How to Finance a Spad’s Twisters Franchise: Soft Serve Stands
By Anthony Cornella
A Spad’s Twisters franchise loan has to fit a business that looks simple from the sidewalk: a soft serve stand with order windows, a menu board and a line on a warm evening. Behind the window sit a build-out, a bank of frozen dessert machines and a cash cycle that rises and falls with the weather, and each shapes how a lender sizes the deal.
This article covers what is publicly known about the concept, which costs to document from the franchise disclosure document (FDD), what the brand’s SBA Franchise Directory listing means, and how buyers of new and existing stands typically assemble financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Spad’s Twisters; 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 disclosure document and franchise agreement with a qualified franchise attorney and accountant.
Spad’s Twisters Franchise Loan at a Glance
- Concept: a Michigan soft serve ice cream brand built around walk-up stands with order windows, outdoor seating and, at some sites, a drive-thru lane.
- Franchisor: the brand’s trademarks are held by Spad’s Twisters Soft-Serve Ice Cream, Inc.
- Fees and investment: no current franchise fee, royalty, ad fund or total investment could be verified from franchisor materials; confirm them in Items 5, 6 and 7 of the current FDD.
- SBA Franchise Directory: listed as Spad’s Twisters Soft-Serve Ice Cream under codes S8655 and S8667, with notes on lease assignments, lien position and real estate purchase options.
- Main financing needs: site work or build-out, soft serve and slush equipment, opening inventory and a working capital cushion for slower months.
What Is Spad’s Twisters?
Spad’s Twisters is a soft serve ice cream concept with Michigan roots. The business grew from a family-owned ice cream shop into a group of Twisters soft serve stands and later began offering franchises to independent owners.
The menu. Vanilla and flavored soft serve in cones and cups anchors the menu, alongside blended treats. Franchised stands have offered Flurry-style blends with candy or cookie dough, Glacier drinks that combine a slush with soft serve, flavor-drizzled cones and a short list of snacks such as hot dogs and soft pretzels.
The building. Stands are small buildings designed for walk-up service. One franchised stand, for example, operates with two order and pickup windows, a drive-thru lane, a small patio and shaded picnic tables. Visibility and parking matter.
Why lenders view it the way they do. Lenders see a narrow menu and simple operations, but also an emerging regional brand with limited public data, reliance on warm-weather traffic and equipment that makes up a large share of the budget. A strong site, a realistic seasonal forecast and solid personal liquidity carry much of the weight in an approval.
Spad’s Twisters Franchise Costs
Because no current fee schedule or Item 7 table could be verified from the franchisor’s own materials, treat the items below as categories to confirm, not numbers to plan around. Lenders expect your budget to follow the Item 7 table line by line.
Initial franchise fee. Item 5 states the fee, when it is due and whether any part is refundable. Ask whether a reduced fee applies to a second stand.
Real estate, site work and build-out. A stand may be a ground-up building, a converted small restaurant or a strip-center space with a walk-up window. Budget for plumbing for machines and sinks, electrical service sized for several freezers, service windows, paving and outdoor seating.
Equipment. Soft serve machines are the core, supported by slush machines, freezers, topping stations, refrigeration, a point-of-sale system and, where hot food is sold, a small cooking line.
Opening costs and working capital. Opening inventory of mix, cones, cups and toppings, training travel, grand opening marketing, permits, insurance and an operating reserve.
Total investment. Item 7 lists each category with a low and high estimate. Typical categories for a stand like this include:
- Initial franchise fee
- Lease deposits or land costs
- Construction and leasehold improvements
- Soft serve, slush and freezer equipment
- Signage, menu boards and outdoor seating
- Point-of-sale system and technology
- Opening inventory, licenses, permits and insurance
- Additional funds for the initial operating period
Lenders compare your budget with the high estimate, not the low one, and want contingency for site surprises.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. Item 6 lists the royalty, any brand fund contribution, local marketing requirements, technology fees, transfer fees and renewal fees. Fees tied to gross sales come out of every dollar before rent, labor and loan payments.
