How to Finance a Roy Rogers Franchise: Refranchising and Costs
By Chris Cornella
A Roy Rogers franchise loan finances a stake in one of the older names in American fast food: a western-themed quick-service chain known for roast beef sandwiches, fried chicken, burgers and its Fixin’s Bar. Today the system is small and concentrated, mostly company-operated, and actively looking for franchise partners, including buyers for existing corporate restaurants.
This article explains what the company has said publicly about its restaurants and franchise program, why Roy Rogers buyers should expect conventional financing rather than SBA loans, and how lenders evaluate a new restaurant compared with a corporate store purchased through the brand’s refranchising program.
US Professional Funding is not affiliated with, sponsored by or endorsed by Roy Rogers; the name is used only to describe the business. Figures from the franchisor’s disclosure document and company materials 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 Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant before you commit.
Roy Rogers Franchise Loan at a Glance
- System size: the company reported 24 company-owned restaurants and 16 franchise restaurants in seven states in its June 2025 release.
- Founded: 1968; headquartered in Frederick, Maryland.
- Concept: western-themed quick service with a “Triple Threat” menu of roast beef, hand-breaded fried chicken and burgers, plus the Fixin’s Bar.
- Refranchising program: launched in 2024 in Maryland and Virginia, letting qualified buyers acquire existing corporate restaurants.
- Franchise fee, royalty, ad fund and total investment: not published in the company’s public materials; confirm them in Items 5, 6 and 7 of the current FDD.
- Net worth and liquidity requirements: not published; ask the franchise development team.
- SBA Franchise Directory: Roy Rogers is not listed, so conventional financing is the main route.
What Is Roy Rogers?
The first Roy Rogers restaurant opened in Falls Church, Virginia, in 1968. The chain grew quickly, and the company says it reached 648 operating stores at its peak before the restaurants were sold to other chains. The current owners acquired the brand in the early 2000s and have rebuilt it from its home base in Frederick, Maryland.
Roy Rogers describes itself as a chain of western-themed quick-service restaurants with broad appeal across dayparts and generations. Its menu centers on what the company calls the “Triple Threat”: choice top round roast beef, hand-breaded fresh fried chicken and burgers. The signature Fixin’s Bar lets guests customize their orders with fresh produce, condiments and sauces.
Restaurant formats. Roy Rogers operates quick-service restaurants, many with drive-thrus. A recently reconstructed New Jersey restaurant, which marked the brand’s return to that market, is a 3,300-square-foot drive-thru location, according to the company.
Modernization. The company has remodeled a group of restaurants with a refreshed prototype design and added electronic menu boards, LED lighting, an improved drive-thru experience, third-party delivery enhancements and a mobile app with a loyalty program.
Why lenders view Roy Rogers the way they do. Lenders see a legacy brand with strong regional recognition, a company-operated base and a franchisor actively selling corporate stores. They also see a small system, so they lean heavily on the specific restaurant’s sales history, the operator’s experience and the real estate.
The Refranchising Program
In 2024 Roy Rogers introduced a refranchising program in Maryland and Virginia. It lets prospective franchisees acquire existing corporate restaurants before, or instead of, building new independent locations. Later that year, the company announced that a multi-unit franchisee had bought a corporate restaurant in suburban Maryland, bringing his portfolio to seven restaurants.
For a borrower, buying a corporate restaurant changes the financing picture:
- Real operating history. The lender can underwrite actual sales and expenses rather than projections.
- Defined assets. Equipment, signage and leasehold improvements are already in place, so the price typically covers business assets, goodwill and inventory.
- Real estate questions. The buyer must learn whether the company owns the site, leases it and will assign or sublease it, or will sell it as part of the deal.
- Reinvestment. Ask whether the restaurant has been remodeled to the newer prototype or will need upgrades soon.
Our article on financing a corporate franchise location purchase explains how these deals differ from buying from another franchisee.
