How to Finance a Sabor Frappe Franchise: An $85K-$120K Plan
By Anthony Cornella
A Sabor Frappe franchise loan finances a small-footprint drink business rather than a full restaurant, which changes both the amount borrowed and the way a lender looks at the deal. Sabor Frappe is a Puerto Rico brand built around frappes and acai bowls, and its franchising page describes an opening cost well below most food franchises.
This article covers what Sabor Frappe says it costs to open, how its fees affect cash flow, what its SBA Franchise Directory listing means and how new owners can finance a first unit or a small group of units.
US Professional Funding is not affiliated with, sponsored by or endorsed by Sabor Frappe; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website 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 qualified franchise attorney and accountant.
Sabor Frappe Franchise Loan at a Glance
- Total investment: $85K to $120K, which the franchisor says covers construction, equipment, permits and insurance.
- Initial franchise fee: $20K for the first unit, $15K for the second and $10K for the third and later units.
- Royalty: 6% of net sales, paid monthly.
- Advertising fund: 2%, paid monthly.
- Time to open: the franchisor estimates 3 to 9 months.
- System size: the company describes 50+ locations and 70+ flavors.
- Formats: fixed and mobile units.
- Franchisor: Sabor Frappe LLC, a Puerto Rico company; the brand was established in 2013.
- SBA Franchise Directory: listed (code S8882), with a note on lease documents when real estate secures the loan.
What Is Sabor Frappe?
Sabor Frappe began in Puerto Rico in 2013 as a small venture started by two brothers and grew into a franchise system across the island. The franchisor, Sabor Frappe LLC, licenses its trademark and operating system to independent owners.
The menu centers on blended frappes in a long list of flavors, along with acai bowls and related items. The company highlights its 50+ locations, 70+ flavors and more than a decade in business. It franchises both fixed and mobile units, and its photos include kiosk-style stores, so a location can be a compact shop rather than a dining room.
How lenders see the concept. A short menu and modest equipment keep the investment low, and lenders like loans a single unit can comfortably support. But drink sales depend on traffic, weather and local tastes, and a small unit has little room for error, so site selection, a realistic ramp-up and a cash cushion matter as much as the brand.
Sabor Frappe Franchise Costs
Initial franchise fee. The franchising page lists a $20K fee for the first unit, stepping down to $15K for a second unit and $10K for a third and later units. Depending on the program, the fee can be paid from the buyer’s funds or included in the project cost.
Construction and build-out. A fixed store still needs counters, plumbing, electrical work, finishes and signage. A kiosk keeps these costs lower than a full restaurant, but landlord requirements and local permits can push them up. Our article on financing a restaurant build-out explains how lenders handle construction budgets.
Equipment. Expect blenders, ice machines, refrigeration and freezers, topping stations, a point-of-sale system and, for mobile units, the vehicle or trailer with its power and water systems.
Permits, insurance and training. The franchisor names permits and insurance in its cost estimate and offers help with construction, permits and insurance. Training before opening is required and covers opening, closing, cleaning and the standards manual.
Total investment. Sabor Frappe states a total investment of $85K to $120K, grouped into these categories:
- Initial franchise fee ($20K for a first unit)
- Construction and build-out
- Equipment
- Permits
- Insurance
The page gives no line-by-line ranges or working capital estimate, so read the Item 7 table in the current FDD and ask whether the range covers fixed units, mobile units or both.
Ongoing Fees and How They Affect Your Loan
Royalty. Owners pay 6% of net sales each month, off the top before rent, payroll and loan payments.
Advertising fund. The franchisor lists a 2% monthly advertising contribution on top of the royalty.
Supply and support. Sabor Frappe describes centralized supply support, financial reports, audits and ongoing supervision. Ask which products must come from approved sources.
How lenders factor these costs in. A lender starts with expected sales, subtracts product costs, labor, rent, the royalty, the advertising fund and other expenses, and checks whether what remains covers the loan payment with room to spare. Thin margins in a slow season can still squeeze a single unit, so lenders often want a working capital reserve too.
Franchisor Requirements for New Owners
Sabor Frappe’s franchising page does not publish a minimum net worth or liquid capital requirement. It does describe these conditions:
- Site approval: every location must be approved and comply with local zoning.
