How to Finance a Farmer Boys Franchise: Drive-Thru Real Estate
By Anthony Cornella
A Farmer Boys franchise loan is a real estate-heavy restaurant financing project. The brand prefers corner and pad sites that can fit a drive-thru lane, its franchise FAQ puts the total investment at $1,056,000 to $2,520,000, and its financial requirements start at $1,000,000 in net worth for a single-unit owner. Add an SBA Franchise Directory note about a specific lease document, and the structure of your site deal becomes as important as the loan itself.
US Professional Funding is not affiliated with, sponsored by or endorsed by Farmer Boys; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD), franchise agreement and any lease documents with a qualified franchise attorney and accountant before you sign.
Farmer Boys Franchise Loan at a Glance
- Concept: a fast-casual, farm-fresh restaurant serving burgers, cooked-to-order breakfast all day, hand-chopped salads and sandwiches, with dine-in, drive-thru, delivery and loyalty sales.
- History: founded by five brothers raised on a family farm; the first Farmer Boys opened in Perris, California, in 1981.
- System size: over 100 locations in California, Arizona and Nevada, according to the franchisor.
- Initial franchise fee: $45,000.
- Total investment: $1,056,000 to $2,520,000, per the franchisor’s FAQ.
- Single-unit requirements (1 to 2 units): $1,000,000 net worth and $450,000 in liquid assets.
- Royalty and marketing fees: not published on the franchise site; confirm them in Item 6 of the current FDD.
- SBA Franchise Directory: listed as Farmer Boys under code S0626, with a note that execution of the LMRA Lease document is not acceptable for SBA loans.
What Is Farmer Boys?
Farmer Boys was started by five brothers who grew up on a family farm on the Mediterranean island of Cyprus. They opened their first burger restaurant in Southern California in 1979 and launched the first Farmer Boys in Perris, California, in 1981. The company says it reached 50 restaurants in California and Nevada by 2005, opened its 100th location in 2020 and expanded into Arizona in 2021.
The brand describes itself as a one-of-a-kind fast casual concept built on fresh ingredients from local vendors, and it prefers to source from local farmers whenever possible. The menu is broader than a typical burger chain, with breakfast served all day, large salads and stacked sandwiches. Restaurants also partner with local schools to raise money for children’s hospitals.
How lenders view the concept. Farmer Boys has more than four decades of history and a regional footprint concentrated in the western U.S. Lenders will see a drive-thru restaurant with broad dayparts, but also a large building, a sizable staff and a real estate structure that needs careful review, especially if you plan to use SBA financing.
Farmer Boys Franchise Costs
The franchisor’s FAQ lists a $45,000 initial franchise fee and a total investment of $1,056,000 to $2,520,000. The franchise site does not publish a line-by-line Item 7 table, so match each category below to the FDD you receive before building your Farmer Boys franchise loan request.
Initial franchise fee
The initial franchise fee is $45,000. If you sign an area development agreement, ask how development fees are credited against each restaurant’s franchise fee. Lenders generally expect intangible costs like this to come from your equity or be included in a loan backed by tangible assets.
Real estate and site work
The franchise site lists a 25,000-square-foot minimum lot, 130 to 150 feet of frontage, 40 or more parking spaces preferred and at least 25,000 average daily traffic. Preferred locations are corners and high-visibility pads that can accommodate a drive-thru lane, though the company will consider strong sites without one depending on the market. The franchisor describes purchase, build-to-suit and ground lease opportunities, and its support page says the company handles the purchase and construction of the property. Understanding exactly how that real estate arrangement works in your deal is the first financing question to answer.
Building and equipment
The franchise site lists a building of 2,800 to 3,200 square feet. Expect a full cooking line for burgers and breakfast, fryers, refrigeration and freezers, prep stations, beverage systems, drive-thru communication and point-of-sale technology, dining room furniture, signage and the menu boards that go with a drive-thru lane.
Opening costs and working capital
Pre-opening costs include training, hiring, opening inventory, smallwares, uniforms, deposits, insurance and grand opening marketing. The franchisor’s FAQ says a restaurant needs a general manager, additional managers and about 40 additional staff members, so pre-opening payroll is a real budget item.
Building your Item 7 budget
- Initial franchise fee (Item 5)
- Rent, lease deposits or real estate costs, depending on the site structure
- Construction, site work and leasehold improvements
- Kitchen equipment, furniture, fixtures and signage
- Technology and drive-thru systems
- Training and travel
- Opening inventory and supplies
- Grand opening marketing
- Insurance, licenses and permits
- Additional funds for the initial operating period
Total investment
The franchisor’s FAQ places the total at $1,056,000 to $2,520,000. A separate franchise page shows a different range, so treat the FDD you receive as the controlling document.
Ongoing Fees and How They Affect Your Loan
Farmer Boys does not publish its royalty or marketing fund rates on its franchise site. Item 6 of the FDD lists the royalty, advertising contributions, technology fees, transfer and renewal fees and any other recurring charges. If the franchisor or an affiliate is your landlord, rent becomes one more payment to the franchise system.
