FranchiseVerdict
Burros & Fries logo
FV-00428·CAUTIONExcellent86FDD 2022

Burros & Fries

Food & Beverage - Full ServiceFranchising since 2020Website
Investment
$320K – $625K
40th pct Full Service
Avg revenue
57th pct Full Service
Royalty
6.0%
54th pct Full Service
Units
8
36th pct Full Service
SBA default

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.
  • Rated CAUTION with a risk score of 69/100.
  • 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.
Incorporated in
California
HQ
145 Willow Street, Ste. 210, Bonita, CA 91902
Auditor
Prudhomme Associates CPAs
Audited financials
Franchisor revenue
$67K
vs $130K prior year

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 Burros & Fries unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $320K–$625K
Working capital
$
FDD reports $40K–$60K

Unlevered ROIC · per unit

20%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$522K
Payback
60 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
2019
FDD year
2022
States available
1

Item 7 · what it costs

The Vitals

Total investment
$320K – $625K
All-in to open one unit
Liquid capital
$40K – $60K
Cash you must have on hand
Franchise fee
$35K
Royalty
6.0%
Percentage of Gross Revenues · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
8
Opened
2
Last reporting year
Closed
0
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
2020
4+2
Franchised units
2021
2
Franchised units
2022
0
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 4 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

69
Risk · 0-100
CAUTION69 / 100

Micro-franchise system with undisclosed unit economics, going concern uncertainty, prior wage litigation, and insufficient scale to validate business model viability.

Score breakdown · what drove the 69 / 100 rating

  1. 01HIGHGoing Concern status is FALSE — franchisor may lack financial stability or be under distress
  2. 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) — impossible to validate ROI or profitability claims
  3. 03HIGHWage & labor litigation in 2019 suggests potential systemic HR/compliance issues that could expose franchisees to similar lawsuits
  4. 04MINOROnly 8 units with 100% YoY growth means system is extremely small and unproven at scale
  5. 05MEDHigh initial investment range ($319,770–$624,550) relative to micro-franchise system with no disclosed unit economics
  6. 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

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California

Item 11

Training & Operations

Classroom training
54 hrs
On-the-job training
261 hrs

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

4 numbers

Locked
(212) 416-••••
New York,
NY
(858) 490-••••
CA
(804) 371-••••
VA

One-time purchase · CSV download · Validation questions included

FDD download

Burros & Fries · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above