Mucho BurritoFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Mucho Burrito franchise requires a total initial investment of $470K – $925K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $470K – $925K
- 31st pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 1
- 2nd 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
Franchised units fell from 1 to 0 over 3 years. Investigate why operators are leaving.
20 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $470K – $925K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 85/100.
- 20 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MTY Franchising USA, Inc.
- Parent company
- MTY Food Group, Inc.
- CEO title
- Not provided in Items 1-2
- Eric Lefebvre
- CEO experience
- 1 yr
- Years in role or industry
- Incorporated in
- TN
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $606.6M
- vs $597.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Mucho Burrito franchisees operate fast-casual Mexican food restaurants serving burritos, bowls, tacos, and related items. Day-to-day operations include food preparation, customer service, inventory management, and staffing typical of quick-service restaurants. Franchisees are responsible for local marketing, P&L management, and meeting 6% royalty obligations plus weekly surcharges.
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2001
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $20K | $80K |
| Equipment, build-out, other | $420K | $815K |
| Total initial investment | $470K | $925K |
Source: Mucho Burrito 2025 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
- $470K – $925K
- Better than avg vs category
- Liquid capital req'd
- $20K – $80K
- Better than avg vs category
- Franchise fee
- $24K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- 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 | 3.0% of gross sales |
| Technology fee | $130 |
| Training fee | $2K |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Mucho Burrito Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- 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
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $282K
- Median loan
- $282K
- average
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mucho Burrito presents high risk due to parent company going concern issues, multi-state litigation history involving franchise disclosure violations, absence of unit economics (Item 19), single unit reporting, and unprotected territory—making financial viability and franchisor stability highly questionable.
Litigation (Item 3)
Two concluded cases involving franchisor affiliates: (1) Purav Enterprises, L.L.C., et al. v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - settled March 11, 2016 for $20,000. Franchisees alleged FIPA violations, misrepresentation of financial performance, and unregistered broker activity. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - concluded June 2016. Koho sued for breach of contract and unjust enrichment seeking $540,000+. Kahala cross-complained on multiple grounds. Court ruled in Kahala's favor; awarded Kahala $205,000 in attorney's fees. Parties settled June 19, 2017 with Kahala repurchasing territory for $75,000 and forgiving $130,000 in remaining damages.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
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 85 / 100 rating
- 01HIGHGoing Concern status is FALSE, indicating potential financial instability or restructuring risk at parent company level
- 02HIGHSignificant litigation history across parent company brands involving breach of contract, misrepresentation, and state regulatory violations in multiple states (MD, NY, VA)
- 03MINORNo Item 19 (average unit volumes) disclosure — impossible to validate $470K-$925K investment against realistic profit potential
- 04MINOROnly 1 unit reported with unknown growth trajectory — suggests either new franchise system or significant unit contraction
- 05MINORUnprotected territory creates direct competition risk from other Mucho Burrito franchisees in same market
- 06MEDHigh initial investment ($470K-$925K) with 6% royalty plus $10/week surcharge structure on undisclosed revenue base
- 07MED10-year term lock-in period with no disclosed exit liquidity or resale market data
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 | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Mandatory arbitration | Yes |
| Arbitration location | franchisee_state |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 20 |
View Item 3 litigation summary
Two concluded cases involving franchisor affiliates: (1) Purav Enterprises, L.L.C., et al. v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - settled March 11, 2016 for $20,000. Franchisees alleged FIPA violations, misrepresentation of financial performance, and unregistered broker activity. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - concluded June 2016. Koho sued for breach of contract and unjust enrichment seeking $540,000+. Kahala cross-complained on multiple grounds. Court ruled in Kahala's favor; awarded Kahala $205,000 in attorney's fees. Parties settled June 19, 2017 with Kahala repurchasing territory for $75,000 and forgiving $130,000 in remaining damages.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and corporate
- Time to open
- 9 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mucho Burrito · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mucho Burrito franchise?
The total investment to open a Mucho Burrito franchise ranges from $470K – $925K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mucho Burrito franchise owners earn?
Mucho Burrito 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 Mucho Burrito's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Mucho Burrito (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 Mucho Burrito franchise locations are there?
As of their most recent FDD filing, Mucho Burrito has 1 total units in the United States, including 1 franchised units and 0 company-owned units.
Is Mucho Burrito a good franchise to buy?
FranchiseVerdict rates Mucho Burrito as a F-grade franchise with a risk score of 85 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.
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.