How to Finance a Just Between Friends Franchise: Pop-Up Sales
By Anthony Cornella
A Just Between Friends franchise loan is unusually small by franchise standards. Instead of a permanent store, a Just Between Friends (JBF) owner runs large pop-up consignment sales for children’s and maternity items in rented venues, so the budget centers on equipment, venue rent, advertising and cash to bridge the months between sales rather than on a build-out.
This article walks through the brand’s background, the fees and Item 7 line items in its disclosure document, the SBA Franchise Directory note about deferred franchise fees, and the financing structures that fit an event-based business.
US Professional Funding is not affiliated with, sponsored by or endorsed by Just Between Friends; the name is used only to describe the business. Figures below come from the franchisor’s Franchise Disclosure Document (FDD) issued in 2023 and can change, so confirm every number in the current FDD. Loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the FDD and franchise agreement with a franchise attorney and an accountant.
Just Between Friends Franchise Loan at a Glance
- Concept: pop-up consignment sales events for children’s and maternity clothing, gear and toys, held in rented venues.
- Initial franchise fee: $24,900 for one unit, according to the 2023 FDD, with a $5,000 reduction for existing franchisees in good standing who add a unit and a 10% discount for veterans and spouses of veterans.
- Royalty: 3% of gross sales, subject to annual minimums of $5,250 in years 1 and 2 and $10,500 from year 3, and subject to increase up to 5%.
- Brand fund: currently 1% of gross sales (it may rise to 3%), capped at $3,500 per location per year.
- Technology fee: $2,100 per year per location.
- Total investment: the 2023 FDD’s Item 7 estimate stays under $100,000; see the line items below.
- Franchisor financing: none offered directly or indirectly, per Item 10.
- SBA Franchise Directory: listed under code S0920, with a note about deferred franchise fees in some states.
What Is Just Between Friends?
Just Between Friends started in 1997, when its co-founder, a mother of two, and a friend held a children’s consignment sale in a living room in Tulsa, Oklahoma. The idea grew into a recurring community sale where families sell outgrown clothing, toys and baby equipment and other families buy them at secondhand prices. The franchisor describes the concept as a pop-up consignment community marketplace.
The franchisor entity, Just Between Friends Franchise System, Inc., was formed in Oklahoma in 2003 and began franchising that August. According to the 2023 FDD, it converted to a Pennsylvania corporation in 2023 and is based in Reading, Pennsylvania.
A JBF franchise does not operate year-round from a storefront. Owners organize large sales events, which the FDD describes as semiannual, by recruiting consignors and volunteers, renting a large venue and running a short, intense selling period.
Why lenders view it the way they do. Lenders appreciate the low startup cost and the absence of a long-term retail lease. They are more cautious about lumpy, event-driven revenue, few hard assets for collateral and the owner’s heavy role in each sale. A solid plan for cash flow between events matters as much as the sale itself.
Just Between Friends Franchise Costs
Initial franchise fee. The 2023 FDD lists a $24,900 initial franchise fee for one unit, payable when you sign the franchise agreement. Existing franchisees in good standing receive a $5,000 reduction on an additional unit, and veterans and spouses of veterans receive a 10% discount. Our page on franchise financing for veterans covers how lenders treat veteran buyers.
Venue instead of build-out. Because sales take place in rented event space, there is no build-out. Item 7 lists venue lease costs of $2,500 to $10,000 for the opening period, and storage of $0 to $375.
Equipment and inventory. Item 7 estimates initial equipment at $10,000 to $20,000 and initial inventory at $5,000. Equipment for a pop-up sale generally means display and checkout gear that can be set up and taken down for each event.
Opening costs and working capital. Advertising is a major line item because each sale depends on drawing both consignors and shoppers. The FDD also lists additional funds for the initial period.
Item 7 line items (2023 FDD):
- Initial franchise fee: $24,900
- Initial equipment: $10,000 to $20,000
- Initial inventory: $5,000
- Storage: $0 to $375
- Pre-opening labor: $700 to $1,000
- Jump Start Guide: $2,500 to $3,500
- Travel and living during the onsite apprenticeship: $1,800 to $2,800
- New franchise technology license and setup fee: $1,500
- Venue lease: $2,500 to $10,000
- Business registration and tax permits: $800 to $1,000
- Insurance: $500 to $1,000
- Advertising: $5,000 to $8,000
- Technology fee: $185 to $1,050
- Financial management course: $0 to $400
- Additional funds: $10,250 to $15,250
Total investment. Together, these items keep the 2023 FDD’s estimated initial investment below $100,000. Request the current FDD, add the line items yourself and confirm the total with the franchisor before sizing a loan.
