How to Finance a Just Love Coffee Cafe Franchise: The $135K Rule
By Marc Cornella
A Just Love Coffee Cafe franchise loan typically funds a sit-down coffee cafe with a full food menu built around waffle irons, plus the leasehold improvements and equipment that make up most of the budget. The franchisor’s own materials put the estimated initial investment at $482,500 to $743,000 and ask for at least $135,000 in liquid capital, so most buyers combine personal cash with an SBA or conventional loan.
This article explains the brand’s background, the cost figures the franchisor publishes, the SBA Franchise Directory note about lease addenda, and how lenders evaluate a cafe deal.
US Professional Funding is not affiliated with, sponsored by or endorsed by Just Love Coffee Cafe; the name is used only to describe the business. Figures come from the franchisor’s franchise website, which summarizes its Franchise Disclosure Document (FDD), and can change. 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.
Just Love Coffee Cafe Franchise Loan at a Glance
- Concept: a neighborhood coffee cafe serving its own roasted coffee with an all-day menu of waffled omelets and sandwiches, wraps, salads and grab-and-go items.
- Initial franchise fee: $39,000, due when the franchise agreement is signed, according to the franchisor’s franchise site.
- Total investment: $482,500 to $743,000, per the franchisor’s summary of Item 7.
- Liquid capital: at least $135,000, according to the franchisor.
- Royalty and marketing fees: not published on franchisor pages we could verify; confirm them in Item 6.
- Background: first cafe opened in 2011; home office in Nashville, Tennessee; coffee roasted in Murfreesboro, Tennessee.
- SBA Franchise Directory: listed under code S2849, with a note about the lease addendum when real estate secures the loan.
What Is Just Love Coffee Cafe?
Just Love Coffee began as an online coffee roaster created to help families raise money for adoption, a mission the brand still emphasizes through charitable giving. The first Just Love Coffee Cafe opened in 2011, and the company added three more stores in 2014 after developing its food program. The brand roasts its coffee by hand in Murfreesboro, Tennessee, and its home office is in Nashville.
The cafe positions itself as a comfortable place to relax, work or meet friends, with full coffee service and a food menu built around waffle irons. According to the franchisor, the kitchen is small and does not need commercial ovens or hoods, which can simplify the build-out compared with a full-service restaurant. The company has grown to dozens of locations nationwide and lists franchise availability in many states.
Why lenders view it the way they do. Lenders see a defined concept with its own coffee supply, an established franchise system and a food menu that can lift sales beyond beverages. They also see a sizable leasehold build-out, which has limited collateral value, and a competitive coffee category. Site selection and the owner’s operating plan carry heavy weight.
Just Love Coffee Cafe Franchise Costs
Initial franchise fee. The franchisor’s site lists a $39,000 franchise fee, paid to the franchisor when you sign the franchise agreement. Ask whether the current FDD offers different terms for additional units.
Leasehold improvements. The largest cost. The franchisor’s summary of Item 7 lists $250,000 to $400,000 for leasehold improvements, which covers converting a leased space into a finished cafe. Landlord tenant improvement allowances can change how much you finance. Our article on restaurant build-out financing explains how lenders fund this stage.
Furniture, fixtures and equipment. The franchisor lists $110,000 to $170,000 for furniture, fixtures, equipment and supplies. In a coffee cafe that typically means espresso machines, grinders, brewers, refrigeration, waffle irons, point-of-sale systems, seating and decor.
Opening costs and working capital. Pre-opening inventory, training travel, grand opening marketing and three months of additional funds round out the major costs. The franchisor’s Item 7 summary includes:
- Initial franchise fee: $39,000
- Leasehold improvements: $250,000 to $400,000
- Furniture, fixtures, equipment and supplies: $110,000 to $170,000
- Pre-opening inventory: $9,000 to $15,000
- Training travel and living expenses: $4,000 to $8,000
- Grand opening marketing: $5,000
- Additional funds for three months: $20,000 to $30,000
Total investment. The franchisor states a total estimated initial investment of $482,500 to $743,000. The items above are the largest categories; the full Item 7 table includes other line items, so review it in the current FDD.
