Ori’Zaba’s Scratch Mexican Grill
Bottom line
- Total investment $500K – $883K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.3M).
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Scratch Mexican Grill 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 Scratch Mexican Grill units return on equity?
Equity IRR · 5-yr
37.1%
4.85× MOIC
Year-1 DSCR
2.23×
EBITDA ÷ debt service
Equity required
$4.3M
on $13.3M purchase
Total debt
$9.0M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate fast-casual Mexican grill restaurants featuring scratch-made items (salsas, guacamole, marinades) with customizable bowls, burritos, and tacos. Day-to-day operations include food preparation, customer service, inventory management, staff training, and adherence to the brand's made-from-scratch operational standards.
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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
Rapidly contracting 4-unit system with undisclosed profitability metrics and high capital requirements presents meaningful execution and financial transparency risks.
Score breakdown · what drove the 63 / 100 rating
- 01MEDUnit count declined 25% YoY (from ~5.3 to 4 units), indicating system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in FDD Item 19, making ROI assessment impossible and hiding potential profitability issues
- 03MINORHigh initial investment range ($499.7K-$883.2K) paired with declining unit count suggests difficult unit economics
- 04MINORRoyalty structure with $4,000/month minimum floor could strain cash flow for underperforming locations
- 05MEDOnly 4 operating units indicates immature franchise system with limited data, track record, and support infrastructure
- 06MEDAverage revenue of $1.48M appears healthy but without disclosed net income, cannot determine if units are actually profitable
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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ori’Zaba’s Scratch Mexican Grill · FDD (2024) PDF