About The Empanada Maker Franchise
The Empanada Maker is a fast casual restaurant franchise centered on handcrafted empanadas with a variety of savory and sweet fillings.
The brand brings the beloved Latin American pastry to a quick service format, offering freshly made empanadas alongside complementary sides and beverages.
The Empanada Maker began franchising in 2024.
The Empanada Maker Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of weekly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of weekly Gross Sales | National brand fund |
| Total Investment Range | $246,274 – $554,467 | Includes build-out, inventory, working capital |
The investment range of $246K–$554K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of weekly Gross Sales) and marketing fee (2% of weekly Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Rent | $10,000 | $30,000 |
| Construction and Leasehold Improvements | $50,000 | $200,000 |
| Furnishings and Fixtures | $5,000 | $20,000 |
| Equipment | $50,000 | $70,000 |
| Signage | $7,500 | $20,000 |
| POS system/Computer System/Software | $2,500 | $7,500 |
| Opening Inventory | $7,500 | $10,000 |
| Utility and Security Deposits | $5,000 | $15,000 |
| Business Licenses and Inspections | $500 | $2,500 |
| Professional Fees | $10,000 | $35,000 |
| Insurance Premiums | $1,000 | $5,000 |
| Training living expenses | $3,395 | $5,389 |
| Grand Opening Marketing | $15,000 | $20,000 |
| Additional Funds – 3 months | $38,879 | $74,078 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% to 75% of the then-current initial franchise fee or $1,500 for internal transfers |
| Renewal Fee | $5,000 |
| Technology Fee | Not currently collected, but can be charged any time during the term up to $100 per week |
| Audit Fee | The greater of $1,500 or actual cost of audit. |
| Inventory | Varies |
| Local Marketing Spend | $1,000 per month in your first year; greater of $500 or 1% of monthly Gross Sales in subsequent years |
| Collection and Interest Charges | 10% or highest lawful rate if lower |
| Late Fee | 10% or highest lawful rate if lower |
| Conferences and Conventions | $500 per attendee |
| Refresher Training | Up to $500 per training session plus out of pocket expenses and travel |
| Additional Training | $1000 per day per trainer plus out of pocket expenses and travel |
| Fines | Up to $1,000 per occurrence |
| New Supplier/Product Evaluation Fee | $500 plus costs incurred for testing |
| Indemnification; Hold Harmless | Any and all types of damages, liabilities, losses, costs, and expenses |
| Attorney’s Fees and Costs, and Arbitration | Depends on what we spend |
| Insurance Premium Reimbursement | Varies according to plan and provider |
| Enforcement Costs | Will vary |
| Continued Operation After Expiration | 150% of Royalties per month |
| Insufficient Funds | $250 plus any fee charged us for uncollected funds |
| Quality Control Review Services | Our costs |
| Refurbishing Fee | Depends on what we spend plus administrative fee of 15% of total aggregate expenses |
| Third Party Supplier Charges | Your share of any charges billed to us on behalf of your business |
| System Modifications | All reasonable costs and expenses associated with system modification |
| Data Inspections and Reimbursement | Varies |
| Relocation Fee | 25% of the then-current Initial Franchise Fee |
| Management Fee | The greater of $500 per day or 10% of Gross Sales (plus costs and expenses) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | five days of training |
| Classroom Training | 8 |
| On-the-Job Training | 40 |
| Training Location | Costa Mesa, CA and Mission Viejo, California |
| Additional Training | We may offer additional training as we see fit or as you request. Our current additional training rate is $1,000 per day per trainer. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Typically 30,000 people |
| Description | We will grant to you a protected territory that we designate in the Franchise Rider attached as Attachment 1 to the Franchise Agreement (“Territory”). Typically, that Territory will consist 30,000 people, as determined by the latest U.S. Census data or other data we deem reliable. We reserve the right to designate a smaller territory if the Restaurant is located in a densely populated area. We also reserve the right to grant you a Territory with a smaller or greater radius, as mutually agreed upon by you and us. We must accept the location of your Restaurant. Your Territory is protected only to the extent that we will not establish or operate, or license any other person to establish or operate, a THE EMPANADA MAKER Restaurant under the System and the Marks at any brick-and-mortar location within your Territory, except at a Non-Traditional Restaurant (as defined below). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 7 years |
| Renewal Term | Two five-year renewal terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | You must be in good standing and exercise your option within a window of time. You must make required upgrades to your Restaurant, secure a sufficiently long lease term, sign a release, and pay your renewal fee equal to $5,000. You must agree to the terms of the Franchise Agreement then being offered. You may be asked to sign a contract with materially different terms and conditions than your original contract. For example, the royalty rate and Territory could be different, but will be no greater than the royalty and Territory we then impose on similarly situated renewing franchises. |
