How to Finance a North South Grill Franchise: Burgers and SBA
By Anthony Cornella
A North South Grill franchise loan funds a fast-casual restaurant built around smash burgers, hand-breaded chicken tenders, fresh-cut fries and subs. Because North South Grill is a young brand that grew out of a single South Florida restaurant, the way you finance it depends heavily on the details in its current disclosure document, the site you choose and the experience you bring to the table.
This article explains what is publicly known about the brand, how the SBA Franchise Directory listing affects financing, which loan types may fit each part of the project and how lenders typically review an emerging restaurant franchise. US Professional Funding is not affiliated with, sponsored by or endorsed by North South Grill; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
North South Grill Franchise Loan at a Glance
- Concept: fast-casual grill serving smash burgers, buttermilk chicken tenders, fresh-cut fries, subs and gyros
- Origin: the original restaurant operates in Pembroke Pines, Florida, with a second South Florida location announced in Plantation
- Franchise fees and investment: not verified from the franchisor’s own materials for this article; request the current Franchise Disclosure Document (FDD) and use Items 5, 6 and 7
- Net worth and liquidity requirements: not published in materials we could verify; confirm directly with the franchisor
- SBA Franchise Directory: listed as North South Grill under code S8825, with a note about the Lease Addendum when real estate secures the loan
- Likely financing mix: SBA 7(a) or conventional term debt for the build-out, equipment financing for the kitchen line, and working capital for the opening period
What Is North South Grill?
North South Grill is a counter-service restaurant concept from South Florida. Its menu centers on smash burgers, hand-breaded buttermilk chicken tenders, fresh-cut fries and sub sandwiches, a combination that leans on griddles, fryers and a cold prep line rather than a full-service dining room.
The brand’s original restaurant sits in Pembroke Pines, in Broward County, and a second location has been announced for nearby Plantation. That makes North South Grill an emerging franchise: the system is small, the operating history is short and most of what a lender will rely on comes from the FDD, the franchise agreement and the franchisee’s own plan.
Why the size of the system matters to lenders. With an emerging brand, the lender leans harder on the borrower’s restaurant experience, the site, the projections and the cash cushion. Our article on financing an emerging franchise explains how lenders approach newer systems.
North South Grill Franchise Costs
We could not verify the brand’s fees or investment ranges from the franchisor’s own materials, so we do not quote them. Items 5, 6 and 7 of the FDD list the initial fees, ongoing fees and estimated investment, and lenders build the loan request around them.
Initial franchise fee
Item 5 of the FDD lists the initial franchise fee and whether it is reduced for additional units or development agreements. The fee is usually paid when the franchise agreement is signed, before the restaurant opens, which is why many buyers ask whether it can be included in the loan. Under SBA 7(a), franchise fees can often be part of the use of proceeds, subject to lender review.
Lease, build-out and real estate
For a fast-casual grill, leasehold improvements are often the largest line item: plumbing, hood and fire suppression, electrical service, restrooms and dining room finishes. The landlord’s tenant improvement allowance, the condition of the space (second-generation restaurant or raw shell) and local permitting all move the number.
Kitchen equipment and signage
The FDD typically specifies required equipment, signage and approved suppliers, and those specifications drive both the equipment budget and the financing options.
Opening costs and working capital
Item 7 normally includes training, opening inventory, marketing, deposits, insurance and an “additional funds” line for the first months, which lenders read closely as a sign of the cushion a new owner needs.
Total investment checklist
When you review the FDD, list each Item 7 category (fee, build-out, equipment, signage, technology, inventory, training, deposits and additional funds) with its low and high range, then compare the total with your contractor’s bid and the landlord’s allowance. A gap between the two is one of the most frequent reasons restaurant loans are restructured late in the process.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists royalties, advertising or brand fund contributions, technology fees and other recurring charges. Most of these are calculated on gross sales, which means they come off the top before rent, labor, food cost or loan payments.
Lenders build every recurring fee into the projected income statement before they calculate debt service coverage, so a projection that leaves one out overstates the cash available to repay a North South Grill franchise loan.
Also look for remodel, transfer and renewal fees in Items 6 and 17, which affect loan length and reserves.
