Qdoba Mexican Eats Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Qdoba Mexican Eats is a fast-casual franchise serving build-your-own burritos, bowls, tacos, and queso. Franchisees run counter-service restaurants managing food prep, catering, digital orders, and staffing.
FranchiseVerdict summary · 2026
A Qdoba Mexican Eats franchise requires a total initial investment of $546K – $1.3M, including a $20K – $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.6M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $546K – $1.3M
- 80th pct Service Resta…
- Avg gross sales
- $1.6M
- Net sales27th pct Service Resta…
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 777
- 91st 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 $546K – $1.3M including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.6M/year (median $1.5M), with an estimated 24% cash-on-cash return (based on Franchise EBITDA - Pre-Fees).
- RISKVerdict A (Strongest tier), verdict score 93/100 (higher is better).
- GROWTHSystem growing at 37.1% CAGR over 3 years with 777 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Qdoba Franchisor LLC
- Parent company
- Qdoba Funding LLC (direct parent); ultimate indirect parents include Qdoba Funding Holdco LLC, Quidditch Acquisition Inc., MRC Parent entities, owned by investment funds managed by Butterfly Equity LP
- Ultimate parent
- Butterfly Equity LP (via investment funds); direct chain: Qdoba Funding LLC -> Qdoba Funding Holdco LLC -> QRC/QAI -> MRC Parent Entities
- Predecessor
- Qdoba Restaurant Corporation (formerly Zuma Fresh Mexican Grill and Z-TECA)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- John C. Cywinski
- Incorporated in
- Delaware
- HQ
- 350 Camino De La Reina, Suite 400, San Diego, California 92108
- Auditor
- Deloitte & Touche LLP
- Audited financials
Overview
About
- CEO
- John C. Cywinski
- Headquarters
- CA
- Founded
- 1995
- FDD year
- 2024
- States available
- 43
Can you afford it, and what does the money buy?
Entry cost runs 40% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown33 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee (Traditional)not refundable | $40K | $40K | |
| Development costs: plans, legal fees, permits (Traditional) | $20K | $50K | |
| Leasehold improvements (Traditional) | $200K | $525K | |
| Furnishings, fixtures and equipment (Traditional) | $185K | $330K | |
| Signage (Traditional) | $10K | $35K | |
| IT and other Systems (Traditional) | $40K | $101K | |
| Opening inventory (Traditional) | $5K | $10K | |
| Travel and living expenses while training (Traditional) | — | — | |
| Miscellaneous pre-opening expenses (Traditional) | $5K | $15K | |
| Grand opening advertising (Traditional) | $10K | $25K | |
| Insurance (Traditional) | $5K | $10K | |
| Liquor license (Traditional) | — | — | |
| Real property lease / purchase costs (Traditional) | — | — | |
| Business licenses, health permits and similar permits (Traditional) | $500 | $3K | |
| Additional funds - 3 months (Traditional) | $25K | $150K | |
| Franchise Fee (Non-Traditional)not refundable | $20K | $20K | |
| Development costs: plans, legal fees, permits (Non-Traditional) | $10K | $50K | |
| Leasehold improvements (Non-Traditional) | $75K | $350K | |
| Furnishings, fixtures and equipment (Non-Traditional) | $83K | $200K | |
| Signage (Non-Traditional) | $8K | $25K | |
| Total initial investment | $823K | $2.3M |
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
- $546K – $1.3M
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $150K
- Middle of category vs category
- Franchise fee
- $20K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.8%
- typical 3–5%
- Total fee load
- 7.8%
- vs 9–13% typical
- Payback period
- 4.1 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.8% of gross sales |
| Technology fee | $14K |
| Transfer fee | $5K |
| Renewal fee | $10K |
| Total fee load | 7.8% of rev |
What do units actually make?
Average unit sales run 34% above the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2024 · Item 19
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
$232K
14.2% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $403K as Franchise EBITDA - Pre-Fees. Our model estimates $232K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Franchise EBITDA - Pre-Fees deducts different expense categories than our model.
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Qdoba Mexican Eats unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
23%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Qdoba Mexican Eats units return on equity?
