Wondering how much opening an Ellianos coffee shop franchise will cost you and what your funding options are? We are here to help you explore your options, from small business loans to bank loans and other sources of funding.
First, let’s talk more about how much opening an Ellianos could cost you.
Then, we’ll uncover your funding options.
What’s the Cost to Open an Ellianos Franchise?
Opening a franchise is usually a little more expensive than opening your own business because you’re paying for that franchise’s existing brand recognition and formula for success.
When it comes to opening an Ellianos Franchise, for instance, there’s a reason that in 2024, the Franchise Business Review (FBR) named Ellianos a Top Franchise.
But what’s the cost, exactly?
Here’s how much opening an Ellianos franchise is likely to cost you, based on 2024 FDD data:
- Initial Franchise Fee: $30,000
- Initial Training Program – Travel & Living Expenses: $1,000 – $3,000
- Real Estate: Variable
- Building/Improvements: $385,000 – $450,000
- Site Work: $50,000 – $175,000
- Civil Engineering & Permitting: $12,000 – $30,000
- Architectural, MEP, Engineering: $3,500 – $5,500
- Impact & Tap Fees: $2,000 – $40,000
- Landscaping: $5,000 – $13,500
- Equipment & Supplies: $105,000 – $125,000
- Signs: $14,000 – $25,000
- Security Deposits: $5,000 – $10,000
- Opening Inventory: $7,500 – $10,000
- Miscellaneous Opening Costs: $2,000 – $6,000
- Grand Opening Spending (optional): $2,500 – $3,500
- Additional Funds (3 months): $10,000 – $20,000
- Total Investment: $634,500 – $946,500
How to Obtain Franchise Funding
Many people ask us about how to get funding for a franchise.
After all, you may not have an extra $1,000,000 laying around. And even if you do, it may not be the wisest choice to sink it all into a business when you could invest it in other ways and leverage smart, calculated debt financing.
Here are the most common ways our franchisees get funded.
Traditional Bank Loans
Bank loans are one of the most common ways aspiring franchisees such as yourself obtain franchise financing. If you’re looking to obtain coffee shop funding via this route, you’ll typically need:
- A strong credit score
- A detailed business plan
- Collateral.
The #1 perk of a bank loan by far is the stability associated with them.
Bank loans normally offer a set interest rate and repayment schedule. But getting approved can be tricky, and securing collateral is often also challenging.
Small Business Administration Loans
Small business administration loans, or SBA loans for short, are partially guaranteed by the U.S. Small Business Administration. They require a solid business plan and financial projections just like bank loans. While franchisees have a number of SBA loans available to them, the SBA 7(a) loan is one of the most common. Benefits include:
- A lower down payment vs. other loans
- Longer repayment terms vs. other loans
- Lower interest rates vs. other loans
Overall though getting an SBA loan isn’t a simple feat, it’s usually a little easier than obtaining a bank loan.
Alternative Funding
Searching for coffee shop funding but having trouble getting approved for an SBA loan or other bank loan? Additional funding options exist, such as:
- Crowdfunding: Many entrepreneurs have turned to crowdfunding on platforms like Kickstarter and GoFundMe to turn their dream businesses into reality.
- Private Investors: Most private investors ask for an equity stake in your organization.
- Franchise-Specific Financing: Some franchisors offer in-house financing or have partnerships with lenders to provide tailored funding options for their franchisees.
Learn More
Thinking of starting an Ellianos but not 100% sure if it’s right for you? Here are 7 tips for opening a coffee shop with no experience.
Ready to explore how to get your Ellianos franchise funded? Request more franchising information here.
