Pancheros Mexican GrillFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Pancheros Mexican Grill franchise requires a total initial investment of $753K – $1.5M, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.6M[2]. SBA 7(a) loans show a 16.7% charge-off rate across 36 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $753K – $1.5M
- 92nd pct Service Resta…
- Avg gross sales
- $1.6M
- 49th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 76
- 70th pct Service Resta…
- SBA default
- 16.7%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
Franchising since 1995. Systems this mature have refined operations and brand recognition.
Franchised units fell from 50 to 47 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $753K – $1.5M including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.6M/year (median $1.5M).
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 16.7% across 36 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Panchero’s Franchise Corporation
- CEO title
- President and Treasurer
- Rodney L. Anderson
- CEO experience
- 1996 yrs
- Years in role or industry
- Incorporated in
- IL
- HQ
- 2475 Coral Court, Suite B, Coralville, Iowa 52241
- Auditor
- Honkamp, P.C.
- Audited financials
- Franchisor revenue
- $7.8M
- vs $10.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Little Donkeys
- LDIP
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate fast-casual Mexican restaurants featuring customizable burritos, tacos, and bowls with a Chipotle-style service model. Day-to-day operations include food prep, counter service, inventory management, staff scheduling, and local marketing to drive the ~$1.61M average annual revenue per location.
- CEO
- Rodney L. Anderson
- Headquarters
- IA
- Founded
- 1994
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Real Estate/Rent and Security Deposit | $0 | $30K | |
| Utility Security Deposits | $0 | $5K | |
| Leasehold Improvementsnot refundable | $450K | $900K | |
| Furniture, Fixtures & Equipmentnot refundable | $165K | $210K | |
| Initial Merchandise Purchasesnot refundable | $2K | $5K | |
| Initial Inventorynot refundable | $9K | $15K | |
| Insurancenot refundable | $4K | $17K | |
| Trainingnot refundable | $5K | $15K | |
| Initial Marketing Campaignnot refundable | $30K | $50K | |
| Signagenot refundable | $10K | $38K | |
| Point-of-Sale System (POS System) and Back Office Softwarenot refundable | $14K | $18K | |
| Office Equipment/Suppliesnot refundable | $3K | $7K | |
| Licenses and Permitsnot refundable | $1K | $8K | |
| Professional Feesnot refundable | $6K | $40K | |
| Additional Funds (3 months)not refundable | $25K | $150K | |
| Total initial investment | $753K | $1.5M |
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
$242K
15.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $753K – $1.5M
- Below avg, review vs category
- Liquid capital req'd
- $25K – $150K
- Near category avg vs category
- Franchise fee
- $25K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenues · 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 |
| Transfer fee | $10K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- $1.5M
- Item 19 type
- gross_sales
- Sample size
- 72 units
- vs category median 28 · large
- Range (low → high)
- $334K→$4.8M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Pancheros Mexican Grill Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 76
- Opened
- 3
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.3%
- Company-owned
- 26
- Corporate units in the system
- % franchised
- 66%
- vs corporate-owned
- Net growth (yr3)
- +4.2%
- Net unit change last year
- 3-yr CAGR
- +6.4%
- Compounded over last 3 years
3-year detail · Item 20
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 2
- Projected new
- 2
- Franchisor's next-year forecast
- Transfer rate
- 2.6%
- Owners selling to other franchisees
- Termination rate
- 1.3%
- Franchisor-initiated terminations
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 36
- Loan volume
- $12.0M
- Median loan
- $341K
- 50th percentile
- Charge-off rate
- 16.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 72.2%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 23
- Defaults
- 6
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
Modest growth, hidden profitability metrics, and active franchisor litigation create material risk despite protected territories and reasonable royalty rates.
Litigation (Item 3)
One pending lawsuit (Panchero's Franchise Corporation v. Virji, LLC) filed May 17, 2024 regarding enforcement of post-termination obligations. One settled arbitration case (Navraj Restaurant Group, LLC v. Panchero's Franchise Corporation, 2015) involving alleged violations of franchise agreement and state laws; settled for $375,000.
Largest disclosed settlement: $375,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Honkamp, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to assess actual profitability despite $1.61M average revenue
- 02MINORSlow unit growth at 4.2% YoY suggests market saturation or franchisee satisfaction issues in a 76-unit system
- 03HIGHActive 2024 litigation by franchisor indicates enforcement disputes and potential friction with franchisees
- 04MEDHigh investment range ($752.5K–$1.54M) relative to undisclosed net income creates ROI uncertainty
- 05HIGHNo 'going concern' status disclosed — potential financial stability questions about franchisor
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Designated Area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Iowa |
| Litigation count | 2 |
View Item 3 litigation summary
One pending lawsuit (Panchero's Franchise Corporation v. Virji, LLC) filed May 17, 2024 regarding enforcement of post-termination obligations. One settled arbitration case (Navraj Restaurant Group, LLC v. Panchero's Franchise Corporation, 2015) involving alleged violations of franchise agreement and state laws; settled for $375,000.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 120 hrs
- Training location
- franchisor headquarters or designated location
- Ongoing training
- Required
- Field support
- 120 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
56 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pancheros Mexican Grill · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pancheros Mexican Grill franchise?
The total investment to open a Pancheros Mexican Grill franchise ranges from $753K – $1.5M, 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 Pancheros Mexican Grill franchise owners earn?
According to Item 19 of the Pancheros Mexican Grill FDD, the average gross sales per unit is $1.6M. The median is $1.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Pancheros Mexican Grill's franchise failure rate?
Based on SBA 7(a) loan data, Pancheros Mexican Grill has a charge-off rate of 16.7% across 36 loans, meaning 16.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Pancheros Mexican Grill franchise locations are there?
As of their most recent FDD filing, Pancheros Mexican Grill has 76 total units in the United States, including 50 franchised units and 26 company-owned units. 3 new units were opened in the latest reporting year.
Is Pancheros Mexican Grill a good franchise to buy?
FranchiseVerdict rates Pancheros Mexican Grill as a B-grade franchise with a risk score of 55 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.