Skip to main content
ClearValue Lending
Guide 8 min read Updated July 26, 2026

Cost to Start a The Habit Burger Grill Franchise in 2026

The Habit Burger Grill franchise startup costs run $1.1M–$3.4M for a Yum Brands fast-casual charburger concept built on open-flame grilling, fresh ingredients, and a menu that extends beyond burgers to ahi tuna, salads, and bowls.

The Habit Burger Grill franchise costs at a glance

Total investment $1.1M–$3.4M
Franchise fee $35,000
Royalty 5%
Ad / marketing fee 4%
Liquid capital required $300,000
Net worth required $1M
Source: The Habit Burger Grill Franchise Disclosure Document (FDD) · as of 2026-07-26. Figures vary by market and site; verify against the current FDD before signing.

Key takeaways

  • Total estimated startup cost: $1,100,000–$3,400,000 (fast-casual charburger concept)
  • Franchise fee: $35,000
  • Ongoing royalty: 5%; advertising fund: 4%
  • Yum Brands subsidiary; 350+ US locations; open-flame charbroil differentiation
  • SBA 7(a) and SBA 504 applicable — Yum Brands parent provides strong institutional backing
Ready to fund your The Habit Burger Grill franchise?

Franchise overview

The Habit Burger Grill franchisees operate fast-casual restaurants with counter service, open charbroiling visible to guests, and a menu built around fresh, customizable ingredients. Yum Brands' acquisition provides institutional supply chain backing, technology investment, and brand marketing resources that independent fast-casual brands cannot match at scale. The Habit is pursuing franchise expansion beyond its Western US concentration, targeting suburban markets nationally with strong better-burger demographics.

Total startup investment (FDD via FTC 16 CFR Part 436)

Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a The Habit Burger Grill franchise runs $1,100,000–$3,400,000. The range reflects variation between inline fast-casual formats and freestanding drive-through-equipped pad sites:

  • Franchise fee: $35,000
  • Real estate and leasehold improvements: $400,000–$1,800,000
  • Kitchen equipment (charbroiler, fryers, prep equipment): $150,000–$450,000
  • Furniture, fixtures, and décor: $100,000–$350,000
  • Signage: $15,000–$75,000
  • POS and technology (Yum Brands platform): $25,000–$80,000
  • Initial inventory and supplies: $15,000–$50,000
  • Training and travel: $15,000–$50,000
  • Grand opening marketing: $15,000–$50,000
  • Working capital (3 months): $50,000–$200,000
  • Professional fees, permits, insurance: $30,000–$100,000
  • Miscellaneous pre-opening: $15,000–$50,000

Ongoing fees

The Habit Burger Grill charges a 5% royalty on gross sales and a 4% advertising fund contribution, for a combined 9% ongoing fee load. Yum Brands technology platform fees and national supplier program participation costs may apply separately. The 4% advertising fund is higher than many fast-casual competitors, reflecting Yum Brands' national media buying infrastructure and brand marketing investment.

Financing options

The Habit Burger Grill is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Yum Brands' institutional backing strengthens lender confidence across the financing range. Financing paths:

  • SBA 7(a) loan: Covers franchise fee, leasehold improvements, charbroiler and kitchen equipment, and working capital. The SBA 7(a) program cap of $5M covers most Habit builds in the $1.1M–$3.4M range.
  • SBA 504 loan: For freestanding pad site locations — covers up to 40% of the real estate acquisition cost at a fixed long-term rate. Yum Brands' established brand reduces lender hesitancy on 504 approval.
  • Equipment financing: Commercial charbroilers are the defining kitchen equipment item and can be financed separately over 5–7 years.
  • Working capital line of credit: Supports the first 90 days of operations, fresh ingredient supply chain, and pre-opening costs.
  • Conventional commercial loan: Multi-unit Yum Brands operators expanding into The Habit may access conventional financing through existing banking relationships.

ROI timeline

Fast-casual charburger concepts at the $1.1M–$3.4M investment range typically target break-even within 30–54 months. The Habit's Yum Brands backing and above-average AUVs in its Western US core compress the timeline relative to independent fast-casual burger concepts. Operators opening in suburban markets with limited better-burger fast-casual competition and strong drive-through infrastructure tend to reach break-even on the lower end of the range.

Who's a good fit

The Habit Burger Grill suits experienced fast-casual or QSR franchise operators — including existing Yum Brands franchisees looking to diversify within the portfolio — who want a better-burger concept with institutional supply chain and marketing support. Prior experience managing a charbroiler-heavy kitchen is helpful. Typical financial benchmarks are a minimum net worth of $1M and liquid capital of $300K+ for single-unit applicants.

What lenders look for in a The Habit Burger Grill franchise application

The Habit Burger Grill is on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility review. At $1.1M–$3.4M, SBA 7(a) (up to $5M) covers the full range; SBA 504 applies for real estate acquisition on pad sites. Key underwriting factors:

  • Debt service coverage ratio (DSCR) and high combined fee stress test: The Habit's 9% combined fee (5% royalty + 4% ad fund) is at the high end for better-burger fast-casual. Lenders stress-test post-fee cash flow at 20–30% below projected AUV — use Yum Brands' institutional comparable unit data as the conservative baseline. Source: SBA SOP 50 10 8 (sba.gov).
  • Yum Brands AUV comparables: Yum Brands provides institutional comparable unit economics that most lenders accept as AUV validation — faster underwriting vs. concepts without franchisor-provided benchmarks. Demonstrate access to the Yum franchise operations data during the application process.
  • Charbroiler and kitchen equipment collateral: The Habit's specialized charbroiler and fast-casual kitchen equipment has limited secondary market recovery — lenders typically apply a 30–50% collateral discount on specialized kitchen FFE when calculating collateral coverage.
  • SBA 7(a) vs. SBA 504 structure: SBA 7(a) covers leasehold improvements, equipment, franchise fee, and working capital. SBA 504 applies for pad site real estate acquisition and covers up to 40% of real estate cost at a fixed long-term rate. The two programs can be paired within SBA guidelines.
  • Equity injection: SBA requires 10% minimum; most fast-casual lenders target 20–25% ($220K–$850K) for the $1.1M–$3.4M range. Higher equity is typically required for first-unit operators without prior fast-casual experience. Source: SBA SOP 50 10 8.

