How to Finance a Scooter’s Coffee Franchise: Kiosk Build Costs
By Chris Cornella
A Scooter’s Coffee franchise loan typically funds a small drive-thru building with a large price tag. The kiosk itself is only a few hundred square feet, but site work, construction, espresso and refrigeration equipment, signage and opening funds push the total investment well past what many first-time buyers expect from a coffee concept.
Below are the brand’s published costs and fees, its owner requirements, how its SBA directory note affects buyers who own their land, and how owners put financing together.
US Professional Funding is not affiliated with, sponsored by or endorsed by Scooter’s Coffee; the name is used only to describe the business. Figures from the franchisor’s website and 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. The figures below come from the franchisor’s own franchising pages, which cite Item 7 of its Franchise Disclosure Document (FDD); review the current FDD and franchise agreement with a franchise attorney and accountant before you sign or borrow.
Scooter’s Coffee Franchise Loan at a Glance
- Initial franchise fee: $40,000 for a kiosk or end cap store.
- Estimated initial investment, drive-thru kiosk: $1,163,650 to $1,345,750, including the franchise fee.
- Estimated initial investment, end cap: $658,898 to $1,068,525, including the franchise fee.
- Royalty: 6% of gross sales.
- National advertising fund: 2% of gross sales.
- Financial requirements: $500,000 minimum net worth and $250,000 minimum liquid capital.
- System size: 768 franchised kiosk stores and 62 end cap stores open as of December 31, 2025, according to the franchisor; it describes the brand as having over 850 locations nationwide.
- SBA Franchise Directory: listed as Scooter’s Coffee (code S1533), with a note about the lease addendum when the franchisee owns the real estate.
What Is Scooter’s Coffee?
Scooter’s Coffee began in 1998 as a single drive-thru coffee shop in Bellevue, Nebraska, founded by Don and Linda Eckles. The company is headquartered in Omaha, Nebraska, where it roasts its coffee beans. The menu centers on espresso drinks, smoothies and baked pastries, with speed of service at the core of its brand promise: “Amazing People, Amazing Drinks… Amazingly Fast!”
Store formats. The franchisor describes two formats:
- Drive-thru kiosk: the traditional and most common format, a 664-square-foot building on its own pad, with lower staffing requirements.
- End cap: offered starting in 2024, a space at the end of a retail building with an optimum size of 800 to 1,000 square feet, a single drive-thru lane and room for a pylon or monument sign.
Where stores go. Development areas are available nationwide, and the franchisor’s site criteria include towns with populations under 15,000 as well as larger markets. Real estate site selection is part of the franchisor’s support.
Why lenders view it the way they do. Lenders see a large drive-thru-only system whose franchisor guides site selection and construction, but also a construction-heavy project in which most of the budget goes into site work and a building on owned land or a ground lease. That makes site economics, construction budgets and the borrower’s liquidity central to underwriting.
Scooter’s Coffee Franchise Costs
Initial franchise fee. The franchisor lists a $40,000 initial franchise fee for both the kiosk and end cap formats. Its multi-store development agreement includes a franchise fee discount for subsequent stores; check Item 5 for the amount.
Real estate, site work and construction. For a kiosk, construction and site improvements are the largest category in the franchisor’s cost breakdown. Expect paving, drive-thru lane and stacking, utilities, the building itself and landscaping. Land is a separate decision: a franchisee may buy the pad, lease the ground or lease a pad from a developer, and each path changes the loan structure. End caps involve interior build-out of an existing retail space rather than a new building.
Equipment, fixtures and furniture. Espresso machines, grinders, blenders, refrigeration, ice machines, ovens for baked goods, point-of-sale and drive-thru communication systems and smallwares make up the equipment package.
Architecture, engineering and signage. Site plans, engineering and permitting come before construction, and drive-thru brands depend heavily on pylon and directional signage.
Opening costs and working capital. Opening inventory and supplies, training costs and additional funds for the first three months round out the budget.
Total investment. The franchisor’s FAQ, citing Item 7 of its FDD, gives these totals:
- Drive-thru kiosk: $1,163,650 to $1,345,750, including the $40,000 franchise fee
- End cap: $658,898 to $1,068,525, including the $40,000 franchise fee
The franchisor’s cost breakdown groups the investment into these Item 7 categories:
- Initial franchise fee
- Construction and site improvements
- Equipment, fixtures and furniture
- Architectural and engineering fees
- Signage
- Opening inventory and supplies
- Additional funds for the first three months
Check whether the current Item 7 table includes land acquisition.
Ongoing Fees and How They Affect Your Loan
Royalty. The franchisor lists a royalty of 6% of gross sales.
Advertising fund. Franchisees contribute 2% of gross sales to the national advertising fund. Item 6 will show any local marketing requirement on top of that.
Other fees. Item 6 lists technology, transfer and renewal fees.
Occupancy. Ground rent or a pad lease is a fixed cost that does not shrink in a slow month. If you own the land, your mortgage payment takes its place.
How lenders factor these costs in. With 8% of gross sales committed to royalty and advertising, plus product costs, labor and occupancy, lenders build projections from the top line down and test whether cash flow covers debt service with a margin. They will also want to see the ramp-up period of a new drive-thru reflected in the first-year numbers.
