Barrio QueenFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Barrio Queen franchise requires a total initial investment of $1.3M – $5.5M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2023 FDD, average unit revenue was $4.8M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $1.3M – $5.5M
- 45th pct Service Resta…
- Avg gross sales
- $4.8M
- 27th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 7
- 17th 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 2023. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $1.3M – $5.5M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $4.8M/year (median $4.9M).
- Verdict A (Top Quintile) with a risk score of 46/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BQ Concepts, LLC
- Parent company
- BBQ Holdings, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- 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
- $216.7M
- vs $263.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Barrio Queen franchisees operate casual Mexican restaurants serving traditional regional cuisine. Day-to-day operations include food preparation, front-of-house service, inventory management, and local marketing to drive the $4.77M average unit volume.
- CEO
- Eric Lefebvre
- Headquarters
- MN
- Founded
- 2022
- FDD year
- 2023
- States available
- 1
FDD Item 7 · 2023 filing · 15 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.
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
17%
EBITDA / total invested capital
Payback
6.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.3M – $5.5M
- Near category avg vs category
- Liquid capital req'd
- $5K – $10K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · 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.
Financial Performance
- Avg gross sales
- $4.8M
- Per unit, per year
- Median gross sales
- $4.9M
- Item 19 type
- gross_sales
- Sample size
- 7 units
- vs category median 13
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Barrio Queen Compares
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
- 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 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 loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 46 / 100 rating
- 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
- 05MINORNo net income disclosure (Item 19) prevents ROI validation despite $1.3M–$5.5M investment range
- 06MINORUnprotected territory creates direct competition risk from other Barrio Queen franchisees or franchisor's own locations
- 07MINORHigh royalty structure (5% + $10/week surcharge) on $4.77M average revenue = ~$250K annual franchisor fees with unclear profitability at unit level
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 |
| Allowed renewalsℹ | 1 |
| 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 | Yes |
| Governing law | Arizona |
| Litigation count | 9 |
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
- On-site and corporate
- Time to open
- 12 mo
- From signing to launch
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 – $5.5M, 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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 A-grade franchise with a risk score of 46 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.
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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.