Ongoing Fees and How They Affect Your Loan
Royalty and brand fund. Just Love Coffee Cafe’s royalty and marketing fund rates were not published on franchisor pages we could verify. Item 6 of the FDD lists them, along with any technology, transfer and renewal fees.
Coffee supply. Because the brand roasts its own coffee, ask whether coffee must be bought from the franchisor. Item 8 explains required purchases and supplier arrangements, which affect your cost of goods.
Remodels and upgrades. Check the franchise agreement for any refresh or remodel requirements during the term.
How lenders factor these in. Lenders deduct royalties, marketing fund contributions, rent, labor and cost of goods from projected sales to estimate cash flow available for loan payments. In a cafe, labor and rent are usually the largest fixed costs, so the lender will want a realistic staffing plan and lease terms.
Franchisor Requirements for New Owners
The franchisor lists a minimum of $135,000 in liquid capital. Ask about any net worth requirement, development commitments and owner involvement expectations. The franchisor’s process includes introductory conversations, FDD review and an introduction to financing contacts before approval.
Ways to Own a Just Love Coffee Cafe
A new cafe. Most buyers open a new location. Financing covers the fee, build-out, equipment and working capital, underwritten on projections and the owner’s strength. See our restaurant start-up financing options.
Buying an existing cafe. A resale offers operating history, staff and an established customer base. Lenders can underwrite actual results, subject to franchisor transfer approval. Our article on buying a franchise resale covers the process.
Multiple cafes. Owners who perform well may add locations, using existing cash flow to support new debt.
Financing Options for a Just Love Coffee Cafe Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine the franchise fee, leasehold improvements, equipment and working capital. For many buyers, it is the primary Just Love Coffee Cafe franchise loan structure.
SBA 504 loans. SBA 504 financing fits when an owner buys the building or finances major long-lived equipment. Most cafes lease their space, so 504 applies mainly to owner-occupied real estate deals.
Conventional term loans. Experienced operators with strong financials may use a conventional business loan.
Equipment financing. Espresso machines, grinders, refrigeration and waffle irons can be financed separately through restaurant equipment financing and leasing, preserving cash for working capital.
Working capital and lines of credit. A new cafe needs cash for payroll, inventory and marketing while sales build. Restaurant working capital or a line of credit can cover the ramp-up period and slower seasons.
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 Love Coffee Cafe Franchisees
SBA lenders rely on the SBA Franchise Directory to confirm that a brand’s franchise documents are eligible for SBA-guaranteed loans. Just Love Coffee Cafe is listed under code S2849. A listing does not approve any borrower; it means the franchise relationship has been reviewed.
The directory note explained. The note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Addendum to Lease document may not be executed. In plain English, the franchisor’s lease addendum, which normally gives the franchisor rights in the cafe’s lease, should not be signed when the property itself is pledged as collateral, because it could conflict with the lender’s interest. For most franchisees who lease space, the note will not apply; it matters when an owner buys the building.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. A single Just Love Coffee Cafe franchise loan falls well within that limit.
How Lenders Evaluate a Just Love Coffee Cafe Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement and generally require a personal guarantee.
Net worth and liquidity. Meeting the franchisor’s liquid capital minimum is the starting point. Lenders also want reserves beyond the equity injection.
Industry and management experience. Restaurant, coffee, hospitality or retail management experience helps. If you are new to food service, show who will manage the cafe and how training will prepare you.
Business plan and projections. Build projections around morning and afternoon traffic, food attachment rates, average ticket, labor, rent and coffee costs. The franchisor’s materials reference Item 19 information; review it with an accountant and base your plan on your own site. Our article on writing a franchise business plan for an SBA loan can help.
The FDD and franchise agreement. Lenders review the term, renewal and transfer conditions, territory rights and required purchases.
Site and lease. Visibility, parking, nearby offices or schools and lease terms all matter. Lenders want a lease term that covers the loan.
