California Tortilla Franchise Cost, Revenue & Review 2026
- Investment
- $444K – $837K
- Disclosed sales
- $935K
- gross sales, not profit
- SBA charge-off
- 40.0%
- on 22 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
California Tortilla is a fast-casual franchise serving made-to-order burritos, tacos, bowls, and quesadillas with a wall of hot sauces. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A California Tortilla franchise requires a total initial investment of $444K – $837K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $935K[2]. SBA 7(a) loans show a 40.0% charge-off rate across 22 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $444K – $837K
- 70th pct Service Resta…
- Avg gross sales
- $935K
- Incl. company outlets17th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 27
- 54th pct Service Resta…
- SBA charge-off
- 40.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · 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 $444K – $837K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $935K/year (median $869K) (includes company-owned outlets). Note: this is gross profit, not take-home income.
- RISKVerdict F (Weakest tier), verdict score 26/100 (higher is better). SBA loan charge-off rate of 40.0% across 22 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -10 franchised outlets in the latest year (0 opened, 7 closed); 3 signed but not yet open (Item 20).
- DECLINESystem contracting at -38.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The California Tortilla Group, Inc.
- Predecessor
- Yeeha! LLC
- Prior franchisor entity
- CEO title
- President & Treasurer; Chairman of the Board of Directors
- Robert A. Phillips
- Incorporated in
- MD
- HQ
- 7825 Tuckerman Lane, Suite 214, Potomac, Maryland 20854
- Auditor
- Adeptus Partners, LLC
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.4M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Caltort Development
- Southern Sauces
- CT Bethesda
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Robert A. Phillips
- Headquarters
- MD
- Founded
- 2003
- FDD year
- 2025
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost runs 32% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Real Estate; Site Evaluation; Prepaid Rent and Security Deposit | $19K | $30K | |
| Leasehold Improvements | $175K | $300K | |
| Signage | $20K | $30K | |
| Furniture, Fixtures and Equipment | $120K | $295K | |
| Computers and Equipment | $8K | $10K | |
| Initial Inventory & Restaurant Supplies | $8K | $15K | |
| Smallwares | $14K | $20K | |
| Uniforms | $2K | $3K | |
| Insurance | $1K | $2K | |
| Travel and Living Expenses During Training | $0 | $7K | |
| Grand Opening Advertising | $8K | $10K | |
| Miscellaneous Opening Costs | $15K | $45K | |
| Additional Funds (3 Months) | $15K | $30K | |
| Total initial investment | $444K | $837K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $444K – $837K
- Bottom third — review vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of net sales |
| Marketing / ad fund | 2.0% of net sales |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $8K – $15K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Includes company-owned outlets
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for California Tortilla until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$663K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one California Tortilla unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $935K
- Per unit, per year
- Median gross sales
- $869K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 27 outlets
- vs category median 19
- Range (low → high)
- $483K→$2.0MCited, not corroborated — printed on page 57 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $935K/year in gross sales. Revenue-to-investment ratio: 1.5x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -38.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 medians
How California Tortilla Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 27
- Opened
- 0
- Last reporting year
- Closed
- 7
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 36.8%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 70%
- vs corporate-owned
- Net growth (3-yr)
- -38.7%
- Net unit change over 3 years
- 3-yr CAGR
- -38.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 3
- Franchisor bought back
- Signed, not yet open
- 3
- 0.11 per open outlet · Item 20 Table 5
- Projected new
- 6
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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.
Where the owners are · Item 20 owner list
28 current owners across 9 states.
- MD 6
- VA 5
- PA 4
- GA 3
- NJ 3
- CT 2
- DC 2
- SC 2
- WV 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 22
- Loan volume
- $7.4M
- Median loan
- $351K
- 50th percentile
- Charge-off rate
- 40.0%
- on 22 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 60.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 8
- Typical loan rate
- 6.2%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 599
- 8.1 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 60% went to startups / new businesses, 40% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
California Tortilla charge-off rate by loan vintage
Top lenders financing California Tortilla franchisees
Showing 3 of 13 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for California Tortilla from SBA 7(a) FOIA data.
