How to Finance a Keik Bakeshop Franchise: SBA Lease Rules
By Chris Cornella
A Keik Bakeshop franchise loan pays for more than an oven and a display case. Keik Bakeshop is a South Florida bakeshop and cafe known for its cakes, brunch plates and specialty coffee, so a new location combines a bakery, a breakfast kitchen and an espresso bar under one roof, and the financing has to cover all three.
Below we cover the disclosure document, the brand’s SBA Franchise Directory listing, the loan types that fit each part of the project and how lenders evaluate a newer bakery-cafe.
US Professional Funding is not affiliated with, sponsored by or endorsed by Keik Bakeshop; the name is used only to describe the business. Any figures in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current disclosure document and franchise agreement with a qualified franchise attorney and accountant.
Keik Bakeshop Franchise Loan at a Glance
- Concept: a full-service bakeshop and cafe offering made-to-order and by-the-slice cakes, breakfast and brunch, lunch items and espresso-based drinks.
- Home market: the Miami area of South Florida.
- SBA Franchise Directory: listed under code S9033, with notes about the lease conditional assignment and real estate purchase options.
- Franchise fee, royalty and total investment: not published on any franchisor page we could verify; request the current Franchise Disclosure Document (FDD) and read Items 5, 6 and 7.
- Owner requirements: not publicly stated; ask the franchisor for its net worth and liquidity guidelines.
- Likely financing routes: SBA 7(a) for the overall project, SBA 504 if you buy the building, equipment financing for the kitchen and coffee bar, and a working capital line for the opening period.
What Is Keik Bakeshop?
Keik Bakeshop grew out of the Miami-area cafe scene as a place where the cake case is the centerpiece. Its cakes, which the brand calls “Keiks,” are sold whole or by the slice, and the menu around them runs from sweet and savory brunch plates to sandwiches, burgers, salads and bowls later in the day.
That mix matters for financing. The brand operates more like a daytime cafe with table service, a production bakery and a coffee program, which means more kitchen equipment, more seating and more staff than a pure bakery.
Keik Bakeshop Franchise Costs
We could not verify the franchise fee, royalty or estimated initial investment on a franchisor page, so this section explains what the FDD should show and how each piece is typically financed.
Initial franchise fee. Item 5 of the FDD discloses the initial franchise fee and when it is due. The fee is generally paid at signing, often before a loan closes, so plan to cover it from your own funds or confirm that it can be included in the project cost.
Real estate and build-out. A bakeshop-cafe needs a kitchen with proper ventilation, grease management, hand and prep sinks, plumbing for espresso equipment and adequate electrical capacity for ovens and refrigeration. Leasehold improvements are often the largest single line item in a cafe project.
Opening costs and working capital. Opening inventory, staff training payroll, grand opening marketing, deposits, insurance and a reserve for the first months of operation are all part of a realistic budget.
What to look for in Item 7. When you receive the FDD, the Item 7 table should break the estimated initial investment into lines such as:
- Initial franchise fee
- Leasehold improvements and construction
- Kitchen, bakery and coffee equipment
- Furniture, fixtures and signage
- Opening inventory and supplies
- Training expenses
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists recurring fees. For a bakeshop franchise, expect some combination of a royalty on gross sales, a brand or marketing fund contribution, a local advertising requirement and technology or software fees.
Why these fees matter to underwriting. A lender builds projections from expected sales, subtracts food and paper costs, labor, rent, royalties and marketing, and then tests whether what remains comfortably covers the loan payment.
Franchisor Requirements for New Owners
Keik Bakeshop does not publish net worth, liquid capital or experience requirements on a page we could verify. Ask the franchisor directly, and confirm them in the FDD and franchise agreement. In the meantime, plan around what lenders typically expect for a new cafe:
- Liquid funds for the equity injection, the franchise fee and reserves
- Restaurant, bakery or hospitality management experience, or an experienced general manager
- A site that meets the brand’s standards and completion of the franchisor’s training
Ways to Own a Keik Bakeshop
A new location. Most buyers of a young brand will open a new cafe. Financing covers the franchise fee, build-out, equipment, opening inventory and working capital, and lenders underwrite it on projections and the buyer’s strength. Our page on franchise start-up financing explains how these requests are structured.
