How to Finance a Swig Franchise: Multi-Unit Dirty Soda Deals
By Marc Cornella
A Swig franchise loan is not a first-store loan. Swig, the Utah drink shop that calls itself the home of the original dirty soda, franchises only to established restaurant operators who commit to building a cluster of stores, so the financing question is how to fund a development schedule rather than a single small beverage shop.
This article explains how the Swig model works, what the franchisor asks of new partners, what each store costs to build and equip, why SBA lending is not the usual route for this brand and how lenders evaluate a multi-unit drink-shop development.
US Professional Funding is not affiliated with, sponsored by or endorsed by Swig; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and development agreement with a franchise attorney and an accountant.
Swig Franchise Loan at a Glance
- Concept: a drink-focused shop serving dirty sodas, energy drinks, refreshers and sweets such as cookies, with drive-thru formats available.
- Origin: founded in 2010 in St. George, Utah, by Nicole Tanner, now Nicole Robison.
- System size: more than 170 locations across 17 states, according to the company’s franchising page.
- Franchising model: multi-unit development only; the company launched multi-unit franchising in February 2023.
- Liquidity requirement: $2,500,000 in liquid assets for the investment, according to Swig’s franchising page.
- Operator requirement: currently own and operate 10 or more quick-service or fast casual restaurants in the market of interest.
- Development commitment: a minimum of 10 Swig locations, with the ability to build 2 to 3 new stores per year.
- Fees and investment: the franchise fee, royalty, marketing contribution and Item 7 investment range are disclosed in the current FDD, not on the franchising page.
- SBA Franchise Directory: not listed, so conventional financing is the primary route.
What Is Swig?
Swig started in 2010 in St. George, Utah, when Nicole Tanner, now Nicole Robison, opened a soda shop built around customized fountain drinks. The idea of mixing soda with flavored syrups, fresh fruit, purees and creams became the brand’s signature, and the company’s site now describes Swig as the “Home of the Original Dirty Soda.”
The menu. Swig’s menu is organized around dirty sodas, its own energy drinks (including a sugar-free option), refreshers and a “Sweets & Treats” category, with seasonal drinks and cookies rotating through the year. The company also offers catering under the name “Swig on Site.”
Store formats. According to the franchising page, Swig can operate in sites as small as 800 square feet and lists 870 square feet as its ideal size. Formats include end-cap drive-thru units in retail centers, ground-up builds and freestanding locations. That means less interior build-out than a full restaurant but real site work for drive-thru lanes.
Growth and franchising. Swig grew for more than a decade before launching multi-unit franchising in February 2023. The company reports more than 170 locations across 17 states today.
How lenders view the brand. Lenders see a young franchise system attached to an older operating brand, with franchisees who are already proven restaurant operators. That combination shifts underwriting toward the franchisee group’s existing financial strength rather than toward Swig’s franchise history alone.
Who Swig Is Looking For
Swig’s franchise page is direct about its partner profile, and every point affects the financing plan.
- Liquidity: $2,500,000 in liquid assets for the investment.
- Operating scale: currently own and operate 10 or more QSR or fast casual restaurants in the market area of interest.
- Reputation: 4-star-plus online reviews across existing brands and positive references from current franchisors.
- Development capacity: develop a minimum of 10 Swig locations and be able to build 2 to 3 new stores per year.
- Banking: strong banking relationships and the ability to secure financing.
- Real estate skill: market expertise and local real estate knowledge to secure prime sites.
What that means for a loan. Swig expects its partners to arrive with lending relationships already in place. A Swig franchise loan is usually an extension of an existing restaurant group’s credit, underwritten on the group’s consolidated cash flow, with each new store added under a development line or a series of term loans.
Swig Franchise Costs and Your Swig Franchise Loan
Swig does not publish its franchise fee or investment range on its franchising page. Those numbers appear in the FDD, which franchisors must provide before any agreement is signed.
Initial franchise fee and development fee. Item 5 of the FDD sets out the initial franchise fee and any development fee due when you sign a multi-unit agreement. Ask how the development fee is credited against each store’s fee and what happens to it if the schedule slips.
Real estate and build-out. With a footprint as small as 800 square feet, interior construction is limited, but drive-thru sites bring site work, curb cuts, lane striping, menu boards and canopy work. Ground-up and freestanding buildings add land or ground-lease costs, utilities and permitting.
Equipment. Expect ice machines, fountain and beverage systems, refrigeration, blenders, prep stations, ovens or warmers for cookies and baked items, drive-thru order and headset systems, point-of-sale terminals and digital menu boards.
Opening costs and working capital. Budget for training, pre-opening payroll, grand-opening marketing, initial inventory of syrups, cups and packaging, insurance, deposits and an operating reserve for each store.
