How to Finance a Mokafe Franchise: Coffee Lounge Startup
By Anthony Cornella
A Mokafe franchise loan finances something different from a grab-and-go coffee kiosk. Mokafe, also styled Mokafé, is a New York-based specialty coffee house rooted in Yemeni coffee traditions, built for long hours, a large pastry case and guests who stay to work or socialize. That format shapes the build-out, the equipment list and the working capital a lender will want to see.
Mokafe is a young franchise system and publishes few franchise figures, so this article focuses on how to gather the right numbers, how the SBA listing works for this brand and how lenders are likely to look at a new café or a resale.
US Professional Funding is not affiliated with, sponsored by or endorsed by Mokafe; the name is used only to describe the business. 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. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you commit.
Mokafe Franchise Loan at a Glance
- Concept: a full-seating specialty coffee house serving Yemeni and other specialty coffees, teas, espresso drinks and a broad selection of pastries and baked goods.
- Home market: New York City and northern New Jersey, with expansion onto Long Island and plans to grow into other states through franchising.
- Initial franchise fee, royalty and total investment: not published in sources we could verify; get them from Items 5, 6 and 7 of the current FDD.
- Formats: neighborhood cafés with seating, plus at least one location planned with a drive-thru.
- SBA Franchise Directory: listed as Mokafe, code S8460, with a note about lease documents when the loan is secured by real estate the borrower owns (explained below).
What Is Mokafe?
Mokafe began in Astoria, Queens, and grew into a group of coffee houses across Queens, Brooklyn, Manhattan and northern New Jersey, including cafés in Greenpoint, Paterson and Jersey City. The cafés are positioned as places to gather from morning through late evening, not simply a coffee counter.
The menu draws on Yemeni coffee culture alongside familiar café drinks: specialty coffees, Turkish coffee, a range of flavored lattes, Adeni chai, matcha and refreshers, plus croissants, cakes and Yemeni pastries. Guests can order ahead and earn loyalty rewards through the brand’s own app.
The company has launched a franchise program to take the concept beyond its home markets. Because the franchise system is new, buyers should expect fewer franchised locations to talk to and should rely heavily on the FDD and the franchisor’s own answers.
How lenders see the concept. Lenders generally view a young café system as an emerging franchise. They place more weight on the borrower’s own experience, liquidity and site than on the brand’s track record. Our article on financing an emerging franchise explains what changes when a system is new.
Mokafe Franchise Costs
Initial franchise fee. Item 5 of the FDD discloses the initial fee, when it is due and whether any of it is refundable. Ask whether multi-unit or development agreements carry a different fee.
Lease and build-out. Mokafe cafés are built for seating, music and long stays, so the space tends to be larger and more finished than a takeout coffee counter. Build-out typically includes plumbing for espresso and dish areas, electrical upgrades, HVAC, lighting, seating, restrooms, a display case wall and signage. A drive-thru site adds lane construction, menu boards and order technology.
Equipment. Commercial espresso machines and grinders, brewers for traditional coffee preparation, refrigeration, pastry display cases, ovens for baked goods, ice machines, blenders, dishwashing equipment and point-of-sale hardware.
Opening costs and working capital. Opening inventory of coffee, tea and baked goods, staff hiring and training, grand opening marketing, insurance, deposits and reserves for the early months.
Total investment. We could not verify Mokafe’s total investment range from the franchisor’s own materials. Item 7 of the FDD will show it. Expect the table to include categories such as:
- Initial franchise fee
- Leasehold improvements and construction
- Furniture, fixtures and seating
- Coffee, bakery and refrigeration equipment
- Signage and décor
- Technology and point-of-sale systems
- Opening inventory
- Rent, security deposits and utility deposits
- Training expenses
- Additional funds for the opening period
Use the Item 7 totals as the backbone of your loan request, and make sure every line in your budget matches a line in that table.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. Item 6 of the FDD lists the royalty, any brand or advertising fund contribution, technology and app fees, transfer fees and renewal fees. Most of these are typically tied to gross sales, so they rise with revenue.
Long hours, bigger payroll. A café that stays open into the late evening carries more labor hours than a morning-focused coffee shop. Lenders will expect the staffing plan in your projections to match the hours you intend to keep.
How lenders factor fees in. Lenders build a monthly model starting with sales, subtract cost of goods, labor, rent, royalties and marketing, and compare what remains with the proposed loan payment. Our SBA loan calculator can help with early payment estimates; results are for planning only and are not an offer.
Franchisor Requirements for New Owners
Mokafe’s net worth, liquid capital and experience requirements were not available in sources we could verify. Ask the franchise team directly and confirm the answers against the FDD. Typical questions include:
- What minimum net worth and liquid capital does Mokafe require?
- Is food service or coffee experience required, or is training enough?
- Must the owner work in the café full time?
- Are single-unit franchises offered, or only multi-unit development?
- Which states and markets are open?
The approval process. Expect an inquiry, conversations with the franchise team, receipt of the FDD, a review period, and approval of both you and your site before signing.
Ways to Own a Mokafe
A new café. Most franchisees in a young system open new locations, so lenders underwrite on projections, the lease and the borrower’s experience. Our franchise start-up financing page explains how these loans are typically structured.
Buying an existing café. As the system grows, a franchised café may come up for sale. A resale lets a lender review actual sales and expenses, subject to the franchisor’s transfer approval. Read our article on buying a coffee shop or café before you make an offer.
Multi-unit development. A franchisee who wants to take a new market may sign for several cafés with an opening schedule. Each unit is usually financed as it opens.
Financing Options for a Mokafe Franchise
SBA 7(a) loans. Because Mokafe is on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, build-out, equipment and working capital in one structure for an eligible borrower.
