How to Finance a Saladworks Franchise: Build-Out and Cash Rules
By Chris Cornella
A Saladworks franchise loan typically funds a fast-casual salad restaurant from the ground up: leasehold improvements in a shopping center space, a cold-line kitchen and service counter, signage, technology, opening inventory and the cash to carry the restaurant through its first months. Because the franchisor also sets firm net worth and liquidity minimums, a well-prepared buyer plans the equity side of the deal as carefully as the loan itself.
US Professional Funding is not affiliated with, sponsored by or endorsed by Saladworks; 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.
Saladworks Franchise Loan at a Glance
According to the franchisor’s current franchise website:
- Initial franchise fee: $35,000
- Estimated initial investment: $234,000 to $653,000
- Minimum liquid assets: $350,000
- Minimum net worth: $1,000,000
- Veteran incentive: 25% off franchise fees for veterans
- Footprint: traditional floor plans starting at 1,500 square feet, with co-brand opportunities available
From Saladworks’ Franchise Disclosure Document issued January 15, 2021, the most recent full disclosure document we could review:
- Royalty: 6% of net sales
- Brand development fund: 3% of net sales
- Local advertising: 2% of net sales
- Franchisor financing: none offered, according to Item 10
- SBA Franchise Directory: listed as Saladworks (code S1520), with a note about real estate collateral and the lease documents
Ongoing fees may have changed since 2021, so confirm every figure in the current disclosure document before you build projections or apply for a loan.
What Is Saladworks?
Saladworks is a fast-casual restaurant built around made-to-order salads. Guests order at a counter and watch their meal assembled on the line, which keeps service quick and staffing lean compared with full-service dining.
The concept dates to 1986. According to the 2021 disclosure document, the current franchisor, Saladworks, LLC, acquired the brand’s assets in 2015 and was then based in West Conshohocken, Pennsylvania, while a predecessor franchised the concept from 1992 to 2008. The brand now operates under a multi-brand parent company and promotes co-branded restaurants as an option for franchisees.
Unit formats. The 2021 disclosure document describes a prototype of about 1,600 to 2,000 square feet, with cost estimates based on strip center locations and a note that food court locations may cost less to build. The franchisor’s current website lists floor plans starting at 1,500 square feet.
Why lenders view it the way they do. Saladworks is a long-running brand in a health-focused segment, with a small footprint and a menu that relies on cold prep rather than fryers and hoods. Lenders like the modest equipment package but will look closely at location, lunch-driven traffic patterns and the strength of the operator.
Saladworks Franchise Costs
The franchisor’s current estimate for a new restaurant is $234,000 to $653,000, and that range is the starting point for sizing a Saladworks franchise loan. The current disclosure document’s Item 7 table explains what that range covers.
Initial franchise fee
The franchise fee is $35,000 according to the franchisor’s website, and veterans receive 25% off franchise fees. In the 2021 disclosure document, existing franchisees paid $30,000 for an additional restaurant, and multi-unit developers committing to at least 3 restaurants paid a development fee of $30,000 for the first and $15,000 for each additional restaurant. Confirm current terms in Item 5.
Leasehold improvements and build-out
Build-out is the largest and most variable cost. In the 2021 disclosure document, leasehold improvements ranged from $35,000 to $262,000, with architect fees of $5,200 to $15,792 and millwork of $19,838 to $24,659. Second-generation restaurant spaces generally land near the low end, while raw shell space pushes costs up. Landlord tenant allowances can offset part of the build-out, and the 2021 document showed a project cost after the average tenant allowance as well as before it.
Equipment, furniture and signage
The cold line, refrigeration, prep tables, small cooking equipment, point-of-sale and dining room furniture make up the equipment package. The 2021 document listed:
- Equipment: $38,000 to $89,345
- Furniture: $9,356 to $13,450
- Smallwares: $6,000 to $7,500
- Exterior signage: $4,871 to $10,125
- Menu board, graphics and interior signage: $1,634 to $12,124
- Technology systems: $1,050 to $1,863
Opening costs and working capital
The same document estimated $15,000 for grand opening marketing, $7,500 for opening inventory, $2,229 to $3,750 for insurance, up to $2,500 for travel while training, and $20,000 to $40,000 in additional funds for the first 3 months.
Total investment
In the 2021 disclosure document, the total estimated investment for a single restaurant was $199,726 to $549,295 before tenant allowances. The franchisor now publishes $234,000 to $653,000, reflecting higher costs since then. Use the current Item 7 table, your contractor’s bid and your lease terms to set the real budget.
Our article on restaurant build-out financing explains how leasehold improvements are usually funded.
Ongoing Fees and How They Affect Your Loan
In the 2021 disclosure document, Saladworks charged a 6% royalty, a 3% brand development fund contribution and a 2% local advertising requirement, all based on net sales, plus a technology bundle fee of $475 to $1,200 per month. Together, the percentage-based fees took 11% of net sales before rent, food and labor.
