How to Finance an Earth Burger Franchise: Vegan Fast Food Costs
By Marc Cornella
An Earth Burger franchise loan funds a fast food restaurant with a twist: every item on the menu is plant-based. The kitchen, equipment and build-out look much like any burger restaurant, but the brand is small and young as a franchise system, so lenders will lean heavily on the buyer’s restaurant experience, the site and a realistic plan for building a customer base.
US Professional Funding is not affiliated with, sponsored by or endorsed by Earth Burger; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Have a franchise attorney and an accountant review the current Franchise Disclosure Document (FDD) before you commit.
Earth Burger Franchise Loan at a Glance
- Concept: a fully plant-based fast food restaurant serving burgers, sandwiches, fries, tots and shakes made without meat.
- Home base: San Antonio, Texas, where the brand was founded by a group of vegetarian restaurateurs and where its flagship restaurant operates.
- Franchise program: the brand announced a national franchise program with a franchise development partner, inviting both experienced restaurant operators and newcomers to the plant-based segment.
- System size: small; the brand has opened and closed locations over the years, so confirm the current number of open restaurants in Item 20 of the FDD.
- Fees and investment: we could not verify the current franchise fee, royalty, marketing fund, Item 7 investment range or net worth and liquidity requirements from the franchisor’s own materials. Get the current FDD and read Items 5, 6, 7 and 12.
- SBA Franchise Directory: listed as Earth Burger under code S8576, with a note about the lease rider when real estate secures the loan.
What Is Earth Burger?
Earth Burger opened in San Antonio as a vegetarian fast food restaurant and later became fully vegan. The idea was to deliver the speed, price point and familiar menu of a burger chain without any meat, giving vegans, vegetarians and flexible eaters a drive-up alternative to traditional fast food. The brand also supports a charitable feeding program through select menu items.
The menu covers burgers, chicken-style and fish-style sandwiches, breakfast wraps, fries, tots and shakes. Recipes and sauces are made in-house, and the brand has refreshed both its menu and its look as it prepared to franchise.
Why lenders look closely. Earth Burger is an emerging franchise system. The brand has opened locations in Texas and beyond and closed some of them, and its footprint is small today. That does not rule out financing, but it means a lender cannot underwrite on a long track record of franchised units. The buyer’s own restaurant experience, the strength of the trade area for plant-based dining and the size of the cash cushion carry more weight. Our article on financing an emerging franchise brand explains what changes when a system is new.
Earth Burger Franchise Costs
Because we could not verify current figures from the franchisor, this section outlines the costs to expect in Item 7 and how each is typically handled in an Earth Burger franchise loan.
Initial franchise fee. Item 5 sets the fee and any multi-unit or development fees. It is usually paid at signing, from the buyer’s cash or as part of a start-up loan.
Real estate and build-out. A burger restaurant may go into an inline or end-cap space, a freestanding building with a drive-thru, or a second-generation restaurant that already has a hood and grease trap. Converting an existing restaurant can lower build-out costs considerably. See our article on restaurant build-out financing.
Kitchen equipment. Expect a flat-top grill, fryers, ventilation hood and fire suppression, refrigeration and freezers, prep tables, a shake machine, point-of-sale and kitchen display systems, and drive-thru communication equipment where applicable.
Opening costs and working capital. Opening food and paper inventory, signage, furniture, training, grand opening marketing, insurance and deposits are all part of opening. Additional funds cover payroll and rent while sales build, which can take longer for a niche menu in a new market.
Total investment. Item 7 shows the estimated range and its assumptions. Typical categories include:
- Initial franchise fee
- Lease deposits and leasehold improvements or construction
- Kitchen equipment, smallwares and technology
- Signage, furniture and decor
- Opening inventory
- Training, travel and grand opening marketing
- Insurance, permits and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 discloses the royalty, marketing or brand fund, technology fees and transfer and renewal fees. Read whether you must buy proprietary sauces or menu items from the franchisor or approved suppliers, and how those prices are set.
