How to Finance a Sticks Kebob Shop Franchise: Mediterranean Grill
By Chris Cornella
A Sticks Kebob Shop franchise loan funds a fast-casual Mediterranean restaurant where kebobs are grilled to order and sides are made from scratch. The brand is listed on the SBA Franchise Directory, which opens the door to SBA-backed financing, but because the franchisor’s fees and investment range were not available in materials we could verify, your plan should be built on the current disclosure document and real quotes for your site.
US Professional Funding is not affiliated with, sponsored by or endorsed by Sticks Kebob Shop; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so have a franchise attorney and accountant review the disclosure document and franchise agreement.
Sticks Kebob Shop Franchise Loan at a Glance
- Concept: fast-casual Mediterranean food built around grilled kebobs, served as platters, wraps and salads.
- Home market: founded in Charlottesville, Virginia, with shops in the Charlottesville and Richmond areas.
- Sales channels: dine-in, online carryout, catering, third-party delivery and events.
- Fee, royalty and investment range: not verified from franchisor materials; request Items 5, 6 and 7 of the current disclosure document.
- SBA Franchise Directory: listed as Sticks Kebob Shops under code S8550, with a lease rider note explained below.
What Is Sticks Kebob Shop?
Sticks Kebob Shop began in Charlottesville, Virginia, started by partners with fine-dining backgrounds who wanted to offer a fresh, affordable alternative to fast food. The menu centers on kebobs of chicken, beef sirloin, pork, shrimp, lamb, kibbeh and vegetables, cooked on a grill and paired with falafel, hummus, tabouleh, dipping sauces and fresh-squeezed limeade.
Guests order at a counter and choose a platter, a wrap or a salad, so the kitchen runs like an assembly line with a grill at its center. After years as a Virginia restaurant group, the company moved into franchising with an eye on East Coast growth.
How lenders see the concept. Fast-casual restaurants with a defined menu are familiar to restaurant lenders, and a health-focused Mediterranean positioning fits current dining habits. The brand is still young as a franchise system, though, so lenders will lean on the buyer’s own experience, the strength of the site and Items 20 and 21 of the disclosure document, which show how many franchised and company shops exist and how the franchisor is capitalized.
Sticks Kebob Shop Franchise Costs
We could not confirm the franchise fee, the Item 7 range or the line items from franchisor materials, so this section lays out what a fast-casual kebob shop typically needs and what to verify in the disclosure document.
Initial franchise fee. Item 5 states the amount, timing and refund terms, and any discount for additional shops. Because the fee buys rights rather than hard assets, it is usually paid from equity or folded into an SBA loan.
Real estate and build-out. Most shops lease space in strip centers or urban storefronts. A grill-driven kitchen needs a ventilation hood with fire suppression, grease management, prep sinks, walk-in refrigeration, electrical capacity and a dining room with counter service. Taking over a former restaurant can reduce construction, but expect to adapt the kitchen layout. Learn how lenders review construction budgets on our restaurant build-out financing page.
Equipment. A typical package includes char-broilers or grills, refrigerated prep and make lines, a walk-in cooler, food processors for hummus and sauces, a fryer for falafel, a juicer for limeade, hot holding, point-of-sale and online ordering hardware, and catering supplies.
Opening costs and working capital. Budget for produce, proteins and packaging, pre-opening labor and training, permits, insurance, deposits, launch marketing and enough cash to carry the shop until sales stabilize.
Total investment. Item 7 provides the franchisor’s low and high estimates. Check that it covers:
- The franchise fee, lease deposits and rent before opening
- Construction, hood and leasehold improvements
- Grills, refrigeration, prep equipment and furniture
- Signage, point-of-sale and online ordering technology
- Opening inventory and catering supplies
- Training, travel and pre-opening payroll
- Permits, professional fees and insurance
- Additional funds for the first months of operation
If contractor bids exceed the Item 7 high end, base your loan request on the bids. Our page on restaurant start-up loans explains how a new location budget comes together.
Ongoing Fees and How They Affect Your Loan
Item 6 of the disclosure document lists recurring payments, which in restaurant franchising commonly include a percentage royalty, a brand or marketing fund contribution, local advertising, technology fees, and transfer and renewal fees.
