How to Finance a Burly Burger Franchise: Burger Startup Costs
By Anthony Cornella
A Burly Burger franchise loan funds a counter-service burger restaurant from a Utah-born brand known for big, hearty burgers and a rugged, beard-themed personality. As with most burger concepts, the grill line, hood system and build-out make up much of the cost, and the brand’s SBA Franchise Directory listing carries three notes that matter if real estate is part of the deal.
This article explains what to pull from the Franchise Disclosure Document (FDD), how each directory note affects an SBA loan, and how buyers finance a first restaurant, an existing one or several locations.
US Professional Funding is not affiliated with, sponsored by or endorsed by Burly Burger; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a franchise attorney and an accountant before you sign.
Burly Burger Franchise Loan at a Glance
- Concept: a counter-service burger restaurant that started in Utah, built around oversized burgers and a playful, rugged brand.
- Stage: an emerging franchise system that has begun expanding beyond its home state through franchise partners.
- Fees, royalty and investment range: not verified from the franchisor’s own published materials for this article; Items 5, 6 and 7 of the current FDD set them out.
- Net worth and liquidity: not verified; ask the franchisor for its current requirements.
- SBA Franchise Directory: listed as “Burly Burger” under code S9004, with three notes on lease documents, franchisor liens on real estate and lien position.
What Is Burly Burger?
Burly Burger is a burger brand that started in Utah. Its menu centers on large, made-to-order burgers with bold names, and its branding leans into a lumberjack-style, beard-friendly attitude that sets it apart from more polished burger chains.
An emerging system. Burly Burger is a young franchise with a small number of restaurants compared with national burger chains. That matters for financing: lenders have less system-wide data to rely on, so they look harder at the buyer, the site and the projections.
How lenders see the brand. Burgers are a familiar restaurant category, which helps a lender understand the model, but the brand’s limited footprint means underwriters weigh local competition, the buyer’s experience and the location more heavily.
Burly Burger Franchise Costs
Verified fee and investment figures were not available from the franchisor’s own published materials when this article was written, so use the current FDD for exact numbers. These are the categories a lender reviewing a Burly Burger franchise loan will expect to see.
Initial franchise fee. Item 5 lists the fee, when it is due and any reduced fees for additional restaurants.
Real estate and build-out. Most new restaurants lease inline, end-cap or pad sites. A burger kitchen needs a hood and fire-suppression system, grease management, walk-in refrigeration and a dining area, and the cost of all that rises quickly in a second-generation space that was never a restaurant.
Kitchen equipment. Flat-top grills or broilers, fryers, refrigerated prep tables, beverage equipment, freezers, smallwares and point-of-sale systems form the package. Item 8 explains which items must come from approved or designated suppliers.
Opening costs and working capital. Opening food and paper inventory, crew training, grand opening marketing and money to cover payroll and rent until sales build all belong in the plan.
Total investment. Item 7 of the current FDD gives the low and high estimates. When you read it, look for these line items:
- Initial franchise fee
- Leasehold improvements or new construction
- Grills, fryers, refrigeration and beverage equipment
- Furniture, fixtures and decor
- Exterior and interior signage
- Point-of-sale and online ordering technology
- Opening inventory
- Training expenses and grand opening marketing
- Deposits, permits, licenses and insurance
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty. Item 6 sets the royalty, typically a percentage of gross sales. It is paid before debt service, so it reduces the cash available for loan payments.
Marketing. Budget any brand fund contribution and local marketing. In a market where the name is new, local marketing carries more of the load.
How lenders factor these costs in. Underwriters project sales, subtract food and paper, labor, rent, royalty and marketing, then check that the remaining cash flow covers the loan payment with a margin of safety. Beef prices can move, so the plan should show how margins hold if food costs rise.
Franchisor Requirements for New Owners
The franchisor’s minimum net worth and liquid capital requirements were not verified from its own materials for this article. Ask for current figures and confirm them in the FDD.
Expect an application, a financial review, conversations with the franchisor’s leadership and a waiting period to review the FDD before signing. Restaurant experience, hands-on involvement and enough liquidity to absorb a slow start strengthen a candidate with both the franchisor and a lender.
