How to Finance an Ohana Kava Bar Franchise: Startup Costs
By Marc Cornella
An Ohana Kava Bar franchise loan finances an alcohol-free bar built around traditional kava, botanical teas and a lounge where guests gather, work and attend events. The company’s franchise site puts the estimated investment at $174,600 to $305,750, a range that places it closer to a coffeehouse than a full-service restaurant, but with its own mix of build-out, bar equipment and late-night operating costs.
This article covers the brand’s background, the costs to confirm before borrowing, how its SBA Franchise Directory listing and lease note affect an SBA 7(a) loan, and how lenders are likely to look at a young franchise system.
US Professional Funding is not affiliated with, sponsored by or endorsed by Ohana Kava Bar; the name is used only to describe the business. Figures from the franchisor’s materials and disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and accountant.
Ohana Kava Bar Franchise Loan at a Glance
- Estimated investment: $174,600 to $305,750, according to the company’s franchise website.
- Concept: an alcohol-free kava bar serving traditional kava, botanical and loose-leaf teas and coffee, with community events and branded merchandise.
- Background: founded in 2015 in downtown Colorado Springs, Colorado, by Matthew Clark; the company began franchising in 2025.
- System: two company-owned bars in Colorado Springs and a first franchised bar in Fort Myers, Florida, which opened in 2026.
- Fees: the initial franchise fee, royalty and marketing fees appear in Items 5 and 6 of the FDD and are not published on the franchise site.
- SBA Franchise Directory: listed under code S8505, with a note about the Rider to Lease Agreement when real estate secures the loan.
What Is Ohana Kava Bar?
Matthew Clark, a former emergency room nurse, first encountered kava bars in his hometown of West Palm Beach, Florida. He opened Ohana Kava Bar in downtown Colorado Springs in 2015, when the company says only a couple dozen kava bars existed in the United States. The brand later added a second Colorado Springs location on North Academy.
The concept centers on kava, a root traditionally prepared as a drink in Pacific Island cultures. Ohana serves its kava straight rather than mixed into seltzers or syrups, alongside botanical teas, loose-leaf teas and coffee for guests who do not want kava. The rooms are designed as a “third place” with island-inspired decor, hosting live music, trivia, open mic nights and other events, with hours running from morning until late at night.
Franchising. Ohana began franchising in 2025 and describes itself as selective, vetting each franchisee for fit before signing. Its first franchised bar opened in Fort Myers, Florida, in 2026. The franchise program covers four main areas: traditional kava and botanical drinks, community events, branded merchandise and education about kava’s cultural roots.
How lenders view it. Lenders will see a young franchise system with a single franchised unit, a niche beverage category and an operating model that depends on repeat regulars and evening traffic. That does not rule out financing, but it puts more weight on the borrower’s own experience, liquidity and business plan. Read more about financing an emerging franchise.
Ohana Kava Bar Franchise Costs
Total investment. The franchise site lists an investment range of $174,600 to $305,750. The site does not break that range into line items, so request the current FDD and review Item 7, which details each category, its low and high estimate and the period covered by working capital.
Initial franchise fee. The fee is disclosed in Item 5 of the FDD. Confirm whether it is due at signing and whether any portion is refundable.
Build-out and leasehold improvements. A kava bar needs a bar counter, seating for lounging and working, a stage or event area, restrooms and decor that delivers the island atmosphere. Costs depend heavily on the condition of the space, so a second-generation cafe or bar can cost much less to convert than a raw shell. Our article on financing a restaurant build-out explains how lenders treat these costs.
Equipment, furnishings and inventory. Expect kava preparation equipment, refrigeration, tea and coffee brewing equipment, a dishwasher, point-of-sale systems, event sound equipment and lounge furniture, plus opening inventory of kava, teas, coffee and branded merchandise.
Working capital. Long hours mean payroll from morning to after midnight while a new bar builds its regulars. Item 7 includes additional funds for an initial period; many owners plan for a cushion beyond that.
When you review Item 7, list each line with its range and make sure your loan request and personal contribution together cover the high end. See our restaurant start-up financing options.
