How to Finance a SomiSomi Franchise: Soft Serve Shop Costs
By Anthony Cornella
A SomiSomi franchise loan usually funds a compact dessert shop built around one signature item: a fish-shaped waffle cone, filled with a sweet filling and topped with soft serve. Because the menu is narrow and the equipment is specialized, financing a SomiSomi store is mostly about the lease, the build-out, the soft serve and cone-making equipment and enough cash to carry the first months.
This article explains what is publicly known about the franchise, how its SBA Franchise Directory notes affect a loan, and which financing structures fit a new or resale store.
US Professional Funding is not affiliated with, sponsored by or endorsed by SomiSomi; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change from year to year, loan programs and terms vary by lender and borrower, 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 an accountant.
SomiSomi Franchise Loan at a Glance
- Concept: Korean-style dessert shop serving “ah-boong,” a fish-shaped waffle cone with a choice of filling, topped with soft serve and toppings.
- Franchisor: SomiSomi Franchise, Inc., a California corporation based in Los Angeles.
- Historical investment figure: SomiSomi’s FDD issued March 29, 2019 estimated a total single-store investment of $223,100 to $459,100, including a $39,000 initial franchise fee. Treat these as dated reference points only and use the current FDD.
- Supply deposit: the same 2019 FDD described a $10,000 deposit for equipment, products and food ingredients bought directly from the franchisor, to be replenished when drawn down.
- Royalty, marketing fees and owner requirements: not published in the franchisor’s public materials; see Items 6 and 7 of the current FDD and ask the development team.
- SBA Franchise Directory: listed as “SomiSomi” under code S4142, with notes on lease assignment, lien position and a real estate purchase option.
What Is SomiSomi?
SomiSomi began in Los Angeles’s Koreatown as a soft serve shop with a twist. Instead of a standard cone, each order is built in a freshly made fish-shaped waffle cone, a Korean take on the classic Japanese taiyaki, filled with the guest’s choice of filling and finished with swirled soft serve and toppings. The brand calls the combination “ah-boong.”
The brand has since expanded beyond Southern California into other Western and Southwestern markets, including Texas. Stores are franchised and independently owned, which means every location is a small business with its own financing, lease and operating history.
Why the concept matters to lenders. A SomiSomi store is a small-footprint, high-traffic dessert business. Lenders like the low labor model and simple menu, but they also know dessert sales depend heavily on foot traffic, weather and the season. That shapes how much working capital they want to see and how carefully they review the site.
SomiSomi Franchise Costs
The franchisor’s current fee schedule and investment table are not posted publicly, so your real numbers will come from the FDD you receive. The best public reference is the 2019 disclosure document, and even that only gives the totals.
Initial franchise fee. The 2019 FDD listed a $39,000 initial franchise fee. Item 5 of the current FDD will show today’s fee, whether it is refundable and whether reduced fees apply to additional stores.
Lease and build-out. SomiSomi stores typically operate in leased retail space, and the build-out is often one of the largest costs. Our article on restaurant build-out financing explains how lenders handle construction budgets and landlord allowances.
Equipment. The core equipment package includes commercial soft serve machines, specialized irons that bake the fish-shaped cones, refrigeration and freezer storage, topping stations, a point-of-sale system and smallwares. Some of it may need to be bought from the franchisor or approved sources, so confirm this in Item 8.
Opening inventory, deposit and working capital. Opening inventory covers soft serve base, fillings, toppings and packaging. The 2019 FDD’s $10,000 product deposit is a reminder that supply arrangements can tie up cash before the doors open. Item 7 will also list “additional funds” for the first few months.
Total investment. The 2019 FDD estimated $223,100 to $459,100 for a single store. Expect the current Item 7 table to cover categories such as:
- Initial franchise fee
- Lease deposits and first months’ rent
- Leasehold improvements and construction
- Soft serve machines, cone irons, refrigeration and other equipment
- Furniture, fixtures, signage and menu boards
- Point-of-sale system and technology
- Opening inventory and the franchisor supply deposit
- Training travel and expenses
- Licenses, permits, insurance and professional fees
- Additional funds for the initial operating period
Add the top of the current range to a contingency for construction overruns, then compare the result with your available cash. Our SBA loan calculator can help you estimate payments on the amount you plan to borrow.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists ongoing fees such as a royalty on gross sales, any marketing or brand fund contribution, technology fees, transfer fees and renewal fees. The franchisor does not publish these rates, so get them from the current document before you build a budget.
