Bottom line
- Total investment $506K – $720K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 BARBERITOS unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 BARBERITOS units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $8.0M purchase
Total debt
$6.4M
SBA $4.0M + senior + seller note
Overview
About
Barberitos franchisees operate fast-casual Tex-Mex restaurants serving burritos, tacos, and bowls to counter-service customers. Daily operations include food prep, inventory management, staffing, and drive-thru/dine-in service across locations with modest footprints. Franchisees manage P&L, marketing, and local hiring while adhering to brand standards and paying 6% royalties on net sales.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, stagnant QSR franchise with undisclosed profitability metrics and high capital requirements relative to system size and growth trajectory.
Score breakdown · what drove the 57 / 100 rating
- 01MINORNo Item 19 (Net Income) disclosure – cannot validate profitability claims against $505.5K-$720K investment
- 02MINORStagnant unit growth (2.4% YoY) with only 43 locations suggests market saturation or franchisee struggles
- 03MEDHigh initial investment ($505.5K-$720K) relative to disclosed average revenue ($1.14M) creates thin margin for error
- 04HIGHNo going concern statement despite small system size – suggests potential financial instability
- 05MINORRoyalty structure (6% of Net Sales) on average $1.14M revenue extracts ~$68.4K annually plus ongoing operational costs
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
52 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BARBERITOS · FDD (2026) PDF