Roy Rogers Franchise Costs
The company’s public releases do not publish the initial franchise fee or the estimated initial investment. Those figures appear in Items 5 and 7 of the FDD, which the franchisor must provide before you sign. Use the FDD’s Item 7 table as the starting point for any Roy Rogers franchise loan.
Initial franchise fee. Item 5 sets out the fee and any development fee for multi-unit commitments. Ask whether the fee differs for a refranchised corporate restaurant.
Real estate and building. A new freestanding drive-thru restaurant may require buying land and building, a ground lease with construction, or a build-to-suit lease from a developer. Each structure has a very different capital need.
Equipment and signage. A roast beef and fried chicken kitchen needs specialized equipment, including roasting ovens, slicers, pressure or open fryers, breading stations, grills, holding cabinets, refrigeration, the Fixin’s Bar, drive-thru communication systems and digital menu boards.
Opening costs and working capital. Expect opening inventory, hiring and training, insurance, deposits, grand opening marketing and a reserve to carry payroll while sales build.
Total investment. Item 7 of the FDD lists the estimated range and its line items. A quick-service Item 7 table typically includes:
- Initial franchise fee
- Real estate, site work and construction or leasehold improvements
- Kitchen and drive-thru equipment
- Furniture, fixtures and decor
- Exterior and interior signage and menu boards
- Point-of-sale and technology systems
- Opening inventory and supplies
- Training expenses
- Grand opening advertising
- Deposits, licenses and permits
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists every recurring fee. For a quick-service brand, expect a royalty on gross sales, an advertising or brand fund contribution, local marketing requirements, technology and app fees, and transfer and renewal fees.
Royalty and advertising. Both are usually percentages of gross sales, so they come off the top before food cost, labor, rent and debt service.
Technology. Digital menu boards, the mobile app, loyalty program and delivery integrations can carry monthly charges.
Remodel obligations. Because the company has rolled out a newer prototype design, check the franchise agreement for remodel and refresh requirements and when they apply.
How lenders factor these costs in. Lenders start from the restaurant’s actual or projected sales, subtract royalty, advertising, food and paper, labor, occupancy and technology costs, and test whether the remaining cash flow covers debt service with a cushion. Our conventional loan calculator can help you estimate payments for planning; results are not an offer or approval.
Franchisor Requirements for New Owners
Roy Rogers does not publish minimum net worth or liquidity figures in its press releases. The company has said it is seeking qualified franchise investors and strategic multi-unit operators to develop the brand. In practice, a quick-service franchisor typically looks for:
- Restaurant operating or multi-unit management experience
- Enough liquid capital to fund the equity portion of the deal and reserves
- Net worth that supports personal guarantees on leases and loans
- A development plan for a defined market, particularly for new territory
The approval process. Candidates generally submit an inquiry to the franchise development team, receive the FDD, go through financial and background review, and meet with leadership before an agreement is signed. Ask the team for its current financial qualifications in writing.
Ways to Own a Roy Rogers
Buying a corporate restaurant. Through the refranchising program, buyers in Maryland and Virginia can acquire existing company-operated restaurants. This is often the most financeable route because lenders can review actual results. See our overview of franchise restaurant acquisition financing.
Buying from an existing franchisee. Franchisee-to-franchisee sales require franchisor approval. Lenders review the restaurant’s financials and the lease or property terms.
Developing new restaurants. The company has signed multi-unit development deals, including a 10-unit agreement for the Greater Cincinnati area. New development needs financing for real estate or leasehold improvements, equipment and opening costs.
Converting an existing restaurant. Operators who control a former quick-service building may ask whether a conversion is possible. Financing would focus on the remodel, equipment and signage.
Financing Options for a Roy Rogers Franchise
Conventional term loans. Because Roy Rogers is not on the SBA Franchise Directory, a conventional business loan is the primary tool for most buyers. Lenders size the loan to the restaurant’s cash flow and secure it with business assets, any real estate and personal guarantees.
