Skip to main content
✦Prime Rate:7.00%✦Fed Funds:3.75%✦5 Yr Treasury:4.78%↓✦10 Yr Treasury:4.96%↓✦30 Yr Treasury:5.29%↓✦30 Yr Mortgage:7.32%·Updated Oct 22, 2026✦Prime Rate:7.00%✦Fed Funds:3.75%✦5 Yr Treasury:4.78%↓✦10 Yr Treasury:4.96%↓✦30 Yr Treasury:5.29%↓✦30 Yr Mortgage:7.32%·Updated Oct 22, 2026
Rates
Back Yard Burgers

Back Yard Burgers

The total investment to open a Back Yard Burgers franchise ranges from $208,000 to $1.2M. The initial franchise fee is $25,000. Ongoing royalties are 4% plus a 1% advertising fee.

What is the Back Yard Burgers franchise?

Back Yard Burgers operates in the quick service restaurant industry and presents a franchise concept built around the American backyard grilling experience. The brand has developed an identity centered on high quality, flame grilled burgers and aims to offer a taste profile distinct from conventional fast food. The precise founding year is not publicly detailed. The reported system includes 19 total units and 23 identified franchised units, indicating a strong reliance on franchise operators for growth and market expansion. PeerSense independently tracks 28 active locations with consumer ratings, which may indicate a broader operating presence or a development pipeline beyond the official unit figures. Back Yard Burgers is categorized within the Gasoline Stations with Convenience Stores segment. That placement gives the concept access to customers making impulse purchases and seeking food while traveling or shopping for convenience items. The format places a food concept in established, high traffic locations and is intended to serve customers who want a premium burger experience with speed and convenience. For a buyer, the category provides a different entry point into food service than a conventional standalone burger restaurant, although the actual fit depends on the location and operating format.

The broader United States restaurant industry exceeded $990 billion in 2023, and quick service restaurants accounted for over $300 billion. The quick service restaurant segment is projected to grow at an annual rate of 5% to 7% over the next five years, supported by demand for speed, convenience, and value. Food service in convenience stores has grown at double digit percentages in recent years as customers increasingly use these locations for meal solutions. Relevant consumer preferences include fresh and customizable menu choices, convenient purchasing during busy routines, and better quality in quick service formats. Digital ordering platforms, drive thru service, and food service within nontraditional retail settings such as convenience stores also support demand across the sector. These conditions attract franchise investment because established operating systems can provide a structured path into business ownership, though they do not remove the need for careful financial review. Competition in the burger category remains intense. Back Yard Burgers differentiates its proposed market position through the Gasoline Stations with Convenience Stores category, where customers may be looking for an immediate meal at an accessible, high traffic location. The strategy combines convenience with a flame grilled burger offering and gives the brand a specialized distribution setting compared with traditional standalone quick service restaurants.

The available FDD data does not publicly disclose the franchise fee, required liquid capital, required net worth, royalty fees, or advertising fees. The stated total initial investment for a Back Yard Burgers unit ranges from $208,000 to $1.20 million. The range reflects different formats and development situations within the Gasoline Stations with Convenience Stores category. A lower cost project could involve a smaller footprint or a co branded operation inside an existing convenience store, with expenses for basic build out, an initial equipment package, signage, initial inventory, working capital, initial operating expenses, and employee training. A project near the upper end, reaching $1.20 million, could involve a larger freestanding location or a more extensive build out with a dining area, advanced kitchen equipment, and drive thru capability. That format may require substantial leasehold improvements, fixtures, furnishings, and equipment, site development, pre opening expenses, and additional operating capital. Because ongoing Back Yard Burgers fees are not specifically disclosed in the available information, industry reference points can help frame a preliminary model. Typical quick service restaurant royalty fees often range from 4% to 8% of gross sales, and advertising fund contributions commonly range from 1% to 4% of gross sales. These are industry benchmarks, not confirmed Back Yard Burgers charges. A buyer should also budget for rent, labor, food, utilities, and other recurring operating costs when assessing total ownership cost. Prospective franchisees should request exact disclosures from the franchisor and review each cost for the intended format and location before making an investment decision.