Total investment. Item 7 of the FDD lists the estimated initial investment per store and the major line items. Typical categories to look for include:
- Initial franchise fee
- Real estate, lease deposits and rent before opening
- Construction, leasehold improvements and drive-thru site work
- Beverage, refrigeration and kitchen equipment
- Signage, menu boards and drive-thru technology
- Point-of-sale systems and software
- Opening inventory and supplies
- Training travel and expenses
- Grand-opening marketing
- Insurance, licenses and permits
- Additional funds for the initial operating period
Multiply the per-store estimate across the development schedule, then add a contingency for construction overruns and site delays. Our article on financing a restaurant build-out explains how lenders fund construction draws.
Ongoing Fees and How They Affect Your Loan
Royalty. Item 6 of the FDD discloses the royalty, typically a percentage of gross sales paid weekly or monthly. Confirm the rate and any changes during the term.
Marketing contributions. Look for a brand or marketing fund contribution and any local advertising requirement. Grand-opening spending is often required on top of ongoing contributions.
Technology fees. Drink shops depend on mobile ordering, loyalty texts and point-of-sale software, and franchisors often charge per-store technology fees. Item 6 lists them.
How lenders factor these costs in. Royalty and marketing fees are paid on sales before debt service. A lender will build per-store projections that subtract all franchise fees, then look at whether the group’s combined cash flow covers existing debt plus the new loans with a comfortable cushion. Beverage shops can carry low ticket averages, so projections that rely on high transaction counts need support from comparable stores.
Ways to Own a Swig
A multi-unit development agreement. This is the only path Swig advertises. The operator commits to a minimum of 10 stores in a defined market and opens them on a schedule. Financing is usually staged: an initial loan for the first store or two, then additional loans or a development line as each site is approved. Our guide to area development agreement financing walks through how lenders handle staged commitments.
Buying existing stores. As the franchise system matures, existing franchised stores or company-operated stores may change hands. Any transfer requires Swig’s approval, and a buyer would likely need to meet the same operator profile. Lenders prefer resales because they can underwrite actual sales history.
Financing Options for a Swig Franchise
Conventional term loans. For a brand that is not on the SBA Franchise Directory, a conventional business loan is the primary tool. Lenders that know the operator’s existing restaurants often fund new stores with term loans sized to build-out and equipment costs, secured by business assets and guarantees, with amortization and covenants set case by case.
Development lines and delayed-draw facilities. Because Swig requires 2 to 3 new stores a year, some lenders will offer a facility that can be drawn as each store is built. These structures usually come with conditions such as minimum cash flow coverage and approval of each site.
SBA 7(a) loans. The SBA 7(a) program is widely used by franchisees, but for a brand that is not on the SBA Franchise Directory it is generally not the practical route. See the SBA section below.
SBA 504 loans. The SBA 504 program finances owner-occupied real estate and long-lived fixed assets. It would only become relevant if Swig were added to the directory and the operator owned a freestanding building.
Equipment financing. Ice machines, refrigeration, beverage dispensing systems, ovens, drive-thru headset systems and digital menu boards can be financed or leased separately, which spreads the cost over the useful life of the equipment and keeps cash available for construction. Learn about restaurant equipment financing and leasing.
Working capital and lines of credit. Drink sales can shift with weather, school calendars and seasonal menus, and each new store needs pre-opening payroll and inventory. A line of credit at the group level can cover openings and seasonal swings without tapping construction funds. See our restaurant working capital options.
Seller financing on resales. If an operator buys existing Swig stores from another franchisee, part of the price may be carried by the seller. Any seller note would need to be acceptable to the senior lender and is typically subordinate to it.
SBA Loans for Swig 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 appear on the directory before making an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it simply clears the franchise relationship for SBA review.
Swig is not on the SBA Franchise Directory. In plain terms, SBA 7(a) and 504 loans are generally not available for a Swig store as things stand, and operators should plan on conventional financing. The absence of a listing is not a judgment about the brand. Directory status can change, so confirm it with your lender. If Swig is ever added, the SBA 7(a) program maximum is currently $5 million, though program rules can change.
How Lenders Evaluate a Swig Deal
Personal credit and financial history. Even for an established group, lenders review the principals’ credit, personal financial statements and tax returns, and usually ask for guarantees from significant owners.
Net worth and liquidity. Swig’s $2,500,000 liquidity requirement is a franchisor threshold, not a lending test. Lenders will look at how much liquidity remains after each store’s equity injection and whether reserves can absorb a construction delay or a slow opening.
Industry and management experience. Because Swig requires 10 or more existing restaurants, experience is usually a strength. Lenders still want to see an organizational chart, the district-level management plan for the new stores and how the group will staff a beverage concept alongside its other brands.
Business plan and projections. Projections should model each store separately, with ramp-up, drive-thru capacity, average ticket, labor scheduling for peak afternoon traffic and seasonality. Lenders will compare them with the group’s existing restaurants and with any performance information the FDD provides.
The FDD and development agreement. Lenders read the development schedule, default provisions, territory rights, transfer terms and what happens if stores open late. Review whether Item 19 includes financial performance representations, and read our guide to how lenders read a Franchise Disclosure Document.
Site, lease and real estate. Each site’s lease term should run at least as long as the loan, with renewal options. For freestanding or ground-up stores, the lender will look at land control, construction budgets and contractor qualifications.
