Franchising since 1987 · 29 locations
The total investment to open a Back Yard Burgers franchise ranges from $208,000 - $1.2M. The initial franchise fee is $25,000. Ongoing royalties are 4% plus a 1% advertising fee. Back Yard Burgers currently operates 29 locations (29 franchised). PeerSense FPI health score: 21/100.
$208,000 - $1.2M
$25,000
29
29 franchised
Proprietary PeerSense metric
LimitedActive capital sources verified for Back Yard Burgers financing
SBA
7(a) Eligible
21d
Avg Funding
P+2.25%
Best Rate
No retainers · Referral fee at closing
Established (25-99 loans)
SBA Default Rate
41.3%
19 of 46 loans charged off
SBA Loans
46
Total Volume
$23.5M
Active Lenders
31
States
17
Navigating the dynamic landscape of the quick-service restaurant industry presents a significant challenge for prospective investors, often fraught with questions about brand longevity, market differentiation, and sustainable growth. The core problem for ambitious entrepreneurs is identifying a franchise opportunity that not only resonates with evolving consumer preferences but also offers a strategic advantage in a highly competitive sector. Back Yard Burgers emerges as a distinct concept, positioning itself not merely as another burger establishment, but as a purveyor of the quintessential American backyard grilling experience, translated into a convenient and accessible format. While the precise year of its founding is not publicly detailed, the brand has cultivated a recognizable identity centered on high-quality, flame-grilled burgers since its inception, aiming to deliver a superior taste profile that distinguishes it from conventional fast-food offerings. The current operational footprint of Back Yard Burgers comprises 19 total units, with a robust 23 identified as franchised units, signaling a strong commitment to a franchise-centric expansion model. This indicates a system where entrepreneurial operators are central to the brand's growth and market penetration. PeerSense, through its independent data tracking, observes 28 active locations with consumer ratings, suggesting a slightly broader operational presence or development pipeline than the official unit count, reinforcing the brand's ongoing market activity. Uniquely, Back Yard Burgers is categorized within the "Gasoline Stations with Convenience Stores" segment, a strategic positioning that taps into a massive, convenience-driven consumer base. This innovative approach allows the brand to capture impulse purchases and serve on-the-go customers within a market segment that generated over $650 billion in sales in the U.S. in recent years, with food service sales alone exceeding $30 billion annually within convenience stores, demonstrating a significant total addressable market for this specific operational model. This strategic alignment leverages high-traffic locations, offering a compelling value proposition to franchisees by integrating a proven food concept into established consumer traffic flows. The brand’s focus on delivering a premium burger experience within these high-volume environments targets a substantial market segment valuing both quality and speed, making Back Yard Burgers a noteworthy consideration for investors seeking a differentiated entry point into the lucrative food service franchise arena.
The overarching industry landscape for quick-service restaurants (QSR) and the specialized food service within convenience stores (C-stores) is characterized by immense scale and consistent growth, presenting compelling opportunities for the Back Yard Burgers franchise. The total addressable market for the broader U.S. restaurant industry surpassed $990 billion in 2023, with the QSR segment alone accounting for over $300 billion, demonstrating a robust annual growth rate projected at 5-7% over the next five years, driven by consumer demand for speed, convenience, and value. Within this vast market, the C-store food service segment, which Back Yard Burgers specifically targets through its strategic category alignment, is experiencing even more accelerated growth, with sales increasing by double-digit percentages in recent years as consumers increasingly rely on these locations for quality meal solutions. Key consumer trends driving this demand include a rising preference for fresh, customizable menu options, the persistent desire for convenience in a fast-paced lifestyle, and an increasing appreciation for elevated quality in traditionally quick-service formats. Secular tailwinds such as the continued expansion of digital ordering platforms, the ubiquity of drive-thru services, and the growing integration of food service within non-traditional retail environments like C-stores, further amplify the attractiveness of this sector. These trends collectively contribute to a resilient market that consistently attracts significant franchise investment, as proven operational models offer a de-risked pathway to business ownership. The competitive dynamics within the burger segment are intense, yet the specific strategic placement of Back Yard Burgers within the "Gasoline Stations with Convenience Stores" category provides a distinct competitive advantage, allowing it to carve out a unique niche by serving a captive audience seeking immediate, high-quality meal solutions in high-traffic, accessible locations. This specialized market approach positions Back Yard Burgers to capitalize on consumer habits that prioritize convenience without compromising on the desire for a satisfying, premium burger experience, making it an intriguing proposition for those evaluating franchise opportunities in a flourishing market.
