About Culichi Town Franchise
Culichi Town is a casual dining restaurant franchise specializing in the gastronomy of Culiacan, Sinaloa, Mexico, with a distinctive menu featuring Mexican style seafood, sushi, and a full bar service with leading Mexican spirits.
The franchise fee is $150,000, and the company has been franchising since 2022.
The concept delivers an authentic and vibrant dining experience rooted in the rich culinary traditions of northwestern Mexico.
Culichi Town Franchise Cost & Fees
Minimum Investment
$1.1M
Average Investment
$1.6M
Maximum Investment
$2.1M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $150,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.0% of Gross Sales | National brand fund |
| Total Investment Range | $1,113,797 – $2,126,760 | Includes build-out, inventory, working capital |
The investment range of $1.1M–$2.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (2.0% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $150,000 | $150,000 |
| Security Deposit | $10,000 | $10,000 |
| Training Expenses | $33,000 | $73,000 |
| Rent, Security Deposits and other Payments under the Premises Lease | $72,000 | $392,000 |
| Equipment, Fixtures, Other Fixed Assets, Construction, Remodeling, Leasehold Improvements; Signs; Furniture, Décor Items and Decorating Costs; Kitchen Equipment, Supplies and Small Wares; Exhaust Hood | $350,000 | $550,000 |
| Inventory to begin operating (payable before the Opening Date) | $27,000 | $34,000 |
| Deposits and payments for licenses and permits including security deposits (excluding real estate), utility deposits, business licenses, and other pre-paid expenses | $15,000 | $19,000 |
| Alcohol Serving License | $50,000 | $100,000 |
| Professional Fees including architectural and design fees, and fees for accounting and legal services | $15,000 | $25,000 |
| Grand Opening Marketing | $0 | $10,000 |
| Insurance | $7,500 | $10,000 |
| POS System; integrated security cameras and non-POS computer and business equipment (hardware and software) | $14,097 | $20,760 |
| Additional Funds – first three months after opening | $370,200 | $733,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $75,000 |
| Renewal Fee | The higher of $50,000 or 25% of our then-current Initial Franchise Fee that we charge to franchisees buying their first Culichi Town Restaurant franchise. |
| Audit Fee | Cost of audit (including our reasonable accounting, legal fees and travel expenses), plus full amount of any underpayment and interest and late charges on any underpayment (if understatement of Gross Sales for any period of 3% or more). |
| Re-inspection due to failure to pass inspection | $500 per day per re-inspection, plus our out-of-pocket expenses to travel to send one of our staff members to your Culichi Town Restaurant, including transportation, food and lodging. |
| Late Fee | 1.5% per month per annum (but not more than the maximum legal rate of interest). |
| Remedial Work to Correct Unhealthy or Unsafe Condition | Service charge equal to 25% of the cost of the remedial or corrective work if we elect to correct any unhealthy or unsafe condition at the Franchised Restaurant. Additionally, you must reimburse us for all of our actual direct costs in performing the work, including for labor, materials, travel, supervision, and subcontractors. |
| Service Charge for Insurance | The cost of purchasing replacement insurance plus 25%. |
| Alternate Supplier Testing Fee | Based on our actual cost, but not to exceed $2,500 per request, plus reimbursement of direct expenses, for example, to visit a proposed supplier’s facility. |
| Mystery Shopper Fee | Between $150-$300/month (Not yet required, but may be implemented in the future). |
| Management Fee | $750/day. Additionally, you must reimburse us for our actual costs and direct overhead expenses. |
| Relocation Fee | $1,000 |
| Annual Meeting | Up to $500/person (if live in-person, not charged for video chat). |
| Liquidated Damages | If termination occurs more than 2 years after the Opening Date, equal to the product of (i) the average monthly Royalty Fees and Brand Development Fees paid, or that should have been paid, by Franchisee based on Gross Sales of the Franchised Restaurant during the most recent 2 years; times (ii) 36. If termination occurs less than 2 years after the Opening Date, equal to the product of (i) the average monthly Royalty Fees and Brand Development Fees paid, or that should have been paid, by Franchisee based on Gross Sales of the Franchised Restaurant during the period that the Franchised Restaurant was open; times (ii) 36. If termination occurs before the Opening Date, equal to the sum of the Initial Franchise Fee and Security Deposit unless the Franchise Agreement specifies a lesser amount. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 15 days |
| Classroom Training | 6 hours |
| On-the-Job Training | 112 hours |
| Training Location | Owner Orientation at franchisor headquarters; Operations and New Restaurant Opening at the franchised restaurant. |
| Additional Training | The franchisor may offer advanced and refresher training, potentially requiring up to 3 days per year for Primary Owners and General Managers. Supplemental initial training (up to 5 days) and post-opening training for new managers are available for a fee ($500/day per staff member plus travel expenses). A 10-day 'train-the-trainer' instructional course is offered for General Managers to become certified Training Stores, also for a fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically a 5-mile radius, or a 0.25-mile radius in Metropolitan Urban Core Areas, or the confines of a Captive Venue. |
