How to Finance a Southern Roost Franchise: Drive-Thru Chicken
By Anthony Cornella
A Southern Roost franchise loan finances a fast-casual chicken restaurant from a Georgia-based brand built around boneless chicken, breakfast and drive-thru convenience. Because the newest Southern Roost units are designed as freestanding buildings with dual drive-thru lanes, the financing conversation often covers land, construction and kitchen equipment rather than a simple storefront lease.
This article explains what Southern Roost is, how its format shapes startup costs, where to find the fees and investment in the Franchise Disclosure Document (FDD), which loan programs fit, and what the brand’s SBA Franchise Directory listing and its note about real estate mean for your loan.
US Professional Funding is not affiliated with, sponsored by or endorsed by Southern Roost; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Southern Roost Franchise Loan at a Glance
- Concept: a fast-casual restaurant serving hand-breaded and grilled chicken tenders, specialty chicken sandwiches, salads, bowls, Southern sides, hand-spun milkshakes and breakfast.
- Home base: southeast Georgia, with restaurants in Blackshear and Kingsland and a first Florida location planned in Nassau County.
- Format: newer units are planned as freestanding fast-casual buildings with a dual drive-thru and on-site parking.
- Stage: a young, regional system that is beginning to grow beyond its home market.
- Fees and investment: listed in the current FDD; we could not verify them from the franchisor’s own published materials.
- SBA Franchise Directory: listed under code S8971, with a note about real estate collateral and the lease assignment explained below.
What Is Southern Roost?
Southern Roost is a Georgia-based chicken restaurant concept that pairs a quick-service drive-thru with a fast-casual menu. The brand describes its food as signature hand-breaded chicken, seasoned wedges, house-crafted sides and hand-spun milkshakes, and it serves breakfast as well as lunch and dinner.
The menu goes beyond plain tenders. Specialty sandwiches include the Dirty Bird, built with house pimento cheese and bacon jam, and the Rippin’ Roost, with buffalo sauce and ranch, alongside a grilled chicken club.
The brand grew up in southeast Georgia, with restaurants in Blackshear and Kingsland, and is now moving across the state line with a planned location in the Wildlight community in Yulee, Florida. Its restaurants are run with the backing of a Waycross-based restaurant management group, which gives the young brand an experienced operating team behind it.
Why lenders view it the way they do. Southern Roost is a small, regional franchise system with few units, so lenders will lean on the borrower’s restaurant experience, the strength of the site and the equity in the deal more than on brand-wide data. Our article on financing an emerging franchise brand explains how lenders approach newer systems.
Southern Roost Franchise Costs
We could not verify Southern Roost’s current franchise fee or investment range from the franchisor’s own materials, so build your Southern Roost franchise loan request from the current FDD and local bids.
Initial franchise fee. Item 5 of the FDD lists the fee, when it is due, whether any part is refundable and any reduced fee for additional restaurants.
Real estate and building. A freestanding restaurant with a dual drive-thru usually needs a pad site with room for two stacking lanes, parking and access from a busy road. You can lease a pad, sign a ground lease and build, or buy the land and building. Each choice changes the loan size, the collateral and which SBA program fits best.
Construction and build-out. Site work, utilities, the building shell, kitchen ventilation and fire suppression, grease management, drive-thru lanes, menu boards and dining room finishes all add up.
Equipment. Fryers and oil filtration, grills, breading tables, walk-in coolers and freezers, holding cabinets, milkshake machines, breakfast equipment, drive-thru headsets and timers, and point-of-sale technology.
Opening costs and working capital. Opening food and paper inventory, training travel, hiring and payroll before opening, insurance, deposits, permits and launch marketing, plus additional funds to carry the restaurant through its first months.
Total investment. The Item 7 table in the FDD typically breaks the investment into lines such as:
- Initial franchise fee
- Real estate, rent deposits or land costs
- Construction, leasehold improvements and site work
- Kitchen equipment, smallwares and furniture
- Drive-thru systems, POS and technology
- Exterior and interior signage
- Opening inventory
- Training expenses
- Licenses, permits, insurance and professional fees
- Grand opening marketing
- Additional funds for the initial period
Check whether Item 7 assumes a leased site or excludes land and building costs, because that assumption changes your loan request the most.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any brand or marketing fund contribution, local advertising requirements, technology fees, and transfer and renewal fees.
