Burros & Fries Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Burros & Fries is a fast-casual franchise serving Mexican burritos, loaded fries, and street food made fresh daily. Franchisees run the restaurants, managing food prep, staffing, and counter service.
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). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $320K – $625K
- 53rd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 12
- 41st pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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 $320K – $625K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSMost recent audited fiscal year ended December 31, 2020. Total revenues of $66,827 comprise franchise fees of $35,000 and royalty income of $31,827. The prior period (inception November 18, 2019 to January 31, 2020) had no revenue. The document contains audited statements as of January 31, 2020 and December 31, 2020; Item 21 references a December 31, 2021 statement but it is not present in this text.
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- 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
- 4536 Bonita Rd., Bonita, CA 91902
- Auditor
- Hanna, CPA
- Audited financials
- Franchisor revenue
- $67K
- vs $0 prior year
Overview
About
- CEO
- Fernando Ruiz
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2022
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 28% below the typical quick-service restaurants franchise.
Source: FDD 2022 · Items 5–7
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
- Middle of category vs category
- Liquid capital req'd
- $40K – $60K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- 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 | 1.0% of gross sales |
| Technology fee | $130 |
| Training fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $10K – $30K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Burros & Fries did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Burros & Fries unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
22%
Below the 30–60% attractive-franchise band
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: 2022 FDD
Financial Performance
Most recent audited fiscal year ended December 31, 2020. Total revenues of $66,827 comprise franchise fees of $35,000 and royalty income of $31,827. The prior period (inception November 18, 2019 to January 31, 2020) had no revenue. The document contains audited statements as of January 31, 2020 and December 31, 2020; Item 21 references a December 31, 2021 statement but it is not present in this text.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +100.0% over 3 years (2 opened, 0 closed).
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 Quick-Service Restaurants averages
How Burros & Fries Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- 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
- 33%
- vs corporate-owned
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 12 · 2 states 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.
2
states with franchisees (per FDD Item 12)
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.
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
Micro-franchise system with undisclosed unit economics, going concern uncertainty, prior wage litigation, and insufficient scale to validate business model viability.
Litigation (Item 3)
One prior action: Jose Chavez v. Fernando Ruiz et al. (labor code violations), filed March 2019, settled May 2020 for $20,000.
Largest disclosed settlement: $20,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Hanna, CPA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 43 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · 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 | 2 |
| Territory type | protected |
| 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 | CA |
| Litigation count | 1 |
View Item 3 litigation summary
One prior action: Jose Chavez v. Fernando Ruiz et al. (labor code violations), filed March 2019, settled May 2020 for $20,000.
Items 10, 11
Training & Operations
- Classroom training
- 54 hrs
- On-the-job training
- 261 hrs
- Training location
- Corporate headquarters in Chula Vista, CA
- Ongoing training
- Required
- Time to open
- 21 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Proprietary POS software (approved vendor)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Proprietary POS software (approved vendor)
Item 20 · call current owners
Franchisee Contacts
1 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 Item 19 in the Burros & Fries 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 Burros & Fries FDD and qualifies whose outlets they describe.
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 12 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 C-grade franchise with a verdict score of 43 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.