FranchiseVerdict
Ay Papa Que Rico logo
FV-00215·MODERATEExcellent81

Ay Papa Que Rico

Food & Beverage - Full ServiceFranchising since 2025Website
Investment
$225K – $418K
23rd pct Full Service
Avg revenue
57th pct Full Service
Royalty
6.0%
54th pct Full Service
Units
8
36th pct Full Service
SBA default

Bottom line

  • Total investment $225K – $418K including a $35K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
AY PAPA QUE RICO FRANCHISE LLC
Incorporated in
California
HQ
7250 Canoga Avenue, Canoga Park, CA 91303
Auditor
SMITH, BUZZI & ASSOCIATES, LLC.
Audited financials

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Ay Papa Que Rico unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $225K–$418K
Working capital
$
FDD reports $40K–$60K

Unlevered ROIC · per unit

28%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$371K
Payback
42 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Ay Papa Que Rico appears to be a Latin American cuisine concept (likely Venezuelan or Caribbean-focused based on the brand name). Franchisees operate quick-service or casual dining locations, managing daily food preparation, customer service, inventory, and staff while paying 6% of gross revenues in royalties to the franchisor.

CEO
Christopher “Toby” Rodriguez
Founded
2024
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$225K – $418K
All-in to open one unit
Liquid capital
$40K – $60K
Cash you must have on hand
Franchise fee
$35K
Royalty
6.0%
Percentage of Gross Revenues · typical 6–8%
Ad fund
n/d
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
8
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
8
Corporate units in the system
% franchised
0%
vs corporate-owned
Multi-unit owners
12.0%
2023
0±0
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 6 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 6 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

Ay Papa Que Rico is an unproven micro-franchise with critical financial data gaps, solvency concerns, and zero transparency on unit performance — investment viability cannot be validated.

Score breakdown · what drove the 65 / 100 rating

  1. 01MEDNo Item 19 (average unit economics) disclosed — impossible to assess actual profitability or ROI on $224.5K-$418K investment
  2. 02MEDOnly 8 units system-wide indicates extremely small, unproven franchise network with minimal scale and limited support infrastructure
  3. 03HIGHGoing Concern = False suggests franchisor may have solvency or operational sustainability concerns
  4. 04MEDNo disclosed average revenue or net income creates opacity around unit economics and franchisee earning potential
  5. 05MINOR10-year term with 6% royalty is standard, but with only 8 units and no performance data, difficult to justify long-term commitment
  6. 06MINORTerritory protection is positive but meaningless if franchisor cannot support or grow the system

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
28 hrs
On-the-job training
77 hrs
POS system
Toast
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

8 numbers

Locked
(517) 373-••••
Lansing, Michigan
MI
(818) 564-••••
The franchisor is Ay Papa Que Rico Franchise LLC, located at
CA
(401) 462-••••
Bldg.
RI

One-time purchase · CSV download · Validation questions included

FDD download

Ay Papa Que Rico · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above