Biggby Coffee has grown into one of the most recognized coffee franchise brands in the Midwest and beyond, with hundreds of locations serving communities across the United States. For entrepreneurs looking to break into the thriving coffee industry, a Biggby Coffee franchise offers a proven business model, strong brand recognition, and a loyal customer base. However, opening a Biggby Coffee franchise requires a meaningful financial commitment - and understanding your funding options is the first step toward making your coffee franchise dream a reality.
This comprehensive guide covers everything aspiring Biggby Coffee franchise owners need to know about financing, from total startup costs and working capital requirements to the loan types best suited for franchise investment. Whether you are exploring your first franchise or expanding an existing coffee portfolio, Crestmont Capital is here to help you navigate the funding landscape with confidence.
In This Article
Biggby Coffee was founded in 1995 in East Lansing, Michigan under the name Beaner's Coffee. The brand rebranded to Biggby Coffee in 2007 and has since expanded to more than 400 locations across more than a dozen states. Known for its friendly atmosphere, customizable drinks, and community-focused approach, Biggby positions itself as an accessible alternative to larger national chains.
The Biggby franchise model appeals to aspiring business owners for several reasons. The brand has a strong regional following, particularly in Michigan, Ohio, Indiana, and Wisconsin. Franchisees benefit from an established supply chain, training programs, ongoing support, and marketing resources provided by the corporate team. For entrepreneurs who want the independence of owning a business without starting from scratch, Biggby Coffee offers a compelling pathway.
According to data from the U.S. Small Business Administration, franchise businesses have historically higher success rates than independent startups, making franchise investment an attractive strategy for first-time and repeat business owners alike.
Key Stat: The U.S. coffee shop industry generates over $47 billion in annual revenue, with franchise concepts accounting for a significant and growing share of that market, according to industry research from IBISWorld.
Before applying for a franchise loan, you need a clear picture of the total investment required to open a Biggby Coffee location. The Biggby Coffee Franchise Disclosure Document (FDD) outlines these costs, though actual figures can vary based on location type, lease terms, and build-out requirements.
The initial franchise fee for a Biggby Coffee unit is typically in the range of $20,000 to $25,000. This grants you the right to operate under the Biggby brand within a defined territory. The total initial investment, which includes build-out, equipment, signage, initial inventory, and working capital, generally falls between $200,000 and $500,000 depending on whether you are opening in a freestanding building, strip center, or non-traditional location such as a kiosk or college campus unit.
Here is a general breakdown of startup costs for a Biggby Coffee franchise:
| Cost Category | Estimated Range |
|---|---|
| Initial Franchise Fee | $20,000 - $25,000 |
| Leasehold Improvements / Build-Out | $80,000 - $200,000 |
| Equipment and Fixtures | $60,000 - $120,000 |
| Signage | $5,000 - $20,000 |
| Initial Inventory and Supplies | $5,000 - $15,000 |
| Training Costs and Expenses | $3,000 - $8,000 |
| Working Capital (3 months) | $20,000 - $50,000 |
| Miscellaneous / Pre-Opening | $5,000 - $15,000 |
| Total Estimated Investment | $200,000 - $500,000+ |
Biggby also charges ongoing royalties of approximately 6% of gross sales, along with a marketing fund contribution of around 2%. These recurring costs should be factored into your financial projections when determining how much financing you need and what debt service you can comfortably carry.
To qualify for a Biggby Coffee franchise, the company typically looks for candidates with a minimum net worth of $250,000 and liquid assets of at least $80,000 to $100,000. Prior business experience is preferred but not always required. Strong candidates demonstrate community involvement, leadership skills, and a genuine passion for the brand.
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Apply Now →Many aspiring franchise owners underestimate the power of leveraging financing to open their business. Rather than depleting personal savings or waiting years to accumulate the necessary capital, franchise financing allows entrepreneurs to move forward quickly while preserving their financial cushion for operational needs.
Here are the primary benefits of financing your Biggby Coffee franchise:
Preserve liquidity. Keeping cash on hand during the early months of operation is critical. Unexpected costs - equipment repairs, staffing gaps, slower-than-expected sales ramp-up - are common in any new business. Financing your startup costs allows you to maintain reserves that protect your operation.