A lender evaluating a Sticks Kebob Shop franchise loan subtracts those fees from projected sales before measuring how much cash is left for rent, food, labor and debt service. Fees tied to sales rise as the shop grows, so model them at every sales level, not just the first year.
Fresh produce and proteins drive food cost in this concept, and prices for meat and seafood can swing. Show how your projection holds up if ingredient costs rise. Also read the franchise agreement for remodel, equipment upgrade or technology requirements during the term.
Franchisor Requirements for New Owners
We did not find published net worth, liquidity or experience minimums. Ask the franchisor for its candidate profile. Expect it to look for food-service or multi-site management experience, cash for the equity injection with reserves, a commitment to the brand’s scratch-made standards, and interest in developing more than one shop. A young franchise system often screens closely, and your lender’s review should run alongside the franchisor’s.
Ways to Own a Sticks Kebob Shop
A new shop. Most buyers in a growing system open a new location. That means site selection, a lease, construction and an equipment package, all underwritten on projections.
An existing shop. If a franchised or company shop becomes available, a buyer acquires an operating business with sales history, subject to franchisor approval under Item 17. Our article on buying a franchise resale covers the transfer process.
A conversion. An owner of an independent Mediterranean or grill restaurant can ask whether the franchisor allows conversions. Lenders will look at the existing sales and the conversion budget together.
Financing Options for a Sticks Kebob Shop Franchise
SBA 7(a) loans. With the brand on the SBA Franchise Directory, an SBA 7(a) loan can fund the franchise fee, construction, equipment, opening inventory and working capital in one package, or the purchase of an existing shop.
SBA 504 loans. When a buyer purchases or builds the property the shop will occupy, an SBA 504 loan can finance the real estate and long-life equipment. Most fast-casual shops lease, so 504 applies to a narrower set of deals.
Conventional term loans. Experienced operators with solid liquidity and collateral may qualify for a conventional business loan, particularly for later units once the first has a track record.
Equipment financing. Grills, walk-in coolers, fryers, food processors and ordering technology can be financed or leased with the equipment as collateral. Explore restaurant equipment financing and leasing.
Working capital and lines of credit. Produce and proteins are bought several times a week, catering orders can call for larger inventory purchases, and a shop near a university may slow during breaks. A line of credit helps manage those swings. See our restaurant working capital options.
Seller financing on resales. A seller may carry part of the purchase price. Such a note is typically subordinate to the senior loan, and SBA rules can limit its terms and whether it counts toward the buyer’s equity.
SBA Loans for Sticks Kebob Shop Franchisees
SBA lenders check the SBA Franchise Directory to confirm a brand’s franchise documents have been reviewed for eligibility. The brand is listed as Sticks Kebob Shops under code S8550. A listing does not approve any borrower; it means the franchise relationship can be financed through SBA programs if the borrower and project qualify.
The directory note. The listing says that when the real estate where the franchise operates will secure the SBA-guaranteed loan, the Rider to Lease may not be executed. In plain English, if the buyer owns the property and pledges it to the lender, the franchisor’s standard lease rider, which normally gives the franchisor rights in the lease, should not be signed. For a buyer who leases from a landlord, the note generally does not change the deal.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. That ceiling rarely limits a single shop but can matter for a multi-unit package.
Application tips. Prepare the disclosure document and franchise agreement, a lease or letter of intent, contractor and equipment quotes, a monthly projection, a résumé, personal and business tax returns and a personal financial statement. Our SBA loan calculator provides planning estimates only.
How Lenders Evaluate a Sticks Kebob Shop Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and generally require personal guarantees from significant owners.
Net worth and liquidity. Expect to show cash for the equity injection plus reserves after opening, since a new shop needs time to build sales.
Industry and management experience. Running a scratch kitchen at fast-casual speed takes skill. Restaurant management experience, or a strong general manager, makes a request more persuasive.
Business plan and projections. Build sales around the site’s lunch and dinner traffic, online and delivery orders, catering and any campus or seasonal pattern. Include every Item 6 fee, realistic food and labor costs, and a downside case.
