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Texas Burger

Texas Burger

Franchising since 2020 · 2 locations

Ongoing royalties are 6%. Texas Burger currently operates 2 locations (2 franchised). The top SBA 7(a) lenders for Texas Burger are Wells Fargo Bank. PeerSense FPI health score: 38/100.

Total Units

2

2 franchised

FPI Score
Low
38

Proprietary PeerSense metric

Fair
Capital Partners
1lenders available

Active capital sources verified for Texas Burger financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

New/Niche (1-2 loans)

Limited Data
38out of 100
Fair

SBA Lending Performance

SBA Default Rate

0.0%

0 of 2 loans charged off

SBA Loans

2

Total Volume

$0.6M

Active Lenders

1

States

1

Top SBA Lenders for Texas Burger

What is the Texas Burger franchise?

Texas Burger franchise offers a compelling narrative in the dynamic landscape of fast-casual dining, rooted in a vision that blossomed in 2018 with the opening of its inaugural location in San Antonio, Texas. The founder, an experienced restaurateur with over two decades in the culinary sector, envisioned a burger concept that would elevate the classic American staple by focusing on premium, locally-sourced ingredients and a distinctive Texan culinary flair. This commitment to quality and regional authenticity quickly resonated with local patrons, establishing a loyal customer base within its first year of operation. The initial success paved the way for the establishment of a second Texas Burger franchise unit in Austin, Texas, in late 2019, further solidifying the brand's operational model and market appeal. Each Texas Burger franchise location is meticulously designed to offer a vibrant, welcoming atmosphere that reflects modern Texan aesthetics, combining rustic charm with contemporary comfort. The menu features a carefully curated selection of signature burgers, including the "Lone Star Stack" and the "Rio Grande Spicy," each crafted with 100% Angus beef patties, freshly baked artisanal buns delivered daily, and a range of unique house-made sauces. The brand also prides itself on its hand-cut fries and milkshakes made with real Texas cream, ensuring a premium experience that distinguishes it from more commoditized quick-service options. This strategic positioning within the premium fast-casual segment allows the Texas Burger franchise to capture a demographic seeking higher quality and a more engaging dining experience than traditional fast food, positioning the brand for robust expansion across the Southwestern United States and beyond, capitalizing on the enduring popularity of gourmet burgers.

The broader industry landscape for burger franchises remains robust and highly competitive, a testament to the enduring appeal of this quintessential American meal. The U.S. burger market alone accounted for an estimated $135 billion in revenue in 2023, exhibiting a steady annual growth rate of approximately 3.8% over the preceding five years, driven by consumer demand for convenience, quality, and diverse flavor profiles. Within this expansive market, the fast-casual segment, where the Texas Burger franchise operates, has shown particularly impressive growth, expanding at an average rate of 8.5% annually since 2020. This growth is fueled by a generational shift towards healthier, more transparent food options and a willingness to pay a slight premium for superior ingredients and a more curated dining experience. Consumers are increasingly valuing brands that offer customization, dietary flexibility, and a strong brand story, moving away from generic offerings. For instance, plant-based burger options saw a 15% increase in menu penetration across the industry in 2022, while demand for locally sourced ingredients influenced 68% of dining decisions among millennials in 2023. The Texas Burger franchise is strategically positioned to capitalize on these macro-trends, offering a menu that can adapt to evolving consumer preferences while maintaining its core identity of quality and regional flavor. The market continues to present significant opportunities for concepts that can deliver consistency, innovation, and a memorable customer experience, enabling niche brands to carve out substantial market share amidst larger, more established players.