SBA 7(a) loans. The SBA 7(a) program is widely used for franchise deals, but lenders generally require the brand to be on the SBA Franchise Directory. See the SBA section below.
SBA 504 loans. The SBA 504 program finances owner-occupied real estate. It also depends on the brand’s eligibility, so for now conventional real estate loans are the more practical option for buying a Roy Rogers building. Our guide to franchise real estate financing compares the structures.
Equipment financing. Roasting ovens, fryers, grills, refrigeration, the Fixin’s Bar, drive-thru headsets and digital menu boards can be financed separately. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. Quick-service restaurants carry weekly food and paper purchases and steady payroll. A line of credit can bridge the transition after a corporate purchase, a remodel closure or seasonal swings in traffic. See our restaurant working capital options.
Seller financing on resales. In some purchases from franchisees, the seller may carry part of the price. A seller note is typically subordinate to the senior loan and must be acceptable to that lender. Ask the franchisor whether it offers any financing in a refranchising sale, and check Item 10 of the FDD.
SBA Loans for Roy Rogers Franchisees
SBA lenders use the SBA Franchise Directory to confirm that a brand’s franchise documents have been reviewed for SBA eligibility. They generally require a listing before making an SBA-guaranteed loan to a franchisee.
Roy Rogers is not on the SBA Franchise Directory. In plain terms, SBA 7(a) and 504 loans are generally not available for a Roy Rogers franchise right now, and buyers should plan on conventional financing. The absence of a listing is not a judgment about the brand; many franchisors are not listed simply because they have not submitted documents for review.
Directory status can change, so ask the franchisor whether it plans to seek a listing and confirm current status with your lender. If Roy Rogers were added, the SBA 7(a) program maximum is currently $5 million, though program rules can change.
How Lenders Evaluate a Roy Rogers Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require personal guarantees.
Net worth and liquidity. Conventional lenders often expect a meaningful cash contribution plus reserves after closing.
Restaurant experience. Quick-service operating experience, especially multi-unit management, is one of the strongest factors in a conventional approval.
Business plan and projections. For a corporate store purchase, start from actual sales and adjust for royalty, advertising, rent and your labor plan. For a new restaurant, build a ramp-up period and support sales assumptions with nearby Roy Rogers results if the franchisor will share them.
The FDD and franchise agreement. Lenders read Items 5, 6 and 7 for costs, Item 17 for term, renewal and transfer, Item 20 for openings and closures, and Item 21 for the franchisor’s financial statements. Our guide to how lenders read a franchise disclosure document covers what to flag.
Site, lease or real estate. Lenders want a lease term at least as long as the loan or, for owned real estate, an appraisal and environmental review.
Historical financials. For a corporate or franchisee resale, expect to provide several years of profit and loss statements and sales reports.
Kitchen, Drive-Thru and Remodel Equipment
A Roy Rogers kitchen handles roasted beef, freshly breaded chicken and grilled burgers side by side, which makes it more equipment-intensive than a single-protein concept.
Core equipment. Roasting ovens and slicers for roast beef, fryers and breading tables for chicken, grills for burgers, holding cabinets, walk-in refrigeration and ventilation.
Front of house. The Fixin’s Bar, beverage stations and seating.
Drive-thru and technology. Order-point speakers, headsets, digital menu boards, point-of-sale systems and app integration.
Remodels. If you buy an older corporate restaurant, ask whether it has been converted to the updated prototype. Financing a remodel together with the purchase can be simpler than arranging it a year later.
Multi-Unit Growth and Development Agreements
The company has said it is seeking strategic multi-unit operators, and its refranchising program has already helped one franchisee grow to seven restaurants.
Development schedules. A development agreement sets an opening schedule for a territory. Missing deadlines can cost territory rights, so arrange financing for each restaurant well ahead of its target date.
Financing additional restaurants. Once you operate one or more restaurants, lenders can underwrite combined cash flow. Many operators finance each acquisition separately and later consolidate. Our article on multi-unit franchise financing explains common structures.
