Southern Grounds Franchise FDD, Profits & Costs (2025)
Southern Grounds is a specialty coffee and café brand founded in 2016 when Mark Janasik revitalized the former Shelby’s Coffee Shoppe in Neptune Beach, Florida. Based in Jacksonville, the company offers more than just coffee, featuring a chef-driven menu that includes breakfast, brunch, sandwiches, bowls, salads, and a selection of craft beers and wines.
The concept aims to create community-focused spaces where customers can gather, enjoy quality food and drinks, and experience live music.
Franchising efforts began in February 2022, with a goal of opening up to 125 units across 12 Southern states within a decade.
The initial expansion targets states like Georgia, North Carolina, Texas, and Virginia, as well as select markets in Florida. Currently, Southern Grounds operates three company-owned locations in Northeast Florida, with additional expansion plans underway, including nontraditional venues like airports.
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Initial Investment
How much does it cost to start a Southern Grounds franchise? It costs on average between $456,500 to $999,500 to start a Southern Grounds franchised coffee shop.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
In comparison, a coffee shop franchise costs on average $477,000 to set up. Brands like PJ’s Coffee have a very large range depending on the format you are after for example ($192,000 to $1,131,000). Yet on average most brands require an investment upfront anywhere between $200,000 to $600,000.
Average Revenue (AUV)
How much revenue can you make with a Southern Grounds franchise? A Southern Grounds franchised coffee shop makes on average $1,500,000 in revenue (AUV) per year.
In comparison, coffee shop franchises makes about $587,000 in yearly revenue per year (see table above).
The most profitable franchises to own in 2025
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Frequently Asked Questions
How many Southern Grounds locations are there?
Southern Grounds currently has three company-owned locations in Northeast Florida. The franchise expansion began in 2022, with additional franchise-owned locations gradually being established as the brand aims to reach 125 units across 12 Southern states over the next decade.
What is the total investment required to open a Southern Grounds franchise?
The total investment required to open a Southern Grounds franchise ranges from $456,500 to $999,500.
What are the ongoing fees for a Southern Grounds franchise?
The ongoing fees for a Southern Grounds franchise include a royalty fee of 6% of gross sales. Additionally, franchisees are typically required to contribute to a marketing fund, from 1% to 4% of gross sales in the industry. This fee contributes to marketing efforts that promote the brand and support franchisees in attracting customers.
What are the financial requirements to become a Southern Grounds franchisee?
To become a Southern Grounds franchisee, the financial requirements include a minimum net worth of $500,000 to $1,000,000.
Additionally, prospective franchisees must have at least $500,000 in liquid capital. These financial thresholds ensure that franchisees have the necessary resources to cover the initial investment and ongoing operational costs, providing a solid foundation for success in the business.
How much can a Southern Grounds franchise owner expect to earn?
The average gross sales for a Southern Grounds franchise are approximately $1.5 million per location. Assuming a 15% operating profit margin, $1.5 million yearly revenue can result in $145,500 EBITDA annually.
Who owns Southern Grounds?
Southern Grounds is owned and led by Mark Janasik, who founded the brand in 2016. He transformed the original coffee shop in Neptune Beach, Florida, into the Southern Grounds concept, emphasizing community, quality food, and sustainability.
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