Ori'Zaba's
Formerly known as Ofo
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).
- Rated CAUTION with a risk score of 68/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
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 Ori'Zaba's unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Ori'Zaba's units return on equity?
Equity IRR · 5-yr
36.9%
4.81× MOIC
Year-1 DSCR
2.24×
EBITDA ÷ debt service
Equity required
$4.4M
on $13.5M purchase
Total debt
$9.0M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 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
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.
Score breakdown · what drove the 68 / 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
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
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ori'Zaba's · FDD (2024) PDF