Ongoing Fees and How They Affect Your Loan
Royalty. The 2023 FDD sets the royalty at 3% of gross sales, due within 18 days after each semiannual sale, with annual minimums of $5,250 in years 1 and 2 and $10,500 from year 3. The franchisor may raise the rate up to 5%.
Brand fund and local advertising. The national marketing brand fund is currently 1% of gross sales, may increase to 3% and is capped at $3,500 per location per year. Franchisees must also spend at least 3% of the prior sale’s gross receipts on advertising.
Technology, transfer and renewal fees. The technology fee is $2,100 per year per location. The transfer fee is $7,500 (reduced in certain co-owner transfers) and the renewal fee is $3,000.
How lenders factor these in. Royalty minimums matter most. Because they apply even if a sale underperforms, a lender will test whether the business can cover the minimums, fees and loan payments across a full year that may include only a couple of revenue events. Plan Just Between Friends franchise loan payments around that rhythm.
Franchisor Requirements for New Owners
The FDD sections we reviewed did not state a minimum net worth or liquid capital requirement, so ask the franchisor for its current qualifications. New owners complete pre-opening training, including an onsite apprenticeship at an existing sale, which is why travel costs appear in Item 7.
The SBA directory note in practice. The SBA Franchise Directory note explains that in some states, as a condition of registration, JBF has agreed to defer the initial franchise fee until the franchisee completes the pre-opening training requirements. The 2023 FDD names Maryland and Illinois among those states. For your lender, that means the fee may be paid later in the timeline than usual, which affects when loan proceeds are disbursed for it.
Ways to Own a Just Between Friends Franchise
A new franchise. Most buyers launch a new territory. Financing covers the fee, equipment, advertising and working capital, underwritten largely on the owner’s credit, liquidity and plan. See our retail start-up financing options.
Buying an existing franchise. An established JBF franchise brings a consignor list, shopper following, equipment and sale history. A lender can underwrite past sales, subject to franchisor approval and the $7,500 transfer fee. Learn more about financing a retail business acquisition.
Additional units. Existing owners in good standing receive a $5,000 fee reduction on another unit, which can make a second territory attractive once the first is running smoothly.
Financing Options for a Just Between Friends Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine the franchise fee, equipment, advertising and working capital. Because the project is modest, it suits buyers who want one Just Between Friends franchise loan for the whole launch.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived fixed assets. It is rarely a fit for a JBF franchise, which uses rented event space.
Conventional term loans. Buyers with strong credit and other assets may prefer a conventional business loan for a small, straightforward project.
Equipment financing. Display, checkout and transport equipment can sometimes be financed on its own through franchise equipment financing, preserving cash for advertising.
Working capital and lines of credit. The biggest financing need in an event business is timing. Venue deposits, advertising and staffing come due before each sale, while revenue arrives in short bursts. A retail working capital line of credit can cover pre-sale costs and be repaid after the event.
Seller financing on resales. A selling owner may carry part of the price. A seller note is typically subordinate to the senior loan, and SBA rules may limit its terms.
SBA Loans for Just Between Friends Franchisees
Lenders making SBA-guaranteed loans to franchisees check the SBA Franchise Directory to confirm that the brand’s documents have been reviewed for eligibility. Just Between Friends is listed under code S0920, which means SBA financing is available to qualified buyers. The listing does not approve any individual borrower.
The directory note about deferred franchise fees is informational. It tells the lender that in certain states the fee is not due until training is complete, so the loan closing and disbursement schedule should match that timing.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. A Just Between Friends franchise loan is a small fraction of that.
How Lenders Evaluate a Just Between Friends Deal
Personal credit and financial history. With few hard assets, lenders lean heavily on personal credit, income and a personal guarantee.
Net worth and liquidity. Lenders want an equity contribution and reserves to carry the business between sales. Our article on how much franchise you can afford helps with the math.
Experience. Event planning, retail, volunteer coordination, marketing and community networking are all relevant. Lenders want to know who will manage the sale floor, consignor intake and checkout.
Business plan and projections. Model each sale separately: consignor recruitment, items listed, venue cost, advertising, staffing, royalties and brand fund contributions. Then show annual cash flow across the sale calendar, including royalty minimums.