Franchisor Requirements for New Owners
North South Grill’s minimum net worth, liquid capital and experience requirements were not published in materials we could verify. Expect the franchisor to review your finances, restaurant background and site plans, and ask whether it must approve the lease and contractor, since each step affects your closing timeline.
Ways to Own a North South Grill
A new restaurant. Most buyers of an emerging brand open a new location, financing build-out, equipment and opening costs with no sales history to lean on. Our page on franchise start-up financing covers how new-unit loans are structured.
Buying an existing location. A resale gives the lender real sales history, but the buyer needs franchisor approval and may face transfer fees or remodel requirements. See buying a franchise resale for the steps involved.
Financing Options for a North South Grill Franchise
SBA 7(a) loans. The SBA 7(a) loan program is the most flexible SBA option for a restaurant franchise. It can generally cover the franchise fee, leasehold improvements, equipment, opening inventory and working capital in one loan, subject to program rules and lender approval. The program maximum is currently $5 million, and program rules can change.
SBA 504 loans. If you buy the building or land for a freestanding restaurant, an SBA 504 loan may finance the real estate and long-lived equipment with a structure that pairs a bank loan with a certified development company loan. Note the directory note on the brand’s listing, which applies when real estate secures the SBA-guaranteed loan.
Conventional term loans. Borrowers with strong liquidity and restaurant experience may qualify for conventional business loans, which may require more equity or collateral.
Equipment financing. Griddles, fryers, refrigeration, prep tables, hood systems and point-of-sale hardware can often be financed separately. Restaurant equipment financing and leasing may preserve cash for opening costs, though your primary lender will count that debt in its review.
Working capital and lines of credit. A new grill needs cash for payroll during training, opening inventory, marketing and the slow weeks before regulars find the restaurant. Restaurant working capital can fill that gap, and a line of credit can help with seasonal swings in South Florida and other tourist markets.
Seller financing on resales. When buying an existing North South Grill, the seller may carry part of the price. A seller note is typically subordinate to the primary loan, and SBA rules may limit how it is structured.
SBA Loans for North South Grill Franchisees
SBA loans are made by participating lenders and partly guaranteed by the SBA. For a franchise, the lender must confirm the franchisor does not have too much control over the borrower, and the SBA Franchise Directory simplifies that review.
The directory listing. North South Grill appears on the SBA Franchise Directory under code S8825. A listing means the brand’s documents have been reviewed for eligibility purposes; it does not approve any borrower or guarantee a loan.
What the directory note means. The listing carries this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Addendum may not be executed. In plain English, the franchisor’s Lease Addendum is built for a leased restaurant. If you own the property and pledge it as collateral, that addendum should not be signed, so franchisor lease rights do not complicate the lender’s interest in the real estate. Tenants are generally unaffected, but owner-occupants should raise it early.
SBA application tips. Have the franchise agreement, the FDD, the lease or letter of intent, contractor bids, a sources and uses statement, personal financial statements, tax returns and a résumé that highlights restaurant experience. Our SBA loan calculator can help you estimate payments for planning only.
How Lenders Evaluate a North South Grill Deal
Personal credit and financial history. Lenders review the credit, tax returns and debts of every significant owner, who typically provide personal guarantees.
Net worth and liquidity. Lenders want to see your cash injection and the reserves you will have left after opening. With an emerging brand, a stronger reserve can offset the limited system history.
Restaurant and management experience. Running a kitchen, managing hourly staff and controlling food cost matter most; if you lack that background, consider an experienced partner or manager.
Business plan and projections. Build monthly projections that reflect a griddle-and-fryer menu: food and paper cost, labor during lunch and dinner peaks, delivery platform commissions, rent and every franchise fee. Our guide to the FDD and franchise financing shows which FDD items lenders read first.
The FDD and franchise agreement. Lenders check the franchise term, renewal rights, transfer conditions, termination provisions and whether Item 19 contains any financial performance representations. They want the franchise term to run at least as long as the loan.
Site and lease. Expect questions about traffic, visibility, co-tenants, the improvement allowance and whether the lease term supports the loan term.
Historical financials on resales. For an existing location, lenders review tax returns and sales reports.
