How to Finance a Junbi Franchise: Matcha Cafe Costs and SBA
By Chris Cornella
A Junbi franchise loan funds something more specialized than a typical coffee shop: a Japanese-style matcha cafe built around whisked matcha, lattes and tea drinks. Buyers usually need to finance a leased storefront build-out, tea-bar and dessert equipment, opening inventory and enough working capital to carry the shop while a local following forms.
Below we cover the concept, the budget, the loan programs that may fit, the brand’s SBA Franchise Directory listing and what lenders ask. It is general information only. US Professional Funding is not affiliated with, sponsored by or endorsed by Junbi; the name is used only to describe the business. Figures in any franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Junbi Franchise Loan at a Glance
Junbi is a younger franchise system, and its fee and investment figures are disclosed to qualified candidates through the brand’s Franchise Disclosure Document rather than published on its public website. Here is what we could verify from the company’s own materials:
- Concept: a matcha and tea cafe whose matcha comes from tea producers in Uji, Japan, according to the company
- Company roots: California-based, with company-run shops in the Los Angeles area, including Westwood and Rowland Heights locations that opened in early 2020
- Franchising: the company began seeking franchise partners in 2020, and its first franchised shops were planned for Princeton, New Jersey and Richardson, Texas
- Experience: the company has said prior experience is not necessary to become a Junbi owner
- Franchise fee, royalty, marketing fee and total investment: not published publicly; review Items 5, 6 and 7 of the current disclosure document
- SBA Franchise Directory: listed as Junbi, code S6885, with a note about lease documents when real estate secures the loan
What Is Junbi?
Junbi takes its name from the Japanese word for preparation, and the company says its mission is to bring matcha into everyday life. The concept went through earlier names before settling on Junbi, and it built its following through Los Angeles-area cafes and pop-ups before opening the door to franchising.
The menu centers on matcha prepared several ways, along with other teas and lattes. Junbi also runs a wholesale program that supplies bulk ceremonial-grade matcha, custom blends for lattes, soft serve and baking, and retail-ready packaging to cafes, bakeries, restaurants and hotels. For a franchise owner, that matters because the brand controls its core ingredient supply rather than leaving each shop to source tea on its own.
In a 2022 update, the company reported three Los Angeles locations, one shop in New Jersey, one in Texas and eleven more in development. The company has continued to announce new franchised shops since then, including a franchise-owned cafe in Garden Grove, California in 2024, but we could not verify a current unit count from the company’s own pages, so ask the franchisor for its latest Item 20 outlet table.
How lenders view the brand. A small, fast-growing specialty beverage brand does not come with the decades of unit-level history that a national coffee chain offers. Lenders will lean more heavily on your personal finances, your business plan and the specific site. Our article on financing an emerging franchise explains how lenders approach younger systems.
Junbi Franchise Costs
Without the current Item 7 table in hand, the best approach is to understand the categories a matcha cafe budget usually includes, then fill in the real numbers from the disclosure document and your contractor’s bids.
Initial franchise fee
The initial fee appears in Item 5 of the disclosure document, along with any reduced fees for additional shops under a development agreement. It is usually paid when the franchise agreement is signed, and many lenders treat it as part of the total project cost rather than something you must pay entirely from savings.
Lease and build-out
Most matcha cafes operate in leased retail space, often in shopping centers, walkable downtowns or near campuses. Build-out can include plumbing for the tea bar, electrical upgrades, flooring, a service counter, seating and the brand’s interior finishes. Our guide to restaurant build-out financing covers how lenders fund tenant improvements.
Equipment and furniture
A Junbi-style shop typically needs refrigeration, ice machines, blenders, water filtration, dispensing equipment, any frozen-dessert machines the menu calls for, point-of-sale hardware, signage and dining furniture. Equipment is one of the easier items to finance on its own because the assets themselves can serve as collateral.
Opening inventory, training and working capital
Opening matcha and tea inventory, cups, packaging, uniforms, grand-opening marketing, training travel, deposits, licenses and insurance all come before the first sale. Item 7 also lists an “additional funds” amount for the early months of operation. The guide to reading an FDD for financing shows where these figures appear and how lenders use them.
Add a contingency on top of the total. Permitting delays are common in food service, and the company has noted that it helped at least one franchise owner work through the permitting process for a new shop.