The FDD and franchise agreement. Lenders review the term, renewal, transfer conditions, territory protections and whether Item 19 includes financial performance representations. Our article on reading the FDD for financing covers what matters.
For resales, historical financials. Expect to share several years of sale results, tax returns and consignor data.
Seasonality and Cash Flow Between Sales
A JBF business can earn most of its revenue in a few short windows. That makes cash management the core financial skill. Build a monthly budget showing when venue deposits, advertising and technology fees are paid, when sales occur and when royalties are due. Keep enough cash or credit available to fund the next sale even if the last one fell short.
Multi-Unit Growth
Adding a second JBF unit in a nearby market can spread overhead and use the same equipment and team more efficiently, as long as sale dates and venues are coordinated. Lenders typically consider a second unit once the first shows consistent results. Our article on multi-unit franchise financing explains the approach.
Real-World Scenarios
A parent with a community network. A former teacher with deep local parent connections uses an SBA 7(a) loan for the fee, equipment, advertising and working capital, and recruits consignors through schools and parent groups.
A veteran buyer. A veteran uses the 10% fee discount and a modest loan, keeping savings in reserve for the first two sales.
A resale buyer. A buyer acquires an established franchise with an active consignor list, and the lender underwrites the loan on the seller’s historical sale results.
An owner adding a territory. After several successful sales, an owner adds a nearby unit using the existing-franchisee fee reduction and a working capital line.
Common Mistakes to Avoid
- Ignoring the royalty minimums when building projections
- Booking a venue without confirming deposit and cancellation terms
- Underfunding advertising for the first sale
- Leaving no cash cushion between sales
- Assuming the franchise fee is due at signing in states where it is deferred
- Skipping a full FDD review with an attorney
Read more about retail loan mistakes to avoid.
Next Steps to Finance Your Just Between Friends Franchise
Step 1: Request the current FDD. Confirm the fee, royalty minimums, brand fund and Item 7 estimate.
Step 2: Review with advisors. Have a franchise attorney and accountant review the FDD and franchise agreement.
Step 3: Research venues. Identify event spaces in your territory and get rental terms.
Step 4: Estimate payments. Use our SBA loan calculator for planning; results are estimates only.
Step 5: Build a sale-by-sale budget. Map costs and revenue across the full year.
Step 6: Apply for financing. Submit your package with the FDD, budget and personal financial documents.
Step 7: Close and train. Coordinate funding with the training schedule and any fee deferral.
Just Between Friends Franchise Loan FAQs
How much does a Just Between Friends franchise cost?
The 2023 FDD’s Item 7 line items add up to an estimated initial investment below $100,000, including the $24,900 franchise fee. Confirm the current total in the latest FDD.
What is the Just Between Friends franchise fee?
The 2023 FDD lists $24,900 for one unit, with a $5,000 reduction for existing franchisees adding a unit and a 10% veteran discount.
What royalty does Just Between Friends charge?
3% of gross sales, with annual minimums of $5,250 in years 1 and 2 and $10,500 from year 3, per the 2023 FDD.
Is there a marketing fee?
Yes. The brand fund is currently 1% of gross sales, capped at $3,500 per location per year, plus required local advertising.
Can I get an SBA loan for a Just Between Friends franchise?
Yes, if you qualify. The brand is on the SBA Franchise Directory under code S0920.
What does the SBA directory note mean?
In some states JBF defers the initial franchise fee until you finish pre-opening training, so your lender should time disbursements accordingly.
Does Just Between Friends offer financing?
No. The 2023 FDD’s Item 10 says the franchisor does not offer direct or indirect financing.
Can I buy an existing Just Between Friends franchise?
Yes, with franchisor approval and a $7,500 transfer fee. Lenders underwrite resales on historical sale results.
Can a first-time business owner qualify?
Yes. The small project size helps, but lenders still expect good credit, some equity and a clear cash flow plan.
What documents will I need?
Tax returns, a personal financial statement, a resume, the FDD, the franchise agreement, a sale-by-sale budget and projections.
Final Thoughts
A Just Between Friends franchise loan finances a low-overhead, event-based business where timing is everything. Confirm the current fees and royalty minimums, plan cash flow across the sale calendar and coordinate your loan with training and any fee deferral.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Explore our franchise financing programs and retail business financing.
