Fiesta
Bottom line
- Total investment $72K – $157K including a $15K franchise fee, 20.0% ongoing royalty.
- Average unit revenue of $322K/year (median $223K).
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 15 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 FIESTA unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Negative
Overview
About
FIESTA franchisees operate insurance agency businesses, likely focused on auto, home, or specialty insurance products. Day-to-day operations include customer acquisition, policy sales, client service, claims support, and regulatory compliance. Revenue derives from insurance commissions and potential service fees.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
FIESTA presents high structural risk due to franchisor going concern status, near-zero unit growth, undisclosed profitability metrics, and punitive royalty rates that may exceed franchisee margins.
Score breakdown · what drove the 65 / 100 rating
- 01HIGHGoing Concern status indicates franchisor financial distress or operational uncertainty
- 02MEDExtreme unit decline: only 248 units with 0.4% YoY growth signals stagnation or contraction trend
- 03MEDNet income not disclosed despite average revenue of $321,581 — suggests profitability concerns or hidden losses
- 04MINORVery high royalty rate (20-25% of gross) combined with $15K franchise fee creates severe cash flow pressure for franchisees
- 05MINORNo Item 19 financial performance data publicly available — inability to validate profit claims
- 06MEDNarrow $72K-$156K investment range suggests limited scalability or inconsistent startup models
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
70 numbers
One-time purchase · CSV download · Validation questions included
FDD download
FIESTA · FDD (2022) PDF