sandwiches, croissants, flatbreads, açai bowls and baked goods.
Positioning. The company presents its shops as community gathering places built on perseverance and hospitality, which suits small towns and suburban trade areas.
How lenders view the brand. Coffee shops have steady daily traffic and modest build-outs compared with full restaurants. On the other hand, Grit and Grind is an emerging system with a short operating history, so lenders lean on the borrower’s credit, liquidity and experience and on the site itself. Our article on financing an emerging franchise explains how lenders approach a newer brand.
Grit and Grind Coffee Franchise Costs
Use the current FDD and your own landlord and contractor quotes. Costs differ widely between a mobile cafe and a shop.
Initial franchise fee. Item 5 discloses the fee and any discounts for additional units. Ask whether the fee differs by format.
Real estate and build-out. A shop needs a lease, plumbing and electrical work, counters, flooring and possibly a drive-thru window. Landlord allowances can reduce what you finance.
Equipment. Espresso machines, grinders, brewers, blenders, ice machines, refrigeration, water filtration and point-of-sale systems are the core package. A mobile cafe adds the trailer or vehicle itself, a generator and water tanks.
Opening costs and working capital. Plan for opening inventory of coffee, milk, syrups and cups, training, permits, health department approvals, insurance, signage and payroll during the ramp-up.
Total investment. Item 7 shows the estimated initial investment as a range. Look for line items such as:
- Initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements or trailer purchase
- Coffee and kitchen equipment
- Furniture, fixtures and signage
- Technology and point-of-sale systems
- Opening inventory
- Training travel and expenses
- Licenses, permits and insurance
- Grand opening marketing
- Additional funds for the first months of operation
Make sure the line items add up to the stated total and note which format the table describes.
Ongoing Fees and How They Affect Your Loan
Royalty. Item 6 lists the royalty, usually a percentage of gross sales. Lenders deduct it before measuring the cash available to repay a loan.
Marketing and technology fees. Expect a brand fund contribution, local marketing requirements and recurring fees for point-of-sale, loyalty and online ordering systems.
Supply costs. Coffee, dairy and cup prices move. Ask whether the franchisor designates suppliers and how pricing is set.
How lenders factor these costs in. Lenders build a monthly model of drink and food sales, cost of goods, labor, rent, royalty, marketing and loan payments. Morning rushes, school calendars and seasonal drinks all affect volume, so projections should be month by month.
Franchisor Requirements for New Owners
We could not verify published net worth, liquid capital or experience requirements from the franchisor’s own materials. Ask for them in writing. Expect the franchisor to want owners who are hands-on, comfortable leading a small team and ready to follow its recipes and standards.
The process usually includes an inquiry, an FDD review, calls with existing owners, site selection and approval, training and an opening plan.
Ways to Own a Grit and Grind Coffee Franchise
A new shop. Most owners open a new location, so lenders underwrite on projections, the lease and the borrower’s strength. See our restaurant start-up financing options.
A mobile cafe. A trailer or truck costs less to open and can serve events and parking lots, but lenders will want a schedule of locations and permits.
Buying an existing shop. A resale offers sales history and trained staff, and the franchisor must approve the transfer. Our article on buying a coffee shop explains what to evaluate.
Additional units. Some owners have already opened second and third locations, which lenders finance on combined cash flow.
Financing Options for a Grit and Grind Coffee Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can fund the franchise fee, build-out, equipment, opening costs and working capital, subject to approval.
SBA 504 loans. An SBA 504 loan can fit an owner who buys a freestanding building or pad site, often with a drive-thru, along with long-lived equipment.
Conventional term loans. Established operators with strong credit may use conventional financing for additional shops.
Equipment financing. Espresso machines, grinders, ice machines, refrigeration and the trailer for a mobile cafe can be financed or leased separately. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. A line of credit covers inventory, payroll during ramp-up and seasonal dips. Explore restaurant working capital.
Seller financing on resales. A selling owner may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit them, so disclose them early.
SBA Loans for Grit and Grind Coffee Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. A listing does not approve a borrower; each loan is still underwritten on the borrower and the deal.
The brand’s listing and its note. Grit and Grind Coffee appears under code S8692. The note says that when the real estate where the franchise operates will secure the SBA-guaranteed loan, the lease rider may not be executed. In plain English, the franchisor’s lease rider is a document used when the owner leases the space. If you buy the building and pledge it as collateral, the lease rider is not used. Tell your lender early whether you will lease or own, because the closing documents differ.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. For a Grit and Grind Coffee franchise loan, prepare the FDD, the lease or purchase contract, equipment quotes, a personal financial statement, tax returns, a resume and monthly projections. Use the SBA loan calculator to estimate payments.
