La Michoacana Plus
Bottom line
- Total investment $415K – $694K including a $40K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100.
- 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
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 La Michoacana Plus unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Overview
About
Franchisees operate ice cream parlors selling paletas (Mexican ice cream and frozen treats) with branded products and operational systems. Day-to-day operations include inventory management, point-of-sale transactions, customer service, local marketing, and adherence to brand standards. The model targets Hispanic communities and seasonal demand patterns.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
La Michoacana Plus is a high-risk investment due to active fraud/disclosure litigation, undisclosed financials, going concern status, minimal unit base, and opaque growth trajectory.
Score breakdown · what drove the 75 / 100 rating
- 01HIGHActive litigation alleging unauthorized franchise sales and disclosure violations — trial underway with ruling pending, creating existential legal risk to the franchise system
- 02HIGHGoing Concern = False indicates potential financial instability or going concern doubts raised by accountants/legal counsel
- 03HIGHOnly 8 units system-wide suggests minimal scale, limited support infrastructure, and high failure risk if litigation unfolds negatively
- 04MEDNo average revenue or net income disclosed — inability or unwillingness to provide Item 19 suggests poor unit economics or data transparency issues
- 05MEDHigh investment range ($415K–$693.5K) with no disclosed financial performance creates asymmetric risk — franchisee has capital exposure but no income benchmarks
- 06HIGHUnknown unit growth trajectory indicates stagnant or declining system; 8 units may represent contraction post-litigation filing
- 07HIGHLitigation specifically names corporate entity and principals (Ruben Jimenez) — suggests potential personal liability and raises questions about franchisor integrity and compliance culture
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
12 numbers
One-time purchase · CSV download · Validation questions included
FDD download
La Michoacana Plus · FDD (2026) PDF