Existing group financials. Several years of consolidated and per-store statements for current restaurants carry much of the weight in a Swig franchise loan request.
Equipment and Drive-Thru Considerations
In a small box built for speed, ice production and storage, beverage dispensing, refrigeration for fruit and creams, and a drive-thru order and payment system all have to keep pace with peak traffic. Budget for service contracts and replacement cycles.
Multi-Unit Growth and Development Agreements
Planning the schedule. A commitment of at least 10 stores at 2 to 3 per year spans several years. Map out when each store needs capital and how cash flow from earlier stores will support later ones.
Structuring the debt. Lenders look at total leverage across all of an operator’s brands, so pacing matters. Some operators finance each store separately; others use a development facility with periodic draws. As stores open, a lender may consolidate them under one term loan. See multi-unit franchise financing and financing a restaurant group for how lenders view multi-brand operators.
Real-World Scenarios
A burger operator entering a new market. A franchisee with a dozen quick-service restaurants signs a Swig development agreement for its home market. Its existing lender funds the first two stores with term loans and equipment financing, and agrees to review a development line once the first stores show results.
A group adding ground-up stores. An operator plans freestanding Swig stores on pads near schools and commuter routes. The lender funds construction in draws tied to inspections and asks for a working capital line to cover pre-opening costs for each store.
Common Mistakes to Avoid
- Assuming SBA financing is available for a brand that is not on the SBA Franchise Directory
- Treating Swig’s liquidity threshold as the only cash the deal needs
- Signing a development schedule without matching it to a financing plan
- Underestimating site work and permitting costs for drive-thru stores
- Building projections on average ticket alone without supporting transaction counts
- Ignoring the effect of new Swig debt on covenants for existing restaurants
- Leaving too little working capital for openings and seasonal swings
For more pitfalls across the industry, read the restaurant loan mistakes owners make most often.
Next Steps to Finance Your Swig Franchise
Step 1: Confirm you fit Swig’s profile. Check your restaurant count, liquidity, review ratings and franchisor references against the franchising page.
Step 2: Review the FDD and development agreement. Study Items 5, 6, 7, 10, 12, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk with your lenders early. Share the development schedule and ask how the new stores fit within your existing credit. Our conventional loan calculator can help with early payment estimates; results are for planning only and are not an offer or approval.
Step 4: Build per-store projections. Model ramp-up, seasonality, labor and every franchise fee for each store, then roll them into group-level cash flow.
Step 5: Line up sites. Secure end-cap, ground-up or freestanding sites with lease terms that support your loan terms.
Step 6: Apply and coordinate approvals. Submit financing requests with consolidated financials, projections, site plans and franchise documents, and align closings with Swig’s site approvals.
Step 7: Plan openings and reserves. Arrange equipment financing and a working capital line before construction starts on the first store.
Swig Franchise Loan FAQs
How much does it cost to open a Swig franchise?
Swig does not publish its investment range on its franchising page. The estimated initial investment per store is disclosed in Item 7 of the current FDD, and a development agreement multiplies that across at least 10 stores.
What is the Swig franchise fee?
The initial franchise fee and any development fee are disclosed in Item 5 of the FDD. Ask how development fees are credited against individual store fees.
How much liquid capital do I need for a Swig franchise?
According to Swig’s franchising page, the investment requires $2,500,000 in liquid assets, along with strong banking relationships and the ability to secure financing.
Can a first-time owner buy a Swig franchise?
Generally not. Swig looks for operators who currently own and operate 10 or more quick-service or fast casual restaurants in the market they want to develop.
How many Swig stores do I have to open?
Swig’s franchising page calls for a minimum of 10 locations and the ability to build 2 to 3 new stores per year.
Can I get an SBA loan for a Swig franchise?
Swig is not listed on the SBA Franchise Directory, and SBA lenders generally require a listing, so conventional financing is the usual route. Confirm current status with your lender.
Does Swig offer financing?
Swig’s franchising page asks partners to bring their own banking relationships. Review Item 10 of the FDD for any financing the franchisor offers.
Can I finance the equipment separately?
Yes. Beverage systems, ice machines, refrigeration, ovens, drive-thru technology and menu boards can often be financed or leased separately from the build-out loan.
Can I buy an existing Swig store?
Transfers of existing stores require Swig’s approval, and buyers would generally need to meet the franchisor’s operator profile. Lenders can underwrite actual sales history on a resale.
Does the FDD include financial performance information?
Check Item 19 of the current FDD to see whether Swig includes financial performance representations. Lenders will use them alongside your own operating history.
Final Thoughts
A Swig franchise loan is really a development financing plan for an experienced restaurant group. The operators who do well with it match the store schedule to their lending capacity, budget carefully for drive-thru site work and keep enough liquidity outside the deal to handle openings that take longer than expected.
US Professional Funding helps franchise operators finance new units, equipment, working capital and acquisitions across established brands. Learn more about our franchise financing solutions and our restaurant business financing.