- Training: official training is required before opening.
- Standards: owners follow the brand’s standards manual.
- Capital disclosure: the application asks for the candidate’s preferred area and available capital.
The approval process. Candidates submit the online form or email the franchise team, review the FDD and, once approved, get a site approved before construction. With an estimated 3 to 9 months to open, line up financing early so a loan approval does not hold up a lease or build-out.
Ways to Own a Sabor Frappe
A new fixed unit. Most first-time owners open a new store or kiosk on an approved site. Financing covers the fee, build-out, equipment and opening costs, underwritten on projections and the owner’s experience and capital. See our restaurant start-up financing page.
A mobile unit. Here much of the investment is the vehicle or trailer, a titled asset that can secure equipment-style financing. Lenders will ask where it will operate, how events and permits are scheduled and how weather affects sales.
Buying an existing location. In a system open for more than a decade, some owners will sell. A resale gives a lender actual sales history, and the franchisor must approve the buyer. Read our article on buying a franchise resale.
Financing Options for a Sabor Frappe Franchise
SBA 7(a) loans. Because Sabor Frappe is on the SBA Franchise Directory, an SBA 7(a) loan can cover the fee, build-out, equipment and working capital in one package alongside the owner’s own contribution, subject to approval.
SBA 504 loans. The 504 program suits owner-occupied real estate and long-lived fixed assets. Most units are leased kiosks, small stores or mobile units, so 504 rarely fits unless an owner buys a building.
Conventional term loans. A conventional business loan can work for an owner with strong credit, collateral and cash, or an existing owner adding a unit.
Equipment financing. Blenders, ice machines, refrigeration, menu boards, point-of-sale hardware and a mobile unit’s vehicle can be financed separately. Learn about restaurant equipment financing and leasing.
Working capital and lines of credit. Drink sales move with weather, school calendars and tourist seasons. A line of credit or reserve can cover payroll and product orders in slower weeks. See our restaurant working capital options.
Seller financing on resales. A seller may carry part of the price of an existing unit. The note must be acceptable to the senior lender, is typically subordinate to it and may be limited by program rules.
SBA Loans for Sabor Frappe Franchisees
The SBA Franchise Directory lists brands whose agreements have been reviewed for SBA eligibility, and SBA lenders generally need a brand to be listed before making an SBA-guaranteed loan to its franchisees. A listing does not approve any borrower.
Sabor Frappe’s listing. Sabor Frappe appears under code S8882 with this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Conditional Lease Assignment Provisions and the Lease Addendum may not be executed.
What the note means. Those lease documents give the franchisor rights over a franchisee’s lease, such as stepping in after a default. They make sense when the owner rents. If the owner owns the property and pledges it as SBA collateral, there is no lease to assign, so the documents should not be signed. For owners who lease a kiosk or store, they apply as usual.
Puerto Rico borrowers. SBA programs serve Puerto Rico as well as the states, so an owner on the island applies through an SBA lender just as a mainland borrower would.
Application tips. Gather tax returns, a personal financial statement, a resume, the FDD and franchise agreement, a lease or site plan and monthly projections. The SBA 7(a) program maximum is currently $5 million (program rules can change), far more than one unit needs, so the real limits are equity, credit and cash flow. Our SBA loan calculator gives early payment estimates for planning only, not an offer or approval.
How Lenders Evaluate a Sabor Frappe Deal
Personal credit and financial history. Expect a review of credit, tax returns and personal debts, plus personal guarantees.
Net worth and liquidity. Even with a low investment, lenders want an owner contribution and cash left after opening for a rainy stretch or a repair.
Industry and management experience. Running a cafe, juice bar, food truck or retail store helps. Others should show how training and franchisor support fill the gap and who will manage shifts.
Business plan and projections. Build projections around the site’s foot traffic, nearby schools, offices or beaches, hours and seasonality, and include every fee, product cost, labor, rent and the loan payment. Our article on a franchise business plan for an SBA loan shows what lenders want.
The FDD and franchise agreement. Lenders check fees, term, renewal, transfer, territory and supply rules. Item 19 shows whether the franchisor makes financial performance representations. Our article on reading an FDD for financing explains the key items.