Ways to Own a Burly Burger
A new restaurant. Most growth in a young system comes from new restaurants. Lenders underwrite on projections, the site and the buyer’s resources. Our page on franchise start-up financing explains how these loans are built.
Buying an existing restaurant. When a franchised location changes hands, the lender can work from actual sales. Price, remaining lease and franchise term, equipment condition and transfer approval shape the loan. Our guide to buying a franchise resale covers the process.
Financing Options for a Burly Burger Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, the SBA 7(a) loan program is a natural starting point. A 7(a) loan can combine the franchise fee, build-out, equipment and working capital.
SBA 504 loans. An SBA 504 loan is designed for owner-occupied real estate and long-lived fixed assets. It can fit a buyer who purchases a pad site or an existing restaurant building. Read more about franchise real estate financing, and note the directory rules below.
Conventional term loans. A conventional business loan can work for experienced restaurant operators with strong credit and collateral.
Equipment financing. Grills, fryers, beverage equipment, refrigeration and the hood system can often be financed or leased separately. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. A new burger restaurant buys inventory and trains its crew before opening, and sales can swing with weather, school schedules and local events. A reserve or line of credit smooths those swings. Learn more about restaurant working capital.
Seller financing on resales. A seller may carry part of the price on an existing restaurant. A seller note is typically subordinate to the senior loan, and SBA rules may limit its structure or whether it counts toward the equity injection.
SBA Loans for Burly Burger Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before they can make an SBA-guaranteed loan to one of its franchisees. A listing means the brand’s franchise documents have been reviewed for SBA eligibility; it does not approve any borrower.
The listing. Burly Burger appears on the SBA Franchise Directory under code S9004. Share the code with your lender at the start. The listing carries three notes, and each one matters most when real estate is involved.
Note one: lease documents. When the real estate where the restaurant is located will secure the SBA-guaranteed loan, the franchisor’s Consent and Agreement of Landlord and Collateral Assignment of Lease may not be executed. Those documents are designed for a tenant in a leased building. If you or an affiliate own the property and pledge it, they should not be signed.
Note two: no franchisor deed or mortgage. The franchisor may not file a deed or mortgage on real estate owned by the franchisee or an affiliate when that property is taken as collateral for the SBA loan. In plain English, the franchisor cannot take its own recorded interest in property your SBA lender is relying on.
Note three: lien position. The lender, or the development company in a 504 loan, must make sure it obtains the lien position SBA rules require on all collateral. Expect a close review of existing liens and equipment leases before closing.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. A Burly Burger franchise loan request moves faster with a lease or purchase contract, a contractor bid, an equipment quote and monthly projections that show a conservative ramp in a market new to the brand.
How Lenders Evaluate a Burly Burger 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 look for the equity injection plus reserves left after closing. Our article on how much franchise you can afford walks through the math.
Industry and management experience. Restaurant operations experience carries extra weight with a young brand. If you lack it, show how you will hire an experienced general manager.
Business plan and projections. Model lunch and dinner traffic, delivery, food costs and a realistic ramp. Because the system is small, ground assumptions in local competition and the site’s traffic rather than system averages.
The FDD and franchise agreement. Underwriters read Items 5, 6, 7 and 17, including term, renewal and transfer rules, and any security interests the franchisor takes.
Site and lease. Lenders want a lease at least as long as the loan, rent the projections can carry and good visibility, parking and access.
Historical financials for resales. For an existing restaurant, provide several years of profit and loss statements, sales reports and tax returns.
The Burger Kitchen: Equipment and Build-Out
A burger restaurant lives on its grill line. Flat-tops or broilers, fryers for sides, refrigerated prep stations and beverage equipment all have to run through busy lunch and dinner peaks. The hood, make-up air and fire suppression above that line are among the most expensive parts of the build-out, especially in a space that was never a restaurant.
This equipment is identifiable collateral that equipment lenders understand. When buying an existing restaurant, ask for service records and hood inspection reports, and budget for any replacement the franchisor requires at transfer.
