How to Finance a Steak Escape Franchise: Cheesesteak Grills
By Marc Cornella
A Steak Escape franchise loan finances a made-to-order sandwich grill built around cheesesteaks, grilled subs and fresh-cut fries. The brand has been cooking in front of guests since 1982, but its franchise fees and investment figures are not posted publicly, and it is not on the SBA Franchise Directory, so buyers need a clear plan for both due diligence and financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Steak Escape; 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, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Steak Escape Franchise Loan at a Glance
- Concept: a sandwich grill serving grilled cheesesteaks, subs, loaded fries and bowls, with pickup, delivery and online ordering.
- Founded: 1982 in Columbus, Ohio, by Ken Smith and Mark Turner.
- Franchisor: Escape Enterprises Ltd., based in Columbus, Ohio.
- Franchise fee, royalty and investment: not published on the company’s website; disclosed in the FDD.
- How to inquire: the company’s franchising page invites prospects to send a short inquiry naming their market of interest.
- SBA Franchise Directory: not listed, so conventional financing is the main route unless that changes.
What Is Steak Escape?
Steak Escape opened in 1982 in Columbus, Ohio. According to the company, founders Ken Smith and Mark Turner were cheesesteak enthusiasts, and their first location was about 209 square feet. The brand later expanded well beyond Ohio and, in the company’s words, reworked its business model to offer a more customer-focused dining experience.
The menu and kitchen. The company says staff chop and slice vegetables every morning, Italian rolls are baked fresh, fries are cut fresh twice daily from whole Idaho potatoes, steak is 100% USDA Choice and chicken is all-white meat with no added hormones. Many guests know the brand from shopping-mall food courts, and its current locations include restaurants in Ohio and West Virginia. The company notes that menu items vary by location.
Why lenders view it the way they do. A long operating history and a simple, grill-centered menu are positives. But with limited public franchise data and no SBA directory listing, lenders will rely heavily on the FDD, the specific site and the buyer’s own restaurant experience.
Steak Escape Franchise Costs
Steak Escape does not publish its initial franchise fee or estimated initial investment on its website. Those figures appear in Items 5 and 7 of the FDD. Request the current FDD early and build your budget from its tables.
Initial franchise fee. Item 5 shows the fee, when it is paid and whether any part is refundable. Lenders usually expect the fee to come from the buyer’s own equity.
Real estate and build-out. Costs depend on the format. A small food-court counter, an in-line strip-center unit and a freestanding restaurant have very different build-out needs. Leasehold improvements, plumbing, electrical, ventilation and fire suppression over the grill line are often the largest items. Read more about restaurant build-out financing.
Equipment. The kitchen centers on flat-top grills, fryers for fresh-cut fries, refrigeration, prep tables, a bread or holding station and point-of-sale and online ordering technology.
Opening costs and working capital. Opening inventory, training, grand-opening marketing, deposits and several months of operating funds belong in the budget.
Total investment. Item 7 of the FDD totals these costs. Look for these line items and their ranges:
- Initial franchise fee
- Leasehold improvements and construction
- Kitchen equipment, furniture and smallwares
- Signage and decor
- Point-of-sale and technology
- Opening inventory and supplies
- Training, travel and grand-opening marketing
- Rent and utility deposits, insurance and licenses
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any advertising or marketing fund contribution, technology fees, transfer and renewal fees, and other recurring charges. None are posted on the company’s website.
How lenders factor them in. Royalty and marketing fees are usually a percentage of sales, so they come off the top before rent, food, labor and debt service. Lenders build projections that subtract every fee, then test whether cash flow still covers loan payments with room to spare. In a mall or high-rent location, rent and any percentage rent in the lease matter just as much.
Franchisor Requirements for New Owners
Steak Escape does not publish minimum net worth, liquidity or experience requirements on its website. Its franchising page asks for a name, contact details and market of interest. Expect the franchisor to evaluate:
- Restaurant or multi-unit management experience
- Available cash and overall net worth
- The proposed market and site type
- Your plan for day-to-day operation
The approval process. Submit an inquiry, talk with the franchise team, receive and review the FDD, and complete approval steps before signing. Lenders will want to see franchisor approval and site acceptance before closing.