Site, lease or vehicle. For a fixed unit, lenders review the lease term, renewals, rent and franchisor lease documents. For a mobile unit, they look at permits, operating areas, title and insurance.
Fixed Units vs Mobile Units
The format choice shapes the loan:
- Collateral: a mobile unit is a titled asset that can secure financing; a fixed unit’s build-out stays with the landlord’s property.
- Occupancy cost: a fixed unit carries rent and a lease term; a mobile unit carries event fees, parking and permits.
- Sales pattern: a fixed unit relies on steady local traffic; a mobile unit relies on booking good events and spots.
- Insurance: mobile units need commercial auto coverage as well as general liability.
Multi-Unit Growth
The falling fee schedule makes a second and third unit cheaper to open than the first, and a lender can underwrite the next unit using the first unit’s actual results. Lenders tend to favor owners who let each unit stabilize before signing the next lease. Read more about multi-unit franchise financing.
Real-World Scenarios
A first-time owner opening a kiosk. A buyer with retail management experience signs for a kiosk in a busy shopping center. An SBA 7(a) loan covers the build-out, equipment and opening costs, and a reserve covers the first slow months.
A mobile unit for events. An owner focused on festivals and school events finances the vehicle and equipment with equipment financing secured by the unit and keeps a line of credit for product and event fees.
An owner adding a second store. After the first unit stabilizes, the owner opens a second at the lower $15K fee, and the lender uses the first unit’s results to support the new loan.
Common Mistakes to Avoid
- Assuming the low end of the investment range applies to every site and format
- Skipping working capital because the total investment looks small
- Ignoring weather and seasonal swings in projections
- Signing a lease before the franchisor and lender review the site
- Signing lease documents that do not apply when you pledge owned real estate
- Opening more units before the first one is stable
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Sabor Frappe Franchise
Step 1: Contact the franchisor. Submit the franchise form and ask which areas are available.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19, and review Items 3 and 4, with a franchise attorney and accountant.
Step 3: Choose a format and site. Pick a fixed or mobile unit and get franchisor approval for the location.
Step 4: Build projections. Prepare a monthly budget that includes fees, rent, product costs and seasonality.
Step 5: Talk with a financing specialist. Compare SBA 7(a), conventional and equipment options and gather documents.
Step 6: Close and open. Align the loan with the lease, permits and construction, complete training and keep your reserve in place.
Sabor Frappe Franchise Loan FAQs
How much does it cost to open a Sabor Frappe franchise?
Sabor Frappe states a total investment of $85K to $120K, covering construction, equipment, permits and insurance. Check Item 7 of the current FDD for the full breakdown.
What is the Sabor Frappe franchise fee?
$20K for a first unit, $15K for a second and $10K for a third and later units.
What royalty does Sabor Frappe charge?
6% of net sales, paid monthly, plus a 2% monthly advertising fund contribution.
Is a Sabor Frappe franchise loan eligible for SBA financing?
Yes. Sabor Frappe is listed on the SBA Franchise Directory under code S8882, so qualified buyers can apply for SBA 7(a) financing.
How much cash do I need?
The franchisor does not publish a net worth or liquidity minimum. Lenders generally expect an owner contribution plus a cash reserve after opening.
Can I finance a mobile unit?
Yes. The vehicle or trailer and its equipment can be financed with equipment financing or included in an SBA 7(a) package.
Can a first-time owner get a Sabor Frappe franchise loan?
Yes, with solid credit, an equity contribution and relevant management experience. Required training and a strong business plan help.
How long does it take to open?
The franchisor estimates 3 to 9 months, depending on site approval, permits and construction.
Can I buy an existing Sabor Frappe?
Yes, if an owner is selling and the franchisor approves the transfer. Lenders will want the unit’s sales history and tax returns.
Does Sabor Frappe offer financing?
Check Item 10 of the current FDD. Most buyers arrange their own SBA or conventional financing.
Final Thoughts
Sabor Frappe pairs a modest opening cost with published fees and an SBA Franchise Directory listing, which makes a Sabor Frappe franchise loan simpler than financing many food concepts. Choose the right format and site, plan for seasonal swings and keep working capital on hand after opening.
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.