How lenders factor fees in. Royalty and marketing fees tied to gross sales come off the top, before food, labor and rent. A lender will deduct them, then stress-test whether the restaurant covers debt service if sales come in below plan. For a plant-based menu, also model ingredient costs carefully, since specialty proteins and dairy-free products can price differently from conventional items.
Franchisor Requirements for New Owners
We could not verify Earth Burger’s net worth, liquidity or experience requirements from the franchisor’s own materials. The brand has said it welcomes both experienced restaurant operators and people new to the plant-based segment. Expect the franchisor to consider:
- Restaurant or multi-unit operating experience
- Liquid capital for the equity injection and working capital
- A trade area with demand for plant-based and health-focused dining
- Willingness to commit to development of one or more restaurants
- Alignment with the brand’s plant-based and community mission
The process generally moves from inquiry to FDD delivery, a review period, interviews, signing and site selection. Bring a financing specialist in early, before you commit to a lease.
Ways to Own an Earth Burger
Opening a new restaurant. Most franchise buyers in a young system start from scratch. A start-up loan relies on projections, the site and your experience. Our franchise start-up financing page covers how these requests are structured.
Converting a second-generation restaurant. Taking over a closed restaurant with a hood, walk-in cooler and drive-thru in place can reduce costs. Lenders will want an inspection of inherited equipment and confirmation that the landlord will allow the change in use.
Multi-unit development. Experienced operators may sign for several restaurants. Lenders usually finance one restaurant at a time and look for the first to perform before funding the next.
Financing Options for an Earth Burger Franchise
SBA 7(a) loans. Because Earth Burger is on the SBA Franchise Directory, an SBA 7(a) loan can be considered for build-out, equipment, the franchise fee, working capital and, in some cases, real estate.
SBA 504 loans. If you buy or build a freestanding restaurant, the SBA 504 program may finance the land, building and long-lived equipment. See our restaurant real estate acquisition financing for how property deals work.
Conventional term loans. A conventional business loan may suit experienced multi-unit operators with strong balance sheets, though lenders may be more cautious with a small, young brand.
Equipment financing. Grills, fryers, hoods, refrigeration, shake machines and point-of-sale systems can be financed through restaurant equipment financing and leasing, preserving cash for opening costs.
Working capital and lines of credit. A plant-based restaurant in a new market may take time to build regulars. A reserve or line of credit helps cover payroll and food costs during ramp-up. See our restaurant working capital options.
SBA Loans for Earth Burger Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan. A listing means the franchise relationship has been reviewed for eligibility; it does not approve any borrower or site.
Earth Burger’s listing and note. Earth Burger appears on the directory under code S8576 with this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Rider may not be executed. In plain English, the franchisor’s lease rider is meant for restaurants in leased space. If you own the property and pledge it as collateral for the SBA loan, that rider should not be signed, because it would conflict with the lender’s interest in the real estate. If you lease your restaurant, the rider may apply as usual. Your lender and franchise attorney should confirm which documents to sign.
SBA application tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Bring a sources and uses table, the FDD, your lease or letter of intent, contractor bids, equipment quotes, a resume and projections that reflect a ramp-up period. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate an Earth 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. With a young brand, lenders often want more cash left after closing to absorb a slower ramp-up.
Industry and management experience. Restaurant management experience is one of the strongest factors in an Earth Burger franchise loan request. First-time owners should plan to hire an experienced general manager.
Business plan and projections. Base projections on the trade area, competition, drive-thru potential and demand for plant-based dining. Show a ramp-up period rather than assuming full sales on day one.
The FDD and franchise agreement. Lenders review the term, renewal, transfer, Item 10 franchisor financing, Item 20 unit counts and closures, and whether Item 19 includes financial performance representations. Our guide to how lenders read a Franchise Disclosure Document covers what they look for.
Site and lease. Lenders review lease length, renewal options, rent and landlord consent. The lease term should generally run at least as long as the loan.
