How to Finance a Built Custom Burgers Franchise: Build-Out Costs
By Anthony Cornella
A Built Custom Burgers franchise loan typically funds a fast-casual restaurant from the ground up: leasehold improvements, a kitchen built around a grill line, dining room furniture, technology and the cash to carry a new restaurant through opening. Because the brand is listed on the SBA Franchise Directory, SBA financing is an option alongside conventional and equipment loans.
This article walks through how financing generally works for a Built Custom Burgers restaurant, what to read in the franchise disclosure document before you borrow, what the brand’s SBA directory note means and how lenders evaluate burger restaurant deals. The franchisor’s current fee schedule and investment table were not available for us to verify, so we show where to find each figure rather than quoting it.
US Professional Funding is not affiliated with, sponsored by or endorsed by Built Custom Burgers; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current disclosure document and franchise agreement with a franchise attorney and accountant before you sign.
Built Custom Burgers Franchise Loan at a Glance
- Concept: a fast-casual restaurant built around custom, made-to-order burgers.
- Franchisor: the brand’s franchise development department is based in Scottsdale, Arizona, and the franchisor states that franchise offers are made only through a franchise disclosure document.
- SBA Franchise Directory: listed under code S2671, with a note about the lease addendum when real estate secures the loan.
- Initial franchise fee, royalty and marketing fees: set out in Items 5 and 6 of the current Franchise Disclosure Document (FDD).
- Estimated initial investment: Item 7 of the FDD lists the range and line items; build-out and kitchen equipment are typically the largest pieces.
- Typical loan uses: leasehold improvements, kitchen and grill equipment, furniture and signage, point-of-sale and ordering technology, and opening working capital.
What Is Built Custom Burgers?
Built Custom Burgers is a fast-casual burger brand where guests customize their burgers. Its franchisor promotes franchise opportunities through a dedicated franchise development department based in Scottsdale, Arizona, and the brand’s website includes a store locator and online ordering.
Why the concept matters for financing. A made-to-order burger restaurant needs a full commercial kitchen with grills, fryers, refrigeration and ventilation, plus a dining room. That makes the build-out and equipment the heart of the loan. Online ordering and takeout add technology and packaging needs.
How lenders view the brand. Lenders generally view fast-casual burger restaurants as a competitive category. A smaller franchise system gives lenders less system-wide history to lean on, so they focus on the borrower’s restaurant experience, the strength of the site and conservative projections.
Built Custom Burgers Franchise Costs
Request the current FDD and read Items 5, 6 and 7 before you request financing. Costs vary with location, restaurant size and the condition of the space.
Initial franchise fee. Item 5 lists the fee due at signing and any development or multi-unit fees. The franchise fee is usually paid from your own funds or included in a larger SBA loan.
Real estate and build-out. Most fast-casual restaurants lease space in a shopping center or freestanding building. Build-out covers plumbing, electrical, grease management, ventilation hoods, fire suppression, restrooms and finishes. A second-generation restaurant space can cut costs, while a raw shell costs more.
Kitchen equipment and furniture. Flat-top grills, fryers, refrigeration and freezers, prep tables, food warmers, dish equipment, beverage systems, seating and décor.
Opening costs and working capital. Opening inventory, training, hiring, pre-opening marketing, deposits and licenses, plus an Item 7 additional funds line for the early months.
Total investment. Expect the Item 7 table to include line items such as:
- Initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements and construction
- Kitchen equipment and smallwares
- Furniture, fixtures and décor
- Signage
- Point-of-sale and technology
- Opening inventory
- Training expenses
- Grand opening marketing
- Licenses, permits, insurance and professional fees
- Additional funds for the initial operating period
Match your loan request to the Item 7 total for your site, and get contractor bids before you finalize the budget.
Ongoing Fees and How They Affect Your Loan
Royalty. Item 6 lists the royalty, usually a percentage of gross sales.
Marketing fund and local advertising. Item 6 also shows any brand fund contribution and local marketing requirement.
Technology and other fees. Look for point-of-sale, online ordering and software fees, plus transfer, renewal and remodel provisions.