Kitchen Equipment and Build-Out
A smash burger and chicken tender menu is equipment intensive for its size: griddles and fryers under a hood with fire suppression, grease management, prep sinks for fresh-cut fries, refrigeration and a sub prep line.
Ask your contractor to separate equipment from construction in the bid so the lender can see which costs may qualify for equipment financing.
Multi-Unit Growth and Development Agreements
If North South Grill offers development rights, a multi-unit owner commits to a schedule of openings in a defined area. Lenders usually finance one restaurant at a time, with earlier results supporting the next request; our article on multi-unit franchise financing covers how owners pace growth.
Real-World Scenarios
An experienced restaurant manager opening a first unit. A fast-casual general manager signs for a strip-center unit. An SBA 7(a) loan covers the franchise fee, build-out and working capital, while the fryers and griddles are leased.
A buyer converting a former burger restaurant. A second-generation space with a hood and grease trap lowers the build-out cost and the loan request.
An owner-occupant buying a pad site. A buyer purchases a small freestanding building and plans to pledge it as collateral. Because of the directory note, the buyer confirms with the franchisor that the Lease Addendum will not be signed and uses an SBA 504 structure for the real estate.
Common Mistakes to Avoid
- Signing a lease before the franchisor and lender have reviewed it
- Leaving royalties, marketing and technology fees out of projections
- Underestimating hood, grease trap and electrical costs for a fryer-heavy kitchen
- Opening with too little working capital for the first slow months
- Overlooking the SBA directory note when the real estate will secure the loan
For more pitfalls, read restaurant loan mistakes to avoid.
Next Steps to Finance Your North South Grill Franchise
Step 1: Request the current FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney.
Step 2: Confirm the franchisor’s requirements. Ask about net worth, liquidity, experience, territory and the approval timeline.
Step 3: Find and evaluate a site. Compare second-generation restaurant spaces with raw shells, get build-out bids and ask how each affects your North South Grill franchise loan request.
Step 4: Build your budget and projections. Match Item 7 with your bids, then build monthly projections that include every franchise fee.
Step 5: Talk with a financing specialist. Decide whether SBA 7(a), SBA 504, conventional financing or a combination fits your plan.
Step 6: Assemble your loan package. Gather tax returns, financial statements, the lease or letter of intent, the franchise agreement and your résumé.
Step 7: Coordinate approvals and close. Align franchisor approval, lease signing, loan approval and construction.
North South Grill Franchise Loan FAQs
How much does a North South Grill franchise cost?
It depends on the site, build-out and equipment. Item 7 of the current FDD gives the franchisor’s estimated range; we could not verify it from the franchisor’s own materials for this article.
What is the North South Grill franchise fee?
The initial fee is listed in Item 5 of the FDD. Ask whether it is reduced for additional units under a development agreement.
What royalty does North South Grill charge?
Royalty and marketing fees appear in Item 6 of the FDD. Build them into your projections, because lenders deduct them before calculating debt service coverage.
Can I get an SBA loan for a North South Grill?
Possibly. The brand is listed on the SBA Franchise Directory under code S8825, which simplifies the lender’s review of the franchise documents. Approval still depends on your credit, experience, cash injection and the project.
How much liquid capital do I need?
The franchisor’s minimum was not published in materials we could verify. Lenders also expect a cash injection and reserves.
Can I buy an existing North South Grill?
If a franchisee sells, the franchisor must approve the transfer. Lenders will review the restaurant’s tax returns and sales history.
Can a first-time owner get a North South Grill franchise loan?
First-time business owners can be financed, but restaurant experience matters. An experienced partner or manager helps.
Does North South Grill offer financing?
Check Item 10 of the FDD, which describes any franchisor financing. If none is offered, you arrange your own loans.
How long is the franchise agreement?
The term, renewal and transfer rules are in the franchise agreement and Item 17. Lenders generally want the term to run at least as long as the loan.
Final Thoughts
A North South Grill franchise loan backs a young, menu-focused concept, so preparation counts. Read the FDD carefully, budget the kitchen honestly, understand the SBA directory note and keep a solid cash cushion.
US Professional Funding helps franchise buyers finance new restaurants, resales, equipment and working capital. Learn more about our franchise financing and restaurant financing.