SBA 504 loans. If you buy the building, including a freestanding drive-thru site, an SBA 504 loan can finance the real estate and long-lived equipment. This is where the directory note below becomes relevant.
Conventional term loans. Experienced restaurant or café operators with strong liquidity may use conventional business loans, especially for a second or third café.
Equipment financing. Espresso machines, grinders, ovens, pastry cases and refrigeration can often be financed or leased separately. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Coffee and bakery inventory, a large payroll for long hours and pre-opening hiring all call for reserves. Learn more about restaurant working capital.
Seller financing on resales. A selling franchisee may agree to carry part of the price. Any seller note would need to be acceptable to the senior lender and is typically subordinate to it, and SBA programs may limit how such notes are structured.
SBA Loans for Mokafe Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. Mokafe appears under code S8460. A listing means the franchise relationship has been cleared for SBA review; it does not approve any individual loan.
What the directory note means. The listing includes this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the franchisor’s Conditional Assignment of Lease and Consent and Agreement of Landlord may not be executed. In plain English, these are lease documents a franchisor typically uses when a franchisee rents its space. If you own the property and pledge it as collateral for your SBA loan, those lease documents should not be signed for that location. Your lender and attorney will confirm which documents apply to your deal.
The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA application tips. Bring the FDD, a lease or letter of intent, contractor bids, equipment quotes, a personal financial statement, tax returns and monthly projections. Confirm directory status with your lender when you apply.
How Lenders Evaluate a Mokafe Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Lenders want to see your cash injection and money left in reserve after closing.
Industry and management experience. Café, restaurant or retail management experience carries extra weight with a young franchise system.
Business plan and projections. Projections should reflect your trade area, daypart mix from morning coffee to evening traffic, average ticket, pastry sales and labor for long hours. A drive-thru site should be modeled separately.
The FDD and franchise agreement. Lenders review fees, the term, renewal and transfer rules, and any franchisor financing in Item 10. Our article on how lenders read a Franchise Disclosure Document explains which items matter most.
Site and lease. Visibility, foot traffic, parking and lease length all matter, and the lease term should generally cover the loan term.
Historical financials for resales. Buyers of an existing café should provide several years of statements and sales reports.
Equipment and Build-Out for a Coffee House
Mokafe’s model leans on a full beverage bar and a large pastry display, so equipment quality directly affects speed and consistency. A typical package includes multi-group espresso machines, commercial grinders, equipment for traditional coffee and tea preparation, refrigerated and ambient display cases, ovens, ice machines and dishwashing equipment.
Questions to ask the franchisor. Which equipment is required by brand standards? Are there designated suppliers? Can equipment be leased? Answers affect both your budget and whether equipment can be financed separately from the main loan.
Multi-Unit Growth and Development Agreements
Young franchise systems often look for owners who can develop several cafés in a new market. A development agreement can secure territory but also creates opening deadlines.
Financing additional cafés. Once a first café has a track record, lenders can underwrite its cash flow alongside the next opening. Our article on multi-unit franchise financing explains how lenders review growth plans.
Real-World Scenarios
A first-time owner with café experience. A former café manager opens a Mokafe in a growing suburb using an SBA 7(a) loan for the fee, build-out and equipment, keeping a working capital reserve for the first months.
An investor buying a drive-thru site. An operator purchases a freestanding building for a drive-thru café with SBA 504 financing. Because the real estate secures the loan, the franchisor’s conditional lease documents are not signed for that site.
A restaurant operator adding a second concept. An experienced operator signs for several cafés and finances each opening with a conventional term loan supported by existing restaurant cash flow.
Common Mistakes to Avoid
- Applying for financing before getting fee and investment figures from the FDD
- Underbudgeting a seating-heavy build-out as if it were a takeout counter
- Projecting labor for short hours when the café will stay open late
- Overlooking the directory note when buying the real estate
- Signing a development schedule without a financing plan for each café
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Mokafe Franchise
Step 1: Contact the franchise team. Request the FDD and ask about capital requirements and open markets.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk to a financing specialist early. Learn how lenders will size a Mokafe franchise loan before you commit to a site.
Step 4: Secure a site. Get a lease proposal or purchase contract and contractor bids.
Step 5: Build your projections. Model sales, labor for your planned hours, fees and rent month by month.
Step 6: Apply and close. Submit your package, coordinate approvals and plan your opening.
Mokafe Franchise Loan FAQs
How much does a Mokafe franchise cost?
We could not verify the total investment from the franchisor’s materials. Item 7 of the current FDD discloses the estimated initial investment.
What is the Mokafe franchise fee?
The initial franchise fee is disclosed in Item 5 of the FDD. Ask whether multi-unit agreements change it.
What royalty does Mokafe charge?
Royalty and marketing fees appear in Item 6 of the FDD.
Is Mokafe eligible for SBA loans?
Yes. Mokafe is listed on the SBA Franchise Directory under code S8460, so eligible borrowers can apply for SBA 7(a) or 504 financing, subject to lender approval.
What does the SBA directory note mean?
If real estate you own will secure your SBA loan, the franchisor’s conditional lease assignment and landlord consent documents may not be signed for that location.
Does Mokafe offer financing?
Check Item 10 of the FDD, which discloses any financing the franchisor offers.
Can I finance coffee equipment separately?
Often, yes. Espresso machines, ovens and refrigeration can be financed or leased separately, depending on the lender.
Can a first-time owner get a Mokafe franchise loan?
Yes, if the franchisor approves the candidate and the borrower meets lender requirements. Café or restaurant management experience helps.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether Mokafe provides financial performance representations.
Final Thoughts
Mokafe offers a distinctive coffee house format in a young franchise system. A successful Mokafe franchise loan starts with real numbers from the FDD, a realistic build-out budget for a seated café, and projections that reflect long hours and a big pastry program.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