Kitchen, Equipment and the Plant-Based Menu
An Earth Burger kitchen runs much like any burger kitchen: grill, fryers, holding equipment, refrigeration and a shake station, all under a hood with fire suppression. That is good news for financing, because the equipment is standard and holds resale value. Plant-based products may have specific storage or handling needs, so confirm the franchisor’s equipment package and supplier list before ordering. If you take over a second-generation restaurant, have the hood, walk-in and fryers inspected and budget for any replacements.
Multi-Unit Growth and Development Agreements
Some buyers sign development agreements that commit them to open several restaurants on a schedule. Lenders generally finance each restaurant separately and look at how the first performs before funding the second. Make sure the development schedule leaves time to stabilize each restaurant, and that missing a deadline will not put earlier restaurants at risk under the agreement.
Real-World Scenarios
An experienced operator adds a plant-based brand. An owner of several restaurants signs with Earth Burger to reach a new customer segment. The lender uses the existing restaurants’ cash flow to support an SBA 7(a) loan for the first unit.
A first-time owner converts a closed burger restaurant. A buyer leases a former burger restaurant with a working hood and drive-thru. The lender finances leasehold improvements and new equipment, and requires an experienced general manager and a working capital reserve.
A buyer purchases the building. A franchisee buys a small freestanding building and pledges it as collateral. Following the directory note, the franchisor’s lease rider is not signed, and the loan covers the property, equipment and opening costs.
Common Mistakes to Avoid
- Relying on investment numbers from anywhere other than the current FDD
- Overlooking Item 20 data on how many restaurants have opened and closed
- Assuming full sales from the first month in a new market
- Signing a lease before financing is lined up
- Signing the lease rider when the real estate secures an SBA loan
- Underfunding working capital for a slower ramp-up
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Earth Burger Franchise
Step 1: Confirm the franchise offering. Ask the franchisor for the current FDD and confirm that franchises are available in your market.
Step 2: Review the FDD with advisors. Read Items 5, 6, 7, 10, 12, 17, 19 and 20 with a franchise attorney and accountant.
Step 3: Study the trade area. Assess demand for plant-based dining, competition and drive-thru potential.
Step 4: Build your budget. Create a sources and uses table from Item 7, contractor bids and equipment quotes.
Step 5: Talk to a financing specialist. Compare SBA, conventional and equipment financing before signing a lease.
Step 6: Apply and coordinate. Submit your loan request and align the closing with lease signing, construction and training.
Earth Burger Franchise Loan FAQs
How much does it cost to open an Earth Burger?
Item 7 of the current FDD shows the estimated initial investment. We could not verify a current range from the franchisor’s own materials.
What is the Earth Burger franchise fee?
The initial franchise fee is disclosed in Item 5 of the FDD.
Is Earth Burger eligible for SBA loans?
Yes. Earth Burger is listed on the SBA Franchise Directory under code S8576, with a note that the lease rider may not be signed when the real estate secures the SBA loan.
Can I get a loan for a young franchise brand?
Yes, but expect more scrutiny. Lenders weigh your experience, liquidity and site more heavily when a system has a short track record.
Do I need restaurant experience?
The brand has said it welcomes newcomers, but lenders strongly prefer restaurant management experience or an experienced general manager.
Can I finance kitchen equipment separately?
Yes. Grills, fryers, refrigeration and point-of-sale systems can often be financed through equipment loans or leases.
Can I buy the real estate?
Possibly. SBA 7(a), SBA 504 or conventional real estate loans may be considered. If the property secures an SBA loan, the franchisor’s lease rider should not be signed.
Does Earth Burger offer financing?
Check Item 10 of the current FDD.
What documents will I need?
Tax returns, a personal financial statement, a resume, the FDD and franchise agreement, a lease or purchase contract, bids, quotes and projections.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
An Earth Burger franchise loan works best when a buyer pairs restaurant experience with a strong site, a conservative ramp-up plan and plenty of working capital. The brand’s SBA Franchise Directory listing keeps SBA financing available, and understanding the lease rider note before you choose between leasing and buying will help the closing go smoothly.
US Professional Funding helps franchise owners and buyers finance start-ups, equipment, real estate and working capital. Learn more about our franchise financing and restaurant financing solutions.