Apply for franchise financing

ClearValue Lending works with fast-casual burger and Yum Brands franchise operators on SBA 7(a), SBA 504, equipment, and working capital financing. Start at small business financing or apply for franchise financing at Find my match. Your file routes to the funding partners best matched to your file.

Sources

  • The Habit Burger Grill is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. — SBA Franchise Directory
  • SBA 7(a) loans fund fast-casual burger franchise startups up to $5M, covering franchise fee, leasehold improvements, charbroiler equipment, and working capital. — SBA 7(a) Loan Program
  • All franchise cost and fee disclosures are governed by the FTC Franchise Rule (16 CFR Part 436) requiring an FDD be delivered at least 14 days before signing. — FTC Franchise Rule — 16 CFR Part 436
  • SBA 7(a) and equipment financing are the primary capital structures fast-casual burger franchise operators use to fund a $1M–$3.5M The Habit Burger Grill investment, per the Fed's 2024 Small Business Credit Survey of employer firms. — Federal Reserve — Small Business Credit Survey

Frequently asked questions

How much does a The Habit Burger Grill franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $1,100,000–$3,400,000. Real estate and leasehold improvements, charbroiler and kitchen equipment, and FFE are the primary cost drivers. The $35,000 franchise fee is modest relative to the investment range.
Who owns The Habit Burger Grill?
The Habit Burger Grill was acquired by Yum Brands in 2020. Yum Brands also owns KFC, Taco Bell, and Pizza Hut. The acquisition provides The Habit with Yum's supply chain infrastructure, technology platforms, and national marketing resources.
What makes The Habit Burger Grill different from other fast-casual burger franchises?
The Habit's Charburger is cooked over an open flame on a charbroiler, producing a distinct smoky char flavor. The menu also extends beyond burgers to ahi tuna, salads, and bowls — broadening appeal to non-burger diners. Yum Brands' institutional backing provides supply chain and technology advantages that independent fast-casual brands lack.
What is The Habit Burger Grill royalty rate?
The Habit charges a 5% royalty on gross sales plus a 4% advertising fund contribution, for a combined 9% of gross sales. The 4% advertising fund reflects Yum Brands' national media buying investment.
Can I finance a The Habit Burger Grill franchise with an SBA loan?
Yes. The Habit is on the SBA Franchise Directory. SBA 7(a) covers the full $1.1M–$3.4M range up to the $5M program cap. SBA 504 applies for real estate acquisition on pad site builds. Yum Brands' established brand strengthens lender confidence across the financing range.
How do lenders calculate DSCR for a The Habit Burger Grill franchise?
Lenders divide net operating income (after rent, royalties, food cost, labor, and operating expenses) by total annual debt service. SBA guidelines require 1.15×; most fast-casual lenders target 1.25×+. The Habit's 9% combined fee (5% royalty + 4% ad fund) is the primary post-fee DSCR stress factor at this investment level — use Yum Brands' institutional AUV comparables as the conservative projection baseline. Lenders apply a 20–30% revenue stress test. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
How much equity injection is required for a The Habit Burger Grill franchise?
SBA requires a minimum 10% equity injection of total project cost. At $1.1M–$3.4M, that translates to $110K–$340K at 10%. Most fast-casual lenders target 20–25% ($220K–$850K) for single-unit operators without prior Yum system experience. Injection must come from non-borrowed funds; IRS-compliant ROBS structures are commonly used at this investment range by operators with retirement assets. Source: SBA SOP 50 10 8.
Summary:

The Habit Burger Grill franchise startup costs run $1.1M–$3.4M for a Yum Brands fast-casual charburger concept built on open-flame grilling, fresh ingredients, and a menu that extends beyond burgers to ahi tuna, salads, and bowls.

This article is for educational purposes and is not financial, legal, or tax advice. Rates, fees, qualification requirements, and product availability are illustrative ranges that vary by lender, market conditions, and individual business profile. ClearValue Lending is a funding platform; all financing is subject to lender partner approval and terms. Always read your contract end-to-end and verify specific numbers before signing.

https://clearvaluelending.com/franchises/the-habit-burger-grill/cost-to-start

Compare more franchise costs

Cost to Start a Bertucci's Brick Oven Pizzeria Franchise in 2026

Bertucci's Brick Oven Pizzeria franchise startup costs run $1.5M–$3.5M for a full-service Italian casual dining concept whose brick oven is the operational and brand anchor — visible to guests, central to the menu, and responsible for the high-ceiling investment cost.

Read more →

Cost to Start a Dogtopia Franchise in 2026

Dogtopia franchise startup costs run $890K–$1.6M for a dog daycare, boarding, and spa franchise with a membership-based recurring revenue model and 280+ locations across North America.

Read more →

Cost to Start a K9 Resorts Luxury Pet Hotel Franchise in 2026

K9 Resorts Luxury Pet Hotel franchise startup costs run $670K–$1.5M for a premium pet boarding franchise with private suites, spa services, and a luxury positioning that commands above-market boarding rates.

Read more →
See your options

Free · Takes ~5 min · No spam