About SM Franchise
Super Mex is a full-service Mexican restaurant franchise that offers a variety of traditional Mexican-style food and dishes made with fresh ingredients using proprietary recipes, salsas and sauces.
Franchisees operate restaurants that serve appetizers such as guacamole, poppers, nachos and wings, a selection of proprietary salsas, signature burritos, specialty dishes like carnitas, flautas and enchiladas, combination plates, ala carte menu items, a kids menu, non-alcoholic beverages, limited desserts and retail items.
The restaurants serve dine-in, take-out and delivery customers in a fun, casual and family-oriented environment.
SM Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 3.5% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0.5% of Gross Revenues per month (may increase but total contribution not to exceed 3% per month) | National brand fund |
| Total Investment Range | $418,644 – $1,458,700 | Includes build-out, inventory, working capital |
The investment range of $419K–$1.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3.5% of Gross Revenues) and marketing fee (0.5% of Gross Revenues per month (may increase but total contribution not to exceed 3% per month)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Technology | $38,000 | $62,000 |
| Kitchen Equipment, Furniture and Fixtures | $69,000 | $188,000 |
| Real Estate | $12,144 | $58,200 |
| Leasehold Improvements | $120,000 | $800,000 |
| Utilities | $800 | $2,000 |
| Signage | $8,500 | $20,000 |
| Start Up Inventory | $35,000 | $58,000 |
| Vehicle | $0 | $2,500 |
| Vehicle Graphics | $500 | $2,500 |
| Grand Opening Marketing | $5,000 | $8,000 |
| Staffing | $57,000 | $125,000 |
| Uniforms | $400 | $700 |
| Insurance | $7,000 | $12,000 |
| Travel, Lodging and Meals for Initial Training Program | $5,300 | $6,800 |
| Licenses, Permits, Certifications and other Professional Fees | $5,000 | $8,000 |
| Additional Funds (3 Months) | $30,000 | $80,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 (less than 49% of assets) or $10,000 (more than 49% of assets) |
| Renewal Fee | None |
| Technology Fee | $100-$125/month for POS system; $150-$200/month for business intelligence software; $30-$45/month for content management software |
| Audit Fee | Cost of audit fees plus interest at 18% per annum (estimated $4,500-$7,500) |
| Local Advertising | Minimum $250 per month |
| Interest and Late Charges | 1.5% per month or maximum rate allowed by law, plus $25 |
| Additional Training | Up to $200 per person per day |
| Satellite or Cable Television | $100-$280 per month |
| Security Alarm | $50-$65 per month |
| Laundry Service | $125-$180 per week |
| Inspection Fee | $2,000 if fail inspection second time |
| Web Page Edits | $65-$125 per hour |
| Product/Vendor/Equipment Testing Fee | Up to $200 per product or $500 for equipment testing |
| Resale Fee | Varies |
| Temporary Management | Actual costs |
| Conference Fee | Up to $500 per person registration |
| Refresher Training | Up to $200 per person per day |
| Music Subscription | $27-$35 per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 4 weeks |
| Classroom Training | 64 hours |
| On-the-Job Training | 190 hours |
| Training Location | Corporate headquarters in Whittier, California |
| Additional Training | Up to 7 days of pre-opening or grand opening assistance at franchisee location; ongoing refresher training and continuing education available |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Up to 4 miles driven in any direction from the franchise location |
| Description | Protected territory determined by population, demographics, business potential and market penetration. Territory will not be altered based on population changes. Non-Traditional Locations do not receive a protected territory. Franchisor reserves right to grant larger or smaller territory for densely or sparsely populated areas. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Up to two 10-year renewals |
| Renewal Fee | None |
| Renewal Conditions | Written notice of intent to renew, full compliance, sign then current form or new franchise agreement, comply with current training and qualification requirements, execute a general release, upgrade restaurant to current standards |
| Transfer Fee | $5,000 (less than 49% of assets) or $10,000 (more than 49% of assets) |
| Transfer Conditions | Full compliance, transferee qualifies, all amounts paid in full, completion of training by transferee, transfer fee paid, transferee agrees to be bound by all terms, franchisee signs release and delivers required documents. Franchisor has right of first refusal. |
| Termination for Cause | Breach of a material provision of the FA or fail to open the Restaurant. Curable defaults: violation of health or safety laws (72 hours notice), failure to pay amounts owed (5 days), all other defaults (60 days). Noncurable defaults include abandonment, failure to complete training, felony conviction, unauthorized assignment, bankruptcy. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No interest in competing business for two years within ten miles of any company owned outlet or other franchises. During term, no involvement in any competitive business anywhere in the US other than existing business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Restaurant must at all times be under direct, day-to-day, full time supervision by a trained General Manager. Owner (or managing Owner if entity) does not need to be personally involved in day-to-day operations, but must retain a chef and General Manager who have completed training. |
| Required Suppliers | Must purchase approved products, supplies, kitchen equipment from franchisor, affiliates or approved vendors/suppliers. Currently franchisor is not the only approved supplier except for miscellaneous forms, take-out menus, advertising, promotional and marketing materials. |
| Supply Restrictions | Cannot purchase unapproved products or supplies or lease/purchase unapproved kitchen equipment from any vendor/supplier not on pre-approved list without written permission. Must adhere to standards and specifications for all products, menu items, equipment, services. |
| Franchisor Revenue from Suppliers | Received $6,858.41 in allowances, rebates and commissions from approved suppliers (3.3% of total revenue of $207,143). One affiliate derived revenue of $9,950 through license fees and other monies from approved suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor its affiliates currently offer any financing arrangements. May assist franchisees in obtaining financing by referring to third parties. |
SM Franchise Earnings — Item 19
SM 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.
SM Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
SM System Growth
SM currently operates 4 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 1 | 1 | 11 |
| 2022 | 0 | 2 | 9 |
| 2023 | 0 | 0 | 9 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 1 states: CA
Franchisor Financials (Item 21)
SM Franchise — FAQ
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