Pancheros Mexican Grill
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).
- Rated STRONG with a risk score of 54/100.
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 Pancheros Mexican Grill unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pancheros Mexican Grill units return on equity?
Equity IRR · 5-yr
38.2%
5.03× MOIC
Year-1 DSCR
2.19×
EBITDA ÷ debt service
Equity required
$4.0M
on $12.9M purchase
Total debt
$8.9M
SBA $5.0M + senior + seller note
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.
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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 54 / 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
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
56 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pancheros Mexican Grill · FDD (2025) PDF