How to Finance a Steve’s Prince of Steaks Franchise: Cheesesteaks
By Anthony Cornella
A Steve’s Prince of Steaks franchise loan finances a compact cheesesteak shop built around a flat-top grill, a counter and one signature sandwich. The brand appears on the SBA Franchise Directory, so buyers can weigh SBA-backed loans alongside conventional options, but public detail on its fees and costs is thin, which makes the current disclosure document the source for every number in your plan.
US Professional Funding is not affiliated with, sponsored by or endorsed by Steve’s Prince of Steaks; 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; review the disclosure document and franchise agreement with a franchise attorney and an accountant.
Steve’s Prince of Steaks Franchise Loan at a Glance
- Concept: a Philadelphia cheesesteak shop known for steak grilled rather than chopped and topped with melted American cheese.
- Origin: the company says founder Steve Iliescu opened the first shop on Bustleton Avenue in Northeast Philadelphia in 1980.
- Format: counter-service shops with a grill line serving lunch, dinner and late-night traffic.
- Fee, royalty and investment range: not published in materials we could verify; get them from Items 5, 6 and 7 of the current disclosure document.
- SBA Franchise Directory: listed under code S9012, with notes on lease and real estate collateral explained below.
What Is Steve’s Prince of Steaks?
Steve’s Prince of Steaks is a family-run cheesesteak brand from Northeast Philadelphia. According to the company, Steve Iliescu opened the original Bustleton Avenue shop in 1980, and the family has since added shops in Philadelphia, Bucks County and at the Jersey Shore.
The menu is narrow by design: an unchopped steak sandwich finished with melted American cheese, a short list of sides and drinks, and a fast assembly line. One main cooking station and a limited ingredient list keep the kitchen simple.
How lenders see it. A focused menu and a recognizable regional name make sales assumptions easier to explain and equipment needs predictable. Because the system is small, lenders cannot lean on a long franchise track record, so they weigh the buyer’s restaurant experience, the site, and Items 20 and 21 of the disclosure document, which show outlet counts and the franchisor’s financial statements.
Steve’s Prince of Steaks Franchise Costs
We could not verify the franchise fee or the Item 7 investment range from the franchisor’s own published materials, so this section explains what to check in the cost table rather than repeating unverified numbers.
Initial franchise fee. Item 5 states the fee, when it is due and whether any reduction applies to additional shops. Lenders treat it as an intangible cost covered by equity or an SBA loan, not equipment financing.
Real estate and build-out. Most cheesesteak shops lease a storefront. The biggest build-out items are usually the hood, fire suppression and make-up air over the grill, grease management, plumbing, electrical upgrades, counters and seating. Second-generation restaurant space can cut these costs sharply. Our page on financing a restaurant build-out explains how lenders review construction budgets.
Equipment. Expect flat-top griddles, refrigerated prep tables, walk-in and reach-in refrigeration, a slicer, fryers if the menu calls for them, beverage equipment, point-of-sale hardware and signage. Grill capacity sets how many sandwiches the shop can serve at peak, so it is the one place not to economize.
Opening costs and working capital. Plan for opening inventory of meat, cheese, rolls and packaging, pre-opening payroll, licenses, insurance, deposits, grand opening marketing and a reserve for the first months.
Total investment. Item 7 gives a low and high estimate. Confirm it covers:
- Franchise fee, lease deposits and pre-opening rent
- Leasehold improvements, hood and grease management
- Kitchen equipment, smallwares, furniture and signage
- Opening inventory, training and pre-opening wages
- Licenses, professional fees and insurance
- Additional funds for the initial operating period
If your quotes run above the Item 7 range, build the loan request on your numbers. Our overview of restaurant start-up financing shows how a new-unit budget is typically structured.
Ongoing Fees and How They Affect Your Loan
Item 6 lists recurring fees, which for a restaurant franchise commonly include a royalty on gross sales, an advertising or brand fund contribution, technology fees, and transfer and renewal fees.
Because royalties and fund contributions come off the top of sales, a lender sizing a Steve’s Prince of Steaks franchise loan deducts every Item 6 fee before rent, food, labor and debt payments, then tests whether what remains covers the loan with room to spare.