How lenders factor these costs in. Lenders subtract royalty, marketing and technology fees from projected sales, then food, packaging, labor and rent, to see whether the restaurant can cover loan payments with a cushion. Because third-party delivery and online ordering can carry commissions, projections for a Built Custom Burgers franchise loan should reflect the expected sales mix.
Franchisor Requirements for New Owners
We could not verify the franchisor’s current net worth, liquidity or experience requirements from its own materials. Ask the franchise development department for them, along with the current FDD.
Questions to ask. Clarify whether an owner-operator is required, what restaurant experience is expected, how long training lasts, what site selection and design support is provided, and whether multi-unit agreements are available.
The approval process. Expect an inquiry, an application with personal financial information, FDD review, interviews and a signed franchise agreement. Start the financing conversation before you sign a lease.
Ways to Own a Built Custom Burgers Restaurant
Opening a new restaurant. A new restaurant requires a site, lease, build-out, equipment and training. Lenders underwrite on projections and your experience. Our franchise start-up financing page explains how these loans are sized.
Buying an existing restaurant. If a franchisee sells, the buyer acquires an operating restaurant with history, equipment and staff. The franchisor must approve the transfer, and the landlord usually must approve a lease assignment. Read our guide to buying a franchise resale.
Multiple restaurants. Owners interested in more than one location should ask whether development agreements are offered.
Financing Options for a Built Custom Burgers Franchise
SBA 7(a) loans. Because the brand is listed on the SBA Franchise Directory, an SBA 7(a) loan can finance the franchise fee, build-out, equipment and working capital in one loan, and can include real estate.
SBA 504 loans. If you buy the building or land, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment. Our article on franchise real estate financing explains when owning makes sense.
Conventional term loans. Experienced restaurant operators with strong liquidity may qualify for a conventional business loan. Terms vary, and every request is underwritten individually.
Build-out financing. Leasehold improvements are often the largest single cost. Read about restaurant build-out financing and how tenant improvement allowances from a landlord can reduce the amount you borrow.
Equipment financing. Grills, fryers, refrigeration, hoods, beverage systems and point-of-sale hardware can be financed separately. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. New restaurants carry payroll, food costs and rent before sales stabilize. See our restaurant working capital options.
Seller financing on resales. A seller may carry part of the price of an existing restaurant. Any seller note is typically subordinate to the senior loan, and SBA rules may limit how it is structured.
SBA Loans for Built Custom Burgers Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory, which lists brands whose franchise agreements have been reviewed for SBA eligibility. A listing does not approve any individual borrower.
Directory status. Built Custom Burgers is listed under code S2671. The listing carries this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Addendum document may not be executed.
What the note means in plain English. Franchisors often require tenants to sign a lease addendum giving the franchisor certain rights in the lease. The note indicates that when the borrower’s real estate at the restaurant location is pledged as collateral for the SBA loan, that lease addendum is not to be signed. If you lease the space and the real estate does not secure the loan, the note generally does not change your deal. Ask your lender how it applies to your situation.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Directory status can change, so your lender will confirm it when you apply.
How Lenders Evaluate a Built Custom Burgers Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Lenders want your equity contribution plus reserves after closing to handle construction overruns and a slow opening.
Restaurant experience. Prior restaurant management or ownership strengthens a request. If you lack it, a strong general manager and franchisor training help.
Business plan and projections. Projections should reflect local trade area, seating, takeout and delivery mix, food and labor costs and every fee in Item 6. Our guide to how lenders read a Franchise Disclosure Document covers which items matter most, including whether Item 19 contains financial performance representations.
Site and lease. Lenders review traffic, visibility, parking, co-tenants and the lease term, which should cover the loan term including renewal options.
Historical financials for resales. For an existing restaurant, expect to provide several years of profit and loss statements, sales reports and tax returns.
Kitchen, Equipment and Build-Out Deep Dive
Ventilation and fire suppression. Grills and fryers require hoods, make-up air and fire suppression systems, which are among the most expensive items in a restaurant build-out.
Second-generation space. A former restaurant with an existing hood and grease interceptor can lower costs, but lenders and the franchisor will want an inspection of anything you reuse.