Lenders size a Saladworks franchise loan on the cash flow left after all operating costs, including franchise fees. A projection that leaves out royalties, marketing contributions or technology fees overstates the debt a restaurant can carry. The 2021 document also listed a renewal fee of $17,500 and a transfer fee of 50% or 75% of the then-current initial franchise fee, depending on the buyer, which matters when you plan a sale or when you buy a resale.
Remodel and refresh obligations are another planning item. Ask what the current franchise agreement requires and build a reserve so updates do not have to be financed in a hurry.
Franchisor Requirements for New Owners
The franchisor’s website lists a minimum net worth of $1,000,000 and minimum liquid assets of $350,000. Those thresholds are well above the low end of the investment range, which signals that Saladworks expects owners to have the financial depth to absorb a slow opening or a second unit.
The approval process generally runs through an inquiry, a review of the disclosure document, a review of your finances and experience, and site selection and lease approval before the franchise agreement is signed. Restaurant or multi-unit management experience strengthens both brand and lender approval.
Ways to Own a Saladworks
Open a new restaurant. Most new owners build out an inline space in a shopping center. Financing covers the build-out, equipment, fees and working capital. See our page on franchise start-up financing.
Buy an existing restaurant. A resale gives lenders sales history to underwrite. The franchisor must approve the buyer, and the transfer fee and any required updates belong in the budget. Our article on buying a franchise resale covers the review.
Multi-unit development. The 2021 disclosure document offered development agreements for at least 3 restaurants. Developers need financing lined up for each opening on the schedule.
Co-branded locations. The franchisor promotes co-brand opportunities. A co-branded restaurant can share space and labor, but lenders will want to understand each franchise agreement and how sales and fees are split.
Financing Options for a Saladworks Franchise
SBA 7(a) loans. SBA 7(a) loans are a frequent choice for restaurant franchise start-ups and acquisitions because one loan can fund the franchise fee, build-out, equipment and working capital. The 7(a) program maximum is currently $5 million, and program rules can change.
SBA 504 loans. If you buy a building or develop a freestanding site, SBA 504 loans can finance owner-occupied real estate and long-lived equipment, subject to program rules and lender approval. Most Saladworks restaurants are leased, so 504 fits less often.
Conventional term loans. Experienced multi-unit operators with strong liquidity may use conventional business loans, especially for later units.
Equipment financing. Refrigerated prep lines, reach-in and walk-in coolers, point-of-sale hardware and dining room furniture can sometimes be financed separately through restaurant equipment financing.
Working capital and lines of credit. A new restaurant needs cash for payroll, food costs and marketing while sales build. Lunch-heavy concepts can also see slower weeks around holidays and school breaks. See restaurant working capital.
Seller financing on resales. A seller may carry part of the price on an existing restaurant. A seller note is typically subordinate to the primary loan, and SBA rules and lenders may limit how it is structured.
SBA Loans for Saladworks Franchisees
SBA-backed loans are made by participating lenders, with the SBA guaranteeing part of the loan. For franchises, the lender also confirms that the franchise agreement lets the owner control the business, and the SBA Franchise Directory simplifies that review.
The directory listing. Saladworks appears on the SBA Franchise Directory under code S1520. The listing carries this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Collateral Assignment of Lease and Addendum to Lease may not be executed.
What the note means. Saladworks’ franchise documents include lease-related forms that give the franchisor rights in the restaurant’s lease. Those forms make sense when the franchisee rents its space. If instead the borrower owns the property and pledges it as collateral for the SBA loan, those lease documents should not be signed, so they do not compete with the lender’s interest in the real estate. For most leased restaurants the note will not apply, but owners buying their building should raise it with the lender early.
SBA application tips. Have the franchise agreement, the lease or letter of intent, the contractor’s bid, a sources and uses statement, personal financial statements and tax returns ready. Follow our outline for a franchise business plan for an SBA loan, and use our SBA loan calculator for early estimates; results are for planning only and are not an offer or approval.
How Lenders Evaluate a Saladworks Deal
Personal credit and financial history. Lenders review each principal’s credit history, tax returns and existing debts, and significant owners typically sign personal guarantees.
Net worth and liquidity. The franchisor’s $1,000,000 net worth and $350,000 liquidity minimums are a starting point. Lenders also want to see your cash injection and reserves after closing.
Restaurant experience. Food service management, labor scheduling and food-cost control weigh heavily. Buyers without restaurant experience can strengthen a request with a qualified general manager.
Business plan and projections. Projections should reflect weekday lunch traffic, dinner and weekend sales, catering, third-party delivery commissions, produce costs and the full set of franchise fees.
The FDD and franchise agreement. Lenders review the term, renewal, transfer, territory and default provisions, and want the franchise term to cover the loan term.
Site and lease. Visibility, nearby office and residential density, parking, co-tenants, lease length, renewal options and tenant allowances all affect how a lender views the location.
Historical financials on resales. For an existing restaurant, expect a review of several years of sales, profit and loss statements and tax returns.