Beef and cheese are the largest ingredient costs, and their prices move. A projection that holds food cost flat for years will not persuade a lender, so show the effect of rising costs and how pricing could respond. Also check the franchise agreement for required remodels or technology upgrades during the term.
Franchisor Requirements for New Owners
We did not find published net worth, liquidity or experience requirements. Ask the franchisor what it expects. In practice, plan to show food-service management experience, enough cash for the equity portion plus reserves, and willingness to work in the shop through opening. A family-run franchisor is likely to run a hands-on approval process, and the lender’s review should move in parallel with it.
Ways to Own a Steve’s Prince of Steaks
A new shop. You secure a site, sign a lease, build out and equip. Lenders underwrite projections and your background, so the business plan carries the most weight.
An existing franchised shop. If one becomes available, you buy the equipment, lease rights and goodwill, subject to franchisor approval of the transfer under Item 17. Historical sales give the lender something concrete to underwrite. Read more about financing a franchise restaurant acquisition.
A conversion. An independent sandwich or grill operator can ask whether a conversion is allowed. Lenders review the old sales history alongside the conversion budget.
Financing Options for a Steve’s Prince of Steaks Franchise
SBA 7(a) loans. With the brand on the directory, an SBA 7(a) loan can cover the franchise fee, build-out, equipment, working capital or the purchase of an existing shop. Its flexibility with intangible costs suits a concept where much of the budget goes into leasehold improvements.
SBA 504 loans. An SBA 504 loan fits when you buy or build the building the shop will occupy, or buy major long-life equipment. Most shops lease, so 504 applies only to owner-occupied real estate projects.
Conventional term loans. Buyers with strong liquidity and restaurant experience may qualify for a conventional business loan, especially for a second shop once the first has results.
Equipment financing. Griddles, refrigeration, hoods and point-of-sale systems can be financed with the equipment as collateral, preserving cash for construction. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Meat, cheese and rolls are bought weekly, and a shop near a campus or the shore will see sharp swings in sales. A line of credit can bridge slow stretches and cover pre-opening payroll. Learn more about restaurant working capital.
Seller financing on resales. A seller may carry part of the price. A seller note is typically subordinate to the senior loan, and SBA rules can limit how it is structured and whether it counts toward your equity.
SBA Loans for Steve’s Prince of Steaks Franchisees
SBA lenders use the SBA Franchise Directory to confirm a brand’s franchise agreement has been reviewed for eligibility. Steve’s Prince of Steaks is listed under code S9012. The listing does not approve any borrower; it means the franchise relationship itself does not block an SBA-guaranteed loan.
What the directory notes mean. The listing carries three notes:
- When the real estate where the shop operates secures the SBA loan, the franchisor’s Collateral Assignment and Assumption of Lease may not be executed. The franchisor’s standard right to step into the lease cannot be used when the property itself is pledged.
- The franchisor may not file a deed or mortgage on real estate owned by the franchisee or an affiliate and taken as collateral for the SBA loan.
- The lender must obtain the correct lien position on all collateral, as SBA rules require.
For a typical leased shop, these notes matter mainly if you also pledge real estate, such as a building you own. Your lender and attorney will check that the franchise documents line up with them.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. A single shop usually needs far less, but the cap matters for multi-unit plans.
Application tips. Gather the disclosure document, franchise agreement, lease proposal, contractor and equipment quotes, personal financial statement, tax returns, a résumé and a monthly projection. Our SBA loan calculator can help with early payment estimates, which are for planning only.
How Lenders Evaluate a Steve’s Prince of Steaks Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee from each significant owner.
Net worth and liquidity. Lenders want to see the equity injection made with reserves left over. Our article on how much franchise you can afford walks through that math.
Experience. Grill-line shops depend on speed during rushes and tight control of food and labor costs, so quick-service management experience matters.
Business plan and projections. Build sales around the site’s real traffic: weekday lunch, late night, delivery, catering and any seasonal effect. Show every Item 6 fee and a downside case.
The disclosure document. Lenders review the franchise term, renewal and transfer terms in Item 17, any franchisor financing in Item 10 and outlet data in Item 20. Review Items 3 and 4 as part of your own due diligence, and check Item 19 to see whether the franchisor makes financial performance representations. Learn more about how lenders read a franchise disclosure document.