Ongoing Fees and How They Affect Your Loan
The franchise site does not publish the royalty or marketing fund rate, so read Item 6 of the FDD for the royalty, any brand or marketing fund, technology fees, training fees and transfer and renewal fees. Check whether any fee has a minimum amount.
Lenders deduct royalties and required marketing from projected revenue before testing whether an Ohana Kava Bar franchise loan can be repaid, and they will want to see how the bar carries rent, payroll and debt service while regulars build.
Franchisor Requirements for New Owners
Ohana’s franchise site asks applicants for their net worth and location but does not publish minimum net worth or liquidity thresholds. The company looks for operators who share its values around the plant, the growers and the community, and it vets each candidate before signing.
The approval process. The franchise site outlines three steps: an initial consultation, training with access to franchise resources, and a grand opening supported by the company’s team. Ask early for the financial requirements in writing, because your lender will want to see that you meet them.
Ways to Own an Ohana Kava Bar
A new bar. With a young system, nearly every opportunity is a new location. Financing covers the franchise fee, build-out, equipment, opening inventory and working capital, and lenders underwrite on projections plus the owner’s strength.
A conversion of an existing cafe or bar. An owner who already runs a cafe, tea shop or independent kava bar may ask whether the space can be converted. Any conversion would need franchisor approval, and lenders will look at the existing business’s financials and what the conversion costs.
Buying an existing franchised bar. As the system grows, resales may become possible with franchisor approval, and lenders would underwrite the bar’s actual history.
Financing Options for an Ohana Kava Bar Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan is a natural fit for a new bar. It can cover the franchise fee, build-out, equipment, inventory and working capital in one loan.
SBA 504 loans. If an owner buys the building, an SBA 504 loan can finance owner-occupied real estate and long-lived improvements. Most kava bars lease, so 504 applies mainly to owners purchasing property.
Conventional term loans. Experienced operators with strong credit and liquidity, or those adding a second bar, may qualify for conventional financing.
Equipment financing. Refrigeration, brewing equipment, POS systems, sound equipment and furniture can often be financed or leased separately. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. A line of credit can smooth the ramp-up period, inventory purchases and event costs. See our restaurant working capital options.
Seller financing on resales. If a franchised bar is sold, a seller may carry part of the price. Any seller note must be acceptable to the senior lender, is typically subordinate to it, and loan programs may limit its structure.
SBA Loans for Ohana Kava Bar Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility, and SBA lenders generally require a listing before making an SBA-guaranteed loan to a franchisee. A listing clears the franchise relationship for review; it does not approve any borrower.
The listing and its note. Ohana Kava Bar appears under code S8505 with this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Rider to Lease Agreement may not be executed. In plain English, the franchisor’s lease rider is an add-on to a commercial lease that typically gives the franchisor certain rights in the tenant’s lease. It is meant for leased locations. If the borrower or an affiliate owns the property and pledges it as collateral for the SBA loan, that rider should not be signed, because it could conflict with the lender’s interest in the real estate. If you lease, the rider works as usual, and your lender will review it along with the lease.
The SBA 7(a) program maximum is currently $5 million, although program rules can change. For a single kava bar, the practical limit is what the bar’s projected cash flow and the borrower’s credit and collateral can support.
Application tips. Provide the FDD and franchise agreement, a signed or proposed lease, a business plan with monthly projections, a build-out budget with contractor bids, personal financial statements, tax returns and a resume. Our article on how lenders read a Franchise Disclosure Document explains which items get the closest review.
How Lenders Evaluate an Ohana Kava Bar Franchise Loan
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and owners typically sign a personal guarantee.
Net worth and liquidity. With a young system, reserves after closing carry extra weight.
Industry and management experience. Experience running a cafe, bar, coffee shop or hospitality team is a strong plus, as is knowledge of the kava community.
Business plan and projections. Base projections on hours of operation, a realistic ramp in daily guests, average ticket, event nights, merchandise sales and staffing across long shifts. Show how the plan works if traffic builds more slowly than expected.
