Barrio Queen Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Barrio Queen is a full-service franchise serving traditional regional Mexican cuisine and margaritas in an upscale setting. Franchisees run the restaurants, managing the kitchen, bar, and dining service.
FranchiseVerdict summary · 2026
A Barrio Queen franchise requires a total initial investment of $1.3M – $3.5M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2023 FDD, average unit revenue was $4.8M[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $1.3M – $3.5M
- 36th pct Service Resta…
- Avg gross sales
- $4.8M
- Company-owned only14th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 7
- 10th 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 $1.3M – $3.5M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $4.8M/year (median $4.9M) (company-owned outlets only - not franchisee performance).
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BQ Concepts, LLC
- Parent company
- BBQ Holdings, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- Predecessor
- L&S Culinary Concepts, LLC
- Prior franchisor entity
- CEO title
- Chairman of the Board and Chief Executive Officer
- Eric Lefebvre
- CEO experience
- 13 yrs
- Years in role or industry
- Incorporated in
- AZ
- HQ
- 12701 Whitewater Drive, Suite 100, Minnetonka, Minnesota 55343-4164
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $263.7M
- vs $216.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Eric Lefebvre
- Headquarters
- MN
- Founded
- 2022
- FDD year
- 2023
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 108% above the typical full-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Leasehold Improvementsnot refundable | $500K | $2.0M | |
| Land, Building and Constructionnot refundable | $2.4M | $4.0M | |
| Travel and Living Expenses for You and Your Management Staff During Trainingnot refundable | $25K | $40K | |
| Reimbursement of Expenses for Opening Teamnot refundable | $55K | $100K | |
| Furniture, Fixtures, Decor, and Equipmentnot refundable | $500K | $800K | |
| Architectural and Engineering Feesnot refundable | $50K | $170K | |
| Exterior Signsnot refundable | $45K | $100K | |
| Liquor License Costsnot refundable | $25K | $75K | |
| Site Model Report Feenot refundable | $750 | $750 | |
| Restaurant Lease Payments - 3 Monthsnot refundable | $11K | $25K | |
| Employee Salaries - 3 Monthsnot refundable | $60K | $110K | |
| Miscellaneousnot refundable | $5K | $10K | |
| Grand Opening Celebrationnot refundable | $15K | $25K | |
| Additional Funds - 3 Monthsnot refundable | $5K | $10K | |
| Total initial investment | $3.7M | $7.5M |
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
- $1.3M – $3.5M
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $10K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $0 |
| Training fee | $750 |
| Transfer fee | $5K |
| Renewal fee | $25K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 174% above the full-service restaurants norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2023 · 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
$572K
12.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 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 Queen unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
23%
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 Queen units return on equity?
Equity IRR · 5-yr
27.6%
3.38× MOIC
Year-1 DSCR
2.95×
EBITDA ÷ debt service
Equity required
$11.7M
on $23.9M purchase
Total debt
$12.2M
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: 2023 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $4.8M
- Per unit, per year
- Median gross sales
- $4.9M
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
- 7 outlets
- vs category median 18 · small
- Reporting year
- 2022
- Fiscal year the figures cover
- Source filing
- FDD 2023
- Disclosed in the 2023 filing, covering 2022
- Transparency
- 4 / 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 $4.8M/year in gross sales. Revenue-to-investment ratio: 2.0x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 6.0% — below the Full-Service Restaurants average of 7.6%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Queen Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- 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
- 7
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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.
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
Barrio Queen exhibits HIGH RISK characteristics: a stalled 7-unit system with regulatory violations, litigation history, going concern status, missing financial disclosures, and no territorial protection.
Litigation (Item 3)
1 settled case against franchisor's predecessors (Extreme Pita/EP Development) regarding FIPA violations and misrepresentation, settled for $20,000 in March 2016. 3 active lawsuits filed by MTY USA against franchisees in fiscal year 2021-2022 for breach of contract, personal guaranty, and unlawful detainer. 2 government regulatory actions against predecessor Triune, LLC (Baja Fresh franchisor) for Maryland and Virginia franchise law violations, both resulting in consent orders with penalties.
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Co-COO Adam Lehr filed Chapter 13 bankruptcy on January 30, 2018 (Case No. 18-40253-KHS); discharged June 29, 2021
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
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: No
- 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 40 / 100 verdict
- 01MINOROnly 7 units with unknown/stagnant growth trajectory suggests system contraction or failed expansion
- 02MINORMultiple regulatory violations and consent orders from Maryland, Virginia, and New York indicate systemic disclosure/compliance failures
- 03HIGHGoing concern status is FALSE — franchisor may face operational viability issues
- 04HIGHLitigation history includes FIPA violations and misrepresentation by predecessor entities, creating legal/reputational liability
- 05MINORUnprotected territory creates direct competition risk from other Barrio Queen franchisees or franchisor's own locations
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Arbitration location | Maricopa County, Arizona |
| Jury trial waiver | No |
| Governing law | AZ |
| Litigation count | 8 |
View Item 3 litigation summary
1 settled case against franchisor's predecessors (Extreme Pita/EP Development) regarding FIPA violations and misrepresentation, settled for $20,000 in March 2016. 3 active lawsuits filed by MTY USA against franchisees in fiscal year 2021-2022 for breach of contract, personal guaranty, and unlawful detainer. 2 government regulatory actions against predecessor Triune, LLC (Baja Fresh franchisor) for Maryland and Virginia franchise law violations, both resulting in consent orders with penalties.
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 280 hrs
- Training location
- Certified training location designated by Franchisor
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor provides Site Model Report and must issue no-brand-standard-objection letter
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Barrio Queen · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Barrio Queen franchise?
The total investment to open a Barrio Queen franchise ranges from $1.3M – $3.5M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Barrio Queen franchise owners earn?
According to Item 19 of the Barrio Queen FDD, the average gross sales per unit is $4.8M. The median is $4.9M. Important context: Company-owned outlets only - not franchisee performance. 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 Queen 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 Queen FDD and qualifies whose outlets they describe.
What is Barrio Queen's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Barrio Queen (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 Queen franchise locations are there?
As of their most recent FDD filing, Barrio Queen has 7 total units in the United States, including 0 franchised units and 7 company-owned units.
Is Barrio Queen a good franchise to buy?
FranchiseVerdict rates Barrio Queen as a C-grade franchise with a verdict score of 40 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.