For prospective entrepreneurs considering the Back Yard Burgers franchise, a comprehensive understanding of the investment structure is paramount, enabling a clear financial roadmap. While specific figures for the franchise fee, liquid capital required, net worth required, royalty fees, and advertising fees are not publicly disclosed within the available FDD data, the total initial investment for a Back Yard Burgers unit ranges from a low of $208,000 to a high of $1.20 million. This significant range reflects the inherent flexibility in the brand's operational model, particularly its strategic integration within the "Gasoline Stations with Convenience Stores" category, which can accommodate various footprints and development scenarios. The lower end of this investment spectrum typically covers the essentials for a streamlined operation, potentially a smaller footprint or a co-branded setup within an existing C-store structure, encompassing basic build-out, initial equipment package, signage, initial inventory, and working capital to cover initial operating expenses and employee training. The higher end of the investment range, reaching up to $1.20 million, would account for larger, freestanding locations, or more extensive build-outs with comprehensive dining areas, advanced kitchen equipment, and potentially drive-thru capabilities, requiring substantial leasehold improvements, comprehensive FF&E (fixtures, furnishings, and equipment), more extensive site development costs, and a larger allocation for pre-opening expenses and initial operating capital. In the absence of specific ongoing fee disclosures, it's prudent for investors to consider industry benchmarks: typical QSR royalty fees often range from 4% to 8% of gross sales, while advertising fund contributions commonly fall between 1% to 4% of gross sales. These fees are standard in franchising, designed to fund ongoing corporate support, brand development, and system-wide marketing initiatives, contributing to the collective strength and visibility of the Back Yard Burgers brand. The total cost of ownership analysis for any franchise must meticulously factor in not only the initial outlay but also these recurring operational costs, along with rent, labor, food costs, and utilities, to project a realistic financial performance. Prospective Back Yard Burgers franchisees are encouraged to conduct thorough due diligence, including direct engagement with the franchisor for precise financial disclosures and to gain a granular understanding of the cost components specific to their desired operational format and location strategy, ensuring a fully informed investment decision for this compelling Back Yard Burgers franchise opportunity.
The operating model of Back Yard Burgers is designed for efficiency and consistency, delivering on its promise of a premium flame-grilled burger experience, particularly within its strategic "Gasoline Stations with Convenience Stores" category. Daily operations center around the meticulous preparation of fresh ingredients, the distinctive flame-grilling process that defines the brand's flavor profile, and efficient order fulfillment to cater to a fast-paced customer base. Staffing requirements typically include a general manager, assistant managers, and a team of crew members responsible for cooking, order taking, and customer service. The exact number of staff will vary based on the unit's size, operational hours, and whether it includes a drive-thru, but generally, a QSR unit requires between 10-20 employees, managed in shifts, to ensure smooth operation and peak hour efficiency. The format options for Back Yard Burgers are particularly adaptable, ranging from compact kiosks or in-line units within existing convenience store footprints to larger, standalone locations with drive-thru capabilities, all designed to maximize throughput and customer accessibility. This flexibility is a direct benefit of its strategic placement, allowing franchisees to select a model that best suits their market and investment capacity, while still delivering the core Back Yard Burgers experience. The comprehensive training program provided by the franchisor is crucial for new franchisees, typically encompassing several weeks of intensive instruction covering all facets of the business, including operational procedures, inventory management, food safety protocols, customer service standards, and local marketing strategies. This initial training is often followed by ongoing corporate support, which may include field visits from operations specialists, continuous training modules, supply chain management assistance to ensure consistent product quality and availability, and centralized marketing campaigns designed to enhance brand awareness and drive traffic to Back Yard Burgers locations. The territory structure is typically defined to provide franchisees with a protected geographic area, preventing internal cannibalization and fostering sustainable growth for each Back Yard Burgers unit. While specific multi-unit requirements are not explicitly stated, the franchise-centric growth strategy and the relatively streamlined operational model often appeal to experienced operators looking to develop multiple units, leveraging economies of scale and centralized management to expand their Back Yard Burgers portfolio. This robust support system and adaptable operating model are fundamental to empowering franchisees to effectively manage their Back Yard Burgers business and uphold the brand's commitment to quality and customer satisfaction.