Ways to Own a Steak Escape
A new restaurant. A new unit requires a lease, build-out, equipment and opening capital. Lenders underwrite projections, the site and the owner’s experience. See our restaurant start-up financing options.
Buying an existing restaurant. Buying an operating Steak Escape lets a lender review actual sales and expenses, and the franchisor must approve the transfer. Our article on buying a franchise resale explains the transfer process.
Multiple restaurants. An owner who wants several units in a market should ask whether the franchisor offers development rights and what schedule applies.
Financing Options for a Steak Escape Franchise
Conventional term loans. Because the brand is not on the SBA Franchise Directory, a conventional business loan is usually the primary tool. Lenders size the loan to projected or actual cash flow, typically secured by business assets and a personal guaranty. Terms vary by lender.
SBA 7(a) loans. The SBA 7(a) program is widely used for franchise purchases, but SBA lenders generally require the brand to appear on the directory first. See the SBA section below.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived equipment. Most sandwich grills lease their space, so 504 rarely fits unless the owner buys the building, and the directory requirement applies here too.
Equipment financing. Grills, fryers, refrigeration, hoods and ordering technology can often be financed separately, preserving cash for build-out and working capital. Learn about restaurant equipment financing and leasing.
Working capital and lines of credit. A reserve covers payroll, food costs and rent while sales build. Mall locations can see sales swings around holidays and back-to-school season. See our restaurant working capital options.
Seller financing on resales. On the purchase of an existing restaurant, the seller may carry part of the price. A seller note must be acceptable to the senior lender and is typically subordinate to it.
SBA Loans for Steak Escape Franchisees
SBA lending for franchises runs through the SBA Franchise Directory, a list of brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to be listed before they make an SBA-backed loan to one of its franchisees.
Steak Escape is not on the SBA Franchise Directory. In plain terms, SBA 7(a) and 504 loans are generally not available for a Steak Escape franchise as things stand, and buyers should plan on conventional financing. The absence of a listing is not a judgment about the brand’s quality; a franchisor has to submit its documents for review to be added.
What you can do. Ask the franchise team whether it plans to seek a listing, and confirm current status with your lender when you apply. If the brand is added, the SBA 7(a) program maximum is currently $5 million, though program rules can change.
How Lenders Evaluate a Steak Escape Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guaranty.
Net worth and liquidity. Conventional lenders usually expect a meaningful cash injection and reserves left over after closing.
Restaurant experience. Prior quick-service management, especially grill-line operations, strengthens a request.
Business plan and projections. Build projections around the specific site: mall traffic, office lunch crowds or drive-by visibility; food and paper costs for a steak-and-cheese menu; labor for fresh prep each morning; delivery and online ordering; and every fee from Item 6.
The FDD and franchise agreement. Lenders review the term, renewal, transfer and termination provisions in Item 17, any franchisor financing in Item 10 and the franchisor’s financial statements in Item 21. Item 19 shows whether the FDD includes financial performance representations. Review Items 3 and 4 with your attorney. Our article on how lenders read a Franchise Disclosure Document explains what matters most.
The lease. Lenders review rent, term, renewal options and any percentage rent. Mall leases may also carry shared-area charges and operating-hour requirements.
Historical financials for existing restaurants. Expect several years of profit and loss statements and sales reports, compared with tax returns.
The Grill Line: Equipment That Drives the Budget
Everything at Steak Escape is cooked to order on the grill in view of the guest. That makes the hood, fire suppression and flat-top grills the heart of the build-out. Fresh-cut fries mean potato cutting equipment and fryers sized for peak lunch volume. Refrigeration must hold sliced steak, chicken and fresh vegetables, and bread storage matters with fresh-baked rolls.
When buying an existing unit, ask for the age and service history of the grill, fryers, hood and refrigeration. Replacing a hood system or walk-in cooler soon after closing can strain working capital, so negotiate repairs or price accordingly.