How lenders treat these fees. Royalties and marketing contributions come off the top of sales before rent, payroll and loan payments. Lenders build them into projected cash flow and then test whether the remaining income covers debt service with a cushion.
Franchisor Requirements for New Owners
SomiSomi does not publish minimum net worth, liquid capital or experience requirements in its public materials. Expect the development team to review your finances, your management plan and your proposed market, and expect any site to require franchisor approval before you sign a lease.
From a lender’s point of view, food service or retail management experience helps, as does a plan for who will run the store day to day. First-time owners can qualify, but they usually need stronger liquidity and a well-documented plan.
Ways to Own a SomiSomi
Opening a new store. A new store is financed on projections, so lenders focus on your equity injection, the lease terms, the build-out budget and your experience. Explore our restaurant start-up financing options.
Buying an existing store. Resales come up periodically, and they are often easier to finance because the store has tax returns and sales history. The franchisor must approve the buyer and the transfer, and the landlord usually must consent to assigning the lease. Our article on buying a franchise resale walks through the process.
Opening multiple stores. Some owners grow to several locations in one market. Ask whether development agreements are available, how fees work for additional units and what opening schedule you would commit to.
Financing Options for a SomiSomi Franchise
SBA 7(a) loans. An SBA 7(a) loan is the most flexible option for a new store, because it can combine build-out, equipment, the franchise fee and working capital in one loan with a longer repayment term than most conventional equipment or start-up loans.
SBA 504 loans. The SBA 504 program is built for owner-occupied real estate and long-lived equipment. Most SomiSomi stores lease their space, so 504 usually fits only when an owner buys a building or a retail condo.
Conventional term loans. Experienced operators with strong collateral may qualify for conventional business loans, especially for a second or third store or for an acquisition with solid history.
Equipment financing. Soft serve machines, cone irons, freezers and display equipment can be financed or leased separately, which preserves cash for the build-out. See our restaurant equipment financing options.
Working capital and lines of credit. Dessert sales often peak in warm months and on weekends, so a line of credit can smooth payroll and supply orders through slower periods. Learn more about restaurant working capital.
Seller financing on resales. A seller may agree to carry part of the purchase price. Any seller note is typically subordinate to the senior loan, and SBA rules may limit how it is structured.
SBA Loans for SomiSomi Franchisees
SBA lenders check the SBA Franchise Directory before making an SBA-guaranteed loan to a franchisee. A listing does not approve any borrower; it means the franchise relationship has been reviewed and found eligible, sometimes with conditions. SomiSomi appears under code S4142 with three notes.
Lease assignment provisions. When the real estate where the store is located will secure the SBA-guaranteed loan, the franchise agreement’s conditional lease assignment provisions may not be executed. In plain English, the franchisor’s right to take over a lease cannot override the lender’s position on real estate pledged as collateral.
Lien position. The lender or certified development company must obtain the lien position SBA rules require on all collateral. Expect the lender to review any franchisor security interests in equipment or other assets.
Real estate purchase option. The franchisor may not enforce its purchase option on real estate owned by the franchisee or an affiliate if that property is collateral for an SBA loan. This matters if you ever buy the building your store occupies.
Program size and tips. The SBA 7(a) program maximum is currently $5 million, although program rules can change, and a single SomiSomi store is well within that range. Give your lender the complete FDD, your signed or proposed lease and contractor bids early. Our article on restaurant lease assignment explains why the lease often becomes the critical document in a franchise loan.
How Lenders Evaluate a SomiSomi Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement for each guarantor.
Net worth and liquidity. You will need cash for the equity injection plus reserves.
Management experience. Food service, retail or multi-employee management experience strengthens the application, as does a plan for staffing and training.
Business plan and projections. Projections should reflect a seasonal sales curve, realistic average tickets, labor for peak hours, food costs tied to required purchases and all Item 6 fees. Our article on the FDD and franchise financing shows how to turn the disclosure document into lender-ready numbers.
The FDD and franchise agreement. Lenders review term, renewal, transfer and termination provisions, required purchases and whether the FDD includes financial performance representations in Item 19. If it does not, your projections must rest on local market research.