Equity IRR · 5-yr
41.3%
5.63× MOIC
Year-1 DSCR
2.08×
EBITDA ÷ debt service
Equity required
$3.3M
on $11.8M purchase
Total debt
$8.5M
SBA $5.0M + senior + seller note
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
Reported as net sales, not gross sales
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- $1.5M
- Avg franchise ebitda - pre-fees
- $403K
- Reported as Franchise EBITDA - Pre-Fees in FDD Item 19
- Cash-on-cash
- 24.1%
- Based on Franchise EBITDA - Pre-Fees / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales
- Sample size
- 444
- vs category median 20 · large
- Range (low → high)
- $417K→$5.5M
- Cohort dispersion (min → max)
- Quartile band
- $926K→$2.5M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2024
- The FDD edition these figures were read from
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
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 $1.6M/year in gross sales. Revenue-to-investment ratio: 1.8x.
Fee burden
Total ongoing fee load of 7.8% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 37.1% CAGR over 3 years across 777 units — operators are staying and new ones are joining.
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 Qdoba Mexican Eats Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 777
- Opened
- 52
- Last reporting year
- Closed
- 9
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.6%
- Company-owned
- 164
- Corporate units in the system
- % franchised
- 79%
- vs corporate-owned
- Net growth (3-yr)
- +37.1%
- Net unit change over 3 years
- 3-yr CAGR
- +37.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 52
- Closed (3yr)
- 9
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 0.1%
- Owners selling to other franchisees
- Continuity rate
- 98.4%
- Units that stayed open
- Termination rate
- 0.1%
- Franchisor-initiated terminations
- Ceased ops
- 1.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 40 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.
No SBA loan data available for this brand.
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
Large established restaurant franchisor (since 1997) with parent-level financials showing $121,607,000 net worth, $304,272,000 revenue, and $29,143,000 net income across 777 units. Only 2 litigation matters - negligible for the system size. No bankruptcy or going-concern; audited with Item 19.
Litigation (Item 3)
Two franchisee cases: (1) Q of Hasbrouck Heights, LLC v. Qdoba settled October 2023 for $600,000, royalty reduction, and franchise extension; (2) Fiesta Ventures of Bevercreek, LLC and Fiesta Ventures DM, LLC v. Qdoba filed November 2024 involving breach of contract and unfair business practices claims.
Largest disclosed settlement: $600,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 93 / 100 verdict
- 01MINORStrong parent-level net worth $121,607,000 and net income $29,143,000
- 02HIGHOnly 2 litigation matters across 777 units
- 03MINORFinancials are parent-level (financials_are_parent_level=true)
- 04MEDNo bankruptcy or going-concern; audited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.8% 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 | 1 |
| Territory type | Radius |
| 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 | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 2 |
View Item 3 litigation summary
Two franchisee cases: (1) Q of Hasbrouck Heights, LLC v. Qdoba settled October 2023 for $600,000, royalty reduction, and franchise extension; (2) Fiesta Ventures of Bevercreek, LLC and Fiesta Ventures DM, LLC v. Qdoba filed November 2024 involving breach of contract and unfair business practices claims.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 270 hrs
- Training location
- On-site and off-site
- POS system
- NCR Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR Aloha
Item 20 · call current owners
Franchisee Contacts
524 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Qdoba Mexican Eats · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Qdoba Mexican Eats franchise?
The total investment to open a Qdoba Mexican Eats franchise ranges from $546K – $1.3M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Qdoba Mexican Eats franchise owners earn?
According to Item 19 of the Qdoba Mexican Eats 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 Item 19 in the Qdoba Mexican Eats 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 Qdoba Mexican Eats FDD and qualifies whose outlets they describe.
What is Qdoba Mexican Eats's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Qdoba Mexican Eats (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 Qdoba Mexican Eats franchise locations are there?
As of their most recent FDD filing, Qdoba Mexican Eats has 777 total units in the United States, including 613 franchised units and 164 company-owned units. 52 new units were opened in the latest reporting year.
Is Qdoba Mexican Eats a good franchise to buy?
FranchiseVerdict rates Qdoba Mexican Eats as a A-grade franchise with a verdict score of 93 out of 100 (higher is better), 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.
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.