How to Finance a Grumps Burgers Franchise: Costs and Texas Roots
By Anthony Cornella
A Grumps Burgers franchise loan finances a casual, family-friendly Texas burger restaurant best known for its Queso Burger on a jalapeno bun. Grumps Burgers says its initial investment begins at $250,000, including a $30,000 franchise fee, and that figure does not include buying land or a building.
This article explains what the franchisor publishes, how its SBA Franchise Directory listing and lease note affect a Grumps Burgers franchise loan, and how lenders look at a young franchise system growing across North Texas.
US Professional Funding is not affiliated with, sponsored by or endorsed by Grumps Burgers; the name is used only to describe the business. Figures from the franchisor’s website and 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) and franchise agreement with a qualified franchise attorney and accountant before you sign or borrow.
Grumps Burgers Franchise Loan at a Glance
- Franchise fee: $30,000, a one-time fee, according to the company’s franchising page
- Initial investment: begins at $250,000 including the franchise fee, not including the purchase of property or a building
- Royalty: 5.5% of gross revenues, charged monthly
- Minimum net worth: $500,000
- Recommended liquid assets: $150,000
- Franchise term: 10 years
- Founded: 2002, by founder Collier Albright
- Locations: the company website lists restaurants in Abilene, Burleson, Early, Cleburne, Glen Rose, Granbury, River Oaks and Stephenville, Texas (2026)
- Training: a four-week program at the brand’s Burleson training center
- SBA Franchise Directory: listed under code S7053, with a note about the Collateral Assignment of Lease
What Is Grumps Burgers?
Grumps Burgers is a Texas burger restaurant founded in 2002 by Collier Albright. The franchising page describes more than two decades of experience in the burger business, and the company presents itself as a simple concept with a casual, fun, family-friendly atmosphere. The franchisor entity named on its website is Grumps Burgers, Inc.
The signature item is the Queso Burger on a jalapeno bun. The franchised Glen Rose restaurant also serves draft beer and frozen margaritas, and takes dine-in, carry-out and phone-in orders.
The franchise program. Grumps awarded its first franchise in March 2024 to a husband-and-wife team who had been customers of the Granbury restaurant for years. Their Glen Rose restaurant held its grand opening on June 29, 2024, and the company describes it as the first complete franchise unit to open. It seats about 80 guests inside, with a patio for 20 more. In 2026, the company announced a franchised restaurant in Early, Texas, in a second-generation restaurant space.
Why lenders see it as an emerging franchise. A long-running local brand with a short franchise track record gives lenders few franchised units to compare, so a Grumps Burgers franchise loan leans on the FDD, your management ability, the site and your liquidity. Our article on financing an emerging franchise covers how lenders approach young systems.
Grumps Burgers Franchise Costs
Initial franchise fee. The franchising page lists a $30,000 one-time franchise fee. Item 5 of the FDD will confirm when it is due, whether any part is refundable and whether fees differ for additional restaurants.
Real estate and build-out. The company’s $250,000 starting figure excludes the purchase of property or a building, so the real estate decision drives the size of your loan. Leasing a second-generation restaurant space, as the Early franchisee did, can reduce construction because hoods, grease traps, plumbing and restrooms may already be in place. Read about restaurant build-out financing for how construction costs are funded.
Equipment. A scratch burger kitchen generally needs flat-top griddles or grills, fryers, a hood and fire suppression system, refrigeration and freezers, prep tables, a queso warmer or steam well, a frozen-drink machine for margaritas and slushes, beer draft equipment and a point-of-sale system.
Opening costs and working capital. Budget for opening inventory, pre-opening payroll, training travel, deposits, permits including alcohol licensing, grand-opening marketing and reserves for the first months.
Total investment. Because the company publishes only a starting point, use the Item 7 table in the FDD for the full range. Expect categories such as these:
- Initial franchise fee ($30,000)
- Leasehold improvements and construction
- Kitchen, bar and frozen-drink equipment
- Furniture, fixtures, decor and signage
- Point-of-sale and technology
- Opening inventory and supplies
- Training travel and expenses
- Deposits, licenses, permits and an alcohol permit
- Grand-opening marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty. Grumps charges a 5.5% royalty on gross revenues, collected monthly. Because it comes off the top line, it is paid before food, labor, rent and loan payments.
Other fees. The franchising page does not list an advertising fund, technology fee or local marketing requirement. Check Item 6 of the FDD for any marketing contribution, technology or software fees, transfer and renewal fees, and remodel obligations.
