About Mucho Burrito Franchise
Mucho Burrito is a fast casual Mexican restaurant franchise known for its fresh, made to order burritos, tacos, bowls, and quesadillas.
The brand operates under the MTY Food Group umbrella, one of the largest franchise restaurant companies in North America.
Since beginning franchise operations in 2019 under its current structure, Mucho Burrito has been expanding its presence with a menu that emphasizes visible preparation and premium ingredients.
Mucho Burrito Franchise Cost & Fees
Minimum Investment
$425K
Average Investment
$620K
Maximum Investment
$816K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of Gross Sales | National brand fund |
| Total Investment Range | $425,000 – $815,500 | Includes build-out, inventory, working capital |
The investment range of $425K–$816K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Up to 4% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $24,000 | $30,000 |
| Travel and living expenses while training (2) | $1,000 | $6,000 |
| Lease deposit plus three months’ rent (3) | $12,500 | $20,000 |
| Lease Review Fee (4) (Optional) | $0 | $2,500 |
| Leasehold improvements (5) | $150,000 | $315,000 |
| Equipment & furniture (6) | $175,000 | $275,000 |
| Freight charges (7) | $500 | $8,500 |
| Signage (8) | $7,000 | $20,000 |
| Architectural Design & Engineering Fee (9) | $7,000 | $17,000 |
| Grand Opening Marketing fee (10) | $10,000 | $10,000 |
| Opening inventory (11) | $7,000 | $8,500 |
| Miscellaneous expenses: deposits (12), permits and licenses, professional fees (13), etc. | $1,000 | $5,000 |
| Software, hardware and POS system (14) | $5,000 | $10,000 |
| Security system (excluding monitoring costs) (15) | $3,000 | $3,000 |
| Insurance | $1,500 | $3,500 |
| Additional Funds – First 3 months (16)(17) | $20,000 | $80,000 |
| Uniforms (18) | $500 | $1,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | 50% of the then-current Initial Franchise Fee not including any discounts or reductions |
| Technology Fee | Data Fees: Up to $75 per month; POS Help Desk Phone Support Maintenance Contract Fee: $55 per month |
| Audit Fee | Cost of Audit plus interest at Default Rate on underpayments or the maximum rate permissible by law |
| Additional Persons Training Fee | $1,750 per person |
| Additional Training Fee | $300 per person per day |
| Annual Meeting Registration Fee | Up to $1,000 plus incidental costs to attend |
| Gift Card Redemption Fee | Currently 11% of the amount of the gift card redemption |
| Relocation Fee | $500 |
| Document Administration Fee | $500 |
| Default Interest | 1-1/2% or maximum legal rate, if less |
| Late Report Fee | $100 per report |
| Late Charge | 5% of the unpaid amount or $100, whichever is greater |
| Sublease Late Charge | 5% (if more than 3 days overdue) or 18% (if more than 10 days overdue) of the late or unpaid amount plus any late charges and interest incurred under the Master Lease |
| Collection Costs | All collection costs including, but not limited to, reasonable attorneys' fees |
| Non-Sufficient Funds Fee | $50 for each electronic funds transfer returned for non-sufficient funds; $25 for each check or draft returned for non-sufficient funds |
| New Supplier Approval Fee | A charge not to exceed the reasonable cost of the inspection and the actual cost of the test not to exceed $5,000 |
| Early Termination Damages | The average monthly Royalty and Advertising Fees paid for any consecutive 12 month period within the preceding 48 month period multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2 |
| Attorneys’ Fees and Costs | Will vary under the circumstances |
| Indemnification of us and/or our affiliates for damages suffered or incurred for your actions or omissions | Will vary under the circumstances |
| Damages for Breach of Non-Compete Obligations under the Franchise Agreement | Will vary under the circumstances |
| Non-Participation Fee | $100 per day |
| Management Fee | 6% of the Franchised Business’ Gross Sales (in addition to the Royalty Fee and Advertising Fee) plus our direct out-of-pocket costs and expenses |
| Draft draw charge | $100 per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 120-160 hours |
| Classroom Training | 40 hours |
| On-the-Job Training | 80-120 hours |
| Training Location | New Owner Training: Online, Ontario, Canada or KTEC (Kahala Training & Education Center) in Scottsdale, AZ. In-Store Training: In Canada or a restaurant location in the United States. |
| Additional Training | $300 per person per day |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees will not receive an exclusive territory. The franchisor and its affiliates may establish other franchised or company-owned Mucho Burrito restaurants that may compete with the franchisee's location, including across the street or in the same venue. The franchisor also reserves the right to co-brand Mucho Burrito with other quick-service restaurants or allow approved Mucho Burrito stores to sell additional menu items under a trademark license agreement. Mucho Burrito products and services may also be marketed through other channels of distribution (e.g., Internet, grocery stores) that may compete with the franchisee's location. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years |
| Renewal Fee | 50% of the then-current Initial Franchise Fee not including any discounts or reductions |