Chicken restaurants also carry real commodity exposure. Poultry and cooking oil prices can swing, and a breakfast daypart adds labor hours. Lenders will want monthly projections that show food and paper cost, labor, royalties, marketing fees, rent or mortgage payments and debt service, with a cushion left over in a slower month.
Franchisor Requirements for New Owners
We could not verify published net worth, liquid capital or experience requirements for Southern Roost. Ask the franchisor for its candidate criteria, its approval steps and whether it prefers owner-operators or multi-unit developers.
Whatever the franchisor requires, lenders set their own bar. Expect to document your equity contribution, show post-closing reserves and present restaurant management experience, particularly in a drive-thru or high-volume kitchen. Our article on how lenders read a Franchise Disclosure Document explains which parts of the FDD to request early.
Ways to Own a Southern Roost
Open a new restaurant. A new unit is financed on projections, your equity, your experience and the strength of the site. See our overview of restaurant start-up financing.
Develop several restaurants. A development agreement commits you to opening restaurants on a schedule, which requires a capital plan for each one rather than a single loan.
Buy an existing restaurant. As the system grows, a franchised location may come up for sale. A lender can then underwrite actual sales and expenses, subject to the franchisor approving the transfer. Our article on buying a franchise resale covers the process.
Financing Options for a Southern Roost Franchise
SBA 7(a) loans. Because the brand is listed on the SBA Franchise Directory, an SBA 7(a) loan can finance the franchise fee, construction, equipment and working capital together, and in some cases the real estate as well.
SBA 504 loans. If you plan to buy the land and build the restaurant, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment. A freestanding drive-thru building is the kind of project the program is built for.
Conventional term loans. Experienced restaurant operators with strong financials may qualify for conventional business loans, particularly for a second or third restaurant.
Equipment financing. Fryers, filtration systems, refrigeration, shake machines and drive-thru technology can be financed or leased on their own. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. A line of credit can cover pre-opening payroll, breakfast staffing, commodity price spikes and repairs. See our restaurant working capital options.
Seller financing on resales. On the purchase of an existing restaurant, a seller may agree to carry part of the price. Seller notes are typically subordinate to the main loan, and SBA program rules may limit how they are structured.
SBA Loans for Southern Roost Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed so SBA lenders can lend to their franchisees without a separate review of the franchise relationship. A listing does not approve any borrower or project.
Southern Roost is listed under code S8971 with one note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Collateral Assignment of Lease and Consent and Agreement of Landlord may not be executed.
What the note means in plain English. Many franchisors ask a landlord to sign a document that lets the franchisor step into the lease if the franchisee defaults. But if you or a related company own the restaurant property and pledge it as collateral for the SBA loan, there should be no competing lease claim on that real estate. The note says the lease assignment document cannot be signed in that situation, which protects the lender’s position in the property. If you lease your site, the note generally does not change anything.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Your lender will confirm the directory listing is current when you apply.
SBA application tips. Bring the FDD and franchise agreement, your site plan and lease or purchase contract, contractor bids, equipment quotes, a personal financial statement, tax returns and monthly projections. Our SBA loan calculator can help with early planning estimates, which are not an offer or approval.
How Lenders Evaluate a Southern Roost Deal
Personal credit and financial history. Lenders review your credit, tax returns and existing debts, and owners with a meaningful stake are typically asked for a personal guarantee.
Net worth and liquidity. Lenders want a documented equity injection and reserves left over after opening, especially on a ground-up build where costs can run over.
Industry and management experience. Quick-service, drive-thru or multi-unit restaurant management experience carries a lot of weight with a newer brand.
Business plan and projections. Build projections around drive-thru traffic, breakfast versus lunch and dinner sales, average check, poultry and oil costs, labor across a long operating day, and the ramp-up after opening.
The FDD and franchise agreement. Lenders review Item 17 for the term, renewal and transfer rules, Item 10 for any franchisor financing and Item 19 to see whether the FDD includes financial performance representations. Review Items 3 and 4 as well.
