Burros & FriesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Burros & Fries franchise requires a total initial investment of $320K – $625K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $320K – $625K
- 20th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 8
- 18th 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
Franchised units fell from 4 to 0 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $320K – $625K including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Burros & Fries Franchise, Inc.
- CEO title
- President/CEO, Secretary, Treasurer and Director
- Fernando Ruiz
- CEO experience
- 2009 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 145 Willow Street, Ste. 210, Bonita, CA 91902
- Auditor
- Prudhomme Associates CPAs
- Audited financials
- Franchisor revenue
- $67K
- vs $130K prior year
Overview
About
Burros & Fries is a quick-service restaurant concept serving burritos and fried items. Franchisees operate a limited-menu food service business, likely managing POS systems, food prep, staffing, and inventory in a small-format location. Day-to-day operations include food preparation, customer service, and compliance with labor and health regulations.
- CEO
- Fernando Ruiz
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2022
- States available
- 1
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $40K | $60K |
| Equipment, build-out, other | $245K | $530K |
| Total initial investment | $320K | $625K |
Source: Burros & Fries 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $320K – $625K
- Better than avg vs category
- Liquid capital req'd
- $40K – $60K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Training fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Burros & Fries Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 2
- 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
- 0%
- vs corporate-owned
- Net growth (yr3)
- +100.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 5
- Franchisor's next-year forecast
- Ceased ops
- 25.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Micro-franchise system with undisclosed unit economics, going concern uncertainty, prior wage litigation, and insufficient scale to validate business model viability.
Litigation (Item 3)
Jose Chavez v. Fernando Ruiz d.b.a. Burros & Fries Fresh Mexican Grill; Case No. 37-2019-00012696-CLI-0E-CTL (Superior Court of CA, San Diego, filed March 8, 2019). Former employee sued for wage and hour violations including failure to pay overtime, inadequate meal/rest breaks, inaccurate wage statements, and unfair competition violations. Settled May 24, 2020 for $20,000 paid over 5 months with mutual releases.
Largest disclosed settlement: $20,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Prudhomme Associates CPAs
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 100 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may lack financial stability or be under distress
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) — impossible to validate ROI or profitability claims
- 03HIGHWage & labor litigation in 2019 suggests potential systemic HR/compliance issues that could expose franchisees to similar lawsuits
- 04MINOROnly 8 units with 100% YoY growth means system is extremely small and unproven at scale
- 05MEDHigh initial investment range ($319,770–$624,550) relative to micro-franchise system with no disclosed unit economics
- 06MINORPotential wage liability exposure — settled suit indicates franchisor may not have proper labor law training/systems in place for franchisees
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 | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| 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 | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | San Diego County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
Jose Chavez v. Fernando Ruiz d.b.a. Burros & Fries Fresh Mexican Grill; Case No. 37-2019-00012696-CLI-0E-CTL (Superior Court of CA, San Diego, filed March 8, 2019). Former employee sued for wage and hour violations including failure to pay overtime, inadequate meal/rest breaks, inaccurate wage statements, and unfair competition violations. Settled May 24, 2020 for $20,000 paid over 5 months with mutual releases.
Items 10, 11
Training & Operations
- Classroom training
- 54 hrs
- On-the-job training
- 261 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Burros & Fries · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Burros & Fries franchise?
The total investment to open a Burros & Fries franchise ranges from $320K – $625K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Burros & Fries franchise owners earn?
Burros & Fries does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Burros & Fries's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Burros & Fries (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 Burros & Fries franchise locations are there?
As of their most recent FDD filing, Burros & Fries has 8 total units in the United States, including 4 franchised units and 8 company-owned units. 2 new units were opened in the latest reporting year.
Is Burros & Fries a good franchise to buy?
FranchiseVerdict rates Burros & Fries as a F-grade franchise with a risk score of 100 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.
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.