How Much Does a Fiesta Franchise Cost?
Data from the 2022 Franchise Disclosure Document
Investment Summary
Total Investment
$72K – $157K
Franchise Fee
$15K
Royalty
20.0%
Ad Fund
$1,200 per calendar month
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Fiesta is $15K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Fiesta franchise requires a total investment of $72K – $157K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $25K to $75K.
Ongoing Costs
Beyond the initial investment, Fiesta franchisees pay ongoing fees. The royalty fee is 20.0% of gross sales (Percentage of Gross Revenue). The ad fund contribution is: $1,200 per calendar month. There is also a technology fee of $200.
Net Worth & Liquid Capital Requirements
Fiesta requires working capital of $25K – $75K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Fiesta's Item 19 financial performance representation:
Median gross sales: $223K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Fiesta?
SBA Loans Issued
15
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Fiesta has 15 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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