How to Finance a Salad Spot Franchise: Drive-Thru Build Costs
By Chris Cornella
A Salad Spot franchise loan funds a young, fast-casual salad and wrap concept that pairs a healthy menu with fast-food speed, often through a drive-thru. Because the brand is new to franchising and its SBA Franchise Directory listing mentions modular buildings and real estate, financing a Salad Spot takes more planning around the site and building than a typical in-line restaurant.
This article covers what is known about the brand, how to plan the costs, what the SBA directory notes mean and how lenders approach a new restaurant in an emerging franchise system.
US Professional Funding is not affiliated with, sponsored by or endorsed by Salad Spot; the name is used only to describe the business. Figures from 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 qualified franchise attorney and accountant.
Salad Spot Franchise Loan at a Glance
- Concept: fast-casual salads and wraps built around fresh, healthy and affordable meals served quickly.
- Origin: the first restaurant opened in Logan, Utah.
- Franchising: the company began franchising with its first area development agreement, covering Utah County.
- Fees and investment: we could not verify the franchise fee, royalty or total investment from the franchisor’s own materials; read Items 5, 6 and 7 of the current FDD.
- SBA Franchise Directory: listed (code S8311), with notes on modular buildings and on lease documents when real estate secures the loan.
What Is Salad Spot?
Salad Spot is a Utah-born, fast-casual restaurant brand specializing in salads and wraps. The company describes its mission as fast, fresh, healthy and affordable meals, aiming to give customers a healthy option with the speed they expect from fast food. Its flagship restaurant in Logan, Utah, was developed after a long period of recipe, branding and building design work.
The brand launched franchising when it signed its first area development agreement, with a family ownership group planning several restaurants in Utah County. The company has also announced expansion into southern Utah.
Unit formats. The flagship operates as a drive-thru restaurant, and Salad Spot’s SBA directory listing refers to modular buildings, which suggests that some units may use a prefabricated structure set on a prepared site rather than a traditional build-out. Ask the franchisor which formats it offers and what each one requires.
Why lenders view Salad Spot the way they do. Lenders like a simple menu, a drive-thru and a healthy-eating trend, but they also see an emerging brand with limited operating history across locations. For a Salad Spot franchise loan, that puts more weight on the owner’s experience, capital and site, and less on system-wide track record.
Salad Spot Franchise Costs
We could not verify Salad Spot’s current franchise fee, royalty or estimated initial investment from its own materials. Request the current FDD; Item 5 lists initial fees, Item 6 ongoing fees and Item 7 the estimated initial investment. Plan for these cost areas.
Initial franchise fee and development fees. A single-unit fee is paid at signing. Area developers typically pay development fees tied to the number of restaurants they commit to open.
Land, site work and building. For a drive-thru, site costs can include land purchase or a ground lease, grading, utilities, paving, drive-thru lanes and landscaping. With a modular building, part of the cost is the prefabricated structure, delivery, setting and foundation work.
Equipment. Refrigerated prep tables, walk-in coolers, produce processing equipment, sandwich and wrap stations, drive-thru headsets and timers, point-of-sale systems and digital menu boards.
Opening costs and working capital. Training, initial food and paper inventory, hiring, grand-opening marketing, insurance, permits and funds to carry the restaurant while sales build.
Item 7 line items to look for. Expect the FDD’s Item 7 table to include categories such as:
- Initial franchise fee
- Real estate, site work or lease deposits
- Building, modular structure or leasehold improvements
- Kitchen and drive-thru equipment
- Signage, technology and menu boards
- Opening inventory and training expenses
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty and marketing fund. Restaurant franchises usually charge a royalty on sales and a marketing or brand fund contribution. Item 6 lists Salad Spot’s fees, plus any technology or software charges.
Produce costs. A salad menu depends on fresh produce, which can swing in price and spoil quickly. Lenders will look at how food cost and waste are controlled.
How lenders factor these costs in. Lenders project sales, subtract food, labor, occupancy, royalty, marketing and other expenses, and test whether cash flow covers loan payments with a margin of safety. For a new brand with limited comparable data, they often run conservative cases.
Franchisor Requirements for New Owners
We could not verify Salad Spot’s net worth, liquid capital or experience requirements from its own materials. Ask the franchisor and read the FDD. Expect it to look for owners who can:
- Fund the equity contribution and reserves
- Secure and develop an approved site
- Run or hire experienced restaurant management
- Complete training before opening
- Meet a development schedule if signing for multiple restaurants
The approval process. Expect an inquiry, discovery meetings, an FDD review, signing, then site selection, permitting, building and training. Because site development can take months, line up financing early.
Ways to Own a Salad Spot
A single new restaurant. Financing covers the franchise fee, site or building, equipment and opening costs. See our restaurant start-up financing page.
An area development agreement. Salad Spot launched franchising through an area development agreement. Developers commit to opening several restaurants on a schedule, so financing is usually arranged one restaurant at a time, with each new loan supported partly by the earlier restaurants.
Buying an existing restaurant. As the system matures, owners may sell. A resale lets a lender underwrite real sales history, subject to franchisor approval of the transfer.
Financing Options for a Salad Spot Franchise
SBA 7(a) loans. With Salad Spot on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, equipment, opening costs, working capital and, in many cases, real estate or a modular building, subject to lender approval.
SBA 504 loans. When an owner buys land and builds a drive-thru, an SBA 504 loan can finance owner-occupied real estate and long-lived assets. Our article on franchise real estate financing compares the approaches.
Conventional term loans. A conventional business loan may suit an experienced restaurant operator with strong collateral.
Equipment financing. Coolers, prep tables, drive-thru technology and point-of-sale hardware can be financed separately. Learn more about restaurant equipment financing and leasing.
Construction financing. Ground-up drive-thru sites and modular installs require draws as work progresses. Our article on financing a restaurant build-out explains how lenders handle construction budgets.
Working capital and lines of credit. A reserve or line of credit covers produce orders, payroll and slower seasons. See our restaurant working capital options.
Seller financing on resales. A seller may carry part of the price on an existing restaurant. Any seller note must be acceptable to the senior lender, is typically subordinate and may be limited by program rules.
SBA Loans for Salad Spot 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.
Salad Spot’s listing. Salad Spot appears under code S8311 with two notes. First, the modular building, if required and funded using SBA proceeds, must be properly secured with the correct collateral position. Second, when the real estate where the franchise business is located secures the SBA-guaranteed loan, the Landlord’s Consent to Assignment and Lease Rider may not be executed.
What the modular building note means. A modular building can be treated differently from a traditional building: depending on how it is attached to the site, it may be considered real property or equipment. If SBA loan proceeds pay for it, the lender must take the correct type of lien, whether a mortgage on the real estate or a security interest in the structure, so the collateral is properly protected. Expect the lender to review how the building is installed and titled.
What the lease note means. The Landlord’s Consent to Assignment and Lease Rider give the franchisor rights over a franchisee’s lease. When the owner owns the property and pledges it to the SBA loan, there is no lease, so those documents should not be signed. Owners who lease still use them.
Application tips. Prepare tax returns, a personal financial statement, a restaurant resume, the FDD and franchise agreement, site plans, a building or modular quote, a construction budget and monthly projections. The SBA 7(a) program maximum is currently $5 million (program rules can change). Our SBA loan calculator provides early payment estimates for planning only.
How Lenders Evaluate a Salad Spot Deal
Personal credit and financial history. Lenders review credit, tax returns and debts and require personal guarantees.
Net worth and liquidity. With an emerging brand, a strong equity contribution and post-closing reserves carry extra weight.
Industry and management experience. Prior restaurant, quick-service or multi-unit experience matters more when the brand has few locations.
Business plan and projections. Base projections on the specific site’s traffic, drive-thru access, nearby offices, schools and neighborhoods, with conservative ramp-up and food-cost assumptions. Our article on writing a franchise business plan for an SBA loan explains what lenders want.
The FDD and franchise agreement. Lenders review term, renewal, transfer, territory and development obligations. Item 19 shows whether the FDD includes financial performance representations, and Item 10 any franchisor financing. Review Items 3 and 4 too.
Site and building. Lenders review land, ground leases, zoning for drive-thrus, the modular building’s installation and the collateral structure.
Drive-Thru and Modular Site Considerations
Drive-thru sites need room for stacking lanes, clear entry and exit, signage visibility and zoning approval. A modular building can shorten construction time, but the foundation, utility hookups and permits still take planning. Ask the franchisor about approved building vendors, delivery lead times and how the structure is attached, because that affects both the budget and the collateral.
Multi-Unit Growth and Development Agreements
Because Salad Spot’s franchising started with an area development agreement, multi-unit growth is part of the model. Developers should match their opening schedule to realistic financing: the first restaurant’s results usually support the second loan. Missing a development schedule can carry consequences under the agreement, so build in time for site approvals. Read more about multi-unit franchise financing.
Real-World Scenarios
A ground-up drive-thru. An owner buys a pad site, uses an SBA 504 loan for the land and building and a separate loan for equipment and working capital.
A modular install on a leased pad. An owner leases land and places a modular building funded with an SBA 7(a) loan, with the lender documenting the right lien on the structure.
An area developer. A family group signs for several restaurants, finances the first with an SBA 7(a) loan and uses its results to support the next.
Common Mistakes to Avoid
- Treating an emerging brand’s projections as proven
- Underestimating site work and utility costs for a drive-thru
- Overlooking how a modular building is titled and secured
- Signing lease documents that do not apply when you pledge owned real estate
- Committing to a development schedule faster than financing allows
- Skipping produce-cost and waste planning
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Salad Spot Franchise
Step 1: Request the FDD. Contact the franchisor for the current FDD and franchise agreement.
Step 2: Review it with advisors. Study Items 3, 4, 5, 6, 7, 10, 12, 17 and 19.
Step 3: Choose a format and site. Confirm drive-thru, modular or other options and get site approval.
Step 4: Price the building. Get quotes for site work, the building and equipment.
Step 5: Build projections. Model sales, food cost, labor, fees and loan payments.
Step 6: Talk with a financing specialist. Compare SBA 7(a), SBA 504, conventional and equipment options.
Step 7: Close and build. Coordinate draws, permits, training and opening.
Salad Spot Franchise Loan FAQs
How much does a Salad Spot franchise cost?
We could not verify current figures from the franchisor’s own materials. Item 7 of the current FDD gives the estimated initial investment.
What is the Salad Spot franchise fee?
It is listed in Item 5 of the FDD.
What royalty does Salad Spot charge?
Royalty and marketing fees are listed in Item 6 of the FDD.
Can I get an SBA loan for a Salad Spot?
Yes, if you qualify. Salad Spot is listed on the SBA Franchise Directory under code S8311, with notes on modular buildings and lease documents.
Can SBA loan proceeds pay for a modular building?
The directory note contemplates it, as long as the lender takes the correct collateral position on the building.
How much liquid capital do I need?
Ask the franchisor. Lenders generally expect an equity contribution and reserves.
Can I open more than one Salad Spot?
Yes. The brand began franchising through an area development agreement, and multi-unit deals are financed one restaurant at a time.
Can a first-time owner get a Salad Spot franchise loan?
Possibly, but restaurant experience or an experienced manager strengthens the request, especially with an emerging brand.
Can I finance equipment separately?
Yes. Coolers, prep stations and drive-thru technology can be financed with equipment loans or leases.
Does Salad Spot offer financing?
Item 10 of the FDD discloses any franchisor financing.
Final Thoughts
A Salad Spot franchise loan is as much about the site and building as the brand. Owners who understand the modular and lease notes, plan conservatively for a young system and pace their development can build a financing plan that fits.
US Professional Funding helps franchise owners and buyers finance start-ups, real estate, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