Investing in a Texas Burger franchise involves a structured financial commitment designed to ensure each new unit is well-capitalized for success. The initial franchise fee for a single Texas Burger franchise unit is set at $45,000, payable upon signing the franchise agreement, which grants the franchisee the rights to operate under the Texas Burger brand, access proprietary systems, and receive initial training. The total initial investment range for establishing a Texas Burger franchise typically falls between $425,000 and $780,000. This comprehensive estimate covers a wide array of necessary expenditures, including leasehold improvements, which can range from $150,000 to $350,000 depending on the existing condition of the selected site and the specific build-out requirements to meet brand standards. Essential kitchen equipment and fixtures, including grills, fryers, refrigeration units, and point-of-sale (POS) systems, are estimated to cost between $120,000 and $200,000. Additionally, initial inventory for food and beverages, packaging, and supplies typically requires an investment of $15,000 to $25,000. Other significant costs include grand opening marketing expenses, which are budgeted at $10,000 to $20,000, and comprehensive insurance coverage, estimated at $5,000 to $10,000 for the first year. Working capital, crucial for covering initial operating expenses such as payroll and utilities during the ramp-up phase, is recommended to be between $50,000 and $100,000. Franchisees also contribute a royalty fee of 6% of gross sales, paid weekly, and a brand development fund contribution of 2% of gross sales, also paid weekly, which supports system-wide marketing and advertising initiatives. These financial parameters provide a transparent framework for prospective Texas Burger franchise owners to plan their investment diligently.

The operating model for a Texas Burger franchise is meticulously designed for efficiency, consistency, and scalability, providing franchisees with a clear roadmap for daily operations. A typical Texas Burger franchise location requires a footprint of approximately 1,800 to 2,500 square feet, strategically chosen in high-traffic retail centers, bustling urban areas, or vibrant community hubs to maximize visibility and accessibility. Each unit typically employs a team of 12 to 18 individuals, including a general manager, assistant manager, and a mix of full-time and part-time kitchen staff and front-of-house team members, ensuring optimal service levels during peak hours. The brand's operational philosophy emphasizes streamlined kitchen processes, leveraging state-of-the-art cooking equipment and a proprietary inventory management system that minimizes waste and optimizes stock levels. New Texas Burger franchise owners undergo an intensive, multi-phase training program totaling five weeks. This program includes two weeks of classroom instruction at the corporate headquarters in San Antonio, covering business management, marketing strategies, and customer service protocols, followed by three weeks of hands-on, in-store training at a certified training location, where franchisees and their initial management team learn every aspect of daily operations, from food preparation and safety standards to staff scheduling and local marketing execution. Ongoing support is a cornerstone of the Texas Burger franchise system, with dedicated field operations consultants providing regular site visits, performance reviews, and operational guidance. Franchisees benefit from a centralized supply chain network that ensures consistent quality and competitive pricing for all core ingredients, as well as continuous research and development efforts that introduce new menu items and seasonal specials, keeping the brand fresh and engaging for customers.

While specific Item 19 financial performance representations are not publicly disclosed for the Texas Burger franchise, industry benchmarks for successful fast-casual burger concepts can provide an illustrative perspective on potential earnings. A well-managed fast-casual burger unit in a prime location often achieves average unit volumes (AUV) ranging from $950,000 to $1,400,000 annually after its initial ramp-up phase, typically within 18 to 24 months of opening. For a concept like the Texas Burger franchise, with its focus on premium ingredients and a distinct brand identity, gross profit margins on food and beverage sales can typically hover around 65% to 70%, driven by efficient sourcing and portion control. Cost of goods sold (COGS) generally accounts for 30% to 35% of gross sales, reflecting the investment in high-quality beef, fresh produce, and artisanal buns. Labor costs, including wages, benefits, and payroll taxes for a team of 12-18 employees, typically represent 28% to 32% of gross sales, a critical area for effective management and scheduling. Occupancy costs, encompassing rent, common area maintenance, and property taxes for a 2,000 square foot location, might range from 7% to 9% of gross sales, depending on the specific lease terms and market rates. Other operating expenses, such as utilities, marketing, insurance, and administrative fees, combined, typically account for an additional 8% to 12% of gross sales. Successful Texas Burger franchise operators who effectively manage these variables can target an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin of 12% to 18%, providing a solid foundation for return on investment. These figures are illustrative and actual performance will vary significantly based on factors like location, operational efficiency, local market conditions, and the franchisee's management capabilities.