Site and lease. Foot traffic, co-tenants, parking, visibility and lease length all matter. Many lenders want the lease term, including options, to cover the loan term.
For resales, historical results. Several years of tax returns, monthly sales reports and a clear explanation of any dips carry more weight than projections.
Equipment and Store Operations
Equipment is central to a SomiSomi store because the product depends on it. Soft serve machines must hold consistent texture during long rushes, and the cone irons must produce a steady supply of fresh shells.
When financing equipment, ask whether the franchisor requires specific models, whether used equipment is allowed on a resale and what maintenance contracts cost.
Multi-Unit Growth
A SomiSomi franchise loan for a second store works much like the first, but the first store’s track record now carries weight. Lenders generally want to see the original location stable and profitable before financing another, and they underwrite the combined debt across both stores.
Real-World Scenarios
A first-time owner opening a new store. A former retail manager uses an SBA 7(a) loan to fund the franchise fee, build-out, equipment and working capital, with personal savings as the equity injection and a lease term that matches the loan.
A buyer acquiring a resale. An investor buys an existing store in a busy shopping area, using an SBA loan supported by the store’s sales history and a small seller note that sits behind the senior lender.
Common Mistakes to Avoid
- Relying on old investment figures instead of the current Item 7 table
- Signing a lease before franchisor approval and lender review
- Ignoring seasonality when sizing working capital
- Underestimating electrical and plumbing work for soft serve equipment
- Leaving the franchisor supply deposit and required purchases out of the budget
- Overlooking the SBA directory notes on leases and real estate
Read more about the restaurant loan mistakes that most often derail franchise owners.
Next Steps to Finance Your SomiSomi Franchise
Step 1: Contact the franchise team. Ask about open markets and request the current FDD.
Step 2: Review the FDD. Study Items 5, 6, 7, 8, 10, 17, 19 and 20 with a franchise attorney and an accountant.
Step 3: Build your budget. Use the current Item 7 table, contractor estimates and equipment quotes, and add a contingency.
Step 4: Talk with a financing specialist. Compare SBA, conventional and equipment financing for your SomiSomi franchise loan before you commit to a site.
Step 5: Secure the site. Get franchisor approval, negotiate the lease and share it with your lender.
Step 6: Apply and close. Submit financial statements, tax returns, the business plan, the lease and bids.
SomiSomi Franchise Loan FAQs
How much does a SomiSomi franchise cost?
The franchisor’s 2019 FDD estimated a total investment of $223,100 to $459,100 for a single store. That figure is dated, so use the Item 7 table in the current FDD for today’s range.
What is the SomiSomi franchise fee?
The 2019 FDD listed a $39,000 initial franchise fee. Item 5 of the current FDD shows the fee in effect today.
What royalty does SomiSomi charge?
The royalty and any marketing fund contribution are not published in the franchisor’s public materials. Check Item 6 of the current FDD.
How much liquid capital do I need?
SomiSomi does not publish a minimum. Lenders expect cash for your equity injection plus reserves for the opening period, so ask the franchisor and your lender for their expectations.
Can I get an SBA loan for a SomiSomi franchise?
Yes, subject to approval. SomiSomi is listed on the SBA Franchise Directory under code S4142, with notes on lease assignment, lien position and real estate purchase options.
Can I finance the equipment separately?
Yes. Soft serve machines, cone irons and refrigeration can be financed or leased on their own, or included in an SBA loan.
Can I buy an existing SomiSomi store?
Yes, when an owner sells. The franchisor must approve you, the landlord usually must consent to the lease assignment and the lender will review the store’s history.
Does SomiSomi offer financing?
Check Item 10 of the FDD, which describes any financing the franchisor offers.
How long is the franchise term?
The term and renewal rights are not published publicly. Item 17 of the FDD covers term, renewal, transfer and termination.
Final Thoughts
A SomiSomi store is a focused, equipment-driven dessert business, and the strongest SomiSomi franchise loan applications reflect that: a current FDD, a well-negotiated lease, firm build-out and equipment quotes and enough working capital to handle seasonal swings.
US Professional Funding helps franchise owners finance new stores, resales, equipment and working capital. Learn more about our franchise financing programs and our restaurant financing solutions.
