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.
- Rated CAUTION with a risk score of 75/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- 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
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 Mucho Burrito unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
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.
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 · 7 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
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.
Score breakdown · what drove the 75 / 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
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
10 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mucho Burrito · FDD (2025) PDF