Lenders deduct royalty, marketing and rent before calculating debt service coverage. With a large staff and a full-service-style menu, labor is a major cost, so lenders will test whether the restaurant can cover all of those obligations and still service its debt comfortably.
Franchisor Requirements for New Owners
Farmer Boys publishes tiered financial requirements:
- Single-unit owner (1 to 2 units): $450,000 in liquid assets and $1,000,000 in net worth.
- Multi-unit franchise (2 to 9 units): $900,000 in liquid assets and $2,000,000 in net worth.
- Enterprise multi-unit franchise (10+ units): $2,500,000 in liquid assets and $4,000,000 in net worth.
The company looks for owner-operators with extensive restaurant or hospitality experience, and it requires franchise operators to live in the market they plan to develop. After approval, owners complete a 12-week training program with hands-on daily coaching and an online learning system, followed by ongoing visits from a Franchise Business Consultant.
Ways to Own a Farmer Boys
Build a new restaurant. Most new Farmer Boys restaurants are freestanding drive-thru buildings. Financing covers the franchise fee, equipment, opening costs and, depending on the site structure, construction or real estate. See our page on restaurant start-up financing.
Buy an existing restaurant. When a franchisee sells, the buyer acquires an operating restaurant with a sales history. Lenders underwrite those historical results, and the franchisor must approve the transfer. Our page on franchise acquisition financing explains how these deals are structured.
Sign an area development agreement. Growth-minded operators can commit to multiple restaurants under a development agreement, with higher financial requirements for larger commitments.
Financing Options for a Farmer Boys Franchise
SBA 7(a) loans
An SBA 7(a) loan can finance equipment, the franchise fee, working capital and, in some cases, real estate. For Farmer Boys, an SBA loan is only possible if the lease structure satisfies the SBA directory note, so confirm the real estate documents with your lender before you apply.
SBA 504 loans
If you are purchasing land and a building, an SBA 504 loan may fit the real estate and long-lived equipment. Owning the property removes the lease document question, though it increases the total capital you need. Read more about franchise real estate financing.
Conventional term loans
Given the brand’s net worth and liquidity requirements, many Farmer Boys candidates are experienced operators who may qualify for conventional business loans. Conventional financing is also a practical route if the lease structure does not fit SBA rules.
Equipment financing
Grills, fryers, refrigeration, drive-thru systems, point-of-sale technology and furniture can be financed separately through restaurant equipment financing, which can be useful when the building is owned or leased by another party.
Working capital and lines of credit
Hiring and training a large crew, opening inventory and early marketing all consume cash before sales stabilize. A restaurant working capital line can help cover those costs and seasonal swings.
Seller financing on resales
On an acquisition, the seller may agree to carry part of the price. Seller notes are typically subordinate to the senior loan, and some programs limit their structure.
Use our conventional loan calculator to compare payment scenarios.
SBA Loans for Farmer Boys Franchisees
The SBA Franchise Directory lists franchise brands whose agreements have been reviewed for SBA eligibility, along with any conditions that apply. Farmer Boys appears under code S0626 with this note: “The execution of the LMRA Lease document is not acceptable for SBA loans.”
What the note means. In plain English, a specific lease document used in the Farmer Boys system, the LMRA Lease, cannot be signed as part of an SBA-financed deal. If your restaurant would be set up under that document, an SBA lender will not be able to fund the loan on that basis. You would need a different real estate arrangement acceptable to the SBA, such as a standard third-party lease or owning the property, or you would need to use non-SBA financing.
Because the franchisor’s support page says the company handles the purchase and construction of the property, ask the franchise team early which lease or real estate document your site will use. Share the documents with your lender before you sign anything. For a Farmer Boys franchise loan, this question can determine which programs are available.
The SBA 7(a) program maximum is currently $5 million, although program rules can change.
How Lenders Evaluate a Farmer Boys Deal
Personal credit and financial history
Lenders review payment history, outstanding debt and any past bankruptcies. The franchisor’s own site also lists no bankruptcies among its candidate criteria.
Net worth and liquidity
With requirements starting at $1,000,000 net worth and $450,000 in liquid assets, Farmer Boys candidates usually have strong balance sheets. Lenders will check how much of your liquidity remains after your equity injection.
Restaurant and management experience
The franchisor asks for extensive restaurant or hospitality experience, and lenders will expect the same. Show your history managing multi-shift restaurants with large crews.
Business plan and projections
Projections should reflect breakfast, lunch and dinner dayparts, drive-thru share, delivery, labor for a crew of roughly 40 plus managers, royalty, marketing and occupancy costs. Ramp-up in a new market may take longer than in an established one.
The FDD, franchise agreement and lease documents
Lenders will review Items 5, 6, 7, 10 and 21, the franchise agreement and every real estate document. The franchise site publishes an average sales figure drawn from its disclosure materials; review Item 19 of the current FDD with your accountant rather than relying on summaries.