Open sooner. Waiting years to save up enough capital means losing time in the market. Financing accelerates your timeline, allowing you to capture customers and build revenue while your competition waits. Coffee is a high-frequency purchase category, and establishing location loyalty early matters tremendously.
Leverage other people's money strategically. Business loans allow you to use capital at a cost that, if the business performs as projected, is far less than the revenue the investment generates. A Biggby Coffee location generating $50,000 in monthly revenue can justify a loan payment that builds equity in your business over time.
Build business credit. Making timely payments on a franchise loan establishes and strengthens your business credit profile, which can help you access better terms for future financing needs - whether that means opening a second location or investing in equipment upgrades.
Potential for multi-unit expansion. Many Biggby franchisees eventually operate two, three, or more units. Establishing a positive lending relationship with your first location sets the foundation for financing subsequent openings.
There is no single loan product designed specifically for Biggby Coffee franchisees. Instead, franchise owners typically access a combination of financing tools depending on their needs, financial profile, and the lenders they work with. Below is an overview of the most common loan types used to fund coffee franchise startups.
SBA 7(a) Loans. The Small Business Administration's 7(a) program is widely considered the gold standard for franchise financing. SBA 7(a) loans offer amounts up to $5 million, low interest rates, and long repayment terms - often 10 years for working capital and 25 years for real estate. Because the SBA guarantees a portion of the loan, lenders are more willing to work with borrowers who have limited operating history. Many franchise brands, including Biggby Coffee, appear on the SBA's Franchise Registry, which streamlines the approval process.
SBA 504 Loans. The SBA 504 program is designed for larger capital projects that involve the purchase of commercial real estate or long-lived equipment. If you plan to own your building or purchase significant machinery, a 504 loan - which splits financing between a Certified Development Company and a bank - can provide favorable long-term rates.
Conventional Term Loans. Traditional bank term loans can fund franchise startups, though they typically require stronger credit profiles and more substantial collateral than SBA-backed options. Conventional loans may offer faster approvals and fewer bureaucratic requirements for well-qualified borrowers.
Equipment Financing. Espresso machines, grinders, refrigeration units, and point-of-sale systems represent a significant portion of your startup costs. Equipment financing allows you to fund these assets directly, using the equipment itself as collateral. This keeps other financing lines available for build-out and working capital. Learn more about equipment leasing as an alternative to outright purchase.
Business Lines of Credit. A revolving business line of credit is ideal for managing ongoing cash flow needs - covering payroll during slow weeks, stocking inventory before peak seasons, or handling unexpected expenses. Many franchise owners maintain a line of credit even after their startup loans are paid off.
Working Capital Loans. Unsecured working capital loans provide quick access to cash without requiring collateral. These are particularly useful in the months immediately following opening, when revenue has not yet stabilized.
ROBS (Rollover for Business Startups). Some franchise owners use retirement account funds to finance their investment without triggering early withdrawal penalties. This strategy, known as ROBS, is complex and requires guidance from a qualified financial advisor or ERISA attorney. It is not for everyone but can be a powerful tool for the right borrower.
Franchise financing follows a similar process to other small business lending, with some specific considerations related to the franchise agreement and brand requirements. Here is what the typical process looks like for a Biggby Coffee franchise loan:
Step 1: Determine your total capital need. Add up all startup costs - franchise fee, build-out, equipment, initial inventory, training, and working capital reserves. Your lender will want to see a detailed use-of-funds breakdown.
Step 2: Assess your personal financial profile. Lenders will review your personal credit score, personal financial statement, tax returns, and any existing business history. Most SBA lenders look for a credit score of at least 650, though some alternative lenders work with scores in the 580 to 620 range.
Step 3: Prepare your business plan and financial projections. Franchise lenders want to see that you have done your homework. A solid business plan with realistic revenue projections - supported by Biggby's average unit volumes and your specific market analysis - significantly improves your approval odds.
Step 4: Submit your loan application. Work with a lender experienced in franchise financing. Submit your application along with required documents, including the franchise agreement, FDD, personal financial statements, tax returns, and any lease agreements.
Step 5: Underwriting and approval. The lender reviews your application, may request additional documentation, and makes a credit decision. SBA loans typically take 60 to 90 days to close; alternative lenders can move faster, sometimes within days.
