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Qdoba Mexican Eats Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Qdoba Franchise?
To open a Qdoba Mexican Eats franchise, you should expect an initial investment ranging from $236,500 to $1,294,000. This includes a franchise fee of $40,000. Additionally, you will need to ensure you have cash reserves of $100,000 to $150,000 and a net worth of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to assess their readiness for this opportunity.
What Are the Ongoing Fees for a Qdoba Franchise?
Franchisees of Qdoba Mexican Eats are required to pay a royalty fee of 5% of their gross sales, along with a marketing fee of 2.75%. These ongoing fees contribute to the brand's overall marketing efforts and support systems. It’s important for potential franchisees to factor these costs into their financial planning to ensure sustainable profitability.
What Are the Financial Performance Metrics for Qdoba Units?
On average, a Qdoba franchise unit generates annual revenues of approximately $1,643,653. The cost of goods sold (COGS) accounts for about 28.2% of revenue, resulting in a gross profit margin of 71.8%. After deducting operating expenses, the EBITDA stands at roughly 16%. These figures highlight the potential profitability of a Qdoba franchise, making it an attractive option for investors.
What Is the Growth Trend for Qdoba Franchises?
Qdoba has shown consistent growth in its franchised units, increasing from 406 units in 2022 to a projected 613 units in 2024. This expansion indicates a growing demand for the brand and presents opportunities for new franchisees to enter a thriving market. With a breakeven time of around 12 months and an investment payback period of 15 months, Qdoba franchises can be appealing for those looking to establish a successful business.
Qdoba Mexican Eats Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Qdoba Mexican Eats Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Units | 692 | 747 | 777 |
| Net Change YoY | 55 | 30 | |
| Franchised Units | 406 | 571 | 613 |
| Net Change YoY | 165 | 42 | |
| Corporate Units | 286 | 176 | 164 |
| Net Change YoY | -110 | -12 |
Investment Overview
The Qdoba Mexican Eats franchise offers a range of investment options, with initial costs varying from $236,500 to $1,294,000. The initial franchise fee is set at $40,000, while ongoing royalties are 5% of gross sales, complemented by a marketing fee of 2.75%. Prospective franchisees should have liquid cash of $100,000 to $150,000 and a net worth between $500,000 and $1,000,000 to qualify for ownership.
Financial Performance
On average, Qdoba units generate annual revenues of approximately $1,643,653. The financial metrics indicate a healthy gross profit margin of 71.8%, with operating expenses accounting for 53.4% of revenue. The EBITDA stands at about $263,398, representing 16% of total revenue, highlighting the brand's potential for profitability.
Revenue Variability
Revenue across Qdoba franchises can vary significantly, with the lowest annual revenue reported at $417,422 and the highest reaching $5,492,729. This variance underscores the importance of location, management, and market conditions in determining a franchise's success.
Breakeven and Payback
New Qdoba franchisees can expect to breakeven within approximately 12 months of operation. The investment payback period is estimated at 15 months, providing a relatively quick return on investment compared to other franchise models.
Growth Trajectory
Qdoba has shown consistent growth in its franchise network, increasing from 406 franchised units in 2022 to 613 projected units in 2024. This expansion reflects the brand's popularity and the increasing demand for fast-casual dining options in the Mexican cuisine segment.
Corporate Structure
Qdoba Mexican Eats operates both franchised and corporate units. As of 2023, there are 571 franchised locations and 176 corporate units. This dual structure allows for a balance between corporate oversight and franchisee autonomy, fostering a collaborative environment for growth and innovation.
Frequently Asked Questions
The initial investment for a Qdoba franchise ranges from $236,500 to $1,294,000, which includes the franchise fee and other startup costs.