A critical aspect of any franchise evaluation is understanding its financial performance, and for the Back Yard Burgers franchise, it is important to note that Item 19 financial performance data is explicitly NOT disclosed in the current Franchise Disclosure Document (FDD). This means prospective franchisees will not find specific earnings claims, average unit volumes (AUVs), gross revenue, or profit margin information directly from the franchisor. While this absence necessitates a more rigorous due diligence process, it does not preclude a comprehensive analysis of the potential investment. In such scenarios, investors must pivot to industry benchmarks and broader market intelligence to inform their financial projections. The quick-service burger segment, for instance, exhibits a wide range of AUVs, with successful concepts often reporting AUVs between $800,000 and $1.5 million annually, and even higher for those with strong drive-thru operations or prime locations. Given Back Yard Burgers' strategic positioning within the "Gasoline Stations with Convenience Stores" category, it's relevant to consider the robust growth in food service sales within this specific segment, which can reach average monthly sales of $2,500-$5,000 per location for hot food programs, translating to substantial annual revenue streams. Profit margins in the QSR industry typically range from 6% to 9% for well-managed operations, factoring in food costs (around 28-35%), labor costs (25-30%), and other operating expenses. The FPI Score of 21, categorized as "Limited," further indicates that while comprehensive financial disclosures are not publicly available within the current FDD, PeerSense analysis identifies a specific stage of market penetration and data availability for the brand. This score suggests that the brand may be in a phase of strategic development or focused expansion, where detailed performance metrics are evolving. PeerSense’s independent database tracks 28 active locations with consumer ratings, offering a supplemental layer of insight into the brand’s operational footprint and market presence, beyond the 19 total units and 23 franchised units reported. Prospective franchisees are strongly advised to engage directly with existing Back Yard Burgers franchisees, if permitted by the franchisor, to gain firsthand insights into their operational costs, revenue performance, and overall satisfaction with the system. This direct engagement, combined with a thorough analysis of local market conditions, projected sales volumes based on traffic patterns in target "Gasoline Stations with Convenience Stores" locations, and conservative financial modeling using industry averages, becomes indispensable for making an informed investment decision for the Back Yard Burgers franchise opportunity.
The growth trajectory of Back Yard Burgers, while not marked by an explosion of new units, demonstrates a focused and deliberate expansion strategy, particularly given its unique market positioning. The system currently encompasses 19 total units, with a significant 23 identified as franchised units, underscoring a strong reliance on the franchise model for development. This disparity between total and franchised units suggests either a dynamic pipeline of units under development or a system where franchised agreements outnumber currently operational physical locations, indicating potential for imminent growth. PeerSense’s independent tracking of 28 active locations with consumer ratings further supports the notion of an evolving footprint for Back Yard Burgers, suggesting a slightly broader operational presence or a robust development pipeline beyond the officially reported figures. While specific net new unit counts over recent periods are not disclosed, the brand’s continued presence and the number of active locations tracked indicate ongoing market relevance and a foundation for future expansion. Recent developments likely include an increased optimization of its operational model to fit seamlessly within the "Gasoline Stations with Convenience Stores" category, refining everything from kitchen layouts to menu offerings to maximize efficiency and appeal in these high-traffic, convenience-centric environments. The competitive moat for Back Yard Burgers is multifaceted. Firstly, its core offering of flame-grilled, high-quality burgers provides a discernible taste and perceived value advantage over many competitors in the QSR space. Secondly, and perhaps most significantly, its strategic category alignment within "Gasoline Stations with Convenience Stores" offers a unique distribution channel, capturing consumers who prioritize convenience alongside quality, differentiating it from traditional standalone QSRs. This placement taps into a massive, consistent flow of traffic that many competitors cannot access directly. Furthermore, the brand’s focus on a "backyard" experience evokes a sense of nostalgia and comfort, fostering a loyal customer base. In terms of digital transformation, Back Yard Burgers, like all modern QSRs, is undoubtedly leveraging online ordering platforms, third-party delivery partnerships, and potentially loyalty programs to enhance customer accessibility and engagement. These digital initiatives are crucial for modernizing the customer experience and expanding reach, ensuring that the Back Yard Burgers brand remains competitive and accessible in an increasingly digital-first consumer landscape, solidifying its appeal as a viable franchise opportunity.
