How to Finance a Killer Burger Franchise: Operators and SBA
By Chris Cornella
A Killer Burger franchise loan funds a made-to-order burger restaurant with a bold, rock-and-roll personality, craft beer on tap and a menu built around signature burgers such as the peanut butter, pickle and bacon PBPB. Killer Burger is listed on the SBA Franchise Directory, so qualified buyers may be able to use SBA-guaranteed financing, and the brand looks for experienced restaurant operators rather than first-time investors.
This article covers the brand, the costs to confirm in the Franchise Disclosure Document (FDD) and how lenders size a loan for a growing regional concept.
US Professional Funding is not affiliated with, sponsored by or endorsed by Killer Burger; the name is used only to describe the business. Figures from 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, so review the current FDD and franchise agreement with a franchise attorney and an accountant.
Killer Burger Franchise Loan at a Glance
- Concept: a fast-casual burger restaurant serving made-to-order burgers from natural beef, chicken and veggie options, milkshakes, kids’ meals and craft beer on tap.
- Founded: in Portland, Oregon, in September 2010, according to the company.
- Growth markets: the company names Texas as its next stop and is open to discussing markets west of the Mississippi River, except California.
- Operator experience: the franchisor looks for operators or managers with 5 years of experience leading a team of 5 or more people.
- Development: candidates can ask about exclusive multi-unit territories.
- Franchise fee, royalty, marketing fund and total investment: confirm in Items 5, 6 and 7 of the current FDD; we could not verify them on franchisor materials.
- Net worth and liquidity: the inquiry form asks for both, but the franchisor does not publish a minimum.
- SBA Franchise Directory: listed as Killer Burger (code S2706), with a note about real estate collateral and the lease rider.
What Is Killer Burger?
Killer Burger opened in Portland in September 2010 and built its following in the Pacific Northwest. Its restaurants pair a counter-service burger menu with a loud, casual atmosphere, craft beer, catering, takeout and delivery.
The PBPB, a bacon burger with peanut butter sauce and pickles, is the company’s signature, alongside a classic build and rotating limited-time burgers. Everything is made to order, which shapes kitchen layout and staffing.
How lenders view the concept. Killer Burger is a regional brand with a defined expansion plan rather than a national chain with thousands of units. Lenders tend to focus more on the borrower’s own restaurant record, the strength of the specific site and the franchisor’s support systems than on brand recognition alone. Our article on financing an emerging franchise explains how lenders approach younger and regional systems.
Killer Burger Franchise Costs
The franchisor does not publish its fees or investment range on its franchising page, so every number in your budget should come from the current FDD and your own contractor and landlord quotes.
Initial franchise fee
Item 5 of the FDD lists the initial franchise fee and any development fee. For a multi-unit territory, confirm when each fee is due, because a lender will want those payments in the sources and uses statement.
Real estate and build-out
Killer Burger’s Portland restaurants include corner storefronts in older neighborhoods, and new sites may be in-line or freestanding retail space. Build-out usually drives the budget: kitchen ventilation, grease management, plumbing, electrical service, a beer system, seating, restrooms and signage. Second-generation restaurant space can lower costs, while a former retail shell can require far more work.
Equipment
A made-to-order burger kitchen needs flat-top griddles, fryers, refrigeration, freezers, prep tables, milkshake equipment, a point-of-sale system and, for the bar side, draft beer equipment and coolers.
Opening costs and working capital
Pre-opening expenses include training, payroll before opening, inventory, a grand opening campaign, deposits, insurance and a beer license where required. Item 7 also lists additional funds for the first months.
Total investment
When you review Item 7, look for these line items and the assumptions behind each range:
- Initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements and construction
- Kitchen equipment, smallwares and bar equipment
- Furniture, fixtures, signage and decor
- Technology and point-of-sale systems
- Opening inventory and supplies
- Training, pre-opening payroll and grand opening marketing
- Licenses, permits, insurance and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, marketing fund contribution, technology fees and other recurring charges, which come off the top before rent, labor and food costs.
Lenders build these fees into projections before calculating debt service coverage, so a budget that leaves them out overstates the cash available for a Killer Burger franchise loan. Also check for remodel obligations during the loan term.