Back Yard Burgers is designed around fresh ingredient preparation, flame grilling, and quick order fulfillment for customers in a fast paced setting. A typical staffing structure includes a general manager, assistant managers, and crew members who handle cooking, order taking, and customer service. Staffing will depend on the unit size, operating hours, and presence of a drive thru. In general, a quick service restaurant unit requires 10 to 20 employees working in shifts to support regular operations and busy periods. Format choices may include compact kiosks or in line units within existing convenience store footprints, as well as larger standalone locations with drive thru capability. This allows a buyer to consider a format that fits the local market and available investment while retaining the core Back Yard Burgers offering. The franchisor's training program typically lasts several weeks and covers operating procedures, inventory management, food safety, customer service standards, and local marketing. Training is generally followed by continuing corporate support. Potential support areas include field visits from operations specialists, additional training modules, supply chain assistance to help maintain product quality and availability, and centralized marketing campaigns intended to build awareness and generate visits. The territory structure is typically intended to give franchisees a protected geographic area and reduce internal competition between units. Specific multi unit requirements are not stated. The franchise focused expansion strategy and relatively streamlined model may appeal to experienced operators seeking to develop multiple locations, use centralized management, and gain operating efficiencies.

Buyers therefore need to use industry benchmarks, local market information, and their own financial assumptions rather than treating outside figures as Back Yard Burgers results. These figures are industry reference points and are not a Back Yard Burgers earnings claim. Typical cost references include food costs of around 28% to 35% and labor costs of 25% to 30%, along with other operating expenses. The PeerSense Loan Activity Score is 21 and is categorized as Limited. This reflects limited public financial information and a particular stage of market penetration and data availability identified through PeerSense analysis. It may also indicate a period of strategic development or focused expansion while performance information continues to develop. PeerSense tracks 28 active locations with consumer ratings, providing additional information about market presence beyond the reported 19 total units and 23 franchised units. Buyers should speak directly with existing Back Yard Burgers franchisees if the franchisor permits those contacts. Discussions can address operating costs, revenue performance, and satisfaction with the system. A responsible review should also consider local traffic patterns, projected sales at the target convenience store locations, and conservative models based on industry averages.

Back Yard Burgers has 19 total units and 23 identified franchised units. The difference may reflect units under development or franchise agreements that exceed the number of currently operating physical locations. PeerSense independently tracks 28 active locations with consumer ratings, which may represent a broader operating footprint or development pipeline than the official figures. Specific net new unit counts for recent periods are not disclosed. Even so, the reported units and tracked locations indicate continuing market activity and a basis for additional expansion. Recent development may involve refining the model for the Gasoline Stations with Convenience Stores category, including adjustments to kitchen layouts and menu offerings intended to improve efficiency in high traffic, convenience oriented settings. The brand's potential competitive advantages include flame grilled, high quality burgers, a specialized location strategy, and access to customers who want convenience without giving up the expectation of a satisfying meal. The category placement creates a distribution channel that traditional standalone quick service restaurants may not access directly. The backyard theme also draws on familiarity, comfort, and nostalgia, which may support customer loyalty. The source information describes Back Yard Burgers as using or potentially using online ordering platforms, third party delivery partnerships, and loyalty programs as part of its digital approach. Such tools can make ordering easier, improve customer engagement, and extend access as customers increasingly use digital channels. Buyers should confirm which digital services are currently available and how their costs and responsibilities are handled in the franchise system.

A suitable Back Yard Burgers franchisee may be an individual or multi unit operator with business judgment, operating experience, and an interest in serving high quality food and customers. Experience in convenience retail, food service management, or multi unit operations in high traffic settings would be useful because of the brand's Gasoline Stations with Convenience Stores positioning. The operator should be prepared to lead employees, maintain product and service standards, and participate in local marketing and community activity. The reported 23 franchised units out of 19 total units suggest a strong emphasis on franchising and may indicate that the franchisor favors operators able to develop and manage several locations. Multi unit operators can apply operating experience and capital resources across a larger portfolio. Specific available territories are not publicly disclosed. The category focus suggests that high traffic convenience store locations may be among the intended development targets, but a buyer must confirm market availability and the development pipeline with the franchisor. The period from signing a franchise agreement to opening a quick service restaurant unit can range from 6 to 18 months. Site selection, lease negotiations, permits, construction, training, and the selected format all affect that schedule. An in line unit inside an existing convenience store may follow a different timeline than a new build. The specific franchise agreement term is not available. Standard franchise agreements commonly range from 10 to 20 years and may include renewal options. These timing and agreement details should be confirmed before a buyer commits capital.