How Lenders Evaluate a Grit and Grind Coffee Deal
Credit and financial history. Lenders review credit, tax returns and your personal financial statement, and owners typically sign a personal guarantee.
Net worth and liquidity. Cash for the equity injection plus a reserve for the ramp-up period carries extra weight with a young brand.
Experience. Food service, coffee or retail management experience strengthens a request.
Business plan and projections. Build sales from daily transactions and average ticket by daypart, with a realistic ramp-up. Include labor, cost of goods, rent and fees.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 10, 17 and 19, including whether the FDD contains financial performance representations. Read how lenders read an FDD.
Site and lease. Traffic counts, visibility, drive-thru access, parking and lease length all matter, and the lease should run at least as long as the loan where possible.
Historical financials for a resale. Provide several years of profit and loss statements, sales reports and tax returns.
Equipment and Format Choices
The espresso machine and grinders are the most important equipment in a coffee shop, and they need service plans and backups. A drive-thru adds headsets, timers and window hardware. A mobile cafe needs a road-worthy trailer, a generator, water systems and permits from each place it parks.
Financing each piece over its useful life keeps payments in line with the equipment’s value. Our article on buying a franchise resale also covers inspecting equipment when you buy an existing shop.
Multi-Unit Growth and Development Agreements
Owners who open a second shop often finance it with the first shop’s cash flow as support. A mobile cafe can test a new market before a permanent shop. Read about multi-unit franchise financing for how lenders structure expansion.
Real-World Scenarios
A first-time owner. A former retail manager leases an endcap with a drive-thru and funds the build-out, equipment and working capital with an SBA 7(a) loan.
A mobile start. A couple starts with a mobile cafe financed through an equipment loan, then opens a shop once they have sales history.
A building purchase. An owner buys a small freestanding building and uses the real estate as collateral, so the lease rider is not used under the SBA note.
Common Mistakes to Avoid
- Picking a site for low rent instead of morning traffic and access.
- Underestimating the ramp-up period for a new shop.
- Skipping service plans for espresso equipment.
- Not telling the lender early whether you will lease or own the real estate.
- Ignoring seasonal swings in drink sales.
Read more in our article on restaurant loan mistakes.
Next Steps to Finance Your Grit and Grind Coffee Franchise
Step 1: Get the current FDD. Focus on Items 5, 6, 7, 10, 17 and 19.
Step 2: Review it with advisors. Have an attorney and an accountant review the agreement, fees and lease rider.
Step 3: Choose your format and site. Decide between a shop, drive-thru or mobile cafe.
Step 4: Talk to a financing specialist. Decide how to split build-out, equipment and working capital across loans.
Step 5: Build projections. Model dayparts, average ticket, labor and ramp-up month by month.
Step 6: Apply and close. Coordinate the loan closing with the lease, construction and training schedule.
Grit and Grind Coffee Franchise Loan FAQs
How much does a Grit and Grind Coffee franchise cost?
Item 7 of the current FDD gives the estimated range. A mobile cafe generally costs less than a shop with a full build-out.
What is the franchise fee?
Item 5 of the FDD lists it. We could not verify the fee from the franchisor’s own materials.
What royalty does Grit and Grind Coffee charge?
Item 6 lists the royalty and recurring fees, which lenders deduct before measuring repayment ability.
How much liquid capital do I need?
The franchisor sets its own requirement, and lenders expect an equity injection plus a ramp-up reserve.
Is Grit and Grind Coffee eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8692, subject to lender approval and the lease rider note.
Can I finance equipment separately from a Grit and Grind Coffee franchise loan?
Yes. Espresso machines, refrigeration and a trailer can be financed or leased on their own.
Can a first-time owner get financing?
Yes, with solid credit, enough cash and a strong site. Food service or retail management experience helps.
Can I buy an existing shop?
Yes, if one is for sale and the franchisor approves the transfer.
Does the franchisor offer financing?
Item 10 of the FDD discloses any franchisor financing. Plan on outside financing unless it says otherwise.
How long is the franchise term?
Item 17 lists the term, renewal and transfer conditions. Your loan and lease should fit within it.
Final Thoughts
A Grit and Grind Coffee franchise loan finances a young brand with a clear story and flexible formats. Get the FDD, choose the right format and site, and keep enough working capital for the ramp-up.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and refinancing. Learn more about our franchise financing and restaurant financing solutions.