Real-World Scenarios
A first-time franchisee buying a corporate restaurant. A former quick-service district manager buys a corporate Roy Rogers restaurant in Virginia. The lender underwrites the restaurant’s actual sales, the buyer assumes the lease, and a working capital line covers the transition.
A multi-unit operator adding locations. An existing franchisee buys two more corporate restaurants in Maryland. The lender looks at the combined results of all locations and finances a remodel for one of them.
A developer in a new market. A restaurant group signs a development agreement for a new region. It finances the first site’s land and building with a conventional real estate loan and the equipment package separately.
Common Mistakes to Avoid
- Assuming SBA financing will be available for a brand that is not on the SBA Franchise Directory
- Buying a corporate restaurant without understanding the real estate arrangement
- Overlooking remodel requirements on an older location
- Building projections without royalty and advertising percentages from the FDD
- Leaving too little working capital for the ownership transition
- Underestimating the equipment needs of a three-protein kitchen
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Roy Rogers Franchise
Step 1: Contact the franchise development team. Ask about available corporate restaurants, open territories and current financial qualifications.
Step 2: Review the FDD with advisors. Focus on Items 5, 6, 7, 10, 17, 20 and 21 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Learn how conventional lenders will size a loan for this brand and your experience level.
Step 4: Evaluate the restaurant or site. Gather sales reports, profit and loss statements, lease or property documents and remodel status.
Step 5: Build your projections. Adjust actual results for your royalty, advertising, labor and occupancy costs.
Step 6: Apply for financing. Submit your loan package with the FDD, franchise agreement, purchase agreement, projections and personal financial documents.
Step 7: Close and plan the transition. Arrange working capital and coordinate training and staffing with the franchisor.
Roy Rogers Franchise Loan FAQs
How much does it cost to open a Roy Rogers franchise?
The company does not publish the total investment in its public releases. Item 7 of the current FDD lists the estimated range and line items, which vary with real estate, construction and equipment.
What is the Roy Rogers franchise fee?
The initial franchise fee is disclosed in Item 5 of the FDD. Ask whether a different fee applies to a refranchised corporate restaurant or to a development agreement.
What royalty does Roy Rogers charge?
Item 6 of the FDD lists the royalty, advertising contribution and other recurring fees.
How much money do I need to qualify?
Roy Rogers does not publish net worth or liquidity minimums in its releases. Ask the franchise development team, and plan for a cash contribution and reserves that conventional lenders expect.
Can I get an SBA loan for a Roy Rogers franchise?
Roy Rogers is not listed on the SBA Franchise Directory, so SBA financing is generally not available. Most buyers use conventional loans.
Can I buy an existing company-owned Roy Rogers?
Yes. The refranchising program launched in 2024 offers existing corporate restaurants in Maryland and Virginia to qualified buyers.
Does Roy Rogers offer financing?
Check Item 10 of the current FDD for any financing the franchisor offers. Most buyers arrange their own loans.
Can I finance kitchen equipment separately?
Yes. Equipment financing or leasing can cover ovens, fryers, grills, refrigeration and drive-thru technology.
Can a first-time owner get a Roy Rogers franchise loan?
It is possible, especially when buying a corporate restaurant with an operating history. Restaurant management experience and solid liquidity strengthen the request.
How long is the franchise term?
Item 17 of the FDD sets out the term, renewal and transfer terms. Lenders compare the remaining term with the loan length.
Does the FDD include financial performance information?
Check Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
Roy Rogers gives buyers a notable entry point: a franchisor actively selling its own restaurants to operators. A well-prepared Roy Rogers franchise loan request combines conventional financing, a clear view of the real estate and a realistic remodel plan.
US Professional Funding helps franchise owners and buyers finance acquisitions, equipment, working capital and real estate. Learn more about our franchise financing and restaurant financing solutions.
