Ay Papa Que RicoFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Ay Papa Que Rico franchise requires a total initial investment of $225K – $418K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $225K – $418K
- 12th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 8
- 18th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
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.
- Verdict B (Above Average) with a risk score of 62/100.
- 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
- CEO title
- CEO
- Christopher “Toby” Rodriguez
- CEO experience
- 12 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 7250 Canoga Avenue, Canoga Park, CA 91303
- Auditor
- SMITH, BUZZI & ASSOCIATES, LLC.
- Audited financials
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
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Traveling and Living Expenses while Training | $3K | $6K | |
| Furniture, Fixtures, and Decor | $10K | $20K | |
| Real Property Rent and Security Deposits | $18K | $45K | |
| Leasehold Improvements | $20K | $100K | |
| Equipment, TV, Cameras and Point of Sale System | $8K | $15K | |
| Kitchen Equipment | $70K | $100K | |
| Initial Inventory | $8K | $13K | |
| Signage | $5K | $10K | |
| Grand Opening Advertising | $3K | $5K | |
| Licenses, Permits, and Certifications | $2K | $3K | |
| Insurance (3 Months) | $2K | $3K | |
| Professional Fees | $3K | $4K | |
| Additional Funds (3 months) | $40K | $60K | |
| Area Development Feenot refundable | $70K | $105K | |
| Total initial investment | $295K | $523K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $225K – $418K
- Better than avg vs category
- Liquid capital req'd
- $40K – $60K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Training fee | $500 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Ay Papa Que Rico Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 12.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · SMITH, BUZZI & ASSOCIATES, LLC.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo Item 19 (average unit economics) disclosed — impossible to assess actual profitability or ROI on $224.5K-$418K investment
- 02MEDOnly 8 units system-wide indicates extremely small, unproven franchise network with minimal scale and limited support infrastructure
- 03HIGHGoing Concern = False suggests franchisor may have solvency or operational sustainability concerns
- 04MEDNo disclosed average revenue or net income creates opacity around unit economics and franchisee earning potential
- 05MINOR10-year term with 6% royalty is standard, but with only 8 units and no performance data, difficult to justify long-term commitment
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 77 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ay Papa Que Rico · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ay Papa Que Rico franchise?
The total investment to open a Ay Papa Que Rico franchise ranges from $225K – $418K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ay Papa Que Rico franchise owners earn?
Ay Papa Que Rico does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Ay Papa Que Rico's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ay Papa Que Rico (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Ay Papa Que Rico franchise locations are there?
As of their most recent FDD filing, Ay Papa Que Rico has 8 total units in the United States, including 0 franchised units and 8 company-owned units.
Is Ay Papa Que Rico a good franchise to buy?
FranchiseVerdict rates Ay Papa Que Rico as a B-grade franchise with a risk score of 62 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Ay Papa Que Rico, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.