Back Yard Burgers offers a burger concept positioned within the Gasoline Stations with Convenience Stores category, giving it access to a convenience oriented customer base and established traffic flows. The brand reports 19 total units and 23 identified franchised units, while PeerSense tracks 28 active locations with consumer ratings. The investment range of $208,000 to $1.20 million allows for different development formats, from a smaller operation connected to an existing convenience store to a larger location with more extensive construction and equipment. The broader quick service restaurant market, the growth of convenience store food service, the flame grilled product, and the adaptable operating formats provide areas for further evaluation. Corporate training and potential continuing support may assist with implementation, but they do not replace review of the franchise agreement, the FDD, site economics, staffing needs, recurring costs, and conversations with existing franchisees. PeerSense provides independent franchise intelligence and introduces franchise buyers to SBA and conventional lenders. PeerSense is not a lender, and buyers should obtain financing guidance and lending decisions directly from qualified financing providers.

Loan Activity Score

21/100

SBA Default Rate

41.3%

Active Lenders

31

According to its Franchise Disclosure Document or public business records, Back Yard Burgers has 29 locations, all owned by franchisees. Public SBA loan records show 31 lenders made 46 loans to franchisees of Back Yard Burgers. PeerSense calculates Back Yard Burgers's score as 21 out of 100, using public SBA loan performance and recent lending activity.

Franchising since 1987 · 29 locations

Investment

$208,000 to $1.2M

Franchise Fee

$25,000

Total Units

29

29 franchised

Loan Activity Score
High
21
SBA Lending
0
Lender Quality
5
Transparency
4
Reach
9
Momentum
3

Proprietary PeerSense metric

Limited
Capital Sources
31SBA lenders

Distinct lenders in public SBA records for Back Yard Burgers

46

Total SBA loans

$512K

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for Back Yard Burgers

Loan Activity Score Breakdown

Established (25 to 99 loans)

High Confidence
21out of 100
Limited
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety0/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence5/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency4/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint9/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

41.3%

vs 10.3% peer avg

SBA Loans

46

Total Volume

$23.5M

Active Lenders

31

1 selective

States

17

vs. SBA Sector Average

-31%higher default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Data Insights

Key performance metrics for Back Yard Burgers based on SBA lending data

SBA Default Rate

41.3%

31.0% above peer avg

SBA Loan Volume

46 loans

Across 31 lenders

Lender Diversity

31 lenders

Avg 1.5 loans per lender

Investment Tier

Significant investment

$208,000 to $1,200,000 total

Back Yard Burgers: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2004

13 approvals. The best year on record for Back Yard Burgers.

Top SBA State

Texas

6 SBA financed Back Yard Burgers locations, the densest operator footprint.

Average Loan Size

$597K

Median $395K. Use as a sizing anchor when modeling your own Back Yard Burgers unit.

Lender Concentration

21.6%

Moderately Spread

Share of Back Yard Burgers approvals captured by the top 3 SBA lenders.

Back Yard Burgers's SBA lending pipeline peaked in 2004 (13 approvals). The last five fiscal years account for 7% of cumulative volume ($5.6M approved). Operator density is highest in Texas with 6 SBA financed locations. Average funded ticket sits at $597K, with the median at $395K. Lender mix is moderately spread: the top three SBA lenders account for 21.6% of approvals. Borrowers have leverage to shop multiple credit boxes.

Payment Estimator

Loan Amount$166K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$2,153

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Back Yard Burgers, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

Explore Funding for Back Yard Burgers

Our business financing consultants help connect you with the right lending partners. Referral fee paid at closing.

Optional: checking the consent box lets us call or text you about your funding. You can still submit without it.

Referral fee at closing

Or get an instant analysis

Scan Your Deal Instantly
Back Yard Burgers

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman