How to Finance a Lola Beans Franchise: The 3-Store Minimum
By Anthony Cornella
A Lola Beans franchise loan is rarely a one-store request. The drive-thru coffee brand requires a minimum of three stores for an initial investment, which means buyers are financing a development plan rather than a single shop, and lenders underwrite it that way.
This article covers the fees and capital requirements Lola Beans publishes, why its small drive-thru buildings create unique real estate questions, how its SBA Franchise Directory listing works and how to structure financing across several openings.
US Professional Funding is not affiliated with, sponsored by or endorsed by Lola Beans; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Lola Beans Franchise Loan at a Glance
- Franchise fee: $40,000 for the first unit, according to the franchisor’s website.
- Royalty: 6%.
- Brand fee: 2%.
- Development minimum: three stores are required for an initial investment.
- Capital requirements: $500,000 in liquid capital and a $1 million net worth.
- Footprint: drive-thru shacks as small as 200 square feet, with the largest at 900 square feet.
- System size: the company reports more than 100 units open or in development.
- Initial investment: the franchisor’s pages currently show more than one range, so rely on Item 7 of the FDD dated April 27, 2026.
- SBA Franchise Directory: listed under code S8828, with a note about the lease documents when real estate secures the loan.
What Is Lola Beans?
Lola Beans is a drive-thru beverage concept founded by Donny and Missy Bradley, who named the brand after their daughter, Lola. The menu combines craft coffee, infused sodas, teas, clean energy drinks and seasonal limited-time offers, so a single small building can serve morning coffee buyers, afternoon soda customers and energy drink fans.
A dual drive-thru shack. Units can be as small as 200 square feet, and the largest shack is 900 square feet. The design uses two drive-thru lanes and face-to-face ordering intended to keep lines moving. There is no traditional restaurant kitchen to finance.
Technology. The brand supports its stores with online training, point-of-sale integration, a branded app, online ordering and a built-in loyalty program.
Growth. The company reports more than 100 units open or in development and more than 30 states open for development.
How lenders view it. Lenders see a low-labor, small-building model whose largest cost is often the site itself: land or a pad, two drive-thru lanes, utilities and permits. Because the system is growing quickly, lenders will also weigh the borrower’s ability to fund and manage several openings.
Lola Beans Franchise Costs
Initial franchise fee. The franchisor lists $40,000 for the first unit. Item 5 of the FDD shows the fees for later units in a development agreement and any development fee due at signing.
Real estate and site work. A drive-thru shack needs a pad with room for stacking lanes, safe entry and exit, and visibility from a busy road. Costs can include a ground lease or land purchase, grading, paving, curbs, utility connections, permitting and the foundation for the building. These items vary widely by market and are often the biggest swing in the budget.
Building and equipment. The shack itself, espresso machines, grinders, blenders, ice machines, refrigeration, drive-thru windows and headsets, menu boards and point-of-sale hardware. The franchisor offers store build-out support and a preferred vendor program.
Opening costs and working capital. Opening inventory, training, insurance, deposits, grand opening marketing and payroll before sales build.
Total investment. The franchisor’s pages show more than one initial investment range, both tied to the FDD dated April 27, 2026. Until you have the disclosure document, treat any published range as preliminary. Use Item 7 for each line item, and remember that a three-store commitment means planning capital for every unit, not just the first.
Ongoing Fees and How They Affect Your Loan
Royalty and brand fee. Lola Beans charges a 6% royalty and a 2% brand fee. Item 6 of the FDD lists any technology, app or other recurring fees.
Why lenders care. When underwriting a Lola Beans franchise loan, a lender subtracts royalties and the brand fee from projected sales before measuring debt service coverage. With several units planned, the lender also looks at how the cash flow from earlier stores will support debt on later ones.
Seasonality and menu mix. Hot coffee demand rises in cooler months, while iced drinks, sodas and energy drinks can carry summer sales. Monthly projections should reflect your climate and local commuting patterns.
Franchisor Requirements for New Owners
- Liquid capital: $500,000.
- Net worth: $1 million.
- Development: a minimum of three stores for an initial investment.
- Multiple options: the franchisor says multiple franchise options are available.
The approval process. Candidates submit an inquiry or application, review the FDD and work through the franchisor’s evaluation. After signing, Lola Beans provides site selection help with demographic, commercial and local market analysis, store build-out support, training and grand opening assistance.
These are franchisor minimums. A lender will still set its own equity injection and post-closing reserve expectations based on the full development plan.
Ways to Own a Lola Beans
A multi-store development. The standard path is a development agreement for at least three stores. Financing is usually arranged one site at a time as each location is approved, though the lender will review the full plan at the start. Our article on financing an area development agreement explains how lenders approach development schedules.
Buying an existing store. As the system matures, existing stores may change hands. A resale offers sales history, subject to franchisor approval of the transfer. See buying a coffee shop for what to evaluate.
Experienced multi-unit operators. Owners who already run other franchised restaurants may find their track record helps both with the franchisor and with lenders.
Financing Options for a Lola Beans Franchise
SBA 7(a) loans. Because Lola Beans is on the SBA Franchise Directory, an SBA 7(a) loan can finance the franchise fee, building, equipment, site work and working capital for a store.
SBA 504 loans. Owners who buy the land under a drive-thru shack may consider the SBA 504 program for the real estate and building, which can be a good fit for long-lived assets.
Conventional term loans. Experienced operators with strong liquidity may prefer a conventional business loan, especially for the second and third stores once the first is open.
Equipment financing. Espresso machines, ice machines, refrigeration, drive-thru systems and point-of-sale hardware can be financed separately. Explore restaurant equipment financing and leasing.
Working capital and lines of credit. Opening several stores close together strains cash: deposits, pre-opening payroll and inventory hit before sales begin. See restaurant working capital options.
Seller financing on resales. A seller may carry part of the price on an existing store. Any seller note would need to be acceptable to the senior lender, is typically subordinate to it, and loan programs may limit its terms.
SBA Loans for Lola Beans Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. Lenders check it before making an SBA-guaranteed loan to a franchisee.
Lola Beans’ listing and note. Lola Beans appears under code S8828. The note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Conditional Assignment of Lease and the Consent and Agreement of Landlord may not be executed.
What the note means. Those documents give the franchisor rights in a franchisee’s lease. If you own the land under your shack and pledge it as collateral, there is no third-party lease, so they should not be signed. Because some drive-thru owners buy their pads, this note is more relevant to Lola Beans than to many mall-based concepts.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change. In a multi-store plan, total SBA exposure across all loans to the same borrower matters, so discuss the full development schedule with your lender early. Our SBA loan calculator provides planning estimates only.
How Lenders Evaluate a Lola Beans Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and owners typically sign personal guarantees.
Net worth and liquidity. The $500,000 liquidity and $1 million net worth requirements are a floor. Lenders want to see enough cash to inject equity into the first store and still carry the pipeline.
Industry and management experience. Restaurant, beverage or multi-unit management experience helps, especially for a plan that requires several openings.
Business plan and projections. Base projections on traffic counts, the site’s stacking capacity, menu mix, labor, rent or land costs, the 6% royalty and the 2% brand fee. Show the opening schedule for each store.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 10, 12, 17 and 19. Learn how lenders use the FDD in franchise financing.
Site and real estate. Lenders review ground leases, purchase contracts, zoning approvals for drive-thru use and access permits.
Multi-Unit Growth and Development Agreements
Because Lola Beans requires three stores for an initial investment, every buyer is a multi-unit buyer. A realistic plan funds the first store, opens it, and uses its results to support financing for the next, while meeting the development schedule. Missing a deadline can put territory rights at risk, so align your financing timeline with the agreement. See multi-unit franchise financing for how lenders view each additional location.
Real-World Scenarios
A restaurant group adding a beverage brand. An experienced franchise operator signs a three-store agreement and finances the first site with an SBA 7(a) loan, using existing restaurant cash flow to support the application.
A first-time owner with strong liquidity. A professional with the required net worth partners with an experienced manager, buys a pad site with SBA 504 financing and finances equipment separately.
An owner on store number two. After opening the first shack, an owner uses its financial statements to secure a conventional loan for the next location.
Common Mistakes to Avoid
- Budgeting for one store when the agreement requires three
- Underestimating site work, paving and utility costs for a drive-thru pad
- Choosing a site without enough stacking room for two lanes
- Leaving the royalty and brand fee out of projections
- Ignoring the development schedule when timing loans
See the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Lola Beans Franchise
Step 1: Confirm you qualify. Compare your liquidity and net worth with the franchisor’s requirements.
Step 2: Get the FDD. Request the current disclosure document and review it with an attorney and accountant.
Step 3: Plan the development. Map out timing and capital for at least three stores.
Step 4: Secure the first site. Work with the franchisor on site selection and obtain site work and building estimates.
Step 5: Build projections and apply. Prepare a business plan and financial documents and submit your loan request.
Step 6: Close and open. Coordinate closing with construction and training, then repeat for the next store.
Lola Beans Franchise Loan FAQs
How much does a Lola Beans franchise cost?
The franchisor’s pages currently show more than one initial investment range. Use Item 7 of the FDD dated April 27, 2026 for the confirmed figures.
What is the Lola Beans franchise fee?
$40,000 for the first unit, according to the franchisor.
What royalty does Lola Beans charge?
A 6% royalty plus a 2% brand fee.
How much liquid capital do I need?
$500,000 in liquid capital and a $1 million net worth.
Can I open just one Lola Beans?
The franchisor states that a minimum of three stores is required for an initial investment.
Can I get an SBA loan for a Lola Beans franchise?
Yes. Lola Beans is listed on the SBA Franchise Directory under code S8828, so lenders can consider SBA financing, subject to underwriting.
How big is a Lola Beans store?
Units can be as small as 200 square feet, with the largest shack at 900 square feet.
Can I finance the equipment separately?
Yes. Beverage equipment, refrigeration and drive-thru systems can be financed with equipment loans or leases or included in an SBA 7(a) loan.
Can first-time owners get a Lola Beans franchise loan?
Possibly, if they meet the capital requirements and show management capacity for a multi-store plan.
Does Lola Beans offer financing?
Item 10 of the FDD discloses any franchisor financing. Owners can also arrange SBA, conventional or equipment financing.
Final Thoughts
Lola Beans combines a tiny building with a three-store commitment, so the capital plan matters more than the cost of any single shack. A well-built Lola Beans franchise loan request uses the FDD’s Item 7, realistic site work budgets and a schedule that matches the development agreement.
US Professional Funding helps franchise owners finance start-ups, equipment, real estate and working capital. Learn more about our franchise financing programs and our restaurant financing solutions.
