Fajita Pete'sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Fajita Pete's franchise requires a total initial investment of $195K – $668K, including a $40K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $795K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $195K – $668K
- 9th pct Service Resta…
- Avg gross sales
- $795K
- 6th pct Service Resta…
- Royalty
- 5.5%
- 24th pct Service Resta…
- Units
- 32
- 32nd pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $195K – $668K including a $40K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $795K/year (median $704K).
- Verdict A (Top Quintile) with a risk score of 47/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Fajita Pete’s Franchising LLC
- Parent company
- Evolve Restaurant Acquisition Group, LLC
- Incorporated in
- TX
- HQ
- 6719 Weslayan Street, Houston, Texas 77005
- Auditor
- David P. Chaney, CPA, P.C.
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.4M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate fast-casual Tex-Mex restaurants specializing in customizable fajitas, salsas, and related menu items. Day-to-day operations include food preparation, inventory management, labor scheduling, customer service, and adherence to brand standards across a protected territorial footprint.
- CEO
- Pedro Mora
- Headquarters
- TX
- Founded
- 2010
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $25K | $35K |
| Equipment, build-out, other | $130K | $593K |
| Total initial investment | $195K | $668K |
Source: Fajita Pete's 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$91K
11.5% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $195K – $668K
- Better than avg vs category
- Liquid capital req'd
- $25K – $35K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $795K
- Per unit, per year
- Median gross sales
- $704K
- Item 19 type
- Actual and Average Results
- Sample size
- 27 units
- vs category median 13 · large
- Range (low → high)
- $411K→$2.2M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Fajita Pete's Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 32
- Opened
- 4
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.1%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- +11.1%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
- Projected new
- 6
- Franchisor's next-year forecast
- Transfer rate
- 12.5%
- Owners selling to other franchisees
- Ceased ops
- 3.1%
- Units that stopped operating
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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $2.2M
- Median loan
- $320K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Fajita Pete's's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Fajita Pete's presents moderate-to-caution risk: while protected territory and positive growth are encouraging, the absence of net income disclosure and wide cost variance obscure true unit profitability and make ROI validation impossible.
Litigation (Item 3)
No litigation disclosed in Item 3
Bankruptcy (Item 4)
Disclosed in last 7 years
Director Joseph P. Eguia was president of Restaurant Development, L.L.C. (Texas LLC) which filed Chapter 11 bankruptcy (later converted to Chapter 7) Case No. 06-30322 in U.S. Bankruptcy Court for the Southern District of Texas on February 1, 2006. Case closed October 21, 2015.
Audited financials (Item 21)
Yes · David P. Chaney, CPA, P.C.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 47 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability against $794,567 average revenue claim
- 02MINORWide investment range ($194,500–$667,700) suggests high variability in unit economics and potential hidden costs
- 03MEDModest unit growth of 11.1% YoY on small base (32 units) indicates limited scale and early-stage system maturity
- 04MEDHigh royalty burden (5.5%) combined with undisclosed margins creates uncertainty on break-even timeline
- 05HIGHNo litigation disclosed but small system size limits historical sample for dispute patterns
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 | 1 |
| Territory type | Market Area |
| Protected territory | Yes |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | city where franchisor headquarters located |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 26 hrs
- On-the-job training
- 84 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- Hungerush
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Hungerush
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Fajita Pete's · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Fajita Pete's franchise?
The total investment to open a Fajita Pete's franchise ranges from $195K – $668K, 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 Fajita Pete's franchise owners earn?
According to Item 19 of the Fajita Pete's FDD, the average gross sales per unit is $795K. The median is $704K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Fajita Pete's's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Fajita Pete's (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 Fajita Pete's franchise locations are there?
As of their most recent FDD filing, Fajita Pete's has 32 total units in the United States, including 30 franchised units and 2 company-owned units. 4 new units were opened in the latest reporting year.
Is Fajita Pete's a good franchise to buy?
FranchiseVerdict rates Fajita Pete's as a A-grade franchise with a risk score of 47 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.
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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.