Ori'Zaba'sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ori'Zaba's franchise requires a total initial investment of $500K – $883K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.5M[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $500K – $883K
- 33rd pct Service Resta…
- Avg gross sales
- $1.5M
- 16th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 4
- 10th pct Service Resta…
- SBA default
- N/A
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
The system contracted 25% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $500K – $883K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.4M).
- Verdict F (Bottom Quintile) with a risk score of 78/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Ori’Zaba’s Franchise Operations, LLC
- Parent company
- McClurg Century Investments
- Incorporated in
- CO
- HQ
- 8084 S. Wallace Court, Suite A, Englewood, CO 80112
- Auditor
- KEZOS & DUNLAVY
- Audited financials
- Franchisor revenue
- $93K
- vs $211K prior year
Overview
About
Ori'Zaba's franchisees operate quick-service Mexican restaurants, likely handling daily food preparation, customer service, point-of-sale operations, staff management, and inventory control. Day-to-day responsibilities include maintaining food quality standards, managing labor costs, adhering to brand protocols, and driving local marketing to meet the $1.5M average revenue benchmark.
- CEO
- Jen Howell
- Headquarters
- CO
- Founded
- 2017
- FDD year
- 2024
- States available
- 1
FDD Item 7 · 2024 filing · 20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Furniturenot refundable | $18K | $40K | |
| Equipment and Smallwares Packagenot refundable | $90K | $160K | |
| Pre-Opening Rent Paymentsnot refundable | $8K | $23K | |
| Music Systemnot refundable | $700 | $1K | |
| Digital Menu Boards, Promotion Boards, Graphics and Interior Signagenot refundable | $22K | $28K | |
| Computer / POS Systemnot refundable | $8K | $15K | |
| Construction and Build Out Costsnot refundable | $180K | $330K | |
| Exterior Signagenot refundable | $12K | $14K | |
| Miscellaneous Opening Costs/Office Equipment, Supplies, and Licensesnot refundable | $2K | $6K | |
| Insurancenot refundable | $5K | $10K | |
| Legal and Accounting Feesnot refundable | $5K | $20K | |
| Architecture Fees & Permitsnot refundable | $20K | $50K | |
| Opening Inventorynot refundable | $8K | $9K | |
| Market Analysis and Management Servicesnot refundable | $8K | $8K | |
| Travel and Living Expenses while attending OZTTT Trainingnot refundable | $8K | $15K | |
| Utility and Security Deposits | $5K | $20K | |
| New Store Opening Marketing Feenot refundable | $30K | $30K | |
| Procurement Assistance Feenot refundable | $0 | $8K | |
| Additional Funds - 3 Monthsnot refundable | $42K | $68K | |
| Total initial investment | $500K | $883K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$164K
11.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $500K – $883K
- Better than avg vs category
- Liquid capital req'd
- $42K – $68K
- Better than avg vs category
- Franchise fee
- $20K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.4M
- Item 19 type
- historical
- Sample size
- 4 units
- vs category median 13 · small
- Range (low → high)
- $1.2M→$2.0M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Ori'Zaba's Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 1
- Turnover rate
- 25.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- -25.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 37.5%
- Units that stayed open
- Ceased ops
- 25.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- 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
Ori'Zaba's presents HIGH RISK due to severe unit contraction (-25% YoY to only 4 locations), undisclosed profitability data, high capital requirements, and structural royalty burdens that may explain franchisee departures.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $30,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KEZOS & DUNLAVY
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 78 / 100 rating
- 01MINORSystem contracted 25% YoY (4 units remaining) — severe shrinkage indicates systemic problems
- 02MEDNet income not disclosed in FDD — unable to assess actual profitability despite $1.5M average revenue
- 03MINORHigh initial investment ($499K-$883K) with no Item 19 financial performance data creates blind spot
- 04MINORRoyalty structure includes $4,000/month minimum even in low-revenue months — cash flow burden on struggling locations
- 05MINOROnly 4 franchises remaining — minimal peer support network and franchise viability concerns
- 06HIGHGoing concern flag is false but system deterioration suggests underlying business model stress
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 | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 54 hrs
- On-the-job training
- 222 hrs
- Training location
- On-site and corporate
- POS system
- Toasttab POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toasttab POS
Item 20 · call current owners
Franchisee Contacts
13 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ori'Zaba's · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ori'Zaba's franchise?
The total investment to open a Ori'Zaba's franchise ranges from $500K – $883K, 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 Ori'Zaba's franchise owners earn?
According to Item 19 of the Ori'Zaba's FDD, the average gross sales per unit is $1.5M. The median is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Ori'Zaba's's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ori'Zaba's (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 Ori'Zaba's franchise locations are there?
As of their most recent FDD filing, Ori'Zaba's has 4 total units in the United States, including 3 franchised units and 1 company-owned units.
Is Ori'Zaba's a good franchise to buy?
FranchiseVerdict rates Ori'Zaba's as a F-grade franchise with a risk score of 78 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.
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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.