The ideal franchisee for Back Yard Burgers is an individual or multi-unit operator possessing a robust blend of business acumen, operational experience, and a genuine passion for delivering high-quality food and exceptional customer service. Given the brand's strategic positioning within the "Gasoline Stations with Convenience Stores" category, experience in convenience retail, food service management, or multi-unit operations within high-traffic environments would be highly advantageous. A successful Back Yard Burgers franchisee should demonstrate strong leadership capabilities to manage a team effectively, an unwavering commitment to upholding brand standards for product quality and customer experience, and a proactive approach to local marketing and community engagement. The franchise-centric model, with 23 identified franchised units out of 19 total units, strongly suggests a preference for multi-unit operators capable of developing and managing several Back Yard Burgers locations, leveraging their operational expertise and capital resources to scale efficiently. This approach allows the franchisor to partner with experienced business owners who can drive significant market penetration. While specific details on available territories are not publicly disclosed, the ongoing expansion and the category focus imply that prime locations within high-traffic "Gasoline Stations with Convenience Stores" are likely target areas for development. Prospective franchisees should engage with the franchisor to understand the current market availability and development pipeline in their desired regions. The typical timeline from signing the franchise agreement to the grand opening of a quick-service restaurant unit can range from 6 to 18 months, depending on site selection, lease negotiations, permitting, construction, and training schedules. This timeframe is influenced by the chosen format, whether it's an in-line unit within an existing C-store or a new build. While the specific term length for the franchise agreement is not available, standard franchise agreements typically range from 10 to 20 years, with options for renewal, providing a long-term framework for business ownership and investment security. Understanding these elements is crucial for an investor evaluating the comprehensive Back Yard Burgers franchise opportunity.
In synthesizing the investment thesis for Back Yard Burgers, it becomes clear that this franchise offers a compelling proposition for entrepreneurs seeking a differentiated entry into the robust quick-service restaurant market. The brand’s unique strategic categorization within "Gasoline Stations with Convenience Stores" positions it to capture a massive, convenience-driven consumer base, leveraging high-traffic locations and integrating a beloved American grilling experience into daily routines. With 19 total units and a strong emphasis on franchising, evidenced by 23 franchised units and 28 active locations tracked by PeerSense, Back Yard Burgers presents a focused growth model ripe for expansion with the right operating partners. The initial investment range of $208,000 to $1.20 million provides flexibility for various development formats, catering to different investor capacities. While Item 19 financial performance is not disclosed, the QSR industry's robust benchmarks and the specific growth in C-store food service sales offer a foundation for diligent financial projections. The brand's commitment to quality, its adaptable operating model, and ongoing corporate support further strengthen the value proposition. For the astute investor seeking a distinctive franchise opportunity with a strategic market advantage and a proven concept, Back Yard Burgers merits serious consideration. Explore the complete Back Yard Burgers franchise profile on PeerSense to access the full suite of independent franchise intelligence data.
FPI Score
21/100
SBA Default Rate
41.3%
Active Lenders
31
Key performance metrics for Back Yard Burgers based on SBA lending data
SBA Default Rate
41.3%
19 of 46 loans charged off
SBA Loan Volume
46 loans
Across 31 lenders
Lender Diversity
31 lenders
Avg 1.5 loans per lender
Investment Tier
Significant investment
$208,000 – $1,200,000 total
Estimated Monthly Payment
$2,153
Principal & Interest only
Back Yard Burgers — unit breakdown
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