Kitchen Equipment and Fresh Produce Operations
A Saladworks kitchen is built around cold prep. The line depends on refrigerated make tables, walk-in and reach-in coolers, prep sinks and slicers, plus light cooking equipment for hot items. Because produce is the core of the menu, refrigeration reliability directly affects food cost and safety.
From a financing view, that equipment profile is lighter than a fryer-heavy concept, but refrigeration failures are expensive. Budget for service contracts and a repair reserve, and consider whether to finance or lease major refrigeration so replacement does not drain working capital.
Multi-Unit Growth and Development Agreements
The franchisor’s site features owners with multiple restaurants, and the 2021 disclosure document offered development agreements for at least 3 restaurants. A development schedule sets deadlines to open each unit, so financing for later restaurants should be planned before you sign.
Lenders finance the second and third restaurant based on the first one’s results, your global cash flow and remaining liquidity.
Real-World Scenarios
A veteran opening a first restaurant. A veteran with management experience uses the franchise fee discount, meets the liquidity minimum and finances the build-out, equipment and working capital with an SBA 7(a) loan.
A restaurant operator buying an existing unit. An experienced operator buys an established Saladworks from a retiring owner. The lender underwrites the restaurant’s sales history, and the seller carries a small subordinate note.
An owner buying the building. A franchisee purchases a small freestanding building for a new location. Because the real estate will secure the loan, the lender applies the directory note on the lease documents and considers a 504 structure.
A multi-unit developer. An existing franchisee signs for several more restaurants and pairs conventional financing with a line of credit to keep each opening on schedule.
Common Mistakes to Avoid
- Budgeting from the low end of the investment range for a raw shell space
- Leaving royalty, marketing and technology fees out of projections
- Signing a lease before brand approval and financing are aligned
- Underestimating refrigeration, produce waste and food-cost swings
- Keeping too little working capital for the first months after opening
- Overlooking the directory note when pledging owned real estate
Read more in our list of restaurant loan mistakes.
Next Steps to Finance Your Saladworks Franchise
Step 1: Confirm you qualify. Compare your net worth and liquid assets with the franchisor’s minimums.
Step 2: Review the current FDD. Read it with a franchise attorney, focusing on Items 5, 6, 7, 10, 17 and 19.
Step 3: Choose your path. Decide between a new restaurant, a resale, a co-branded location or a development agreement.
Step 4: Build your budget. Use the current Item 7 table, your contractor’s bid and lease terms, and add working capital and a contingency.
Step 5: Talk with a financing specialist. Confirm which loan programs may fit before you sign a lease.
Step 6: Assemble documents and apply. Gather financial statements, tax returns, résumés, the lease or letter of intent and your business plan, and coordinate brand and lender approvals.
Saladworks Franchise Loan FAQs
How much does a Saladworks franchise cost?
The franchisor’s website estimates a total initial investment of $234,000 to $653,000, depending largely on the site and build-out.
What is the Saladworks franchise fee?
The franchisor lists a $35,000 franchise fee, with 25% off franchise fees for veterans.
What royalty does Saladworks charge?
The 2021 disclosure document listed a 6% royalty, a 3% brand development fund contribution and 2% local advertising, all on net sales. Check the current FDD for today’s rates.
How much liquid capital and net worth do I need?
The franchisor lists minimum liquid assets of $350,000 and a minimum net worth of $1,000,000.
Can a Saladworks franchise loan be SBA-backed?
Possibly. Saladworks is on the SBA Franchise Directory under code S1520. Eligibility depends on the borrower, the project, program rules and lender approval.
Does Saladworks offer financing?
The 2021 disclosure document said the franchisor does not offer direct or indirect financing. Confirm in Item 10 of the current FDD.
Can I finance kitchen equipment separately?
Often, yes. Equipment financing or leasing can cover refrigeration, prep lines and technology, though the primary lender counts those payments in your debt service.
Can I buy an existing Saladworks?
Yes, with franchisor approval. A resale’s sales history gives lenders actual results to underwrite.
Do I need restaurant experience?
Experience strengthens both brand and lender approval. Buyers without it can add an experienced manager or partner.
Can I own more than one Saladworks?
Yes. Development agreements and additional units are available, and lenders look at your first restaurant’s results before financing the next.
How long is the Saladworks franchise agreement?
The term and renewal conditions appear in Item 17 of the current FDD. Lenders generally want the franchise term to extend at least as long as the loan.
Final Thoughts
A Saladworks franchise loan is manageable for a well-capitalized buyer: the footprint is small, the equipment is lighter than many restaurant concepts, and the brand is on the SBA Franchise Directory. The keys are meeting the franchisor’s liquidity and net worth minimums, budgeting the build-out from real bids and confirming current fees in the latest disclosure document.
US Professional Funding helps franchise buyers and owners finance start-ups, acquisitions, equipment and expansion. Learn more about our franchise financing and restaurant financing.