How lenders factor these costs in. Lenders deduct the royalty and other sales-based fees, then food, labor and rent, and size a Grumps Burgers franchise loan to what is left. A conservative budget with a cushion after the loan payment carries more weight than an optimistic forecast.
Franchisor Requirements for New Owners
The company lists these qualifications on its franchising page:
- Net worth: a minimum of $500,000
- Liquidity: recommended liquid assets of $150,000
- Mindset: goal-driven and passionate, with strong communication skills
- Commitment: willing to learn and work within an established system
Training. New owners attend a four-week program at the Burleson training center, which the company nicknames “Grumps Junior College.” It combines an upstairs classroom with a working restaurant downstairs. The first two weeks cover brand history, menu training and customer service; week three covers operations, inventory and cost control, and staff leadership; week four puts trainees on the grill and point-of-sale system in a live restaurant.
The approval process. Candidates submit an inquiry form, learn about the brand and receive the FDD. The page notes that franchises are offered only through the FDD.
Ways to Own a Grumps Burgers
A new restaurant in a leased space. This is how the franchised restaurants have opened so far. Financing typically covers the franchise fee, build-out, equipment and opening working capital, sized on projections.
A new restaurant in a building you buy. The property price sits outside the $250,000 starting figure, so financing covers both real estate and restaurant.
Buying an existing restaurant. A resale gives lenders actual sales and expenses, subject to franchisor transfer approval. Our article on buying a franchise resale explains the process.
Multiple restaurants. Owners who want more than one location need the franchisor’s approval and should review territory terms.
Financing Options for a Grumps Burgers Franchise
SBA 7(a) loans. An SBA 7(a) loan can finance the franchise fee, build-out, equipment, working capital and, in some cases, a building. Because Grumps Burgers is on the SBA Franchise Directory, an SBA-backed loan is available for qualified borrowers.
SBA 504 loans. When you buy or build the restaurant property, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment. Franchise fees and working capital are funded separately.
Conventional term loans. Owners with strong credit and liquidity may qualify for a conventional business loan.
Equipment financing. Griddles, fryers, refrigeration, frozen-drink machines, beer systems and point-of-sale hardware can be financed separately from the main loan. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Opening payroll, inventory and early rent come due before sales stabilize, and a line of credit can cover later repairs. Explore our restaurant working capital programs.
Seller financing on resales. When buying an existing restaurant, a seller may agree to carry a note for part of the price. Any seller note is typically subordinate to the senior lender, and SBA rules may limit how it is structured.
Franchisor financing. The franchising page does not mention any financing from the franchisor. Item 10 of the FDD will say whether any is offered.
SBA Loans for Grumps Burgers Franchisees
The SBA reviews franchise agreements and lists eligible brands on the SBA Franchise Directory. SBA lenders generally require a listing before they can make an SBA-backed loan to a franchisee. A listing does not approve any borrower; it clears the franchise relationship so lenders can review the request.
Grumps Burgers is listed. The brand appears on the directory as Grumps Burgers under code S7053.
What the note means. The directory note says that when the real estate where the franchise business is located will secure the SBA loan, the Collateral Assignment of Lease may not be executed. In plain English, the franchisor’s lease assignment form is built for a restaurant in a leased space, where the franchisor can step into the lease if the franchise ends. If you own the building and pledge it as collateral, that lease document should not be signed for the loan. Tell your lender early whether you will lease or buy so the closing documents match.
Program limits. The SBA 7(a) program maximum is currently $5 million, although program rules can change.
SBA application tips. Bring the FDD, a business plan tied to Item 7, your personal financial statement, tax returns, the lease or purchase contract and proof of equity. Our SBA loan calculator gives planning estimates only.
How Lenders Evaluate a Grumps Burgers Deal
Personal credit and financial history. Expect a review of your credit, financial statement and tax returns, plus a personal guaranty.
Net worth and liquidity. The franchisor’s $500,000 net worth minimum and $150,000 liquidity recommendation are a starting point. Lenders also want to see reserves remaining after your equity injection.
Industry and management experience. Restaurant, hospitality or general management experience helps, and the four-week training adds the brand’s playbook.
Business plan and projections. Build projections around your trade area, seating capacity, alcohol sales, labor plan and the 5.5% royalty. Because the franchise system is young, lenders may weigh the founder’s company restaurants when judging the concept.
The FDD and franchise agreement. Lenders review fees, the 10-year term, renewal and transfer conditions, territory rights and whether Item 19 includes financial performance representations. See our article on reading an FDD for financing.
Site and lease. Lenders review lease term, renewals, rent and improvement allowances, or the appraisal if you buy.
Historical financials for resales. When buying an existing restaurant, provide its profit and loss statements, sales reports and tax returns.
Kitchen, Bar and Dining Room
Grumps pairs a griddle-driven burger kitchen with a sit-down dining room and a beer and frozen-margarita program. Griddles, hoods, refrigeration and frozen-drink machines are long-lived assets that lenders can finance and secure, though they need maintenance reserves. Alcohol licensing adds timing risk, so lenders may want the permit underway before final draws.
Multi-Unit Growth and Development
The company’s list of open North Texas markets points to room for owners who want a second or third restaurant. Ask whether a development agreement is available, how territories are defined and what fees apply to additional units.
Financing additional units. Once your first restaurant has a track record, its cash flow supports the next loan. Our article on multi-unit franchise financing explains how owners fund growth.
Real-World Scenarios
A first-time owner in a second-generation space. A business owner with no restaurant background completes training and leases a former restaurant building. An SBA 7(a) loan covers the franchise fee, renovation, equipment and working capital, and the lender relies on the owner’s management record and liquidity.
An existing franchisee adding a unit. A Grumps owner with steady results opens in a nearby market, and the lender underwrites both restaurants’ cash flow together.
An owner who buys the building. A couple purchases a standalone building in a growing town. An SBA 504 loan finances the real estate, a separate loan covers the franchise fee and opening costs, and the lease assignment form is left out because the property secures the loan.
Common Mistakes to Avoid
- Treating $250,000 as the total cost when it excludes property and buildings
- Ignoring the 5.5% royalty when modeling cash flow
- Signing a lease before the lender reviews it
- Overlooking alcohol permit timing
- Underfunding working capital for the ramp-up period
- Not telling the lender whether you will lease or own, which affects the lease note
For more pitfalls, read about the restaurant loan mistakes that sink new owners.
Next Steps to Finance Your Grumps Burgers Franchise
Step 1: Submit an inquiry. Complete the franchise form and confirm your target market is available.
Step 2: Check your finances. Compare your net worth and liquid assets with the franchisor’s $500,000 and $150,000 benchmarks.
Step 3: Review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 4: Talk with a financing specialist. Match the loan structure to a leased or owned site.
Step 5: Secure a site and quotes. Get lease or purchase terms and contractor and equipment bids.
Step 6: Apply and close. Submit your loan package, coordinate franchisor approvals and schedule training.
Grumps Burgers Franchise Loan FAQs
How much does a Grumps Burgers franchise cost?
The company says the initial investment begins at $250,000, including the franchise fee, and does not include buying property or a building. The full range appears in Item 7 of the FDD.
What is the Grumps Burgers franchise fee?
The franchising page lists a $30,000 one-time franchise fee.
What royalty does Grumps Burgers charge?
The royalty is 5.5% of gross revenues, charged monthly. Check Item 6 of the FDD for any marketing or technology fees.
How much net worth and liquid capital do I need?
The company lists a minimum net worth of $500,000 and recommends $150,000 in liquid assets.
Can I get an SBA loan for a Grumps Burgers?
Yes, if you qualify. The brand is on the SBA Franchise Directory under code S7053, so SBA 7(a) and 504 loans are available subject to approval.
What does the SBA directory note mean?
If the restaurant’s real estate secures the SBA loan, the Collateral Assignment of Lease should not be executed. It mainly matters when you own the property.
Can a first-time restaurant owner get a Grumps Burgers franchise loan?
Yes. The first franchisees were new to restaurants. Lenders will focus on your management background, liquidity and the four-week training.
How long is the franchise term?
The franchising page lists a 10-year term. Renewal conditions appear in Item 17 of the FDD.
Does Grumps Burgers offer financing?
The franchising page does not mention franchisor financing. Item 10 of the FDD will confirm.
Final Thoughts
Grumps Burgers offers a long-running Texas burger concept with a young franchise program, published starting costs and an SBA Franchise Directory listing that keeps an SBA-backed Grumps Burgers franchise loan on the table. The key decisions are whether to lease or buy your site and how much working capital to hold. Budget beyond the starting figure and engage lenders early.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
