Barrio Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Barrio is a full-service franchise serving build-your-own street tacos, tequila, and margaritas in a lively setting. Franchisees run the restaurants, managing the kitchen, bar, and dining service.
FranchiseVerdict summary · 2026
A Barrio franchise requires a total initial investment of $889K – $1.4M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.1M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $889K – $1.4M
- 32nd pct Service Resta…
- Avg gross sales
- $2.1M
- 10th pct Service Resta…
- Royalty
- 6.0%
- 24th pct Service Resta…
- Units
- 20
- 19th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $889K – $1.4M including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.1M/year (median $1.6M).
- RISKVerdict A (Strongest tier), verdict score 69/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Barrio Nation LLC
- Parent company
- Barrio Bros., LLC
- Predecessor
- Barrio Bros., LLC
- Prior franchisor entity
- CEO title
- Founder and Chief Executive Officer
- Tom Leneghan
- CEO experience
- 12 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- OH
- HQ
- 3190 W. 63rd St., Cleveland, OH 44102
- Auditor
- D'Amore Tatman Group LLC
- Audited financials
- Franchisor revenue
- $23.7M
- vs $25.3M prior year
Overview
About
- CEO
- Tom Leneghan
- Headquarters
- OH
- Founded
- 2021
- FDD year
- 2024
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost is about average for a full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Security Deposits | $9K | $17K | |
| 3-Months' Lease Rentnot refundable | $24K | $50K | |
| Leasehold Improvements / Buildoutnot refundable | $240K | $460K | |
| Design Fees / Architect Feesnot refundable | $15K | $20K | |
| Signagenot refundable | $25K | $30K | |
| Equipmentnot refundable | $150K | $175K | |
| Misc. Suppliesnot refundable | $20K | $25K | |
| Furnishings / Decornot refundable | $100K | $125K | |
| Grand Opening Marketing Expensesnot refundable | $8K | $8K | |
| Computer, Software, Installation, and Program Subscriptions (3 months)not refundable | $24K | $32K | |
| Business Licenses and Permits and Related Professional Feesnot refundable | $25K | $50K | |
| Initial Inventory (3 months)not refundable | $40K | $45K | |
| Insurance (3 months)not refundable | $3K | $6K | |
| Initial Training Expensesnot refundable | $5K | $10K | |
| Uniformsnot refundable | $2K | $3K | |
| Telecommunications Servicesnot refundable | $2K | $2K | |
| Advertising and Related Expenses (3 months)not refundable | $13K | $15K | |
| Technology Fee (3 months)not refundable | $597 | $597 | |
| Additional Funds (3 months)not refundable | $145K | $245K | |
| Total initial investment | $889K | $1.4M |
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
- $889K – $1.4M
- Top 40% of category vs category
- Liquid capital req'd
- $145K – $245K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $199 |
| Training fee | $5K |
| Transfer fee | $5K |
| Renewal fee | $20K |
| Inventory (initial) | $40K – $45K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 23% above the full-service restaurants norm.
Source: FDD 2024 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$256K
12.0% margin
Unlevered ROIC
19%
EBITDA / total invested capital
Payback
5.1 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Barrio unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Barrio units return on equity?
Equity IRR · 5-yr
45.8%
6.60× MOIC
Year-1 DSCR
1.96×
EBITDA ÷ debt service
Equity required
$2.5M
on $10.7M purchase
Total debt
$8.2M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- $1.6M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 9
- vs category median 18
- Range (low → high)
- $1.1M→$3.5M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 805 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.1M/year in gross sales. Median is $1.6M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.9x.
Fee burden
Total ongoing fee load of 8.0% (near the Full-Service Restaurants average).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
Net unit growth of +71.4% over 3 years (5 opened, 0 closed).
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How Barrio Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 20
- Opened
- 5
- 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
- 60%
- vs corporate-owned
- Net growth (3-yr)
- +71.4%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 5
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $703K
- Median loan
- $327K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (3 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Early-stage, rapidly expanding food/beverage franchisor with undisclosed profitability metrics, no verified revenue data, and questionable franchisor financial health despite unit growth.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · D'Amore Tatman Group LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 69 / 100 verdict
- 01MEDNet income not disclosed—royalty burden (6% + operating costs) could leave minimal profit despite $2.1M revenue
- 02HIGHGoing Concern status is False—suggests potential financial instability at franchisor level despite 71.4% unit growth
- 03MINORHigh total investment range ($889K–$1.36M) with modest $40K franchise fee creates significant unit-level risk if revenues don't materialize
- 04MINORRapid 71.4% YoY growth (20 units total) may indicate unsustainable expansion or selection of lower-quality franchisees; insufficient operating history
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Cuyahoga County, Ohio |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 100 hrs
- On-the-job training
- 190 hrs
- Training location
- Cleveland, OH and franchisee's Restaurant
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Barrio · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Barrio franchise?
The total investment to open a Barrio franchise ranges from $889K – $1.4M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Barrio franchise owners earn?
According to Item 19 of the Barrio FDD, the average gross sales per unit is $2.1M. The median is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Barrio FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Barrio FDD and qualifies whose outlets they describe.
What is Barrio's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Barrio (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 Barrio franchise locations are there?
As of their most recent FDD filing, Barrio has 20 total units in the United States, including 12 franchised units and 8 company-owned units. 5 new units were opened in the latest reporting year.
Is Barrio a good franchise to buy?
FranchiseVerdict rates Barrio as a A-grade franchise with a verdict score of 69 out of 100 (higher is better), 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
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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.