Ori'Zaba's Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Ori'Zaba's Scratch Mexican Grill is a fast-casual franchise serving scratch-made Mexican bowls, burritos, and tacos. Franchisees run the restaurants, managing food prep, staffing, and counter service.
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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $500K – $883K
- 76th pct Service Resta…
- Avg gross sales
- $1.5M
- 28th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 4
- 18th 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 $500K – $883K including a $30K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.5M/year (median $1.3M).
- RISKVerdict B (Above average), verdict score 48/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Ori'Zaba's Franchise Operations, LLC
- Parent company
- McClurg Century Investments
- CEO title
- President
- Jen Howell
- Incorporated in
- CO
- HQ
- 8084 S. Wallace Court, Suite A, Englewood, Colorado 80112
- Auditor
- KEZOS & DUNLAVY
- Audited financials
- Franchisor revenue
- $93K
- vs $211K prior year
Overview
About
- CEO
- Jen Howell
- Headquarters
- CO
- Founded
- 2017
- FDD year
- 2024
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown20 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $500K – $883K
- Bottom third — review vs category
- Liquid capital req'd
- $42K – $68K
- Bottom third — review vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 5.0%
- Set by a formula · 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% |
| Technology fee | $200 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Inventory (initial) | $8K – $9K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 28% above the quick-service restaurants norm.
Source: FDD 2024 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Ori'Zaba's until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$746K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Ori'Zaba's unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2024 FDD
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.3M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales and gross profit
- Sample size
- 3 outlets
- vs category median 18 · small
- Range (low → high)
- $1.2M→$2.0M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.5M/year in gross sales. Revenue-to-investment ratio: 2.1x.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 3 outlets — treat as directional only.
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 Ori'Zaba's Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 33.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 1
- 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 12 · 3 states 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.
3
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $499K
- Median loan
- $250K
- average
- Charge-off rate
- N/A
- limited sample (2 loans) — 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
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KEZOS & DUNLAVY
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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 48 / 100 verdict
- 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
- 03MINORRoyalty structure includes $4,000/month minimum even in low-revenue months — cash flow burden on struggling locations
- 04MINOROnly 4 franchises remaining — minimal peer support network and franchise viability concerns
- 05HIGHGoing concern flag is false but system deterioration suggests underlying business model stress
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado |
| Jury trial waiver | Yes |
| Governing law | CO |
| 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
- Las Vegas, Nevada Restaurant or at another location designated by franchisor
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval and designated site selection vendor
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toasttab POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toasttab POS
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 $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Ori'Zaba's 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 Ori'Zaba's FDD and qualifies whose outlets they describe.
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 B-grade franchise with a verdict score of 48 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.