Multi-Unit Growth and Development Agreements
A young system often looks for owners who can open several restaurants in a market. A development agreement typically commits you to a schedule of openings.
Financing additional restaurants. Lenders usually want the first restaurant stable before funding the next, and its results become evidence for the new one. Our article on multi-unit franchise financing explains how lenders view a growing group.
Real-World Scenarios
A local restaurant manager opening a first location. A manager with years of quick-service experience uses an SBA 7(a) loan for the build-out, equipment and working capital in a leased end-cap, with the landlord documents signed as usual.
A family buying the building. A family purchases a former restaurant building through an affiliated company and finances it with an SBA 504 loan. Following the directory notes, the landlord consent and collateral assignment are not used, and the franchisor records no mortgage on the property.
A buyer acquiring an existing restaurant. A buyer purchases a restaurant from its original owner. The lender reviews sales history and the remaining lease, confirms its lien position on the equipment and accepts a small seller note subordinate to the senior loan.
Common Mistakes to Avoid
- Underestimating hood and kitchen costs in a space that was never a restaurant
- Ignoring the three SBA directory notes when real estate secures the loan
- Relying on system averages from a small franchise instead of local data
- Signing a lease shorter than the loan term
- Leaving too little working capital for the opening months
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Burly Burger Franchise
Step 1: Request the current FDD. Review Items 5, 6, 7, 8, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm the franchisor’s requirements. Ask for current net worth, liquidity and development expectations.
Step 3: Estimate your budget. Use the Item 7 categories and our SBA loan calculator for early payment estimates. Results are for planning only and are not an offer or approval.
Step 4: Decide lease or own. Choose a site with the franchisor’s approval and settle early whether you will lease or buy, since the directory notes depend on it.
Step 5: Gather bids and build projections. Collect contractor and equipment quotes, then model sales, food costs and a conservative ramp.
Step 6: Apply for financing. Submit your package with the SBA directory code, the FDD, the lease or purchase contract and your personal financial documents.
Burly Burger Franchise Loan FAQs
How much does it cost to open a Burly Burger?
Item 7 of the current FDD gives the estimated initial investment, covering the franchise fee, build-out, equipment, opening inventory and working capital.
What is the Burly Burger franchise fee?
Item 5 of the current FDD lists the initial franchise fee and any reduced fees for additional restaurants.
How much liquid capital do I need?
The franchisor’s requirements were not verified for this article. Ask the franchisor, and plan for your equity injection plus a working capital reserve.
Can I get an SBA loan for a Burly Burger franchise?
The brand is on the SBA Franchise Directory under code S9004, so an SBA-backed Burly Burger franchise loan may be available to qualified borrowers, subject to approval.
What do the SBA directory notes mean?
If real estate secures the SBA loan, the landlord consent and collateral assignment of lease should not be signed, and the franchisor cannot record a deed or mortgage on that property. The lender must also secure the lien position SBA rules require.
Can I finance the kitchen equipment separately?
Often, yes. Equipment financing or leasing can cover grills, fryers, refrigeration and beverage equipment, but your SBA lender will want to confirm how any separate lien affects its collateral.
Can I buy an existing Burly Burger?
Resales may be available, subject to the franchisor’s transfer approval. Lenders will review the restaurant’s history, lease and equipment.
How long is the franchise term?
Item 17 of the FDD sets the term, renewal and transfer conditions. Lenders prefer a remaining term at least as long as the loan.
Can a first-time owner get a Burly Burger franchise loan?
Yes, if the franchisor approves the candidate and the application shows enough liquidity and a capable general manager.
Does Burly Burger offer financing?
Check Item 10 of the current FDD, which discloses any financing the franchisor offers. Most buyers arrange their own financing.
Final Thoughts
Burly Burger offers a familiar product with a distinctive personality, but as a young system it asks more of the buyer’s own experience, site selection and reserves. Read the current FDD, plan around all three SBA directory notes if you own the real estate, and budget generously for the kitchen.
US Professional Funding helps franchise buyers and owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