Step 6: Closing and funding. Once approved, you sign loan documents, funds are disbursed, and you begin the build-out and pre-opening process. At closing, some lenders require that you inject a minimum percentage of the total project cost as your own equity contribution - typically 10% to 30%.
By the Numbers
Biggby Coffee Franchise - Key Statistics
400+
Biggby Coffee locations across the U.S.
$500K
Maximum estimated startup investment
6%
Ongoing royalty fee on gross sales
30 yrs
Biggby Coffee has been building communities since 1995
Lender qualification criteria vary, but most franchise loan programs evaluate applicants across the same core dimensions. Understanding what lenders look for helps you prepare a stronger application and improve your odds of approval.
Credit score. For SBA loans, a minimum personal credit score of 650 is generally required, though scores of 680 and above significantly improve your options and terms. Alternative lenders may work with scores in the 580 to 650 range, typically at higher interest rates.
Net worth and liquid assets. Biggby's own franchisee requirements - minimum net worth of $250,000 and liquid assets of $80,000 to $100,000 - also align closely with what most franchise lenders require. Lenders want to see that you have skin in the game and enough reserves to weather early-stage challenges.
Prior business or management experience. Lenders favor applicants who have managed businesses, teams, or operations before. If you have a background in food service, retail, or management, make sure it is clearly highlighted in your loan application narrative.
Down payment or equity injection. SBA loans typically require an equity injection of 10% to 30% of total project costs. For a $400,000 project, that means having $40,000 to $120,000 available as a down payment. This can come from personal savings, a home equity line, or a gift from a family member with proper documentation.
Collateral. Many franchise loans are partially collateralized by the business assets being purchased - equipment, leasehold improvements, franchise license value. Personal assets, including home equity, may also be pledged. SBA loans require lenders to take all available collateral, though the absence of sufficient collateral does not automatically disqualify an otherwise strong application.
Business plan quality. A well-researched, realistic business plan demonstrates to lenders that you understand the market, the competitive landscape, and the operational requirements of running a Biggby Coffee franchise. Revenue projections that align with Biggby's Item 19 FDD disclosures carry significant credibility with experienced franchise lenders.
Understanding how different loan products compare helps you make an informed decision about which financing structure best fits your situation.
| Feature | SBA 7(a) Loan | Conventional Term Loan | Equipment Financing |
|---|---|---|---|
| Loan Amount | Up to $5M | Varies by lender | Cost of equipment |
| Down Payment | 10%-30% | 20%-30% | 0%-20% |
| Term Length | Up to 10 years (25 for RE) | 3-10 years | 2-7 years |
| Interest Rate | Prime + 2.75% (capped) | Market rate | Varies |
| Approval Time | 60-90 days | 2-4 weeks | Days to 2 weeks |
| Best For | Full franchise buildout | Strong credit profiles | Coffee equipment |
For most first-time Biggby Coffee franchise owners, an SBA 7(a) loan provides the best combination of loan size, interest rate, and repayment terms. Equipment financing can complement an SBA loan by breaking out the equipment cost into a separate, shorter-term facility - freeing up SBA loan capacity for the build-out and working capital portions of your project.
Crestmont Capital specializes in small business financing and has deep experience helping franchise owners access the capital they need to open and grow their operations. As a direct lender and marketplace connector, Crestmont works with a broad network of funding sources - SBA lenders, conventional banks, equipment financing companies, and alternative lending platforms - to match franchise applicants with the best available options.
When you work with Crestmont Capital, you benefit from a team that understands the nuances of franchise financing. We know how FDDs are structured, what lenders want to see in a franchise business plan, and how to package your application for maximum approval success. Our specialists take the time to understand your specific situation - your financial profile, your timeline, your long-term goals - before recommending a financing strategy.
Crestmont Capital offers access to the following financing solutions for Biggby Coffee franchise candidates:
Our approach is straightforward: we help you understand your options, prepare your application for success, and guide you through closing. We do not charge upfront fees, and there is no obligation to proceed after your initial consultation.
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Apply Now →Understanding how franchise financing plays out in practice helps you plan your own approach. The following scenarios are illustrative examples based on common franchise financing structures.