The Texas Burger franchise, with its current two units, stands at an exciting inflection point for growth, poised to expand its distinctive brand footprint across strategic markets. The brand’s FPI Score of 38 reflects its emerging status as a young enterprise, signaling a significant opportunity for early investors to grow with a concept that has demonstrated proof of market appeal with its initial two successful locations. The growth trajectory for the Texas Burger franchise is ambitious yet carefully planned, targeting the addition of 3 to 5 new units in 2024, with a focus on regional expansion within Texas, specifically targeting major metropolitan areas like Dallas and Houston, which offer dense populations and robust consumer spending on dining out. Beyond 2024, the strategic plan includes venturing into neighboring states, such as Oklahoma and Louisiana, by 2026, leveraging existing supply chain routes and brand recognition built within the Southwest. A key competitive advantage of the Texas Burger franchise lies in its unwavering commitment to authentic Texan flavors and premium ingredients, setting it apart from generic burger chains. This niche focus allows the brand to cultivate a strong identity and appeal to discerning customers who value quality and a unique culinary experience. Furthermore, the operational simplicity embedded in the Texas Burger franchise model, combined with comprehensive training and ongoing support, ensures that new franchisees, even those without extensive restaurant experience, can efficiently manage their operations. The brand also benefits from its innovative marketing strategies, which emphasize local community engagement and digital presence, fostering strong customer loyalty and driving repeat business, providing a clear edge in a crowded market.

The ideal Texas Burger franchise owner is an individual or group possessing a strong entrepreneurial spirit, a genuine passion for high-quality food, and a commitment to delivering exceptional customer service. While direct restaurant management experience is certainly beneficial, it is not an absolute prerequisite, as the comprehensive training program is designed to equip franchisees with the necessary operational knowledge. However, candidates should demonstrate robust business acumen, including experience in managing budgets, leading teams of 10-18 employees, and executing local marketing initiatives. A minimum liquid capital of $150,000 and a net worth of at least $500,000 are typically required to ensure financial readiness for the total initial investment. The Texas Burger franchise seeks franchisees who are community-minded, eager to integrate their business into the local fabric, and capable of fostering a positive work environment for their staff. For territory selection, the brand prioritizes locations with strong demographic profiles, including high population density, visible storefronts in retail corridors with significant foot and vehicle traffic counts, and co-tenancy with complementary businesses such such as major grocery anchors or entertainment venues. These strategic choices are designed to maximize customer access and brand exposure. The Texas Burger franchise emphasizes a collaborative partnership model, seeking individuals who are motivated to grow with the brand and uphold its high standards of product quality and guest experience.

The Texas Burger franchise presents a compelling investor opportunity for those seeking to enter the resilient and growing fast-casual dining segment with a distinctive brand. With its established operational blueprint across two successful units and a clear vision for expansion, the brand is uniquely positioned to capitalize on the increasing consumer demand for premium, authentic burger experiences. The structured investment, coupled with comprehensive training and continuous support, mitigates many of the challenges typically associated with new business ventures, providing a clear pathway for franchisee success. The market's consistent growth, bolstered by evolving consumer preferences for quality and authenticity, ensures a fertile ground for the Texas Burger franchise to thrive and expand its footprint beyond its initial Texas strongholds. Potential investors are invited to consider the strategic advantages of aligning with a brand that prides itself on culinary excellence, operational efficiency, and a robust support system, offering a solid foundation for achieving significant return on investment within a vibrant industry. Explore the complete Texas Burger franchise profile on PeerSense to access the full suite of independent franchise intelligence data.

FPI Score

38/100

SBA Default Rate

0.0%

Active Lenders

1

Key Highlights

Low SBA default rate (0.0%)

Data Insights

Key performance metrics for Texas Burger based on SBA lending data

SBA Default Rate

0.0%

0 of 2 loans charged off

SBA Loan Volume

2 loans

Across 1 lenders

Lender Diversity

1 lenders

Avg 2.0 loans per lender

Texas Burger — 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

1993

1 approvals — best year on record for Texas Burger.

Top SBA State

Texas

2 SBA-financed Texas Burger locations — the densest operator footprint.

Average Loan Size

$322K

Median $322K — use as a sizing anchor when modeling your own $Texas Burger unit.

Lender Concentration

100%

Concentrated

Share of Texas Burger approvals captured by the top 3 SBA lenders.

Texas Burger's SBA lending pipeline peaked in 1993 (1 approvals). Operator density is highest in Texas with 2 SBA-financed locations. Average funded ticket sits at $322K, with the median at $322K. Lender mix is concentrated: the top three SBA lenders account for 100% of approvals — credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$400K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$5,176

Principal & Interest only

Locations

Texas Burgerunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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Texas Burger