| Description | Franchisees are granted a Protected Area, typically a 5-mile radius from the front door of the restaurant, or a 0.25-mile radius in Metropolitan Urban Core Areas, or the confines of a Captive Venue. Within this Protected Area, the franchisor and its affiliates will not establish or award franchise rights to anyone else to operate a Culichi Town Restaurant. However, the franchisor reserves the right to operate or license others to operate Culichi Town Restaurants in Captive Venues within the Protected Area, and to sell Culichi Town-branded products through various retail or wholesale channels, including online, to customers residing in the Protected Area. Franchisees do not have exclusive rights to customers within their territory and may face competition from other franchisees or company-owned outlets outside their specific Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years after the Opening Date |
| Renewal Term | 10 years |
| Renewal Fee | The higher of $50,000 or 25% of our then-current Initial Franchise Fee that we charge to franchisees buying their first Culichi Town Restaurant franchise. |
| Renewal Conditions | Franchisee must give 9-12 months written notice, pay the renewal fee, be in good standing (no more than 3 default notices in 24 months), sign the then-current Franchise Agreement (which may have materially different terms), satisfy current design/appearance standards, complete any required training, and sign a general release. The franchisor must still be awarding new franchises in the U.S. |
| Transfer Fee | $75,000 |
| Transfer Conditions | Requires franchisor's prior written consent. Proposed buyer must submit an application, meet current qualifications (financial, experience, character), be a good-standing business entity, sign the then-current Franchise Agreement (or assume existing one if no new franchises offered in state), and complete initial training. Selling franchisee must be in good standing, pay all obligations, and sign a general release. Franchisor has a right of first refusal (except for Qualified Transfers). |
| Termination for Cause | The franchisor can terminate for material default, with or without a cure period. Non-curable defaults include failure to obtain site approval/lease within specified times, monetary defaults (10 days to cure), misrepresentation, conviction of certain crimes, misuse of confidential information/trademarks, 3+ default notices in 24 months, abandonment, false reporting, or imminent danger to public health/safety. Curable defaults (30 days to cure) cover other breaches of the agreement or operating standards. |
| Non-Compete Period | During the Term and any Renewal Term, and for 2 years after expiration or termination. |
| Non-Compete Details | During the term and any renewal term, franchisee and Covered Persons (officers, directors, shareholders, etc., and their spouses/adult children/parents/siblings) are forbidden from directly or indirectly engaging in a Competitive Business anywhere in the world. For two years after termination or expiration, the restriction applies within 10 miles of any Culichi Town Restaurant (including the former franchised location) anywhere in the world. Owning 5% or less of a publicly traded Competitive Business is permitted. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | At least one Primary Owner (owning 25% or more equity) must be responsible for supervising operations and completing all Initial Training modules. The restaurant must always be under the direct, full-time supervision of a qualified General Manager, who may or may not be the Primary Owner. If multiple franchises are owned, each must have a different full-time General Manager and a separate management team. All owners with 10% or more equity must sign a Personal Guaranty. |
| Required Suppliers | Yes, the Operating Affiliate is the exclusive supplier for proprietary sauces, salsas, spice mixes, branded packaging, employee uniforms, and logo merchandise. Designated or approved third-party suppliers are required for exterior and interior signs. |
| Supply Restrictions | Franchisees must adhere to the CT System's specifications for all products and services, which can be by brand name, manufacturer, or minimum features. Proprietary items must be purchased exclusively from the Operating Affiliate. Exterior and interior signs must be purchased from a designated or approved third-party vendor. For non-designated goods/services, franchisees must use recommended or approved suppliers, or seek approval for alternative suppliers, which may involve a testing fee. |
| Franchisor Revenue from Suppliers | In 2022, the Operating Affiliate received $359,975 in revenue from purchases by licensees of Culichi Town Restaurants. The franchisor itself had no franchisees and thus no revenue from supplier transactions. |
Culichi Town Franchise Earnings — Item 19
Culichi Town does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Culichi Town does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Culichi Town Litigation & Risk Flags
Clean Litigation RecordCulichi Town has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Culichi Town System Growth
Total Units
2
Franchised
0
Company-Owned
2
Culichi Town currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 7 | 0 | 19 |
| 2021 | 2 | 2 | 19 |
| 2022 | 2 | 7 | 14 |
Transfers: 0 | Closures: 7
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Culichi Town Franchise — FAQ
The total investment to open a Culichi Town franchise ranges from $1,113,797 to $2,126,760, per their Franchise Disclosure Document. This includes the initial franchise fee of $150,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Culichi Town charges a royalty fee of 5% of Gross Sales of gross sales, plus a 2.0% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Culichi Town Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Culichi Town to ensure you have the most up-to-date version.
Culichi Town does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Culichi Town has been franchising since 2022. The FDD shows an investment range of $1,113,797-$2,126,760, a 5% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $150,000 and the total investment ranges from $1,113,797 to $2,126,760 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Culichi Town and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Culichi Town or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com