Scenario 1: First-Time Franchise Owner Using SBA 7(a)
Sarah is a former district manager for a national retail chain. She has $120,000 in liquid assets, a personal credit score of 710, and a net worth of $350,000 including home equity. She identifies a Biggby Coffee opportunity in her market with a total project cost of $380,000. Sarah applies for a $304,000 SBA 7(a) loan (80% of the project), injecting $76,000 as her equity contribution. The 10-year loan at a rate of prime plus 2.75% results in a monthly payment of approximately $3,200. Her projected revenue of $35,000 per month generates strong debt service coverage, and her SBA loan is approved within 75 days.
Scenario 2: Splitting Equipment from Build-Out
Marcus has experience in foodservice management and is opening a Biggby Coffee in a strip mall location. His total startup cost is $350,000, including $90,000 in equipment. Rather than financing everything through one SBA loan, Marcus secures a $75,000 equipment financing facility for his coffee equipment and a $200,000 SBA loan for the build-out and working capital. This combination reduces his SBA loan size and preserves more personal equity. His equipment loan has a 5-year term with a lower interest rate than the SBA loan would have carried on that portion.
Scenario 3: Multi-Unit Developer with a Line of Credit
Jennifer has successfully operated two Biggby Coffee locations for four years. She is opening a third unit and plans to use a combination of retained earnings and a $150,000 business line of credit from Crestmont Capital to fund the build-out. Because her existing locations generate positive cash flow, she qualifies for favorable terms on the line of credit. She draws on the line as build-out expenses occur and pays down the balance as her new location ramps up revenue in the first three months of operation.
Scenario 4: Buyer Acquiring an Existing Biggby Location
Tom is purchasing an existing Biggby Coffee franchise from an owner who is retiring. The acquisition price is $300,000, which includes the franchise transfer fee, equipment, lease assumption, and goodwill. Tom applies for an SBA 7(a) business acquisition loan. Because the business has an established revenue history and positive cash flow, the lender's underwriting is more straightforward than a startup application. Tom's loan is approved in 60 days, allowing him to take ownership and begin operating immediately.
Scenario 5: Non-Traditional Location Build-Out
Diana is opening a Biggby Coffee kiosk inside a university campus building. The total project cost is $180,000 - significantly lower than a full storefront. Diana uses an SBA 7(a) loan for $140,000 and contributes $40,000 from personal savings. The lower project cost reduces her monthly debt service, improving her cash flow position during the ramp-up period. Her campus location generates steady morning traffic and reaches breakeven within six months of opening.
Scenario 6: Bridge Financing During Build-Out Delays
Robert experienced unexpected delays in his Biggby Coffee build-out due to permitting issues. His primary SBA loan had been disbursed and was running down faster than anticipated. He secured a short-term working capital loan from Crestmont Capital to bridge the gap, covering payroll for pre-hired staff and lease payments during the extended pre-opening period. Once his location opened and began generating revenue, he repaid the bridge loan within three months.
Pro Tip: Franchise financing often works best as a combination strategy. Consider using equipment financing for your coffee machines and espresso equipment, an SBA loan for the build-out and franchise fee, and a business line of credit for working capital. This layered approach optimizes your cost of capital and preserves maximum financial flexibility.
The total initial investment for a Biggby Coffee franchise typically ranges from $200,000 to $500,000 or more, depending on the location type, lease terms, and build-out requirements. The initial franchise fee is approximately $20,000 to $25,000. Additional costs include leasehold improvements, equipment, signage, initial inventory, training, and working capital reserves.
Yes. SBA 7(a) loans are among the most popular financing options for franchise startups, including Biggby Coffee. These loans offer amounts up to $5 million, competitive interest rates, and repayment terms up to 10 years for working capital. To qualify, you generally need a personal credit score of at least 650, demonstrated business or management experience, and a meaningful equity injection - typically 10% to 30% of total project costs.
For SBA loans, most lenders require a minimum personal credit score of 650, with scores above 680 improving your options and rates significantly. Some alternative lenders work with scores in the 580 to 640 range for working capital loans or equipment financing, though at higher interest rates. Strong scores - 700 and above - typically unlock the best available terms.
For SBA loans, lenders typically require an equity injection of 10% to 30% of the total project cost. Biggby Coffee also requires minimum liquid assets of $80,000 to $100,000 and a net worth of at least $250,000 from prospective franchisees. For a $400,000 startup, plan to have $40,000 to $120,000 available for the down payment, plus additional reserves for working capital.