Buying an existing location. If a franchised Keik Bakeshop comes up for sale, the buyer can use the cafe’s actual sales and expenses to support the loan. The franchisor must generally approve the transfer, and the buyer usually signs the current franchise agreement. Read about buying a franchise resale for timing and approval issues.
Financing Options for a Keik Bakeshop Franchise
SBA 7(a) loans. Because Keik Bakeshop is on the SBA Franchise Directory, an SBA 7(a) loan is a natural fit for a new cafe. A single 7(a) loan can generally finance leasehold improvements, equipment, the franchise fee, opening inventory and working capital together.
SBA 504 loans. If you plan to buy the building where the cafe will operate, an SBA 504 loan can finance owner-occupied real estate and long-lived equipment. The directory notes for this brand speak directly to franchisee-owned real estate, as explained below.
Conventional term loans. Buyers with strong liquidity, prior restaurant ownership or significant collateral may prefer a conventional business loan, which can offer more flexible documentation.
Equipment financing. Deck or convection ovens, planetary mixers, refrigerated cake display cases, walk-in coolers, griddles, espresso machines and grinders can be financed separately, which can preserve cash for the build-out. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. A cafe needs cash for payroll during training, opening inventory and the months before sales stabilize. Learn more about restaurant working capital.
Seller financing on resales. When buying an existing cafe, part of the price may be carried by the seller. A seller note is typically subordinate to the senior loan, and SBA rules may limit how it is structured or counted toward the buyer’s equity.
SBA Loans for Keik Bakeshop Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA lending. Lenders generally confirm a brand’s listing before making an SBA-guaranteed franchise loan.
The brand’s listing. Keik Bakeshop appears on the directory under code S9033 with two notes. First, when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Conditional Assignment may not be executed. Second, the franchisor may not enforce a purchase option on real estate owned by the franchisee or an affiliate of the franchisee and taken as collateral for the SBA loan.
What the notes mean in plain English. A lease conditional assignment lets the franchisor step into a franchisee’s lease if the franchisee defaults or the franchise ends. But if you or your real estate company own the building and pledge it to the SBA lender, there is no third-party lease to assign, so that document is not signed. Likewise, a purchase option that would let the franchisor buy your property could conflict with the lender’s collateral, so it cannot be enforced against property securing the SBA loan.
Leased versus owned sites. In a leased location, expect the lease conditional assignment to be part of your lease package, and expect the lender to review it along with the lease term and renewal options. Our article on restaurant lease assignments explains how these documents interact with financing.
Program limits and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our SBA loan calculator provides early payment estimates for planning only; it is not an offer or approval.
How Lenders Evaluate a Keik Bakeshop Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and typically require personal guarantees from owners.
Net worth and liquidity. Lenders want to see your equity injection, the franchise fee and a reserve after closing.
Industry and management experience. Bakery, cafe or restaurant management experience carries real weight. If you are new to food service, a named general manager or kitchen lead with relevant experience strengthens the request.
Business plan and projections. Projections should reflect the daypart mix, from morning coffee and brunch to afternoon cake sales, plus ramp-up, scratch-baking labor and premium ingredient costs.
The FDD and franchise agreement. Lenders review the term, renewal rights, transfer conditions, any franchisor financing in Item 10 and whether Item 19 includes financial performance representations. Our article on how lenders read an FDD covers the items that matter most.
Site, lease or real estate. Lenders typically want a lease term, including renewal options, at least as long as the loan.
Equipment and Kitchen Considerations
A Keik Bakeshop-style cafe runs two production lines at once: a bakery that turns out layered cakes and a kitchen that cooks brunch and lunch to order. That typically means baking ovens and mixers alongside griddles, cooktops and refrigeration, plus a pastry finishing area for decorating and slicing.
Display and coffee. Refrigerated cake cases are both equipment and merchandising, and an espresso bar needs a commercial machine, grinders, water filtration and dedicated plumbing.
Multi-Unit Growth and Development Agreements
If the franchisor offers multi-unit or area development rights, a development agreement will set the number of cafes and the opening schedule. Lenders finance each cafe on its own merits, but a strong first location makes the second and third much easier to fund.
