Bubbakoo’s Burritos
Bottom line
- Total investment $356K – $757K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $903K/year (median $825K).
- Rated STRONG with a risk score of 37/100. SBA loan default rate of 0.0% across 40 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Bubbakoo’s Burritos unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Bubbakoo’s Burritos units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.2M purchase
Total debt
$5.8M
SBA $3.6M + senior + seller note
Overview
About
Bubbakoo's Burritos franchisees operate fast-casual Mexican restaurants serving customizable burritos, bowls, and related items. Day-to-day operations include managing kitchen staff, food prep/quality control, point-of-sale transactions, inventory management, and local marketing to drive foot traffic in their protected territory.
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 · 12 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
Moderate-to-cautious risk profile: growing but unproven system lacks profitability transparency, making ROI validation impossible before investment.
Score breakdown · what drove the 37 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — cannot validate actual profitability claims against $903K average revenue
- 02MINORHigh investment range ($356K-$757K) with 6% royalty creates breakeven sensitivity if revenue underperforms
- 03MEDModest unit growth (15.7% YoY) with only 130 units suggests system is still in early scaling phase with limited track record
- 04HIGHNo litigation disclosed, but young/small systems often lack sufficient history to assess franchise relationship stability
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
63 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bubbakoo’s Burritos · FDD (2025) PDF