SBA loans typically take 60 to 90 days from application submission to funding. Conventional term loans can close in two to four weeks. Equipment financing and working capital loans from alternative lenders can move much faster - sometimes in just a few business days. The timeline depends on how quickly you can provide required documentation and how efficiently your lender processes the application.
Yes. Equipment financing is well suited for espresso machines, coffee grinders, refrigeration units, blenders, display cases, and point-of-sale systems. The equipment serves as collateral, which typically means lower interest rates and faster approval than unsecured loans. Equipment financing can complement an SBA loan, allowing you to break out equipment costs into a separate, shorter-term facility.
Most franchise loan applications require personal tax returns for the past two to three years, a personal financial statement, a business plan with financial projections, the franchise agreement or a letter of intent from Biggby Corporate, the Franchise Disclosure Document, a resume or business background summary, a copy of any proposed lease agreement, and details on the equity injection source. SBA loans may require additional forms specific to that program.
Biggby Coffee does not typically offer direct in-house financing to franchisees. However, the brand works with preferred lenders familiar with the Biggby system. Franchisees are encouraged to work with SBA-approved lenders and other financial institutions experienced in franchise lending. Third-party lenders like Crestmont Capital can often provide faster and more flexible solutions than franchisor-referred lenders.
Yes. Multi-unit franchise financing is available and commonly used by Biggby operators who want to expand from one to two or more locations. Lenders typically require that your first location has achieved stable cash flow before approving financing for additional units. Some SBA loans can fund multiple locations within a single loan package. Lines of credit and working capital loans from Crestmont Capital can support multi-unit operators with ongoing operational flexibility.
Biggby Coffee charges an ongoing royalty fee of approximately 6% of gross sales, plus a marketing fund contribution of approximately 2% of gross sales. These ongoing fees should be factored into your financial projections when calculating debt service coverage and determining how much financing you can comfortably manage.
Crestmont Capital works with aspiring and existing franchise owners to identify the most suitable financing options for their specific situation. We provide access to SBA loans, equipment financing, working capital loans, and business lines of credit. Our specialists help you prepare your application, match you with lenders most likely to approve your request, and guide you through closing. Apply online at offers.crestmontcapital.com/apply-now to get started.
It is common for franchise businesses to take six to eighteen months to reach full profitability. This is why working capital reserves are critical - they allow you to continue making loan payments, covering payroll, and paying operating expenses while your customer base builds. If you experience extended financial difficulty, SBA loans offer options such as deferments or loan modifications. Contact your lender proactively if you anticipate payment challenges.
A home equity line of credit (HELOC) can be used as part of your equity injection for an SBA loan or to supplement other financing. However, using home equity to fund a business puts your personal residence at risk if the business does not perform as expected. Most financial advisors recommend limiting the use of home equity to a manageable portion of your total investment and ensuring you have reserves to cover personal mortgage obligations independently of business income.
Biggby Coffee discloses financial performance representations in Item 19 of its FDD. Average unit volumes vary by location type, geography, and local market conditions. Prospective franchisees should review the most current FDD, speak with existing Biggby franchisees, and engage an experienced franchise consultant or attorney to understand the financial performance data before making investment decisions.
The first step is completing Crestmont Capital's quick online application at offers.crestmontcapital.com/apply-now. A financing specialist will review your information and reach out to discuss your goals, financial profile, and the best available loan options. From there, we will help you prepare your application package and guide you through to funding. The process takes just a few minutes to start.
Opening a Biggby Coffee franchise is an exciting opportunity to build a business in one of the most resilient and consistently profitable industries in America. Coffee is not a trend - it is a daily ritual for millions of consumers, and Biggby has built a brand that resonates strongly with its local communities. For the right entrepreneur, the investment is well worth exploring.
The key to moving forward with confidence is having a clear understanding of your financing options and working with a lender who understands the franchise model. From SBA 7(a) loans and equipment financing to working capital solutions and lines of credit, Crestmont Capital offers the full suite of products needed to get your Biggby Coffee location open and operating.
If you are ready to take the next step, apply now or contact our team to discuss your specific situation. We are here to help you make your coffee franchise vision a reality.
For more information on franchise financing broadly, explore our small business financing resources and review how commercial financing options can support your long-term business growth.
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Apply Now →Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.