Southern Grounds Franchise FDD, Profits & Costs
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.
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).
Frequently Asked Questions
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.
What funding options are available for a Southern Grounds franchise?
Most franchise buyers in Southern Grounds’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Southern Grounds franchise investment?
Payback periods for franchises in Southern Grounds’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
Disclaimer
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Research Southern Grounds franchise data: For the full FDD cost breakdown, investment tables, and Item 19 disclosures, visit FranchisePayback.com → Southern Grounds FDD Review.