Required purchases. Item 8 explains whether mix, cones or branded packaging must come from approved suppliers, which affects food cost assumptions.
How lenders factor these costs in. A lender subtracts royalties, marketing fees, rent, labor and food costs from projected sales. For a seasonal business, it typically looks at the full year and then tests whether the owner can carry payments through the slowest months.
Franchisor Requirements for New Owners
No minimum net worth or liquid capital requirement could be verified from Spad’s Twisters’ own materials, so ask the franchisor for its current standards. Expect it to look at:
- Available cash for the down payment and reserves
- Food service, retail or management experience
- Willingness to work in the business during the busy season
- A proposed site that meets the brand’s standards
- Completion of the franchisor’s training before opening
The usual path runs from inquiry and FDD review to franchisor approval, signing, site approval and construction. Lenders will want the franchise agreement and the site approval before closing.
Ways to Own a Spad’s Twisters
A new stand. A new location is financed on projections alone, so lenders lean on the buyer’s liquidity, experience and the site. Our page on franchise start-up financing covers how new-unit deals are structured.
Buying an existing stand. A resale brings sales history, an existing lease and equipment in place. Lenders can underwrite tax returns and sales reports but will check machine age and the remaining lease term. Read more about buying a franchise resale.
Financing Options for a Spad’s Twisters Franchise Loan
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, buyers can pursue an SBA 7(a) loan for the fee, build-out, equipment, working capital or an existing stand, combined in one loan.
SBA 504 loans. If the buyer will own the land and building, an SBA 504 loan can finance the real estate and long-lived equipment. A free-standing stand on its own parcel is the natural fit.
Conventional term loans. Buyers with strong credit and experience may use a conventional business loan, especially for a second stand or a resale with solid history.
Equipment financing. Soft serve machines, slush machines, freezers and point-of-sale systems can be financed separately to preserve cash. See restaurant equipment financing and leasing.
Working capital and lines of credit. A frozen dessert stand often earns most of its revenue in warm months while rent, insurance and loan payments continue all year. A line of credit or reserve can bridge the off-season and fund spring inventory. Learn about restaurant working capital.
Seller financing on resales. A seller may carry part of the price on an existing stand. A seller note is typically subordinate to the senior lender, and SBA and conventional programs may limit how it is structured.
SBA Loans for Spad’s Twisters Franchisees
SBA lenders generally require a brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to its franchisees. A listing does not approve any borrower; it clears the franchise relationship for SBA review.
The listing. Spad’s Twisters appears as Spad’s Twisters Soft-Serve Ice Cream under codes S8655 and S8667. Give both codes to your lender so it can match your documents with the right entry.
What the directory notes mean in plain English:
- Lease assignment: when the real estate where the stand operates secures the SBA loan, the franchisor’s Conditional Assignment and Assumption of Lease document may not be executed.
- Lien position: the lender must obtain the correct lien position on all collateral under SBA rules.
- Purchase option: the franchisor will not enforce a purchase option on real estate owned by the franchisee or its affiliate, which protects an owner who pledges the property.
These notes matter most to buyers who own their real estate. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our SBA loan calculator can help with early payment estimates, which are for planning only.
How Lenders Evaluate a Spad’s Twisters Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require personal guarantees.
Net worth and liquidity. Reserves after opening matter as much as the down payment, because a seasonal business must cover slow months.
Industry and management experience. Food service, retail or hiring experience helps, since stands rely on part-time crews in peak season.
Business plan and projections. Build projections month by month, with stronger warm-weather sales, a realistic off-season and line items for food and paper, labor, royalties, rent and machine maintenance.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 10, 17 and 19, plus Items 3 and 4 for any litigation or bankruptcy disclosures. See how lenders read a Franchise Disclosure Document.
Site, lease or real estate. Visibility, parking, room for a line and drive-thru stacking affect sales. Lenders want a lease term that at least matches the loan term, or an owned parcel with clean title.
Historical financials for resales. Expect to provide several years of tax returns and monthly sales reports that show the seasonal pattern.