Franchisor Requirements for New Owners
- Net worth: $500,000 minimum.
- Liquid capital: $250,000 minimum.
- Experience: no previous coffee industry experience is required; the franchisor looks for an entrepreneurial spirit and people who are coachable.
- Training: a three-day Immersion Training in Omaha, about four to five months before opening, plus required New Store Opening training for a principal owner, the primary designated manager and others.
- Support: site selection, construction, team training, marketing, product innovation, distribution and field marketing, with a Franchise Business Consultant assigned to each franchisee.
- Veterans: qualified military veterans receive a $20,000 credit on first-year product purchases.
The approval process. Candidates go through discovery, review the FDD, receive approval and then work with the franchisor on site selection before construction. Lenders generally want franchisor approval and an identified site before final underwriting, because the site drives both the budget and the projections.
Ways to Own a Scooter’s Coffee
A single new store. Most new owners start with a single-unit agreement and one kiosk or end cap. Financing covers site work, construction, equipment and opening costs, and possibly land. Our overview of franchise start-up financing explains how new-unit loans are structured.
A multi-store development agreement. The franchisor offers a multi-store development agreement with exclusive area rights and a franchise fee discount for subsequent stores. Financing usually happens store by store as each site is approved.
Buying an existing store. Existing stores change hands with franchisor approval. A buyer gets operating history to underwrite, which often makes financing simpler than a new build. Our guide to buying a franchise resale covers the transfer process.
Financing Options for a Scooter’s Coffee Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can finance construction, equipment, the franchise fee and working capital, and can include land when the borrower is buying the pad.
SBA 504 loans. When a franchisee buys the land and builds the kiosk, an SBA 504 loan can finance the real estate and long-lived building improvements, often paired with a separate loan for equipment and working capital. A kiosk on owned land is a natural 504 candidate. Our article on franchise real estate financing compares owning with leasing.
Conventional term loans. Experienced multi-unit operators and buyers with strong balance sheets may use a conventional business loan, especially for existing-store acquisitions or real estate with substantial equity.
Equipment financing. Espresso machines, grinders, blenders, refrigeration, ice machines and point-of-sale systems can be financed separately, preserving cash for site work. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. A new drive-thru needs funds for payroll during training, opening marketing and the early ramp-up. The franchisor’s Item 7 includes additional funds for the first three months, and many owners add a line of credit for seasonal swings and repairs. See our restaurant working capital options.
Seller financing on resales. A selling franchisee may carry part of the price. Any seller note would need to be acceptable to the senior lender and is typically subordinate to it, and SBA programs may limit how it is structured.
Franchisor financing. The franchisor says it does not offer in-house financing, though it has relationships with multiple lenders. Confirm current terms in Item 10.
SBA Loans for Scooter’s Coffee Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. A listing lets an SBA lender move forward without a separate review of the franchise relationship, though every borrower is still underwritten individually.
Scooter’s Coffee is listed. The directory shows the brand as Scooter’s Coffee under code S1533, with this note: when the franchisee or its affiliate owns the real estate where the business is located, neither the franchisee nor its affiliate may execute the Lease Addendum.
What that note means in plain English. A franchisor’s Lease Addendum is a rider to a store’s lease that typically gives the franchisor certain rights, such as the ability to step in if the lease is in default or the franchise ends. That makes sense when a third-party landlord owns the site. When the franchisee, or a company owned by the franchisee, owns the land and leases it to the operating company, the SBA does not want the franchisee’s own real estate entity signing that addendum. For a borrower, the practical takeaway is to tell your lender early if you or a related company will own the land, so the documents are structured correctly from the start.
The SBA 7(a) program maximum. The 7(a) program maximum is currently $5 million, though program rules can change. That ceiling matters for an owner financing several kiosks or adding land to the project.
SBA application tips.
- Get the site approved by the franchisor and obtain a construction budget before applying.
- Decide early whether you will buy the land, lease the ground or lease a pad, and explain the structure.
- Build projections that include a ramp-up period and the 6% royalty and 2% advertising fund.
Our SBA loan calculator provides early payment estimates for planning only, not an offer or approval.
How Lenders Evaluate a Scooter’s Coffee Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement and require personal guarantees from significant owners.
Net worth and liquidity. The franchisor’s $500,000 net worth and $250,000 liquid capital minimums are a floor. Because construction projects can run over budget, lenders like to see reserves remaining after the equity injection.
Industry and management experience. No coffee experience is required by the franchisor, but lenders give weight to food service, retail or multi-unit management experience, and to a plan for a capable store manager.
Business plan and projections. A Scooter’s Coffee franchise loan request should show expected traffic, ticket size and labor for the specific site, the drive-thru’s stacking capacity and the early-month ramp-up. Do not rely on system averages; check Item 19 to see what financial performance representations the FDD includes and use them only as a reference.
The FDD and franchise agreement. Lenders read the franchise term, renewal, transfer and default provisions, along with any development schedule for multi-store deals.
Site, lease or real estate. Lenders review the purchase contract or ground lease, the appraisal, the construction contract and budget, permits and the site’s traffic counts and access.
