Mucho Burrito Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Mucho Burrito is a fast-casual franchise serving Mexican burritos, bowls, and tacos. Franchisees run the restaurants, managing food prep, staffing, and counter service.
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). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $470K – $925K
- 74th pct Service Resta…
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 1
- 3rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · 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 $470K – $925K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSMTY Franchising USA, Inc. consolidated statements of operations, year ended November 30, 2023 (in thousands of US dollars; audited by PwC, Montreal). Revenue $580,280K (2023) vs $263,686K (2022).
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- LEGAL19 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
Corporate structure & franchisor financials
- Legal entity
- MTY Franchising USA, Inc.
- Parent company
- MTY Franchising Inc. (MTY Canada)
- Ultimate parent
- MTY Food Group, Inc.
- Predecessor
- Mucho Burrito Franchising USA, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- 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 (PwC)
- Audited financials
- Franchisor revenue
- $580.3M
- vs $263.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2001
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
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
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $80K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · 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 | $75 |
| Training fee | $2K |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Inventory (initial) | $7K – $9K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Mucho Burrito did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Mucho Burrito unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below the 30–60% attractive-franchise band
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
MTY Franchising USA, Inc. consolidated statements of operations, year ended November 30, 2023 (in thousands of US dollars; audited by PwC, Montreal). Revenue $580,280K (2023) vs $263,686K (2022).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +100.0% over 3 years (0 opened, 0 closed).
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 averages
How Mucho Burrito Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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 (3-yr)
- +100.0%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
- N/A
- limited sample (1 loan) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Multiple concluded cases involving predecessor and affiliated brands (Extreme Pita, Kahala Franchising, SweetFrog, Baja Fresh, Famous Dave's, Wetzel's Pretzels, Papa Murphy's, Blimpie, Maui Wowi, Restaurants Acquisition I) plus two active cases filed by Kahala Franchising against franchisees during fiscal year ending November 30, 2024, and several state administrative proceedings.
Largest disclosed settlement: $585,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers (PwC)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 50 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 9.0% 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 | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| 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 | County and state where franchised business is located |
| Jury trial waiver | Yes |
| Governing law | State where franchised business is located |
| Litigation count | 19 |
View Item 3 litigation summary
Multiple concluded cases involving predecessor and affiliated brands (Extreme Pita, Kahala Franchising, SweetFrog, Baja Fresh, Famous Dave's, Wetzel's Pretzels, Papa Murphy's, Blimpie, Maui Wowi, Restaurants Acquisition I) plus two active cases filed by Kahala Franchising against franchisees during fiscal year ending November 30, 2024, and several state administrative proceedings.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 100 hrs
- Training location
- Online, Ontario Canada, or KTEC Scottsdale AZ; in-store at franchisee restaurant or designated location
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor must approve
- Franchisor financing
- Offered
- Item 10
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 Item 19 in the Mucho Burrito 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 Mucho Burrito FDD and qualifies whose outlets they describe.
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 B-grade franchise with a verdict score of 50 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Mucho Burrito, 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.