Financing a second cafe. Once your first cafe has operating history, lenders can consider combined cash flow. Keep clean, separate books for each location and track sales by daypart and category. Our article on multi-unit franchise financing explains how lenders look at growing groups.
Real-World Scenarios
A pastry chef opening a first cafe. An experienced pastry chef signs for a new location in a leased former restaurant space. An SBA 7(a) loan covers the build-out, equipment and working capital, and the lease conditional assignment is included in the lease package.
An investor buying the building. A buyer with real estate experience purchases a small retail building for the cafe through an affiliated company. An SBA 504 loan finances the property, and because the building secures SBA financing, the lease conditional assignment is not executed and the franchisor’s purchase option cannot be enforced against it.
A buyer acquiring an existing cafe. A buyer purchases a franchised location from its original owner. The lender relies on the cafe’s actual sales and expenses, the franchisor approves the transfer, and the seller carries a small subordinated note.
Common Mistakes to Avoid
- Relying on cost figures from listing sites instead of the current FDD
- Underestimating build-out costs for a full kitchen, bakery and espresso bar
- Skipping a reserve for the ramp-up period
- Ignoring the directory notes when buying the real estate
- Building projections around peak brunch weekends instead of average weeks
For more pitfalls, read about restaurant loan mistakes that cost owners money.
Next Steps to Finance Your Keik Bakeshop Franchise
Step 1: Request the FDD. Ask Keik Bakeshop for its current Franchise Disclosure Document and its owner requirements.
Step 2: Review it with advisors. Study Items 5, 6, 7, 10, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Learn your likely borrowing range and equity requirement before committing to a site.
Step 4: Find and evaluate a site. Get build-out estimates and lease terms, and decide whether to lease or buy.
Step 5: Build your projections. Model sales by daypart, food and labor costs, rent, royalties and debt service.
Step 6: Apply, close and open. Submit your loan package, coordinate the lender’s timeline with the franchisor’s approval and the lease, and keep working capital in reserve.
Keik Bakeshop Franchise Loan FAQs
How much does a Keik Bakeshop franchise cost?
The franchisor does not publish its total investment on a page we could verify, so size any Keik Bakeshop franchise loan from the FDD. Item 7 of the current FDD gives the estimated initial investment and line items. Costs depend on the site, size, build-out and equipment.
What is the Keik Bakeshop franchise fee?
The initial franchise fee is disclosed in Item 5 of the FDD. Request the current document for the exact amount and payment terms.
What royalty does Keik Bakeshop charge?
Royalty and marketing fund contributions are disclosed in Item 6 of the FDD. Review them carefully, since they reduce the cash flow available for loan payments.
Is Keik Bakeshop eligible for SBA loans?
Yes. Keik Bakeshop is listed on the SBA Franchise Directory under code S9033, so the franchise relationship is cleared for SBA review.
What do the SBA directory notes mean?
If the cafe’s real estate secures the SBA loan, the lease conditional assignment is not signed, and the franchisor cannot enforce a purchase option on franchisee-owned property pledged as collateral.
Can I buy an existing Keik Bakeshop?
If a franchised location is for sale, a buyer can finance it with the franchisor’s approval. Lenders base the loan on the cafe’s actual financial results.
Can a first-time owner get a Keik Bakeshop franchise loan?
Yes, if the franchisor approves you and you meet lender requirements. Food-service experience or an experienced manager strengthens the request.
Does Keik Bakeshop offer financing?
Check Item 10 of the FDD, which discloses any franchisor financing. Most buyers arrange their own SBA or conventional Keik Bakeshop franchise loan.
Can I finance equipment separately?
Yes. Ovens, display cases and espresso equipment can often be financed on their own, preserving cash for the build-out.
How long is the franchise term?
The term and renewal rights are set out in the franchise agreement and summarized in Item 17 of the FDD.
Final Thoughts
A Keik Bakeshop franchise loan works best when the buyer starts with the current FDD, plans for a full bakery-cafe build and keeps a healthy reserve. The brand’s SBA Franchise Directory listing opens the door to SBA 7(a) and 504 financing, and understanding its notes on leases and real estate helps you structure the deal correctly from the start.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and real estate. Learn more about our franchise business loans and restaurant financing solutions.