Historical financials for resales. For an existing store, expect several years of profit and loss statements and sales reports, verified against tax returns.
The Drive-Thru Build: Where the Money Goes
The compact kiosk hides an intensive construction project. Site work, drive-thru lanes, utilities and the building make up the largest share of the budget, which is why the kiosk’s estimated investment is higher than the end cap’s even though the building is smaller.
Construction risk. Permitting delays and utility connections can push opening dates and costs, so a Scooter’s Coffee franchise loan for a new kiosk is usually structured as a construction loan. Lenders typically disburse construction funds in draws tied to progress and require a contingency in the budget.
End cap trade-offs. An end cap avoids ground-up construction but depends on a landlord’s building, lease terms and drive-thru approval, so lease review becomes a bigger part of the lender’s analysis.
Multi-Unit Growth and Development Agreements
The multi-store development agreement gives exclusive area rights and a fee discount on later stores, but it also commits the owner to opening stores on a schedule. Lenders usually finance each store when its site is approved, and they will look at how the existing stores are performing before funding the next one.
Financing the second and third store. A second Scooter’s Coffee franchise loan is usually easier to underwrite than the first. Once the first store has operating history, lenders can underwrite combined cash flow, and some owners move to conventional financing or blend SBA and conventional loans as the group grows. Our article on area development agreement financing explains how to plan capital around a development schedule.
Real-World Scenarios
A first-time owner building a kiosk on a ground lease. A former retail manager signs a single-unit agreement, leases a pad from a developer and uses an SBA 7(a) loan for construction, equipment, the franchise fee and working capital.
A buyer who owns the land. A buyer purchases a pad through a related real estate company and finances the land and building with an SBA 504 loan and the equipment separately. Because the related company owns the site, the lender structures the documents with the directory’s Lease Addendum note in mind.
A multi-store developer. An operator with two established kiosks signs a development agreement and finances the third with a conventional loan.
Common Mistakes to Avoid
- Assuming a small building means a small budget
- Choosing a land structure without telling the lender about related-party ownership
- Skipping a construction contingency and running short before opening
- Projecting mature sales from the first month instead of modeling a ramp-up
- Signing a development schedule that outpaces available capital
- Leaving too little working capital after the equity injection
For more pitfalls that apply across food service, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Scooter’s Coffee Franchise
Step 1: Confirm you meet the requirements. Verify the $500,000 net worth and $250,000 liquid capital minimums and decide how much cash you will contribute.
Step 2: Complete discovery and review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Choose a format and a land strategy. Decide between a kiosk and an end cap and whether you will buy land, lease the ground or lease a space.
Step 4: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional structures before you commit to a site.
Step 5: Secure site approval and a construction budget. Work with the franchisor’s real estate team and get bids from contractors.
Step 6: Apply and close. Submit your personal financial statement, tax returns, projections, site documents and franchise agreement, and coordinate draws with the construction schedule.
Step 7: Open with reserves. Complete Immersion and New Store Opening training, and keep working capital in place for the ramp-up.
Scooter’s Coffee Franchise Loan FAQs
How much does it cost to open a Scooter’s Coffee?
The franchisor’s FAQ, citing Item 7, estimates $1,163,650 to $1,345,750 for a drive-thru kiosk and $658,898 to $1,068,525 for an end cap, both including the franchise fee.
What is the Scooter’s Coffee franchise fee?
The franchisor lists a $40,000 initial franchise fee, with a discount on subsequent stores under a multi-store development agreement.
What royalty does Scooter’s Coffee charge?
The franchisor lists a 6% royalty and a 2% national advertising fund contribution, both based on gross sales.
How much net worth and liquid capital do I need?
The franchisor requires a minimum net worth of $500,000 and minimum liquid capital of $250,000.
Can I get an SBA loan for a Scooter’s Coffee?
Yes, if you qualify. The brand is listed on the SBA Franchise Directory under code S1533, with a note about the Lease Addendum when the franchisee or an affiliate owns the real estate.
Can a Scooter’s Coffee franchise loan include land?
Yes. SBA 7(a) and 504 loans can both finance owner-occupied real estate, and conventional lenders also finance land and buildings for strong borrowers.
Does Scooter’s Coffee offer financing?
The franchisor says it does not offer in-house financing but works with multiple lenders. Check Item 10 of the current FDD.
Do I need coffee experience?
No. The franchisor says no previous coffee industry experience is required, though lenders value management experience.
Can I buy an existing Scooter’s Coffee?
Yes, with franchisor approval of the transfer. Lenders underwrite the store’s actual financial history.
Can I open multiple stores?
Yes. The franchisor offers a multi-store development agreement with exclusive area rights and a franchise fee discount for subsequent stores.
Final Thoughts
Financing a Scooter’s Coffee is really financing a small construction project with a high-volume drive-thru on top. Buyers who settle their land strategy early, budget for construction risk and keep reserves for the ramp-up put themselves in the strongest position with lenders.
US Professional Funding helps franchise buyers finance new stores, real estate, equipment, acquisitions and working capital. Learn more about our franchise financing and restaurant financing solutions.