Site and lease. The lease should run at least as long as the loan, and the space must support a hood and grease management.
Resale financials. For an existing shop, expect to provide several years of tax returns, profit and loss statements and sales reports.
Multi-Unit Growth and Development Agreements
If the franchisor offers development rights, the agreement will set an opening schedule for a defined area. Compare it with how fast you can raise equity, find sites and hire managers. Financing usually happens one shop at a time; once the first unit has a track record, lenders underwrite its cash flow alongside the next project.
Real-World Scenarios
A former manager opening a first shop. A buyer with quick-service experience leases a second-generation sandwich space with an existing hood, uses an SBA 7(a) loan for the fee, build-out and working capital, and finances griddles and refrigeration separately.
A shore-town shop. A buyer targets a site driven by summer visitors. The lender asks for a monthly projection showing off-season coverage, and the buyer adds a working capital line.
A buyer pledging a building. A buyer purchases a small commercial building for the shop and pledges it. The lender confirms the franchisor will not use its lease assignment or file a mortgage on the property, consistent with the directory notes.
Common Mistakes to Avoid
- Budgeting from rough estimates instead of the current Item 7 table and real quotes
- Underestimating the hood, fire suppression and grease management
- Ignoring the SBA directory notes when real estate will be pledged
- Projecting flat beef and cheese costs
- Assuming steady year-round sales at a seasonal or campus site
- Signing a lease shorter than the loan term
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Steve’s Prince of Steaks Franchise
Step 1: Request the current disclosure document. Confirm fees, the investment range and territory rules.
Step 2: Review it with advisors. Go through Items 5, 6, 7, 17, 19, 20 and 21 with a franchise attorney and accountant.
Step 3: Set your equity budget. Decide how much cash you can inject while keeping reserves.
Step 4: Find a site. Check traffic, ventilation feasibility and lease terms.
Step 5: Talk with a financing specialist. Compare SBA 7(a), conventional and equipment financing for your Steve’s Prince of Steaks franchise loan.
Step 6: Close and open. Coordinate closing with the lease, construction and training so the shop opens with working capital in place.
Steve’s Prince of Steaks Franchise Loan FAQs
How much does a Steve’s Prince of Steaks franchise cost?
It depends on the site, build-out and equipment. Item 7 of the current disclosure document gives the franchisor’s estimate; request it directly, because we could not verify published figures.
What are the franchise fee and royalty?
The fee is in Item 5 and the royalty and advertising contributions are in Item 6. Lenders deduct ongoing fees from projected sales before testing loan coverage.
Can I get an SBA loan for this franchise?
Yes. The brand is on the SBA Franchise Directory under code S9012, so qualified borrowers can apply for SBA financing, subject to lender approval.
What do the SBA directory notes mean?
They apply mainly when real estate secures the loan: the franchisor’s lease assignment may not be executed, it may not file a mortgage on the pledged property, and the lender must hold the proper lien position.
How much cash do I need?
We found no published minimum. Plan for the equity portion of the project plus several months of reserves, and ask the franchisor what it expects.
Can I finance equipment separately?
Yes. Griddles, refrigeration, hoods and point-of-sale systems can be financed with equipment loans or leases.
Can I buy an existing shop?
If a franchised shop is for sale, a Steve’s Prince of Steaks franchise loan through SBA 7(a) or a conventional lender can fund it, subject to franchisor approval of the transfer and a review of the shop’s financials.
Can a first-time owner qualify?
Yes, though lenders weigh restaurant experience heavily. A strong manager, extra reserves or an experienced partner can help.
Does the franchisor offer financing?
Check Item 10 of the disclosure document. Most buyers arrange outside loans.
How long is the franchise term?
The term and renewal rights are in Item 17 and the franchise agreement. Lenders prefer a remaining term well beyond the loan term.
Final Thoughts
Financing this brand starts with a simple kitchen, a strong regional name and an SBA directory listing that opens the door to SBA loans. The challenge is the information gap: get the current disclosure document, real quotes and a site-specific projection before asking a lender to size a Steve’s Prince of Steaks franchise loan.
US Professional Funding helps franchise buyers and owners finance new units, acquisitions, equipment and working capital. Learn more about our franchise business financing and restaurant financing solutions.