| Transfer Fee | 50% to 75% of the then-current initial franchise fee or $1,500 for internal transfers |
| Transfer Conditions | You must be in compliance with the Franchise Agreement, refurbish as we require, and execute a general release. Transferee must have a credit rating, moral character, reputation and business qualifications satisfactory to us, and must meet all then current requirements of new franchisees. Transferee must attend and successfully complete our initial training, and execute the Franchise Agreement and collateral agreements in the then-current form. If a sale is involved, you must offer us a 45-day right of first refusal and a transfer fee equal to i) 50% of the then-current initial franchise fee if the transfer is to an existing franchisee; ii) 75% of the then-current initial franchise fee if the transfer is not to an existing franchisee; or iii) $1,500 if you are requesting our approval of a change in ownership of the Franchisee entity not impacting the controlling interest |
| Termination for Cause | Failure to commence operations or meet other pre-opening obligations; non-payment, unauthorized transfer; public health or safety risk; unauthorized use of marks; conviction or proof of a crime; abusive acts; understating amounts owed or inaccurate records; failure to maintain a good credit rating; failing to have sufficient funds; use of an unauthorized supplier or failure to use a required supplier; repeated customer complaints; other non-compliance. Also automatic termination for bankruptcy, abandonment, loss of right to do business, unauthorized transfer, conviction of crime, failure to timely transfer after death/disability, repeated defaults, material misrepresentation, false records, material impairment of goodwill, misappropriation of employee wages/benefits, loss of required license, failure to pass training/background check, liability for discrimination, unauthorized trademark, opening without consent. |
| Non-Compete Period | During the term of the franchise and for two years after termination, non-renewal, or expiration |
| Non-Compete Details | During the term, you must not own or otherwise engage in any other similar business that receives 10% or more of its gross revenue from the sale of empanadas. For two years after termination, non-renewal, or expiration, you must not own or engage in any other similar business located within five miles of your Restaurant or any business location licensed by us that receives 10% or more of its gross revenue from the sale of empanadas. Managerial staff also required to enter into non-competition covenant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The business must be directly supervised and managed by a person, identified to us, and accepted by us, who has undergone our training program (“Operations Manager”). Unless you receive specific approval from us, we require you to personally supervise the Franchised Business. We prefer to select franchisees who favor and appear committed to a “hands on” and well-informed approach to the business. We strongly recommend that you devote a substantial amount of time to your Franchised Business, whether or not you hire a manager. |
| Required Suppliers | You must purchase and use only goods, services, supplies, fixtures, equipment, inventory, and computer systems that meet our standards and specifications. Franchisor or its affiliate may be an approved or designated supplier. Specifically, franchisor or affiliate are the only approved suppliers of certain branded items, packaging, ingredients, and pre-prepared food items. Approved POS system is Toast. Credit card processing service must be approved. |
| Supply Restrictions | Franchisee must purchase from approved or designated suppliers, which may include the franchisor or its affiliates. Franchisor or its affiliate are exclusive suppliers for certain branded items, packaging, ingredients, and pre-prepared food items. Franchisor reserves the right to revoke approval of any item or supplier. Cost of items from franchisor/designated suppliers represents 25-30% of total purchases for establishment and 35-40% for operation. |
| Franchisor Revenue from Suppliers | During our last fiscal year ended December 31, 2023, we received none of our revenue from franchisee purchases from approved suppliers. In the future, we may derive additional revenue from the sale of products, supplies, and equipment to you by our other approved suppliers. We reserve the right to receive payments, including rebates, commissions, and discounts, from designated suppliers based upon your purchases with them. We do not share any revenue received with you as a result of your purchases or leases and we are under no obligation to share any revenues received with you. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | At this time, we do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation. |
The Empanada Maker Franchise Earnings — Item 19
The Empanada Maker 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.
The Empanada Maker 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.
The Empanada Maker System Growth
The Empanada Maker 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 |
|---|---|---|---|
| 2021 | 1 | 0 | 3 |
| 2022 | 0 | 1 | 2 |
| 2023 | 0 | 0 | 2 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 19 states: CA, CT, HI, IL, IN, IA, MD, MI, MN, NY, ND, OK, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Metwally CPA PLLC for year ending December 31.
The Empanada Maker Franchise — FAQ
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