Site and real estate. Lenders look at traffic counts, access, visibility and stacking room for two drive-thru lanes. If you lease, the lease should generally run at least as long as the loan. If you own, expect an appraisal and environmental review.
Building a Dual Drive-Thru Restaurant
The dual drive-thru format is what most shapes a Southern Roost franchise loan. Two ordering lanes need more land, paving and stacking space than a single lane, and the kitchen must keep both lanes moving at breakfast and lunch. Construction loans are usually paid out in draws as work is inspected, so lenders like to see a contingency line and a contractor with restaurant experience.
Separating some of the kitchen package into an equipment loan or lease can preserve cash for opening, but make sure any separate financing fits the lien position your main lender requires.
Multi-Unit Growth and Development Agreements
Once a first restaurant shows steady results, lenders can count its cash flow when sizing the loan for the next one. A development schedule should be paced to how quickly you can find sites, build and staff restaurants. Our page on multi-unit franchise financing explains how operators structure that growth.
Real-World Scenarios
A restaurant manager opening a first unit. A general manager with years in quick service leases a pad site and uses an SBA 7(a) loan for construction, equipment and working capital, keeping a reserve for the first slow months.
An investor building on owned land. An owner-operator buys a corner lot and builds a dual drive-thru restaurant with an SBA 504 loan, financing the kitchen package separately. Because the property secures the loan, the lease assignment document in the SBA note is not used.
Common Mistakes to Avoid
- Assuming Item 7 includes land and building costs when it may assume a leased site
- Underestimating site work, paving and permitting for a dual drive-thru
- Leaving out a construction contingency
- Ignoring poultry and oil price swings in projections
- Signing a lease shorter than the loan term
- Skipping Items 3, 4 and 17 of the FDD
Before you apply, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Southern Roost Franchise
Step 1: Get the current FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm the franchisor’s requirements. Ask about candidate criteria, development expectations and site approval.
Step 3: Organize your finances. Prepare a personal financial statement and document your equity and reserves.
Step 4: Choose a site and structure. Decide whether you will lease, ground lease or buy, since that determines the loan program.
Step 5: Build your plan. Gather construction bids and equipment quotes and prepare monthly projections.
Step 6: Apply and close. Submit your loan package and coordinate timing with the franchisor, contractor and landlord or seller.
Southern Roost Franchise Loan FAQs
How much does a Southern Roost franchise cost?
Item 7 of the current FDD shows the estimated initial investment, which depends heavily on whether you lease a site or buy land and build.
What is the Southern Roost franchise fee?
Item 5 of the FDD lists the initial franchise fee and any reduced fee for additional restaurants.
What royalty does Southern Roost charge?
Item 6 lists the royalty, marketing fund contribution and other recurring fees.
Can I get an SBA loan for a Southern Roost?
Yes, eligible borrowers can apply. The brand is listed on the SBA Franchise Directory under code S8971, and every loan is subject to approval.
What does the SBA directory note mean for me?
If the restaurant’s real estate secures your SBA loan, the franchisor’s lease assignment and landlord consent document may not be signed. If you lease your site, it generally does not affect you.
Can a first-time owner get a Southern Roost franchise loan?
Yes, if approved. Restaurant management experience, a solid plan and reserves make the request stronger.
Can I open more than one Southern Roost?
Ask the franchisor about development agreements. Lenders usually finance later units once the first shows steady results.
What documents do I need for a Southern Roost franchise loan?
Plan on the FDD, franchise agreement, lease or purchase contract, construction bids, equipment quotes, tax returns, a personal financial statement and projections.
Does Southern Roost offer financing?
Item 10 of the FDD discloses whether the franchisor offers any financing.
How long is the franchise term?
Item 17 of the FDD lists the term, renewal rights and transfer conditions.
Final Thoughts
A Southern Roost franchise loan funds a drive-thru chicken restaurant from a young brand moving out of its southeast Georgia home market. Owners who confirm the FDD figures, choose the right real estate structure, plan for construction risk and keep healthy reserves give themselves the best chance at a smooth opening.
US Professional Funding helps franchise owners finance start-ups, acquisitions, real estate, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
