Barrio Franchise Cost, Revenue & Review 2026
- Investment
- $889K – $1.4M
- Disclosed sales
- $2.1M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (3)
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: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $889K – $1.4M
- 32nd pct Service Resta…
- Avg gross sales
- $2.1M
- 10th pct Service Resta…
- Royalty
- 6.0%
- 25th 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 median · 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 B (Above average), verdict score 69/100 (higher is better).
- GROWTHPositive: net +5 franchised outlets in the latest year (5 opened, 0 closed); 4 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Barrio Nation LLC
- Parent company
- Barrio Bros., LLC
- FDD Item 1, page 10 of the 2024 FDD
- 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 runs 66% above the typical 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%
- 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% |
| 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 33% above the full-service restaurants norm.
Source: FDD 2024 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Barrio until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.3M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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 outlets
- vs category median 18
- Range (low → high)
- $1.1M→$3.5MCited, not corroborated — printed on page 57 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- 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 801 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 median).
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 medians
How Barrio Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- N/A
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 4
- 0.20 per open outlet · Item 20 Table 5
- 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.
Where the owners are · Item 20 owner list
16 current owners across 8 states.
- MI 3
- OH 3
- FL 2
- MA 2
- SC 2
- TX 2
- NC 1
- PA 1
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (3)
- Insufficient SBA coverage: 3 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (3)
- 5-yr charge-off
- Under 10 loans (3)
- 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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
Item 21 audited financial statements are those of the affiliate/guarantor Barrio Bros., LLC (an Ohio LLC) for FY2021-2023; Barrio Bros. absolutely and unconditionally guarantees the franchisor Barrio Nation LLC's obligations. The actual Exhibit E audited balance sheet, income statement, equity statement and cash flow statement were not present/legible in the available OCR text, so no balance-sheet or income figures could be extracted. Note: Item 8 discloses Barrio Bros., LLC's FY2023 revenue totaled $23,737,475.00 and franchisor Barrio Nation LLC's FY2023 revenue totaled $1,552,030.78, but these are narrative disclosures, not from the audited statements.
ⓘ 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
- 02MINORHigh total investment range ($889K–$1.36M) with modest $40K franchise fee creates significant unit-level risk if revenues don't materialize
- 03MINORRapid 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 territory |
| 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
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.
Who owns Barrio?
Barrio is franchised by Barrio Nation LLC. Its parent company is Barrio Bros., LLC. Source: FDD Item 1, 2024 filing.
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 B-grade franchise with a verdict score of 69 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.