- Principal loss rate
- 33.3%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 6.24%
- Avg chargeoff amount
- $306K
- Lender concentration
- 18.2%
- Job velocity
- 8.1 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 599
Top SBA lendersTop lender holds 18% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | PNC Bank, National Association | 4 | $1.2M | 75.0% |
| 2 | Manufacturers and Traders Trust Company | 3 | $845K | 33.3% |
| 3 | Truist Bank | 2 | $794K | 0.0% |
| 4 | Apple Federal Credit Union | 2 | $950K | 100.0% |
| 5 | Capital Bank, National Association | 2 | $940K | 50.0% |
| 6 | Fulton Bank, National Association | 2 | $365K | 0.0% |
| 7 | Shinhan Bank America | 1 | $500K | 0.0% |
| 8 | Atlantic Union Bank | 1 | $424K | 0.0% |
| 9 | TD Bank, National Association | 1 | $498K | 0.0% |
| 10 | Hanmi Bank | 1 | $150K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| VAVirginia | 8 | 3 | 37.5% |
| MDMaryland | 5 | 2 | 40.0% |
| FLFlorida | 3 | 1 | 33.3% |
| NJNew Jersey | 3 | 0 | 0.0% |
| KSKansas | 1 | 1 | 100.0% |
| NCNorth Carolina | 1 | 0 | 0.0% |
| PAPennsylvania | 1 | 1 | 100.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 40.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 40.0% — 150% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Adeptus Partners, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2024 Statements of Income: Royalties from franchisees $1,116,059; Vendor rebates $233,894; Initial franchise fees $56,683; Transfer and other fees $40,300; Total income $1,288,960. Audited by Adeptus Partners, LLC (Olney, MD), report dated March 19, 2025; balance sheets as of Dec 31, 2024/2023/2022.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 26 / 100 verdict
- 01MEDUnit count collapsed 34.5% YoY (27 units remaining) — severe system contraction indicating franchisee failures or brand decline
- 02MINORThin unit margins: $128.7K net income on $935K revenue (13.8% net margin) leaves minimal buffer for underperformance
- 03MINORHigh initial investment ($443.7K-$836.5K) relative to average net income ($128.7K) = 3.4-6.5 year payback before accounting for debt service
- 04MEDNo litigation disclosed but massive unit decline suggests systemic operational or support failures not yet formalized
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | Potomac/Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 37 hrs
- On-the-job training
- 163 hrs
- Training location
- Headquarters in Potomac, MD and affiliate-owned training store in Olney, MD
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Par POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Par POS
Item 20 · call current owners
Franchisee Contacts
28 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a California Tortilla franchise?
The total investment to open a California Tortilla franchise ranges from $444K – $837K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do California Tortilla franchise owners earn?
According to Item 19 of the California Tortilla FDD, the average gross sales per unit is $935K. The median is $869K. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns California Tortilla?
California Tortilla is franchised by The California Tortilla Group, Inc.. The FDD names no parent company. Source: FDD Item 1, 2025 filing.
What is Item 19 in the California Tortilla 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 California Tortilla FDD and qualifies whose outlets they describe.
What is California Tortilla's franchise failure rate?
Based on SBA 7(a) loan data, California Tortilla has a charge-off rate of 40.0% across 22 loans, meaning 40.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many California Tortilla franchise locations are there?
As of their most recent FDD filing, California Tortilla has 27 total units in the United States, including 19 franchised units and 8 company-owned units.
Is California Tortilla a good franchise to buy?
FranchiseVerdict rates California Tortilla as a F-grade franchise with a verdict score of 26 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
If you represent California Tortilla, you can request corrections or provide updated information.
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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.