Site and real estate
The site criteria, including lot size, frontage and traffic counts, give lenders a clear benchmark. Expect an appraisal for owned real estate and a careful review of any lease or ground lease.
Historical financials for resales
For an existing restaurant, lenders will request several years of tax returns, profit and loss statements and sales reports.
Drive-Thru Sites and Real Estate Structure
Farmer Boys’ preference for corner and pad sites with drive-thru lanes means real estate is often the largest piece of the budget. The structure determines the loan:
- Purchase: you own the land and building, typically financed with an SBA 504 loan, SBA 7(a) loan or conventional mortgage.
- Build-to-suit: a developer or landlord builds the restaurant and leases it to you, so your loan covers equipment, fees and working capital.
- Ground lease: you lease the land and finance the building, which requires a lease term long enough for the loan.
For any structure, confirm which lease document applies before you choose a loan program. Our page on restaurant real estate acquisition financing covers owned-property options.
Multi-Unit Growth and Development Agreements
Farmer Boys sets higher financial requirements for multi-unit and enterprise development. In 2025 the company announced an incentive offering a $100,000 rebate for each traditional restaurant opened under an area development agreement of four or more restaurants, for agreements signed by the end of that year. Ask whether a similar program is currently offered.
Lenders usually finance each restaurant separately and want to see results before funding the next. Plan your equity for each opening. Read more in our article on area development agreement financing.
Real-World Farmer Boys Franchise Loan Scenarios
An experienced operator buys the site. A restaurant operator purchases a corner pad and builds a drive-thru restaurant. An SBA 504 loan funds the land and building, and equipment financing covers the kitchen.
A franchisee leases a build-to-suit restaurant. After confirming the lease document with the franchisor and lender, the owner uses conventional financing for equipment, fees and working capital.
A multi-unit group signs a development agreement. A hospitality group meeting the multi-unit requirements finances its first restaurant and uses its results to support the next opening.
Common Mistakes to Avoid
- Assuming SBA financing is available before reviewing the lease document your site will use.
- Underestimating the liquidity needed for a drive-thru restaurant with a large staff.
- Leaving royalty, marketing and rent paid to the system out of your projections.
- Signing a development agreement without planning equity for each restaurant.
See our article on restaurant loan mistakes for more pitfalls.
Next Steps to Finance Your Farmer Boys Franchise
Step 1: Confirm your qualifications. Check the net worth, liquidity, experience and residency requirements.
Step 2: Review the FDD. Study Items 5, 6, 7, 10, 19 and 21 with a franchise attorney and accountant.
Step 3: Ask about the real estate structure. Find out whether your site will be purchased, built-to-suit or ground leased, and which lease document applies.
Step 4: Choose the loan program. Match the real estate structure to SBA 7(a), SBA 504 or conventional financing.
Step 5: Build your budget and plan. Tie your projections to the Item 7 table and your site costs.
Step 6: Apply and close. Submit your documents, finalize the real estate and coordinate funding with construction.
Farmer Boys Franchise Loan FAQs
How much does a Farmer Boys franchise cost?
The franchisor’s FAQ lists a total investment of $1,056,000 to $2,520,000, including the $45,000 franchise fee.
What is the Farmer Boys franchise fee?
The initial franchise fee is $45,000.
What royalty does Farmer Boys charge?
The royalty and marketing fees are not published on the franchise site. Check Item 6 of the current FDD.
How much net worth and liquid capital do I need?
A single-unit owner needs $1,000,000 in net worth and $450,000 in liquid assets. Multi-unit and enterprise requirements are higher.
Can I use an SBA loan for a Farmer Boys franchise?
Farmer Boys is on the SBA Franchise Directory, but the SBA note says execution of the LMRA Lease document is not acceptable for SBA loans. SBA financing depends on using a different, acceptable real estate arrangement.
Do I need restaurant experience?
Yes. The franchisor looks for owner-operators with extensive restaurant or hospitality experience.
Do I have to live near my restaurant?
Yes. The franchisor requires franchise operators to reside in the market they plan to develop.
Can I buy an existing Farmer Boys?
Existing restaurants occasionally change hands. Transfers require franchisor approval, and lenders underwrite the restaurant’s historical financials.
Where is Farmer Boys franchising?
The company currently operates restaurants in California, Nevada and Arizona.
How long is Farmer Boys training?
The franchisor describes a 12-week training program with hands-on daily coaching.
Final Thoughts
A Farmer Boys franchise loan depends on the real estate as much as the restaurant. Confirm the site structure and lease document early, choose a loan program that fits, and make sure your liquidity covers both your equity injection and a healthy reserve.
US Professional Funding helps franchise owners finance new restaurants, acquisitions and multi-unit growth. Learn more about our franchise financing solutions and our restaurant financing programs, or talk to our team about your Farmer Boys project.