Multi-Unit Growth and Development
Once a first restaurant has a track record, lenders can underwrite its cash flow alongside a second unit. Owners usually finance each restaurant separately, and lenders look at combined performance and remaining liquidity. Ask the franchisor about territory protection, development schedules and whether a second unit can share a commissary or management team.
Real-World Scenarios
A first-time owner opening in a strip center. A former restaurant manager signs for a new in-line unit. With no SBA option, the buyer pairs a conventional term loan with equipment financing and keeps a working capital reserve.
An operator buying an existing mall unit. A buyer acquires a long-running food-court location. The lender reviews several years of sales, the remaining mall lease and the condition of the grill line.
A multi-brand operator adding a cheesesteak concept. An owner with other quick-service restaurants adds a Steak Escape. The lender relies on the operator’s global cash flow and experience.
Common Mistakes to Avoid
- Assuming an SBA loan is available for a brand not on the SBA Franchise Directory
- Budgeting before receiving the FDD and its Item 7 table
- Underestimating hood, ventilation and fire suppression costs
- Ignoring percentage rent and shared-area charges in mall leases
- Skipping equipment inspections on an existing restaurant
- Leaving too little working capital for the first months
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Steak Escape Franchise
Step 1: Submit an inquiry. Contact the franchise team through the company’s franchising page and name your market.
Step 2: Review the FDD. Study Items 5, 6, 7, 10, 17, 19 and 21 with a franchise attorney and accountant.
Step 3: Choose a site or existing unit. Compare mall, strip-center and freestanding options, or evaluate a restaurant for sale.
Step 4: Build your budget. Use Item 7 to create a sources-and-uses statement. Our conventional loan calculator can help with early payment estimates, which are for planning only and not an offer or approval.
Step 5: Talk with a financing specialist. Discuss conventional, equipment and working capital options for your Steak Escape franchise loan.
Step 6: Apply and coordinate approvals. Submit your financials, projections, lease and franchise documents, and align the lender’s timeline with franchisor approval.
Step 7: Close and open. Fund equipment, complete the build-out and keep reserves for the opening months.
Steak Escape Franchise Loan FAQs
How much does it cost to open a Steak Escape?
The company does not publish its total investment online. Item 7 of the FDD gives the estimated range, which varies with format, size and location.
What is the Steak Escape franchise fee?
The initial franchise fee is disclosed in Item 5 of the FDD and is not posted on the company’s website.
What royalty does Steak Escape charge?
Royalty, marketing and other ongoing fees appear in Item 6 of the FDD.
Can I get an SBA loan for a Steak Escape?
Not as things stand. Steak Escape is not listed on the SBA Franchise Directory, and SBA lenders generally require a listing. Most buyers use a conventional Steak Escape franchise loan instead.
Does Steak Escape offer financing?
Review Item 10 of the FDD to see whether the franchisor offers any financing. Most buyers arrange their own loans.
How much cash do I need?
The company does not publish a liquid capital or net worth minimum. Conventional lenders typically expect a meaningful cash injection plus reserves.
Can I finance kitchen equipment separately?
Often, yes. Grills, fryers, refrigeration and hoods can sometimes be financed apart from the main loan, subject to approval.
Can I buy an existing Steak Escape?
Yes, if a franchisee is selling and the franchisor approves the transfer. Lenders prefer existing units because they can review actual results.
Can a first-time owner get a Steak Escape franchise loan?
It is possible, especially with restaurant management experience, solid credit and enough cash for the injection and reserves.
How long is the franchise term?
Item 17 of the FDD lists the term, renewal rights and transfer conditions.
Final Thoughts
Steak Escape offers a long-running cheesesteak concept with a simple grill-line kitchen. Because it is not on the SBA Franchise Directory and its figures live in the FDD, buyers who get the disclosure document early, choose the right format and build a conventional financing plan will be in the best position.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and refinancing. Learn more about our franchise financing and restaurant financing solutions.