The disclosure document and franchise agreement. Lenders review the term and renewal, transfer conditions in Item 17, any franchisor financing in Item 10 and outlet data in Item 20. Review Items 3 and 4 during your own due diligence, and check Item 19 to see whether the franchisor makes financial performance representations. Our article on reading a franchise disclosure document for financing explains what lenders focus on.
Site and lease. The lease term should cover the loan term, and the space must support a grill 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
A growing brand often looks for owners who will open more than one shop. If the franchisor offers development rights, the agreement will set a schedule and territory. Before signing, test whether you can fund each opening on time and still keep reserves.
Lenders typically finance one unit at a time, using the first shop’s results to support the next. Our article on multi-unit franchise financing explains how that progression usually works.
Real-World Scenarios
A restaurant manager opening a first shop. A buyer with fast-casual experience leases a former sandwich shop near a university, uses an SBA 7(a) loan for the fee, build-out and working capital, and leases the grill line separately.
A catering-focused location. A buyer near office parks plans for strong catering sales. The lender asks for support for catering assumptions and a line of credit for larger inventory orders.
An owner who buys the building. A buyer purchases a small freestanding property and pledges it as collateral. Consistent with the directory note, the franchisor’s lease rider is not executed, and the lender reviews the real estate and the business together.
Common Mistakes to Avoid
- Relying on rough estimates instead of the current Item 7 table and real quotes
- Underbudgeting the hood, fire suppression and grease management
- Signing the franchisor’s lease rider on a property pledged for an SBA loan
- Projecting flat costs for meat, seafood and produce
- Ignoring slow periods at campus or seasonal locations
- Committing to a development schedule without funding for each opening
For more pitfalls, read common restaurant loan mistakes.
Next Steps to Finance Your Sticks Kebob Shop Franchise
Step 1: Request the current disclosure document. Confirm fees, the investment estimate 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 and reserves. Decide how much cash you can commit while keeping a cushion.
Step 4: Find a site. Check traffic, ventilation feasibility and lease terms before signing.
Step 5: Talk with a financing specialist. Compare SBA 7(a), conventional and equipment options for your Sticks Kebob Shop franchise loan.
Step 6: Close and open. Coordinate loan closing with the lease, construction and training so working capital is ready on opening day.
Sticks Kebob Shop Franchise Loan FAQs
How much does a Sticks Kebob Shop franchise cost?
The total depends on the site, construction 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 disclosed in Item 5, and the royalty and marketing contributions in Item 6. Lenders deduct ongoing fees before testing whether a shop can cover its loan.
Is Sticks Kebob Shop eligible for SBA loans?
Yes. The brand is on the SBA Franchise Directory under code S8550, so qualified borrowers can seek SBA 7(a) or 504 financing, subject to lender approval.
What does the SBA directory note mean?
If the real estate where the shop operates secures the SBA loan, the franchisor’s Rider to Lease may not be executed. It mainly affects buyers who own and pledge the property.
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 about its expectations.
Can I finance equipment separately?
Yes. Grills, refrigeration, fryers and ordering technology can be financed or leased on their own.
Can I buy an existing shop?
If one is available, a Sticks Kebob Shop franchise loan through SBA 7(a) or a conventional lender can fund it, subject to franchisor approval and a review of the shop’s financials.
Can a first-time owner qualify?
Yes, though restaurant experience carries weight. A seasoned manager, a partner with industry background or extra reserves can strengthen the request.
Does the franchisor offer financing?
Check Item 10 of the disclosure document. Most buyers arrange outside financing.
How long is the franchise term?
The term and renewal rights are in Item 17 and the franchise agreement. Lenders prefer a term that extends well beyond the loan.
Final Thoughts
A fresh Mediterranean menu, multiple sales channels and an SBA directory listing give this young franchise a workable financing path. The key is closing the information gap with the current disclosure document, firm quotes and a site-specific projection before you ask a lender to size a Sticks Kebob Shop franchise loan.
US Professional Funding helps franchise buyers and owners finance new locations, acquisitions, equipment and working capital. Learn more about our franchise financing programs and restaurant business financing.