For resales, historical financials. Expect to provide profit and loss statements, sales reports and tax returns.
Equipment and Build-Out
The cafe’s build-out and equipment make up most of the investment. Because the kitchen is built around waffle irons rather than ovens and hoods, the equipment package centers on espresso machines, grinders, brewers, refrigeration, waffle irons and point-of-sale systems. Get detailed quotes and confirm which items must come from approved suppliers. Equipment financing terms should match each asset’s useful life.
Multi-Unit Growth
Owners who perform well may add cafes in their market, sharing management and marketing. Lenders typically consider additional units once the first cafe shows steady results. Our article on multi-unit franchise financing explains the approach.
Real-World Scenarios
A first-time owner from corporate life. A former manager uses an SBA 7(a) loan for the fee, build-out, equipment and working capital, meeting the franchisor’s liquid capital minimum with savings.
An experienced operator. A restaurant operator uses a conventional loan and separate equipment financing for espresso machines and waffle irons.
A resale buyer. A buyer acquires an operating cafe, with a lender sizing the loan to the cafe’s historical cash flow.
A building buyer. An owner buys a small building for a cafe using SBA 504 financing, and the lender confirms that the lease addendum is not signed.
Common Mistakes to Avoid
- Underestimating build-out costs and contingencies
- Signing a lease before financing is approved
- Ignoring royalty and marketing fees in projections
- Leaving too little working capital for the ramp-up period
- Overlooking the lease addendum note when pledging real estate
Read more about restaurant loan mistakes to avoid.
Next Steps to Finance Your Just Love Coffee Cafe Franchise
Step 1: Request the FDD. Confirm the fee, royalty, Item 7 table and requirements.
Step 2: Review with advisors. Have a franchise attorney and accountant review the FDD and agreement.
Step 3: Estimate payments. Use our SBA loan calculator for planning; results are estimates only.
Step 4: Find a site. Work with the franchisor on site approval and lease terms.
Step 5: Get build-out and equipment quotes. Collect contractor and equipment quotes.
Step 6: Apply for financing. Submit your package with the FDD, quotes and projections.
Step 7: Close and open. Coordinate construction, training and grand opening.
Just Love Coffee Cafe Franchise Loan FAQs
How much does a Just Love Coffee Cafe franchise cost?
The franchisor lists a total estimated initial investment of $482,500 to $743,000.
What is the Just Love Coffee Cafe franchise fee?
The franchisor’s site lists $39,000, due at signing.
How much liquid capital do I need?
The franchisor lists a minimum of $135,000 in liquid capital.
What royalty does Just Love Coffee Cafe charge?
The royalty and marketing fees are listed in Item 6 of the current FDD.
Can I get an SBA loan for a Just Love Coffee Cafe franchise?
Yes, if you qualify. The brand is listed on the SBA Franchise Directory under code S2849.
What does the SBA directory note mean?
If real estate secures the loan, the franchisor’s lease addendum should not be signed.
Can I finance equipment separately?
Yes. Equipment financing can cover espresso machines, grinders, refrigeration and waffle irons.
Can I buy an existing Just Love Coffee Cafe?
Yes, with franchisor approval. Lenders underwrite resales on historical results.
Can a first-time owner qualify?
Yes, with good credit, the required liquidity and a solid management plan.
Does the franchisor offer financing?
Check Item 10 of the current FDD. The franchisor’s process includes introductions to financing contacts, but buyers arrange their own loans.
What documents will I need?
Tax returns, a personal financial statement, a resume, the FDD, the franchise agreement, the lease or letter of intent, quotes and projections.
Final Thoughts
A Just Love Coffee Cafe franchise loan funds a cafe where build-out and equipment drive most of the cost. Confirm the current FDD, meet the liquidity requirement with room to spare and plan working capital for the ramp-up.
US Professional Funding helps franchise owners finance start-ups, equipment, acquisitions and working capital. Explore our franchise financing programs and restaurant and cafe financing.