Local rules. Lenders may ask how state and local rules treat kava and other botanical products, so confirm this before signing a lease.
The FDD and franchise agreement. Lenders review term, renewal and transfer terms (Item 17), any franchisor financing (Item 10) and whether Item 19 includes financial performance representations.
Site and lease. Lenders want the lease term, including options, to run at least as long as the loan, and will review the Rider to Lease Agreement.
Multi-Unit Growth and Development Agreements
Ohana describes a deliberately slow growth approach, so expect the franchisor to look closely at any request for multiple bars. If development rights are offered, Item 5 and Item 12 of the FDD will describe the fees and territory terms. Lenders usually finance a second bar once the first has a track record, underwriting combined cash flow.
Real-World Scenarios
A coffee shop veteran opening a first bar. A former coffeehouse manager leases a second-generation cafe space near a college area, uses savings for the equity injection and finances the fee, conversion and equipment with an SBA 7(a) loan, keeping a working capital reserve for the first months.
An owner who buys the building. A buyer purchases a small freestanding building for the bar. The lender structures the real estate separately, and because the property secures the loan, the Rider to Lease Agreement is not signed.
Common Mistakes to Avoid
- Borrowing to the low end of the investment range with no cushion for build-out overruns
- Underestimating payroll for early-morning to late-night hours
- Signing a lease before confirming local rules on kava and botanical products
- Signing the Rider to Lease Agreement when the property itself secures the SBA loan
- Treating a young system’s limited history as a substitute for your own plan
For more pitfalls that apply across food and beverage, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Ohana Kava Bar Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 12, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm the requirements. Ask for the minimum net worth and liquidity and compare them with your personal financial statement.
Step 3: Visit the bars. Learn how the company-owned bars and the first franchised bar operate day to day.
Step 4: Find a site and price the build-out. Get contractor bids and confirm local permitting.
Step 5: Talk to a financing specialist. Our SBA loan calculator can help with early payment estimates for planning only.
Step 6: Apply and close. Submit the loan package, coordinate the lease and rider, and line up the franchisor’s training and opening schedule.
Ohana Kava Bar Franchise Loan FAQs
How much does an Ohana Kava Bar franchise cost?
The company’s franchise site lists an estimated investment of $174,600 to $305,750. Item 7 of the current FDD breaks down the line items.
What is the Ohana Kava Bar franchise fee and royalty?
They are not published on the franchise site. Item 5 of the FDD discloses the initial fee and Item 6 the royalty and other recurring fees.
Can I get an SBA-backed Ohana Kava Bar franchise loan?
The brand is listed on the SBA Franchise Directory under code S8505, so lenders can review an SBA 7(a) request. Each borrower still has to qualify.
What does the SBA note about the lease rider mean?
If real estate where the bar is located secures the SBA loan, the franchisor’s Rider to Lease Agreement may not be signed. If you lease the space, the rider applies normally.
Does Ohana Kava Bar offer financing?
The franchise site says financing options are available. Check Item 10 of the FDD for any financing the franchisor itself offers, and compare it with SBA and conventional options.
Can a first-time business owner qualify?
Yes, if the franchisor approves the candidate, though lenders look closely at hospitality experience and reserves.
Can I finance equipment separately?
Often, yes. Refrigeration, brewing equipment, POS and sound systems can be financed or leased separately to preserve cash.
How long is the franchise term?
Item 17 of the FDD sets out the term and renewal and transfer terms. Lenders want the term and the lease to run at least as long as the loan.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations.
Can I open more than one bar?
Possibly, with franchisor approval. The company describes a slow, selective growth approach, and lenders usually want the first bar performing before financing a second.
Final Thoughts
An Ohana Kava Bar franchise loan finances a niche, community-driven concept from a young franchise system. Buyers who confirm the FDD figures, budget for build-out and long operating hours, check local rules and understand the SBA lease rider note will be best positioned to finance their bar.
US Professional Funding helps franchise owners and buyers finance start-ups, equipment, working capital and acquisitions. Learn more about our franchise financing and restaurant financing solutions.