Ongoing Fees and How They Affect Your Loan
Item 6 of the disclosure document lists the royalty, any brand or marketing fund contribution, technology fees, training fees for new managers, transfer fees and renewal fees. Required ingredient and supply purchases also affect margins.
Lenders subtract every ongoing fee from projected sales before testing whether the shop can cover its loan payments. Build your projection with every Item 6 fee included, then stress-test it for slower months.
Franchisor Requirements for New Owners
Junbi does not publish a minimum net worth or liquid capital figure on its public pages, so ask the franchise development team for its current requirements early. The company has said that prior industry experience is not necessary and that owners receive business advice and support.
The usual path runs from inquiry to disclosure review, calls with existing owners, site approval and signing. Line up a financing conversation before you sign a lease, because the lease and the loan approval often depend on each other.
Ways to Own a Junbi
Opening a new shop. This is the most common route in a growing system. Financing is based on projections, your personal finances and the site, so lenders expect a detailed plan and a meaningful cash injection. See our page on franchise start-up financing.
Buying an existing franchised shop. As the system matures, some owners may sell. A resale gives a lender real sales history to underwrite, but the franchisor must approve the transfer and the buyer. Our article on buying a franchise resale covers what to check.
Financing Options for a Junbi Franchise
SBA 7(a) loans. An SBA 7(a) loan is often the most flexible fit for a new cafe because it can combine the franchise fee, build-out, equipment, inventory and working capital in one loan. The 7(a) program maximum is currently $5 million, and program rules can change.
SBA 504 loans. Most matcha cafes lease their space, so SBA 504 financing fits only when an owner buys a building or makes major long-lived improvements to owner-occupied property.
Conventional term loans. Owners with strong credit, collateral and liquidity may qualify for conventional business loans, which can make sense for a second or third shop once the first one has a track record.
Equipment financing. Refrigeration, the ice machine, dessert equipment, blenders and point-of-sale system can be financed separately. Our page on restaurant equipment financing and leasing explains the options.
Working capital and lines of credit. A new matcha cafe may need a cushion for pre-opening payroll, opening marketing and the months before sales stabilize. Iced drinks can also create seasonal swings in cooler climates. See restaurant working capital for how owners manage those gaps.
Seller financing on resales. When buying an existing Junbi, a seller may sometimes carry part of the price. Seller notes are typically subordinate to the main loan, and SBA rules may limit how they are structured.
SBA Loans for Junbi Franchisees
SBA-backed loans are made by participating lenders, with the SBA guaranteeing part of the loan, and the SBA Franchise Directory simplifies the lender’s review of the franchise documents.
The directory listing. Junbi appears on the SBA Franchise Directory under code S6885. A listing tells the lender that the franchise documents have been reviewed for SBA eligibility purposes, but it does not approve any borrower or guarantee a loan.
What the directory note means. The listing carries a note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Agreement Rider and Collateral Assignment of Lease may not be executed. In plain English, Junbi’s documents include a lease rider and an assignment of the lease that are designed for shops in rented space. If you instead own the property and pledge it as collateral, those lease documents should not be signed as part of the loan.
SBA application tips. Have the franchise agreement, disclosure document, signed or proposed lease, contractor bids, equipment quotes, a sources and uses statement and personal financial statements ready for every owner.
How Lenders Evaluate a Junbi Franchise Loan Request
Personal credit and financial history. Lenders review credit reports, tax returns and existing debts for each significant owner, and owners usually sign personal guarantees.
Net worth and liquidity. Expect questions about the cash you will put in and what remains after closing. Liquid reserves matter more for a new shop in a younger brand because there is no operating history to fall back on.
Management experience. Even though the brand does not require industry experience, lenders like to see management, customer service or food service background. If you lack it, a plan to hire an experienced store manager can strengthen the request.
Business plan and projections. A strong plan explains your trade area, foot traffic, nearby competition, expected ticket and daypart mix, staffing, every Item 6 fee and a realistic ramp-up period.
Lease terms. For a leased shop, lenders look at the lease length, renewal options, rent, landlord improvement allowances and whether the lease runs at least as long as the loan.
Historical financials on resales. For an existing shop, expect to provide several years of profit and loss statements, tax returns and sales reports.