Franchisor Requirements for New Owners
Killer Burger’s franchising page is clear that it wants operators. The company looks for restaurant operators or managers with 5 years of experience leading a team of 5 or more people, along with business acumen, restaurant or retail experience and an operator’s mindset. It also asks for partners who either have ample capital or are willing to apply for a business loan.
The inquiry form asks for net worth and liquid assets, but the company does not publish a minimum. The franchisor says it will reply within a week if it sees a fit.
Ways to Own a Killer Burger
Opening a new restaurant. Most new owners will open a new location in an approved market. Lenders underwrite a new restaurant on projections, the lease and the owner’s experience, so the operator background the brand requires also helps the loan request. Our franchise start-up financing page covers how new units are funded.
Buying an existing location. If an existing franchised restaurant comes up for sale, the franchisor must approve the transfer. A resale gives lenders historical sales, food and labor costs to review. Read our article on buying a franchise resale before making an offer.
Multi-unit territory. Candidates can ask about exclusive multi-unit territories, which bring a development schedule that must match how fast you can raise equity.
Financing Options for a Killer Burger Franchise
SBA 7(a) loans. SBA 7(a) loans can fund leasehold improvements, equipment, the franchise fee, opening inventory and working capital in one package, and in some cases a building purchase. The 7(a) program maximum is currently $5 million, and program rules can change.
SBA 504 loans. If you buy or build the restaurant’s building, SBA 504 loans are designed for owner-occupied real estate and long-lived equipment. Read the directory note below first, because it changes the lease documents when real estate secures the loan.
Conventional term loans. Experienced multi-unit operators with strong liquidity may use conventional business loans, particularly for later units once the first restaurant has a track record.
Equipment financing. Griddles, fryers, refrigeration, shake machines, draft beer systems and point-of-sale hardware can be financed separately. Our page on restaurant equipment financing and leasing explains the options, and your primary lender will count that debt in its review.
Working capital and lines of credit. New restaurants need a cushion for pre-opening payroll, the ramp-up period and slower months, and a beer program adds inventory. See our page on restaurant working capital.
Seller financing on resales. When buying an existing location, a seller may carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA rules may limit how they are structured.
SBA Loans for Killer Burger Franchisees
SBA loans are made by participating lenders with an SBA guarantee on part of the loan. For a franchise, the lender also confirms that the franchise agreement leaves the owner in control of the business, and the SBA Franchise Directory helps with that review.
The directory listing. Killer Burger appears on the SBA Franchise Directory under code S2706. A listing can simplify the lender’s review of the franchise documents, but it does not approve any borrower or guarantee a loan.
What the directory note means. The listing says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Addendum Rider and any Power of Attorney may not be executed. In plain English, the brand’s lease rider and power of attorney give the franchisor rights over a leased site. If you own the property and pledge it as collateral, those documents are not signed for that loan. If you lease, the note does not apply.
SBA application tips. Have the franchise agreement, lease or purchase contract, contractor bids, a sources and uses statement, tax returns and a restaurant resume for each owner ready.
How Lenders Evaluate a Killer Burger Deal
Credit, net worth and liquidity. Lenders review each owner’s credit, tax returns and debts, the cash going into the project and the reserves left after closing. Significant owners typically sign personal guarantees.
Restaurant management experience. The brand’s operator requirement lines up with what lenders want to see: hands-on experience running a kitchen and a team. Show your history with labor scheduling, food cost control and opening new units.
Business plan and projections. Projections should reflect your trade area, lunch and dinner traffic, the mix of dine-in, takeout, delivery and catering, beer sales where licensed, and the royalty and marketing fees. Our article on how lenders use the FDD shows which disclosures shape those assumptions.
The FDD and franchise agreement. Lenders look at the agreement term, renewal, transfer conditions and any remodel obligations, and they want the franchise term to run at least as long as the loan. Check Item 19 to see whether the FDD includes financial performance representations.
The site and lease. Lenders review lease length, renewal options and rent; a lease shorter than the loan term can limit the offer. On resales, expect a review of several years of financials.
Equipment and the Kitchen
A made-to-order burger line is equipment-intensive for its size. Shake machines and draft systems need regular service, so budget for maintenance and replacement.
Multi-Unit Growth and Development Agreements
Because Killer Burger offers exclusive multi-unit territories, many owners will plan more than one restaurant. Each new unit is usually financed separately, and lenders look at the performance of the open restaurants, global cash flow and remaining liquidity before funding the next one. SBA program limits apply across all of a borrower’s SBA loans, so larger growth plans often shift toward conventional financing. Read our article on multi-unit franchise financing before signing a development schedule.
Real-World Scenarios
A general manager becoming an owner. A restaurant manager who meets the operator requirement uses a Killer Burger franchise loan through SBA 7(a) for build-out, equipment and opening costs, with savings and a family investor providing equity.
An owner buying the building. An operator finds a freestanding building and plans to buy it. The lender uses a 504 structure for the real estate and, following the directory note, the lease rider and power of attorney are not executed for that loan.
A buyer taking over an open location. A buyer acquires an operating restaurant with a sales history. The lender underwrites the historical financials, and a small seller note on standby helps bridge the gap.
Common Mistakes to Avoid
- Budgeting from estimates instead of the current FDD’s Item 7 and real contractor quotes
- Underestimating build-out costs for ventilation, grease and a beer system in a non-restaurant space
- Leaving royalty, marketing and technology fees out of projections
- Signing a multi-unit schedule you cannot fund on time
- Opening with too little working capital for the ramp-up period
For more, read restaurant loan mistakes that cost owners.
Next Steps to Finance Your Killer Burger Franchise
Step 1: Confirm your fit. Compare your restaurant leadership experience with the brand’s operator requirement and confirm your target market is open.
Step 2: Review the FDD. Read the current disclosure document with a franchise attorney, focusing on Items 5, 6, 7, 10, 17 and 19.
Step 3: Build a full budget. Include the franchise fee, build-out, equipment, opening costs, licenses and working capital, plus a contingency.
Step 4: Talk to a financing specialist early. Our SBA loan calculator gives planning estimates only, not an offer or approval.
Step 5: Secure the site. Negotiate a lease or purchase that matches your loan term, and tell your lender whether real estate will secure the loan.
Step 6: Apply and close. Submit your documents, coordinate franchisor and lender approvals, and schedule construction and training around the closing date.
Killer Burger Franchise Loan FAQs
How much does a Killer Burger franchise cost?
The franchisor does not publish its investment range on its franchising page. Item 7 of the current FDD gives the estimated initial investment, and your site, build-out and equipment choices drive where you land within that range.
What is the Killer Burger franchise fee and royalty?
Items 5 and 6 of the current FDD list the initial franchise fee, royalty and marketing contributions. Ask the franchisor for the latest disclosure document.
How much net worth or liquid capital do I need?
The inquiry form asks for net worth and liquid assets but the company does not publish a minimum. Lenders will also expect cash for your equity contribution and reserves.
Do I need restaurant experience?
Yes. The company looks for operators or managers with 5 years of experience leading a team of 5 or more people.
Can I use an SBA loan for a Killer Burger franchise?
Possibly. Killer Burger is listed on the SBA Franchise Directory under code S2706, so eligible borrowers may apply for SBA-guaranteed loans, subject to program rules and lender approval.
What does the SBA directory note mean for me?
If you own the building and it will secure the SBA loan, the brand’s Lease Addendum Rider and any power of attorney may not be signed for that loan. If you lease, the note does not apply.
Can a Killer Burger franchise loan be used to buy an existing location?
Yes, if a franchised location is for sale and the franchisor approves the transfer; the restaurant’s historical financials will drive the loan.
Does Killer Burger offer financing?
Check Item 10 of the current FDD, which describes any financing the franchisor offers. Most owners arrange their own loans.
Can I open more than one location?
Yes. The company invites candidates to ask about exclusive multi-unit territories, and each new restaurant is typically financed on the strength of the ones already open.
Final Thoughts
A Killer Burger franchise loan works best for an experienced restaurant operator who knows the costs in the current FDD, budgets carefully for build-out and working capital, and understands the SBA directory note before deciding whether to own or lease the site.
US Professional Funding helps franchise owners finance new restaurants, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing.