Equipment life. Grills, fryers and refrigeration have different useful lives. Financing them separately can align payments with equipment life and free up cash.
Multi-Unit Growth and Development Agreements
If development agreements are offered, they will set a schedule for opening each restaurant. Financing usually happens one restaurant at a time, with each new location supported by the results of the existing ones.
Financing a second or third restaurant. Once your first restaurant has a track record, lenders can underwrite its cash flow along with projections for the next site. Expect requests for consolidated financial statements.
Real-World Scenarios
An experienced manager opening a first restaurant. A former restaurant general manager signs a franchise agreement, leases a second-generation space and uses an SBA 7(a) loan for build-out, equipment and working capital.
An owner buying the building. An operator buys a freestanding pad site. Because the real estate secures the SBA loan, the lender follows the directory note on the lease addendum, and an SBA 504 loan funds the property.
A buyer acquiring an existing restaurant. A buyer purchases an operating franchised restaurant. The lender reviews its sales history, the franchisor approves the transfer and the landlord approves the lease assignment.
An operator refreshing equipment. A multi-unit owner uses equipment financing to replace grills and refrigeration without draining reserves.
Common Mistakes to Avoid
- Signing a lease before financing and franchisor site approval are in place
- Underestimating ventilation and fire suppression costs
- Ignoring delivery commissions in projections
- Leaving too little working capital for the opening period
- Overlooking the SBA directory note when real estate secures the loan
- Relying on an outdated FDD
For more pitfalls, read about the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Built Custom Burgers Franchise
Step 1: Get the current FDD. Read Items 5, 6, 7, 10, 17 and 19.
Step 2: Confirm the franchisor’s requirements. Ask about net worth, liquidity, experience and training.
Step 3: Talk with a financing specialist early. Compare SBA 7(a), SBA 504, conventional and equipment options. Our SBA loan calculator can help with early payment estimates, which are for planning only.
Step 4: Secure the site. Get franchisor site approval and contractor bids before signing a lease.
Step 5: Build projections. Model sales, sales mix, food and labor costs and every Item 6 fee.
Step 6: Apply, close and build. Submit your loan package, coordinate the franchisor’s approvals and manage construction draws.
Built Custom Burgers Franchise Loan FAQs
How much does it cost to open a Built Custom Burgers?
The estimated initial investment is in Item 7 of the current FDD. Costs depend heavily on the site, size and condition of the space.
What is the Built Custom Burgers franchise fee?
The initial franchise fee is listed in Item 5 of the FDD.
What royalty does Built Custom Burgers charge?
Royalty and marketing contributions are described in Item 6.
Can I get an SBA loan for a Built Custom Burgers franchise?
Yes. The brand is listed on the SBA Franchise Directory under code S2671, so SBA 7(a) and SBA 504 loans can be considered, subject to lender approval.
What does the SBA directory note mean?
When real estate at the restaurant location secures the SBA loan, the franchisor’s lease addendum is not to be signed. If you lease and the real estate does not secure the loan, the note generally does not affect you.
Can I finance kitchen equipment separately?
Yes. Grills, fryers, refrigeration and hoods can be financed or leased apart from the franchise loan.
Can I buy an existing Built Custom Burgers restaurant?
Yes, if a franchisee is selling and the franchisor approves the transfer. Lenders will review the restaurant’s sales history.
Can a first-time owner get a Built Custom Burgers franchise loan?
Yes, if the franchisor approves you and you meet lender credit and equity standards. Restaurant management experience strengthens the request.
Does the franchisor offer financing?
Check Item 10 of the current FDD for any financing the franchisor offers.
How long is the franchise term?
The term and renewal rights are described in Item 17 of the FDD.
Final Thoughts
A Built Custom Burgers franchise loan is mainly about build-out, kitchen equipment and opening cash. With the brand on the SBA Franchise Directory, SBA 7(a) and SBA 504 loans are available alongside conventional and equipment financing. Start with the current FDD, get real contractor bids and talk with a financing specialist before you sign a lease.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, real estate, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