Equipment and Seasonality
Soft serve machines run long hours in peak season, and a breakdown on a hot weekend can cost a meaningful share of a month’s sales. Plan for service contracts, spare parts and eventual replacement of:
- Soft serve freezers, often several to keep lines moving
- Slush machines for blended drinks
- Freezers and refrigeration for mix and toppings
- Hot food equipment if the stand sells hot dogs or pretzels
- Point-of-sale and drive-thru communication equipment
Some walk-up stands in cold climates shorten hours or close for part of the year, so a reserve and a loan structure that respects seasonal cash flow make the slow stretch easier.
Multi-Unit Growth
A second Spad’s Twisters franchise loan is often easier than the first because the owner has history. Lenders check the first stand’s results and combined debt. Ask whether Spad’s Twisters offers development agreements and reduced fees for added units, and read about multi-unit franchise financing.
Real-World Scenarios
A first-time owner opening a stand. A buyer with retail management experience leases a corner parcel near a park, uses an SBA 7(a) loan for the fee, equipment and working capital, and keeps a reserve for the first winter.
A couple buying an existing stand. The lender reviews several years of monthly sales and each machine’s age, and the buyers set aside funds to replace an older soft serve freezer after closing.
An owner buying the real estate. An investor buys the land and building with an SBA 504 loan and finances equipment separately. The directory notes on lease assignments and purchase options become important because the property is pledged.
Common Mistakes to Avoid
- Building projections on peak-season sales and ignoring the off-season
- Underestimating electrical, plumbing and site work
- Skipping service contracts for soft serve machines
- Signing a lease before the franchisor and lender approve the site
- Leaving no reserve for spring inventory and hiring
For more pitfalls in food service, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Spad’s Twisters Franchise
Step 1: Request the current FDD. Read Items 5, 6, 7 and 19 for costs and any performance information, and Items 3 and 4 for disclosure history.
Step 2: Confirm the franchisor’s requirements. Ask about liquidity, experience and territory rules.
Step 3: Find a site. Study visibility, traffic and parking, and get the franchisor’s site approval.
Step 4: Build a seasonal budget. Use Item 7 high estimates, contractor and equipment quotes and a monthly cash flow forecast.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504, conventional and equipment financing.
Step 6: Apply and close. Submit your package with the FDD, agreement, site documents and projections, and align closing with construction and franchisor approval.
Spad’s Twisters Franchise Loan FAQs
How much does a Spad’s Twisters franchise cost?
We could not verify a current total from the franchisor’s own materials. The Item 7 table in the current FDD lists each startup cost, and lenders use it to review your budget.
What is the franchise fee and royalty?
The initial fee is disclosed in Item 5 and recurring fees in Item 6. Build both into your projections before sizing a loan.
Is Spad’s Twisters eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under codes S8655 and S8667, so SBA lenders can consider loans to its franchisees, subject to normal underwriting.
What do the SBA directory notes mean?
The franchisor’s lease assignment document may not be executed when the real estate secures the SBA loan, the lender must hold the correct lien position, and the franchisor will not enforce a purchase option on real estate the franchisee or its affiliate owns.
Can I finance the equipment separately?
Often, yes. Soft serve machines, freezers and point-of-sale systems can be financed or leased on their own.
Can I buy an existing stand?
Existing stands may come up for sale, and the franchisor must generally approve the transfer under Item 17. A resale lets a lender underwrite actual sales.
Can a first-time owner qualify?
Yes, with franchisor approval, adequate liquidity and a realistic plan. Food service or management experience helps.
Does Spad’s Twisters offer financing?
Check Item 10 of the FDD for any financing the franchisor offers or arranges. Most buyers arrange their own loans.
How long is the franchise term?
The term, renewal and transfer conditions are in Item 17. Lenders prefer a term that runs beyond the loan maturity.
What documents will a lender ask for?
Tax returns, a personal financial statement, the FDD, a lease, quotes and monthly projections.
Final Thoughts
Spad’s Twisters offers a simple menu and a compact stand, but financing still rests on a good site, dependable equipment and a plan for the seasons. Buyers who start with the FDD, budget to the high end of Item 7 and use the brand’s directory listing put a Spad’s Twisters franchise loan on solid footing.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