| Renewal Conditions | To renew, the franchisee must give 120 days' notice, not be in default, be in complete compliance with the agreement and manual, not have received more than 3 default notices during the term (or 2 in the last 5 years), have existing premises or a suitable substitute, sign a general release, execute new agreements (which may have materially different terms and higher fees), remodel/refurbish if necessary, upgrade the POS system, and pay the renewal fee. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Franchisor's consent is required. Conditions include the new franchisee qualifying, no existing defaults, payment of transfer franchise fee and transfer training fee, all obligations paid, new franchisee completing training, remodeling/refurbishing if necessary, keeping existing store telephone number, and signing a release and new agreements. |
| Termination for Cause | Defaults leading to termination include insolvency/bankruptcy, failure to pay monies owed (7-day cure), breach of agreement/manual (14-day cure), lease default (cure period per lease), failure to discharge judgments over $2,000 (30-day cure), serious health/safety problems (immediate correction/closure), felony conviction, abandonment (3 consecutive days closure), unauthorized relocation, inaccurate reporting, violation of federal/state/local law, failure to participate in rollouts, violation of product/supplier rules, unauthorized transfer, involvement in prohibited activities (e.g., U.S. Executive Order 13224), false representations, and cross-default with other agreements. Cure periods vary from immediate to 14 days, with some incurable defaults. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement and for two (2) years after its abandonment, expiration, or termination (voluntary or involuntary), the franchisee shall not engage in any 'Competing Business' or have a 'Conflicting Interest' in a 'Competing Business'. A 'Competing Business' is primarily engaged in selling freshly made tacos and burritos. The geographical restriction is 'anywhere' during the term and within a 'ten (10) mile radius' from the location after termination/expiration. This covenant applies to the franchisee and its principals in any capacity (e.g., owner, employee). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | While not strictly required by the Franchise Agreement, the franchisor intends to select franchisees who plan to actively participate in the direct operation and daily affairs of the business. The franchise must be personally managed with on-premises supervision by the franchisee, another partner/shareholder/member of the business organization, or a manager who has successfully completed the Training Program. |
| Required Suppliers | All present and future food and drink products, ingredients, equipment, computer hardware and software, furniture, fixtures, millwork, décor, signs, computer equipment, supplies and other products, services, and materials which you will use in the operation of your Franchised Business meet our standards and be purchased only from approved distributors and suppliers. |
| Supply Restrictions | Franchisees must purchase restaurant equipment, interior and exterior sign packages, menu panels, approved cash register/point of sale computer systems and software, and obtain credit card and gift card processing services from approved vendors or according to franchisor specifications. New or alternative suppliers require written approval from the franchisor's purchasing department. |
| Franchisor Revenue from Suppliers | MTY USA and its subsidiaries derived $30,329,806 from sales of products, services, and product allowances to franchisees. Neptune Equipment earned $862,172 from equipment, furniture, menu boards, and signage. Kahala Management earned $556,694 from POS help desk phone support maintenance fees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor does not offer direct or indirect financing or guarantees, except potentially for the lease for your site or if you purchase a corporate-owned restaurant "as-is" from an affiliate. If purchasing a corporate-owned restaurant, financing up to 100% of the purchase price may be offered, with interest rates between 0% and 12% depending on creditworthiness, amount financed, and upfront payment. Repayment terms range from 12 to 60 months, with a first position lien on all equipment as security. |
Mucho Burrito Franchise Earnings — Item 19
Mucho Burrito 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.
Mucho Burrito 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.
Mucho Burrito Litigation & Risk Flags
5 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Mucho Burrito System Growth
Total Units
0
Franchised
0
Company-Owned
0
Mucho Burrito currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 0 | 2 |
| 2020 | 0 | 1 | 1 |
| 2021 | 0 | 1 | 0 |
Transfers: 0 | Closures: 2
State Registrations
Registered in 5 states: CA, IL, IN, NY, WI
Franchisor Financials (Item 21)
Revenue
$216.7M
Net Income
$30.0M
Total Assets
$750.1M
Audited by PricewaterhouseCoopers LLP for year ending November 30.
Mucho Burrito Franchise — FAQ
The total investment to open a Mucho Burrito franchise ranges from $425,000 to $815,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Mucho Burrito charges a royalty fee of 6% of Gross Sales of gross sales, plus a Up to 4% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Mucho Burrito 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 Mucho Burrito to ensure you have the most up-to-date version.
Mucho Burrito 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.
Mucho Burrito has been franchising since 2019. The FDD shows an investment range of $425,000-$815,500, a 6% of Gross Sales royalty, and no Item 19 earnings disclosure. There are 5 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $425,000 to $815,500 depending on location size and market. A minimum of $15,000 in liquid capital is required. 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 Mucho Burrito and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Mucho Burrito or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com