Multi-Unit Growth and Development Agreements
Owners who sign for several shops commit to an opening schedule. Each new location usually needs its own financing, and lenders will look at how the first shop performs, your remaining liquidity and your ability to manage more than one location before approving the next.
Real-World Scenarios
A first-time owner opening a single shop. A professional leaving a corporate career signs for one Junbi near a university. Because there is no operating history, the owner uses an SBA 7(a) loan to cover build-out, equipment and opening costs and keeps personal reserves well beyond the minimum.
A restaurant operator adding a beverage concept. An owner of several local restaurants opens a Junbi in a busy shopping center. The lender gives weight to the owner’s food service track record and existing cash flow and considers a conventional loan.
A buyer acquiring an existing shop. A buyer purchases a franchised Junbi from an owner who is relocating. The lender underwrites the shop’s sales history, and the seller agrees to carry a small subordinate note, subject to program rules.
Common Mistakes to Avoid
- Signing a lease before confirming financing and franchisor site approval
- Budgeting from estimates instead of the current Item 7 table and real contractor bids
- Leaving the royalty, marketing contribution and required product purchases out of projections
- Underestimating permitting time and the cost of carrying rent before opening
- Starting with too little working capital for a slow first winter
- Overlooking the SBA directory note when the loan will be secured by owned real estate
For more pitfalls, read the restaurant loan mistakes owners make most often.
Next Steps to Finance Your Junbi Franchise
Step 1: Request the disclosure document. Get the current Junbi disclosure document and review Items 5, 6, 7, 10, 17, 19 and 20 with a franchise attorney.
Step 2: Confirm the requirements. Ask the franchise team about minimum net worth, liquid capital and territory availability.
Step 3: Build your budget. Combine the Item 7 categories with real lease terms, contractor bids and equipment quotes, then add a contingency.
Step 4: Run the numbers early. Talk with a financing specialist before signing a lease. Our SBA loan calculator can help with early payment estimates, which are for planning only.
Step 5: Assemble your documents. Gather tax returns, personal financial statements, resumes, the franchise agreement, the lease or letter of intent and a business plan with projections.
Step 6: Apply and coordinate approvals. Keep franchisor site approval, lease negotiations and loan approval moving together so no deadline slips.
Junbi Franchise Loan FAQs
How much does it cost to open a Junbi?
The full estimated investment appears in Item 7 of the current disclosure document, and it varies with the site, the size of the space and the build-out needed. Junbi does not publish the range on its public pages, so request the document directly.
What is the Junbi franchise fee?
The initial fee is listed in Item 5 of the disclosure document. Ask whether reduced fees apply for additional shops under a development agreement.
What royalty does Junbi charge?
The royalty, marketing contribution and other ongoing fees are listed in Item 6. Include each one in your projections, because lenders deduct them before measuring how much debt the shop can support.
How much liquid capital do I need for a Junbi franchise loan?
Junbi does not publish a minimum on its public site. Lenders will expect a cash injection and reserves after closing, so ask both the franchisor and your lender early.
Is Junbi eligible for SBA loans?
Junbi is listed on the SBA Franchise Directory under code S6885, which can simplify the lender’s review. Approval still depends on the borrower, the project and program rules.
Do I need food service experience?
The company has said experience is not necessary. Lenders still weigh management background, and hiring an experienced manager can strengthen an application.
Can I buy an existing Junbi?
Possibly, if an owner is selling. The franchisor must approve the transfer, and lenders will review the shop’s sales history and tax returns.
Does Junbi offer financing?
Item 10 of the disclosure document states whether the franchisor offers any financing. Most owners arrange their own loans.
How long is the Junbi franchise agreement?
The term, renewal rights and transfer conditions appear in Item 17 and the franchise agreement. Lenders generally want the franchise term to run at least as long as the loan.
Can I open more than one Junbi?
Ask the franchise team whether multi-unit development is available in your market. Each added shop is usually financed separately once the first one has results.
Final Thoughts
A Junbi franchise loan works best when the borrower treats the disclosure document as the starting point, budgets for every build-out and equipment need, and plans enough working capital for the ramp-up period. The brand’s SBA Franchise Directory listing helps, but a well-documented plan and a strong site carry the most weight with lenders.
US Professional Funding helps franchise buyers and owners finance start-ups, acquisitions, equipment and expansion. Learn more about our franchise financing programs and restaurant and cafe financing.
